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Historically there have been a lot of sketchy dealers who are very pushy and dishonest. If you go in with your own financing or cash, and say 'no' to all the u

Historically there have been a lot of sketchy dealers who are very pushy and dishonest. If you go in with your own financing or cash, and say 'no' to all the upselling, it isn't much different than Best Buy. Most new car dealers make more money from their service center than sales.

elliekelly 8y ago
> Most new car dealers make more money from their service center than sales. And from the "finance reserve." If Toyota Financial Services approves you for an autoloan at 3% the dealer will tell you're eligible for 5% - and they keep the difference.[1] That can really add up over the life of the loan. And why it's important to read your TILA disclosures. [1] http://www.realcartips.com/carloans/220-how-much-dealers-make-car-financing.shtml http://www.realcartips.com/carloans/220-how-much-dealers-mak...
criddell 8y ago
If you go in with your own financing or cash, you are going to get a worse deal. I would use their financing then just pay it off after a month or two. If you don't do your homework ahead of time, a dealership is a tough place to navigate. When I bought a Toyota, the sales guy only wanted to talk about payment - what payment did I want because he could get me that payment. I wanted to talk about absolute numbers for trade-in and purchase and then talk about financing for the balance. They really resisted that. The last car I bought was a Subaru and that dealership felt even slimier. They handed me off from person-to-person-to-person and only the last guy could tell me the final numbers.
- Casseres 8y ago
  > I would use their financing then just pay it off after a month or two. Make sure there isn't an early-payoff penalty.
- shostack 8y ago
  I've heard two approaches on Reddit. One is to negotiate the final out-the-door cost (NOT monthly payments) with their financing, etc., and then tell them you have your own financing (or cash) and take it or leave it, being totally ready to walk. The other is to negotiate with their financing, ensure there are no prepayment penalties to pay it off early, and then as soon as you leave just pay the thing in full or pay it with a loan you secured at a better rate.

elliekelly 8y ago

> Most new car dealers make more money from their service center than sales. And from the "finance reserve." If Toyota Financial Services approves you for an autoloan at 3% the dealer will tell you're eligible for 5% - and they keep the difference.[1] That can really add up over the life of the loan. And why it's important to read your TILA disclosures. [1] http://www.realcartips.com/carloans/220-how-much-dealers-make-car-financing.shtml http://www.realcartips.com/carloans/220-how-much-dealers-mak...

criddell 8y ago

If you go in with your own financing or cash, you are going to get a worse deal. I would use their financing then just pay it off after a month or two. If you don't do your homework ahead of time, a dealership is a tough place to navigate. When I bought a Toyota, the sales guy only wanted to talk about payment - what payment did I want because he could get me that payment. I wanted to talk about absolute numbers for trade-in and purchase and then talk about financing for the balance. They really resisted that. The last car I bought was a Subaru and that dealership felt even slimier. They handed me off from person-to-person-to-person and only the last guy could tell me the final numbers.

Casseres 8y ago
> I would use their financing then just pay it off after a month or two. Make sure there isn't an early-payoff penalty.
shostack 8y ago
I've heard two approaches on Reddit. One is to negotiate the final out-the-door cost (NOT monthly payments) with their financing, etc., and then tell them you have your own financing (or cash) and take it or leave it, being totally ready to walk. The other is to negotiate with their financing, ensure there are no prepayment penalties to pay it off early, and then as soon as you leave just pay the thing in full or pay it with a loan you secured at a better rate.