2 ms·

I don't finance with the dealer ever. I had a bad experience trying to purchase my current car. I had a preapproved loan from my bank at a certain rate. Finance

I don't finance with the dealer ever. I had a bad experience trying to purchase my current car. I had a preapproved loan from my bank at a certain rate. Finance guy tried to push for a loan thru them. I said sure if you can get a lower number. The rate on the contract was double. I was furious. He pretended like it was a mistake, but he had to stupidly throw all those documents away when I obviously wouldn't sign it. Tried to get me to agree to an extended warranty for 2000, I counter offered 500. He said "my cost is 1200, you're insulting me, what do you do for a living" I laughed in his face and we concluded the deal. It was such an adversarial hostile exchange. And for no reason. I literally just wanted to walk in a give money and take the car. I had already done all the comparison and test drives all over and I had picked this car. And this idiot was trying to blow it at the very end. Strange.

rawgabbit 4y ago
I had the same experience with every "finance" guy I ever dealt with in a car dealership. They are trying to claw back profits to the dealer, when every car you purchase is exactly like any other car made by the same manufacturer. The only reason they exist is archaic US laws that forbids manufacturers to sell directly to the consumer. This is rent-seeking at its worst, enabled by crony capitalism.
- injb 4y ago
  Yeah this stuff is all normal, the "mistakes" too. I had to make like 3 or 4 corrections after agreeing on an out-the-door deal. They just kept forgetting to update the paperwork etc. But you have to remember that this is part of how they make their money. If you want to finance elsewhere or pay cash, fine, but then the price of the car will often be more. That's why they will often not talk to you about the final price of the car until you tell them how you're paying. It's annoying. In my case, the dealership accepted my OTD offer on condition that I financed with them. I agreed, and then when they send me the terms I rejected them saying I wanted a much shorter term and a much larger downpayment. They didn't argue - but as I said I did have to re-enforce that change 3 or 4 times afterwards. I worked out the difference in what I would pay in total with various different rates, and the difference came out to a few hundred dollars. In the scheme of things it wasn't worth shopping around since I was getting more than that amount off the asking price of the car by taking their financing deal. tl;dr: always negotiate an out-the-door price. If the deal is contingent on you taking their financing deal, run the numbers and check. It might be worth it even with a higher rate. Also never trust the dealers calculations. They're padded.

rawgabbit 4y ago

I had the same experience with every "finance" guy I ever dealt with in a car dealership. They are trying to claw back profits to the dealer, when every car you purchase is exactly like any other car made by the same manufacturer. The only reason they exist is archaic US laws that forbids manufacturers to sell directly to the consumer. This is rent-seeking at its worst, enabled by crony capitalism.

injb 4y ago
Yeah this stuff is all normal, the "mistakes" too. I had to make like 3 or 4 corrections after agreeing on an out-the-door deal. They just kept forgetting to update the paperwork etc. But you have to remember that this is part of how they make their money. If you want to finance elsewhere or pay cash, fine, but then the price of the car will often be more. That's why they will often not talk to you about the final price of the car until you tell them how you're paying. It's annoying. In my case, the dealership accepted my OTD offer on condition that I financed with them. I agreed, and then when they send me the terms I rejected them saying I wanted a much shorter term and a much larger downpayment. They didn't argue - but as I said I did have to re-enforce that change 3 or 4 times afterwards. I worked out the difference in what I would pay in total with various different rates, and the difference came out to a few hundred dollars. In the scheme of things it wasn't worth shopping around since I was getting more than that amount off the asking price of the car by taking their financing deal. tl;dr: always negotiate an out-the-door price. If the deal is contingent on you taking their financing deal, run the numbers and check. It might be worth it even with a higher rate. Also never trust the dealers calculations. They're padded.