OT Buying a new truck

Page 2 of 4  
On Thu, 11 Aug 2011 20:25:19 -0400, snipped-for-privacy@snyder.on.ca wrote:

Take the cash-back and pay it off before the due date.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@snyder.on.ca wrote:

Hi, How come? We buy most of every thing with plastic. Pay full balance every month. Collect lots of points. Most of our trips/cruises are paid by points.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On 8/11/2011 5:25 PM, snipped-for-privacy@snyder.on.ca wrote:

1999: i bought my last car with a credit union loan because it was fast and cheap. that week got a credit card offer in the mail. 0% loan for 12 months, no fee loan transfer. paid off the CU loan that month onto the credit card. didn't pay any interest for a year, paid off the car in that year, so it cost me $0 in interest for a year.
2001: built a new house. paid for all materials for construction on my visa, then gave the bills to the bank to pay off each month. this paid for multiple trips to Europe and the Caribbean and got cash back.
those years are long gone, i'm afraid.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On 8/11/2011 7:59 AM, Home Guy wrote:

How you will pay for the vehicle should be a separate discussion that takes place after you've negotiated the price of the vehicle. People tend to assume that dealers prefer cash, but that's not a given. If they have in-house financing and persuade you to use it, they'll make more money with your loan. How you plan to pay will a factor they use when negotiating the purchase price with you (the infamous example is the standard salesman question, "How much do you want your monthly payment to be?" You reply: you will decide to buy based on the final, actual price of the vehicle, not by the monthly payment.)
Be non-committal and tell them you won't decide on how you'll pay for it until after you settle on the purchase price. If they do finance, they may specifically make an offer contingent on your financing with them. Run the numbers and see if it's worth your while. If you were planning on financing, compare their rates and terms to other lenders. If you can buy the loan cheaper elsewhere, tell them so. They may be able to negotiate that, too.
Same for trade-ins - don't bring up your desire to do a trade until you've negotiated the best price you can get for the vehicle you'll be buying. Negotiate the trade-in value afterwards. You should have done your research beforehand to assess the fair trade value, decide what you'll take for it, and what you'll do if you and the dealer can't agree on the trade.
To sum up: all of these factors (purchase, payment/financing, and trade-in) are separate transactions. Mixing them up will confuse things, which almost always works to the dealer's advantage. So don't do it.
And remember, you must always be prepared to walk away...and you need to make that clear. Or they'll steamroll you.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
[snip various considerations when negotiating with car dealers]

To that, I'd add: and mean it. If you tell the salesman you're going to leave unless the deal gets better, and it doesn't, and you *don't* leave, you've lost *all* negotiating leverage.
The last time I walked out on a car salesman, I hadn't gotten a mile down the road when his boss called me on my cell with a better deal. I wound up buying the car for about 10% less than *that*.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Absolutely. Dealers often get pissed when you refuse to talk about payments, though.

With my truck, they were pushing financing. I'd already lined it up from my CU, but told them the number they had to beat. They said they might be able to if I had spotless credit. "Go for it". They did, so I used their financing. I don't care that they made money, as long as they saved mine.

Yep.

All good advice. In fact, when you start out looking, convince yourself that you will *not*, under any circumstances, buy that day. Do the research, decide what you want, and the absolute maximum you're willing to pay, *BEFORE* talking price. If anyone pushes you out of your comfort zone, walk. If you get emotional or attached to the vehicle, walk. You're talking serious money. They really do want it. All. ;-)
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Hell Toupee wrote:

If the dealer would rather get paid cash for the car (for what-ever reason - cash flow, etc) then wouldn't it make sense during the negotiation to tell the dealer you intend to pay cash? Wouldn't that work in your favor if the dealer wants your cash and therefore would be more likely to negotiate a lower price?
If the dealer is assuming you're going to be making payments, and if there's some additional cost for him that he needs to take into account and he's factoring that into the price, and then when you arrive at a price and tell him you're paying cash - haven't you shot yourself in the foot?
I really would like to know if, all else being equal, if (new) car dealers like to see cash-paying customers.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On 8/11/2011 10:11 PM, Home Guy wrote:

Dealer would PREFER you finance through them- it is a profit center for them. Some dealers charge more for cash customers, since there is no ongoing profit. How-to books I have read said to finance through them, then walk in a week later and pay it off.
I hate car dealers, and will try to avoid buying from them ever again if at all possible. Auction or private-party, like I used to do, before the last two purchases. Both left me slightly bow-legged. In my mind, I knew exactly what they are doing, put after an hour of the BS, I just wanted out of there so bad (which is exactly what they were counting on, of course)....
--
aem sends...



Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
SMS wrote:

Care to expand on that?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Jeez, others have explained it already. They make money on the financing. You pay cash (or finance elsewhere - same thing) and they lose that free lunch. You really don't think dealers finance the cars themselves (well, some do but they're more like the rent-to-own types than real dealers)?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@att.bizzzzzzzzzzzz wrote:

Hmm. I don't think they make (much) money on the financing - I think they sell the paper within 24 hours, maybe for a small profit.
Imagine the overhead - and the risk - necessary to handle the financing for a few hundred sales a year. If I owned the dealership, I'd shed that grief in a heartbeat.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

For a few years, GMAC made more money for General Motors than the manufacturing/sales division of the company did. Same with Ford Motors Credit Corporation.
Then GM sold off their "cash cow" to Cerberes corp - the same company that bought Chrysler from Daimler before Fiat jumped in.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Except for the "rent-to-own" types, they never carry the paper. Why would they? They *do* get a kickback from the banks, though.

I know places that will carry paper, on (well) used cars. But they usually have their money out of the deal before it rolls off the lot. A manufacturer's dealer? No, they won't carry paper, but they will probably make more money filling out the bank's paperwork than they will selling the car.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
HeyBub wrote:

That may have been true 20+ years ago, because it's my impression that cars are much more reliable (or durable) than they used to be.
My 11-year-old '00 Chrysler 300m is still running with the original factory battery fer christ sakes. Just about the only thing I do beyond putting gas in the tank is give it an oil change twice a year.
Over the past decade new cars have become almost "maintainence free".
See, the problem here is that once you get past the ridiculously-long standard warranty (what - 5 years, 100k miles?) there's absolutely no garantee that the owner of the car (which could be the second owner by then) is going to have the car serviced at the same dealership that sold the car. And by serviced, I mean the dinky stuff, like oil and fluid changes, tire rotations, wiper blades, brake pads, emissions tests, etc. You're not going to cover your payroll selling that stuff.

Only once they become 5 to 10 years old. Unless they need collision work - which isin't typically done at a dealership.

And much more predictibly over-priced compared to independant or chain service shops.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

I'll go you one better than that.
I mentioned earlier in this thread the '84 LeSabre that we bought in '91. In the fall of '97 it needed a new battery -- turned out the battery in it was the original. Date code showed it was manufactured in Nov '83.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Home Guy wrote:

That's you. Many people take their car in to the dealership every 8,000 miles (or whatever) for the factory-recommended "maintenance" once-over (check the oil in the differential, adjust the outside rear-view mirrors, etc.).

Virtually ALL dealerships cover their payroll (plus rent, insurance, utilities, maintenance, taxes, and everything else) from parts and service.

Independent and chain shops cannot do everything a dealership can do. Cars are more reliable than ever before and they have more proprietary parts than ever before, parts and diagnostic equipment that are not readily available to the neighborhood mechanic. I'll wager most independent shops say at least once a day "You'll have to go to the dealership for that..."
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

Used to be - but you can fire a cannon through many dealership service departments today and not hit anything or anyone. 80% absorption today is pretty darn good for an american car dealer. Sadly (for them) you can pretty well fire a cannon through the showroom without hitting anyone too.

Even a lot of 10 or 15 year old cars only need service 3 times a year these days - and very little even then.

Many "chain" shops may post a lower rate - but STILL cost you more over-all than a dealer shop.

And MANY independents can do just about everything the dealers can do (and some even "sub" work for dealers). I know an independent shop did all the alignments for 2 (large) dealerships.
Yes, there are a lot of "dealer only" parts - and SOME diagnostic equipment that independents can't get or afford to have - and SOME of that cannot be worked around.. Some - but very little.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@snyder.on.ca wrote:

That's probably quite true today due to the parlous times in which we live.
Nevertheless, it is still an economic and business goal that the dealership should rely on parts and service to keep the place running.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

Don't I know it. I was service manager for 10 years.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

<snip>
Interestingly, the dealership I was taking my car to, told me to take it somewhere else because they would be too expensive for an exhaust system. They were sure right! [*] So I did, and have been ever since. ;-)
[*] The dealer said the entire exhaust system needed replacing. The place I took it, and have since, replaced everything behind the CC, for about 10% of what the dealer wanted.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Related Threads

    HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.