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> Automakers, for example, can now expect to see bigger profits from the loans they make on selling cars than from selling the actual cars I've heard of that.
by Keverw 7y ago
> Automakers, for example, can now expect to see bigger profits from the loans they make on selling cars than from selling the actual cars
I've heard of that. Then I heard dealers will give you a hard time if you want to buy a car right out, some will even run your credit without your permission. I don't have the money to go buy a new car right now, but it's pretty sad that saving up and paying for things is so discouraged now. Then dealerships in general people don't like or even lie to people, I guess one told someone they were required to fill out a credit application by law even if it doesn't get processed... So if your credit union or your own bank got you financing, then want to try to undercut that. Then heard some dealership someone was looking at new cars thinking of trading their car in, but changed their mind but the dealer kept their keys a little longer trying to keep them there. Seems like walking into a dealership is getting into a hostage situation.
People are just putting everything on credit, a car they probably shouldn't of bought and sits parked most of the time, people refinance their mortgages over and over again so they'll probably never end up paying off their house. It's insane how much debt is pushed... and also seems easier to get into student debt than getting loans to start a small business.
Seems like the priorities are all off anymore and they want everyone to be in debt. Then people with poor credit might end up paying double or more the value of the car, someone I knew bought a used car and was going to end up paying 4x the value of it... and then in some parts of the country if you don't have a car, you don't have a job unless you live in one of the big cities with public transport. Some areas don't even have sidewalks either, and some people have attitudes against cyclists too since they paid more for their car or SUV so they feel more entitled to the road. I guess whoever has the best car is some sort of contest, but I can see why it draws people in. Someone I know has got a new car every few years, now regrets doing that since so much money they could of had saved up now.
- nradov 7y agoDealerships generally can't conduct a real credit check unless you give them an SSN. You can absolutely still pay cash for a vehicle if you have it, but with interest rates so low right now it's wiser for most consumers with good credit to stay liquid.
- Keverw 7y agoYeah figured they need an SSN, but remember last time I was looking it up someone claimed there's some way to run credit with a driver license... Which they make a copy of before a test drive. Not sure how true but I know there's some companies like LexisNexis with massive databases on people, so wouldn't surprise me if there's some some other way to gather info on people. Then I heard some luxury dealerships can be jerks if they don't like the way you dress either... Yet in some areas with major tech like Silicon Valley, Miami or Austin there are probably young people with millions wearing just a shirt and shorts buying new sports cars.
- andymcsherry 7y agoInsurance companies can run a sort of mini credit score with just a name and address. It doesn’t show up as a credit inquiry and has a more limited set of details about each item.
- buzzkillington 7y agoIf you save you have options. If you have options you can tell employers to stick it somewhere. Why do you think healthcare is tied to your job even though it costs around twice as much to the employer as any comparative system in the developed world?
- altec3 7y agoA few years ago my parents walked in to a Toyota dealership to buy a new Camry with cash. They were talked into financing it, bought it, then got home and realized they should have just paid cash. The next day they went back to the dealership to pay it off and the guy who gave them the loan was a huge asshole to them the whole time.
- bluedino 7y agoWhy would they go to the dealership to pay the loan off?
- mixmastamyk 7y agoThere’s usually a grace period to return the car.
- refurb 7y agoThat’s seems odd. Sometimes you get a better price when you get financing. So you get financing, then pay the loan off the next month. And you pay it to the lender, not the dealership.
- russh 7y agoMy local Ford dealer would not even talk about the price of a used car until filled out paperwork and they ran a credit check without asking.
- Keverw 7y agoThat would be annoy me. I wish there wasn't a monopoly on new car sales. But I wonder if places like CarMax are better even though they can only sell used cars. Never been to one but see their commercials. Kinda like a mall for cars instead of a specific brand. Seems like medical and health stuff, and car buying there's no pricing transparency and you are pushed around. I'm glad buying other stuff isn't as bad though, imagine if buying toilet paper or a laptop required negotiating.
- SmellyGeekBoy 7y agoI hope you walked away. I would.
- perl4ever 7y agoMy impression based on car loans that I have had is that they usually have an interest rate significantly below a random bank. That's presumably not magic; it's just that they are subsidizing the loans in lieu of a discount. So if you pay cash, you should realize there is a hidden cost to factor in.
- ww520 7y agoDealerships incentivize people to take up loans by giving bigger rebates on financing. You can take advantage of that. After all the price negotiation is done when I buy a car, I would ask the salesperson for the rebates on financing. Usually they have $0 for the all-cash deal, $X for 0% rate loan, $Y for 2%, $Z for 5% loan, where X < Y < Z. I would take the worst loan with the biggest rebate, acting like a dumb customer. Then on the first loan payment, pay off the whole thing. Just be sure there's no prepayment penalty.
- benhurmarcel 7y ago> Just be sure there's no prepayment penalty. There usually is one, but it's still worth doing that.
- newsgremlin 7y agoSeems like in the present-future the only thing people will own is their debt. All our possessions are being turned into services, financed by our debt. Low interest rates makes saving impractical, it will all be put into some monthly fee, repayment, or subscription.