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If you negotiate an all-in price that's a $1000 lower than a typical customer, that's straightforwardly $1000 they don't get. The fact that your price was lower
by alexhutcheson 7y ago
If you negotiate an all-in price that's a $1000 lower than a typical customer, that's straightforwardly $1000 they don't get. The fact that your price was lower doesn't cause their other sources of revenue on the sale to go up.
- TylerE 7y agoIf they give you a deal but get you to agree to a higher finance rate, they make more money
- alexhutcheson 7y agoAgreed - you should always look at all-in costs, including financing. Normally better to get financing somewhere else ahead of time if you have good credit.
- TylerE 7y agoThat is still misleading from the overall profit picture because the dealer can be getting points back on the loan. That doesn't effect the price you ultimately pay, just who gets what. (E.g. your "true" interest rate is 2.5%, the dealer gets you to take a loan at 3.9%...they pocket the 1.4%)