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Thread: Screw car dealer- possible?

  1. #1
    madmaxine
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    Default Screw car dealer- possible?

    No, not the way they'd like, ha ha ha....has anyone here cut a deal on a vehicle that was mostly in their favor? I was treated so rudely by big car dealerships when I was younger and without credit that I have a huge mean chip on my shoulder. I'm going to a real pain when I buy a new car.
    Through my brother, I have access to auctions, but it's a hazardous non-warranty way to buy a car. (I have heard funny stories of people getting free vials of crack and cubes of hash in their newly bought police auction vehicles...believe it or not, some people don't want those free prizes!)
    Also, opinions on refinancing: I saw a stat that most people went this route with their car loan for different reasons.

  2. #2
    Banned Melonie's Avatar
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    Default Re:Screw car dealer- possible?

    Big car dealerships always know how much they have 'invested' in any car that they offer for sale. Thus there is no way that a customer is actually going to be able to 'screw' them, even though it might seem that way to the customer. The best a customer can do is choose a car in which the dealer doesn't have much money invested (like for example a 'program' car or car bought cheap at a dealer's only auction or a used car taken in on an expensive trade-up) and get the dealer to pass on some of those savings to you !

    If you have access to a dealers only auction, the money you'll typically save on the purchase price of the vehicle should more than make up for having to cover repair expenses yourself. Of course this means assuming a calculated risk that the engine or transmission are going to blow up, with the repair expenses wiping out your initial savings on the purchase price and then some. There are of course aftermarket auto warrantee companies like ServiceGuard which allow you to buy warrantee protection. These are usually sold through car dealers though - ask your brother if he has connections to this sort of thing as well as dealer only auctions.

    As far as re-fi's on cars, with interest rates turning uphill and car manufacturers turning to 'cash back' programs rather than 0% interest loans, this is much less of a trend than it was a couple of years ago.

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    God/dess scarlett_vancouver's Avatar
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    Default Re:Screw car dealer- possible?

    I don't know exactly where you get the dealer price info, but this is what my bf did: find out the dealer price of the car, walk into the dealership with cash in hand (not literally, but have enough to pay in full that day) and offer $100 more than the dealer price. They'll say no, shrug and walk away, they will call you back, try to get you to pay more, tell them the same price again, and casually throw in that you plan on buying the extended warranty. Try to throw this out in the presence of the owner/manager.

    According to the bf (I don't drive, I'm clueless), the extended warranty is worth it. And the dealership profits from the extended warranty (I guess they do the work and then bill out to the manufacturer?), so they'll likely grab on to that. Moving cars off the lot is always good, and the kicker- little to no commission for the dealer!

    I'm interpreting what my bf told me he did, so feel free to correct if something sounds off.

    Feature costumes for sale!

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    Featured Member scorpio's Avatar
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    Default Re:Screw car dealer- possible?

    That is not true melonie. When I worked for a dealer, every once in awhile we would get cars on trade that were misrepresented, altered, or even with altered titles! On most new car purchases, the dealers are only making $100, or less, here in the Chicago area. They try to make it up selling warrantees, rust proofing, devalueing trade-ins, etc. but a saavy customer can keep a dealers profit low. Actually, IMO, too low.

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    Banned Melonie's Avatar
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    Default Re:Screw car dealer- possible?

    That is not true melonie. When I worked for a dealer, every once in awhile we would get cars on trade that were misrepresented, altered, or even with altered titles!
    I guess I'm too suspicious, as are the car dealers in the NY/NJ area. I took it for granted that all dealers verify clear titles on trade-ins, thus know exactly how much "credit" from the trade-in was applied to the new car purchase, thus know exactly how much they need to get out of a sale of the traded car to turn a profit. All car dealers in my area also know the recent dealer auction values of used cars of all makes and models, and will NEVER sell a car below that value (unless as you say they can make a buck on the side via an aftermarket warrantee sale or whatever).

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    Featured Member scorpio's Avatar
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    Default Re:Screw car dealer- possible?

    But Mel, how much time does a dealer have to reasearch a trade at the time of purchase? It's highly unlikely that they would find out in time, not to mention mechanical/structural problems can be concealed as well.

  7. #7
    madmaxine
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    Default Re:Screw car dealer- possible?

    What I want to know is, what do they teach salesmen in terms of reading a customer? I've encountered two extremes in all kinds of scenarios: shopping with brother/ trade-in, alone with chunk of cash...etc. And...it was either strong arm ass-kissing or a cold disinterest. I feel sorry for the salesmen, I know "hustling" a sale is a lot of hard work, but manners are remembered, good or bad.
    The smartest shoppers I know show up looking like they have no money. My aunt and uncle make a combined $100,000 a year, but went to the import dealership dressed like hayseeds and snagged a nice deal on a one year lease return. My uncle likes to brag that the salesman rolled his eyes and flopped his mouth open when they sat down to do the paperwork for the sale, and found out what they made.

  8. #8
    Banned Melonie's Avatar
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    Default Re:Screw car dealer- possible?

    But Mel, how much time does a dealer have to reasearch a trade at the time of purchase? It's highly unlikely that they would find out in time, not to mention mechanical/structural problems can be concealed as well.
    I was speaking of purchasing a used car, which was previously taken as a trade-in by the dealer. In this case the dealer knows how much the customer trading in the car was credited, and knows how much in total the customer spent on his new car, thus knows exactly how much money the dealership needs to get out of that used car in order to turn a profit.

    Trying to work a deal with your own old car as a trade-in is a different story. In this case, it usually works out better to work through the new car negotiating process with the dealer without letting on that there is a trade-in involved to arrive at a firm cash price - and THEN talk about how much credit the dealer is willing to give you on your trade-in as a separate matter.

    I also agree that you always want to portray yourself to a car dealer as being short of money. If the dealer can sense that you're flush with cash you will never get his best deal, because he figures that you will relent. But if the dealer thinks that you're short of money, he must gamble that if the price the dealer quotes will be outside of your budget you'll blow him off in favor of a different car model/different dealership.

    Also, it doesn't hurt to wear something that looks a bit old and a bit shrunken to the car dealer - particularly cut-off shorts and a button-up blouse that is 2 sizes too small with the buttons pulling apart over your boobs! It's been my experience that dealers will bend over backwards to see me bend over forwards LOL ! Seriously, some dealerships will cut an extraordinary deal on the premise of having a hot chick car owner returning to the dealership for service (on her car!) on a continuing basis.

    Another technique is the hypnotic effect of cash. When you're done with a couple of rounds of negotiation with the car dealer and they still won't quite cut you the deal you want, letting them see quite a few $1000 stacks of $50 bills in your purse has a way of inspiring further negotiation.

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    God/dess VenusGoddess's Avatar
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    Default Re:Screw car dealer- possible?

    when I negotiate I do it very simply. I say "I'm not here to screw around. I am buying a car TODAY! This is what I will pay, if you wont give it, someone else will..."


    and it's true and they know it!

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    God/dess FBR's Avatar
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    Default Re:Screw car dealer- possible?

    Quote Originally Posted by VenusGoddess link=board=6;threadid=11367;start=msg146899#msg146 899 date=1091246883
    when I negotiate I do it very simply. I say "I'm not here to screw around. I am buying a car TODAY! This is what I will pay, if you wont give it, someone else will..."


    and it's true and they know it!
    VG thats exactly the approach that I take...and it works

    FBR
    Once again I have embraced my addiction and have put off the moral dilemma to another day.

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    God/dess Silverback's Avatar
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    Default Re:Screw car dealer- possible?

    Well,

    The first thing I do is tip the receptionist.

    Then, when three or four salesmen come at me in the traditional velociraptor attack pattern, I hand 'em each 20 bucks.

    Then I pay the one I talk to $100 for his time, 'cause I know he's there to earn money.

    When he shows me the sticker price, I usually offer about $400 over whatever it says. You know, don't wanna look cheap!

    Then just to make sure that the dealership is well compensated for being a place that I walked into, I buy all the inner, over, and undercoating stuff and whatever else they got. Again, cause they're there to earn money and I don't wanna look cheap.
    "He will come in one of the pre-chosen forms. During the rectification of the Vuldrini, the traveler came as a large and moving Torg! Then, during the third reconciliation of the last of the McKetrick supplicants, they chose a new form for him: that of a giant Slor! Many Shuvs and Zuuls knew what it was to be roasted in the depths of the Slor that day, I can tell you!"

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    God/dess VenusGoddess's Avatar
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    Default Re:Screw car dealer- possible?

    Mad: If you buy your car with very little credit, then you most likely will get hit with a high interest rate. A lot of places will refi your car loan to a lower rate if you show at LEAST 6-9 months of on-time payment history on the car. The best deals come when you make those payments on-time for a year. You may get stuck paying 14% for a year, but usually, if you keep your credit clean, you can refi that down to a single digit rate.

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    Featured Member exotica17's Avatar
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    Default Re:Screw car dealer- possible?

    Quote Originally Posted by VenusGoddess link=board=6;threadid=11367;start=msg148891#msg148 891 date=1091586825
    Mad: If you buy your car with very little credit, then you most likely will get hit with a high interest rate. A lot of places will refi your car loan to a lower rate if you show at LEAST 6-9 months of on-time payment history on the car. The best deals come when you make those payments on-time for a year. You may get stuck paying 14% for a year, but usually, if you keep your credit clean, you can refi that down to a single digit rate.
    What about if you make a large down payment? Still get his with a large interest rate?

  14. #14
    Banned Melonie's Avatar
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    Default Re:Screw car dealer- possible?

    Quote Originally Posted by exotica17 link=board=6;threadid=11367;start=msg151833#msg151 833 date=1091943087
    Quote Originally Posted by VenusGoddess link=board=6;threadid=11367;start=msg148891#msg148 891 date=1091586825
    Mad: If you buy your car with very little credit, then you most likely will get hit with a high interest rate. A lot of places will refi your car loan to a lower rate if you show at LEAST 6-9 months of on-time payment history on the car. The best deals come when you make those payments on-time for a year. You may get stuck paying 14% for a year, but usually, if you keep your credit clean, you can refi that down to a single digit rate.
    What about if you make a large down payment? Still get his with a large interest rate?
    Unless your down payment is worth the entire market value of the car (i.e. you don't need a loan), any bank or financial institution is still in the position of loaning you their money and hoping that you'll make the payments on time. This goes right back to your credit rating. The only thing that really changes with the size of the down payment is the size of the loan. Financial institutions still face the same expenses if you go delinquent, i.e. repo, court documents, car value at auction, and are going to set their interest rates according to the risk your loan presents.

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    Featured Member scorpio's Avatar
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    Default Re:Screw car dealer- possible?

    No mel, the amount down absolutely does affect your rate. They work on a scale of equity in the car, them more you have, the safer the risk to the lender. It works the same with home loans too.

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