lol just ended up on the Basil black list.
local dealer tossed me the keys to a 2011 GT500 and said have at it, I was fairly responsible with it, no smoked tires but I did put it sideways at 75mph or so
Our insurance company would be freaking out if they read this thread lol.
Does cash really talk? Would you be more willing to sell a car for say 10 or 15% under msrp if the buyer paid in cash vs bank loans?
Actually we prefer that you finance
Finance is better for both the customer and the dealership. The banks typically give us lower rates than if you went to a bank or credit union which we pass on to the customer.
Why not cash? So the dealer can skim some money off the top?
No doubt the rates are always still good, but there is no reason why a dealer should prefer a loan to cash unless they are going to make more money off the deal.
You keep mentioning service.
I purchased a truck from a dealer in another part of the state. Why would the dealer where you purchased a car be more willing to give you good service then one where you didn’t purchase the vehicle? As long as its under warranty shouldn’t all dealers give you the same service? Additionally I do all my own maintenance, IE oil change and fuel filter changes. As long as I have my logs showing I’ve done the work, there shouldn’t be any issues correct? I don’t have time to wait at the dealer or be out my truck all day when I can do it in my driveway in 15 min for 1/2 the cost.
Regarding test drives. Ive had different experiences. Ive had them give me the keys and said bring it back tomorrow. Other times the salesmen wouldn’t let me drive the car or I couldn’t go on the highway. All my dealings where with used cars but every time I was 100% serious on buying a vehicle.
Dave was nice to me when I came on. Offered to let me take the car to a mechanic of my choice to get it checked out. Speaking of that I need to stop in for a oil change.
I think I know, based on being there when my brother in law bought a car with dealer financing. When you get the finance person that’s when the extended warranty, glass etching, undercoating and other big money makers for the dealer get pitched. They just roll them and pitch them as “for just $X extra month you can have all this protection”. The guy walking in saying he’s going to pay X in cash and walk away with the car is probably MUCH less likely to buy all the extras. If you’re that cash guy the dealership knows they have one place to make their profit and it’s in the car sale itself. That extended warranty looks a lot worse as a $2000 line item than it does for “just an extra $35 a month”.
Some dealers don’t service cars that weren’t purchased there and I really don’t know why. You are correct otherwise, save your receipts and you shouldn’t have any warranty issues. The manufacturer will only play that card if the customer has blatantly abused the vehicle and completely neglected maintenance.
EDIT: Like not changing oil for 4 years… then you’re in trouble because you can throw your warranty right in the trash.
You know where to find me!
Thanks for the advice!
Sad to think a solution for this problem is to trade in a two year old vehicle because of a faulty transmission. Seems to me like the problem should be repaired even if it means replacing the transmission and not lying to the customer and throwing guesses at a solution. Sounds like he went the lemon law route because he’s had all he can stand at this point. I’m no multinational mega billion dollar company and even I offer a 5 year warranty on my work.
And what happens to that vehicle when he “trades it in” to the dealer? I’m sure he’s going to lose money and what’s the dealer going to do with it? Re-sell it to another unsuspecting buyer and saddle them with the problem. They sure as hell aren’t going to fix it.
do the banks pay you a % for every car you sell and finance through them? Like an interest profit sharing type of thing
I’m not sure of what Basil does, but;
The first thing some dealerships like to do is lie about the interest rate they’ve secured for you. The finance manager might say “Great news! We got you a 7.5% rate!” when in fact they got you a 6.5% rate, but the lender is jacking it up 1% and giving the difference to the dealership. Often times this extra % is cut directly to the dealership in one check, it is NOT paid out over time.
Usually its a percentage or a flat amount. I.E. - Toyota pays the dealer $100/per lease contract. Even if we lease 50 cars a month, it’s only $5000. Every dealer and every bank participates in it. If you walk into a local credit union and personally get a rate of 2.99, I guarantee that the credit union gives the dealers it associates with a point or more less. So what’s the difference? (I.E. - Cornerstone lists 60 month rates as 4.25%. If a dealer calls them up and tells them that they have a customer that wants to use them, they will sell the dealer the rate for 3.25%…allowing the dealer to make a small profit)
And your credit union does this, as does the bank which lends you money. Every hand it switches until it makes it to you, makes a small or minuscule profit. When your credit union offers you their money for 3.99%, believe me…they didn’t buy it for that, it’s not a non-profit organization.
People buy a $200 pair of shoes and don’t care that it cost Cole Haan $13 to make. God forbid a dealer makes $500 on a $40,000 car, what an atrocity.
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I really think David wanted this thread to be a discussion on general advice and different questions that one might have when purchasing a car or servicing a car at a dealer. Not talking about how shady dealers are because they (just like ANY business in the entire known world) make every attempt to make profit when given the chance and also stick their necks out for customers when given the chance (atleast the good ones do).
Your local credit union is about as a close as you can get to non-profit without relying on charity. They operate as not-for-profits and put the money they make back into lowering loan rates for their members and paying out dividends on investment accounts. As someone who writes credit union processing software for a living I see their general ledger totals all the time and these places don’t make mega bucks and have millionaire CEO’s like banks do.
Neither do dealers than make a measly 1% markup on rates. Every not-for-profit CEO I personally know, makes way too much money for just walking to the mailbox everyday. Banks have mega bucks and millionaire CEO’s because of volume and stability…more importantly, that’s what the market can/will bear. A CEO of a 1,000 member credit union obviously can’t make as much as a 10,000,000 member bank such as Chase. Although, I get your point. However, I see “big” banks like Citizens, First Niagara, NBT and TD Bank offering far better rates than that of credit unions locally.
1% gross on a car is good money for doing almost nothing.
I love you Penfed with your awesome 1.99% on used car rate.
Almost nothing? You mean, processing the paperwork, securing the loan, maintaining the relationship, being responsible for the execution of your loan, answering your questions, days-months-years later… and keeping the paperwork in storage for 7 years… yeah, not a lot of work.
1% gross on a $25,000 car is $250. That’s hardly anything.
Regardless, it’s not 1% gross on the sale of the car. Nevermind, I’m removing myself from this. I know nothing about car dealers, I just work as a lot kid at one on the weekends for extra cash on the side.