Car Buying Time

[Townsend]

Always been that way.  It's part of the game. Doesn't matter if you are a kid or an old fart.  The initial qualification phase of the sales process is to figure out how much they can squeeze and what is your tolerance for outrageous financing. 

A stereotype and false.

[Hoss]

A stereotype and false.

Agreed.  I know enough people in this business to know that most of them get an enormously bad rap.  Knowing where you worked Steve, you know this as well.

[sgrizzle]

One of the points of the post was deception led to the bad deal. There also may be unilateral/mutual mistake. I've been down this very road a few times, Grizz.

I see no mention of deception in the story.

[sgrizzle]

A stereotype and false.

Pretty sure still accurate at some of the pay-weekly places.

[Conan71]

Having worked as the "business manager" for a new car dealership, I will say: bring your own financing if you aren't going for the funny money on a new car.  Most people are unaware that the dealership gets a "buy rate" whether it's from the manufacturer's finance arm (FMC, GMAC, Chrysler Credit) or even banks they do business with and can mark up the rate.  I don't know if there is a statutory limit on mark-up these days in Oklahoma but it used to be the dealer could mark up the interest rate as much as they wanted as long as the final rate to the customer fell within statutory limits (21%).  If Ford said they would finance it at 11%, we could literally mark it up to 21%, and the dealer would collect the difference.  IIRC, we got a certain amount of that up front and the rest was paid to the dealer as it accrued.

[Townsend]

Pretty sure still accurate at some of the pay-weekly places.

That's like comparing a paycheck loan place to a bank.

[Townsend]

Having worked as the "business manager" for a new car dealership, I will say: bring your own financing if you aren't going for the funny money on a new car.  Most people are unaware that the dealership gets a "buy rate" whether it's from the manufacturer's finance arm (FMC, GMAC, Chrysler Credit) or even banks they do business with and can mark up the rate.  I don't know if there is a statutory limit on mark-up these days in Oklahoma but it used to be the dealer could mark up the interest rate as much as they wanted as long as the final rate to the customer fell within statutory limits (21%).  If Ford said they would finance it at 11%, we could literally mark it up to 21%, and the dealer would collect the difference.  IIRC, we got a certain amount of that up front and the rest was paid to the dealer as it accrued.

The lender calls the ball.  Half a point to 2 points is standard.

[Conan71]

One of the points of the post was deception led to the bad deal. There also may be unilateral/mutual mistake. I've been down this very road a few times, Grizz.

Deception would be pretty hard to prove as it would be hearsay from both parties. 

Must judges would look at the signed docs and say to the borrower/customer: "You agreed to this by signing here, sorry..."

If the customer is unhappy, the dealer would be wise to allow the customer to back out of the deal to avoid bad publicity like this.  Just depends how far an unhappy customer wants to go up the chain to make their complaint.

[Conan71]

The lender calls the ball.  Half a point to 2 points is standard.

Is VNFSC still in the car lending business?

[Townsend]

If the customer is unhappy, the dealer would be wise to allow the customer to back out of the deal to avoid bad publicity like this.  Just depends how far an unhappy customer wants to go up the chain to make their complaint.

The most effective I've ever seen was when people stood out front of the entrance of a dealership with signs decrying the establishment.

The other, more confrontational way, is to show up on a busy Saturday and start talking loudly about getting "screwed" on the showroom so the other customers can hear.  You'd get personal attention immediately.

[Townsend]

Is VNFSC still in the car lending business?

Not something I'm familiar with.

[DolfanBob]

I have a few friends in the car biz and I even called one Friday night to try and talk a little sense into him about what was taking place.
He wanted my stepson to go online and fill out a application so that he could look at it first thing Saturday morning.
But when you have a hyped up kid that has been driving a 97 Maxima for several years and here is a beautiful 2010 Camero. Waiting 12 more hours would just be torture. My only part of any deception would be him being told the deal was already done and not have possession of the car when he was at the house telling us all about this deal.
And here is another deal breaker as far as I would be concerned. He took the car back Monday and gets it back today. After they install a GPS per the banks request.
Sorry but if you are going to stiff me with 18% interest and not trust me to pay. You shouldn't be loaning to me to begin with.

[Gaspar]

A stereotype and false.

I know you work for Danny, and my family has a long history of buying cars from him.  He is and always has been good to deal with.  He also makes some mean BBQ. ;-)

However, I have family and numerous friends in the business, both in the sales and service side.  I have also had the pleasure of purchasing about 9 cars in the last 10 years.  It's not that car dealers are dishonest in any way, they are simply attempting to get the maximum profit in the transaction.  The sales staff is trained in several closing techniques to do just that.  There is nothing wrong with that.  In fact, I respect it. 

As a consumer, it is my job to get the absolute best deal for my money, just as it is the salesperson's duty to get the maximum profit.  I have simply learned to be prepared and willing to walk away if necessary.

[Townsend]

I know you work for Danny, and my family has a long history of buying cars from him.  He is and always has been good to deal with.  He also makes some mean BBQ. ;-)

However, I have family and numerous friends in the business, both in the sales and service side.  I have also had the pleasure of purchasing about 9 cars in the last 10 years.  It's not that car dealers are dishonest in any way, they are simply attempting to get the maximum profit in the transaction.  The sales staff is trained in several closing techniques to do just that.  There is nothing wrong with that.  In fact, I respect it. 

As a consumer, it is my job to get the absolute best deal for my money, just as it is the salesperson's duty to get the maximum profit.  I have simply learned to be prepared and willing to walk away if necessary.

Worked.  Not in the business anymore.

I'm never surprised to hear how much of an opinion someone has about the business when they've never been in it or were in it so long ago, that it's completely different.

I've heard "I used to be in the business" many times from people who were clueless about the business.

Your thoughts on this subject are about as valuable as your financial and political thoughts.

[Gaspar]

Worked.  Not in the business anymore.

I'm never surprised to hear how much of an opinion someone has about the business when they've never been in it or were in it so long ago, that it's completely different.

I've heard "I used to be in the business" many times from people who were clueless about the business.

Your thoughts on this subject are about as valuable as your financial and political thoughts.

You seem angry?