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Customers for the most part have always assumed they are being screwed, some how.
Past history of car business, past experiences. Bad cars, lemons problems, you name it. Now with Internet capabilities to 'do your homework' before appearing at the dealer. This could/should help with this problem. |
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People just LOVE to rate their trade-in way, way, WAY better on the Kelly site than what it is for one. I'm with whoever said that most (certainly NOT all) salesmen are basically honest, its when they walk into the finance office that they get shoved over a desk & made to squeal. |
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That is unlawful restraint. Next time call 911. |
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Ok, i read some of the comments that not all of car dealers dishonest and sleazeballs and such.
But to me they are like puppets. The make a deal with the customer/customer shoots back a price. Then they go talk to the manager. Manager tells the salesmen what to say. Repeat story until a deal perhaps is reached. Aren't there times though that the customer is taken to the cleaners and by seeing their income you think "That poor bastard, maybe i'll help him out he is getting the screwing of his life with not even the courtesy of KY for gods sake?" |
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When it reaches enough miles that stuff is starting going - the old one had 120k. When driving for longer periods, the transmission would slam from first to second like I was speed shifting a standard. The front end was getting really loose too - I guess they aren't made for driving through fields and such to shoot prairie dogs. Also had a number of little things going on it. We wanted one with rear heat and air so we upgraded. This one may stay in the family a bit longer. |
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Needless to say we called and alerted the police and promptly ordered a new seat. I got lots of stories, none others include releasing anything from the body, but lots of criminal acts that have taken place. I have had cars taken to NY and hidden, I have had supposed Grandmothers Co-sign when it was really identity theft, I have had cars totaled while test driven when the jerk was horsing around, I had a co worker get kidnapped on a test drive and driven out of state and much much more, so yeah I might be a bit biased, but the customer 9 out of 10 times is the one not being honest. |
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OK, it’s time for me to chime in on this thing for real. "Most" F&I guys would whore their own mother out on the street. Before you go into that office, do the math on the extended warranty stuff and the "croke and choke" insurance as a lot of the F&I guys call it on the inside. Most of the time that stuff is a complete rip off. NEVER EVER EVER get caught up in the payment per month scam. Example: Dealer: How much were you thinking per month on your payment? Customer: Oh, around $300-400 per month. Dealer: well Mr. customer, If I can get you payment within that range, you will take the car TODAY wont you? Customer: Um, I guess so. At this point, in most cases, your payment will come back (almost like magic) at around $398 a month. Dealer: Extending hand "CONGRATULATIONS Mr. customer, you just bought yourself a car!!!” Guess what, you just likely over paid by $75 dollars a month for five or six years BEFORE interest is tacked on! DO THE MATH IN ADVANCE and don’t' get caught up in the payment per month SACM. Now keep in mind, this is even before you go into see the finance and insurance (F&I) guys. As stated above, that is where you are really going to get hosed if you don't know what you’re doing, or don’t do your homework. In a lot of cases, in order for the warranty to payoff, you would have to smoke the engine, the transmission and the rear in order to break even once you do the math after paying interest on the extended warranty for five of six years. The odds are higher for you to hit the Powerball. If you are that worried about the thing breaking down and losing all those parts, perhaps you shouldn’t be buying that brand or check in for some psychological assistance? The way cars are built these days, 99.9% of the time the extended warranty is a total sham. If you want to be safe, take that same money and stick it into your savings account every month and if something does happen, not only is it there, but you were making the juice on YOUR money and not getting charged interest on something that you will likely never use. Not only will you get to keep your money, but if in the off chance something does go wrong, it won't cost you nearly as much when you work the figures on doing it both ways. The "Life insurance" they sell is also a rip off if you have any other kind of life insurance, or even if you don't, go get some for a lot less than the "croke and choke" insurance that (once again) you're paying interest on for 5 or 6 years. A little bit of homework can say you $100 or more a month in most cases. The only other advise I would have is find a good sales person like Foxman and stick with him. There are a lot of good people in the business, but there are also a lot of dirt bags. As several others mentioned, the same goes for customers. Buying a car seems to turn the nicest people into Devil span in a lot of cases. |
Wheres the best place you ever lived?
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That would explain why the last salesman I dealt with looked physically ill when I announced, after 3 hours of haggling over the price, that "these finance charges look too high, I think I'll just write you a check instead of financing." Unfortunately, that deal never happened because they tacked on a $150 "title acquisition fee". In KS the state charges $10 for a 30 day tag and nothing for title transfer. The best excuse they could come up with was "well, that's just a fee we charge all our customers. $150 seems like a pretty small amount to break a $9000 deal." "Yep." I said as I walked out. |
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Awww yes, I didn't even go into the interest rate itself. Unless it is some kind of a special deal from the manufacturer (Make sure it really is and someone isn't feeding you full of crap) a lot of the time the dealerships will tack on and extra point or two of interest. I have seen deals where they have tacked on more than that and totally raped the customer. How it works is they have it worked out with the financial institutions in advance. If the dealership gets their money at say 10%, they can charge the customer whatever they want, 11%, 5%, 18% and get a kickback from the bank on the extra points. Thay can make HUGE money doing that. That's why in ALL cases, it's wise to check with your own bank before accepting the dealers financing terms. The title fee, or the documentation fee as some dealers call it. trndord is right, it's just one more way for the dealer to sweeten the deal and in return, the customer takes the beating. On average, it takes 10 minutes to do the title work. $150 for ten minutes? Wow, that's laughable at best, and total rip. A Doc fee is just another "pack" or in other words, another dealer ad on to increase profit of the deal. |
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Bwana gives fantastic advice with regards to saving the money you would be paying for a warranty so that you have it handy if you need it. While it is excellent advice there are a couple drawbacks. A LOT of people simply are not disciplined enough to save for a costly repair and thus they end up trading/selling the broken vehicle or they put it on a credit card or finance it somehow. In those cases they will spend more than if they had purchased a warranty and financed it into the car loan. Also, if you save the money you are still at the mercy of current labor rates and frankly they are high as a kite and will not likely be coming down any time soon. So, it depends on the person as to what makes the most sense when purchasing a warranty. The bottom line point that Bwana, myself and others have mentioned is to do some homework before you sign the contract. The Doc Fee is in fact extra money that in most cases goes strait to the owner and is often times not negotiable except if they are willing to discount the price by the stated fee amount. In our case if a person objects to the fee we can either say thanks for shopping or take it out of the price, I can not delete the fee from pre printed forms however. As far as rate markup....it happens, but there are laws that govern the amount the rate can be marked up. Most lenders wont allow a rate markup of more than 2%. Some still go 3%, but most are doing away with 3. The direction that dealer finance is heading is actually a detriment to those with good credit. Under the current situation if you have lets say a 760 beacon you can get a better rate with a certain bank then if you have a 700 beacon. The dealer marks it up a point or two and you sign up. The way dealer finance is heading they are going to eventually go to a higher flat rate, not allowing the dealer to mark it up and paying them a flat fee. The problem with that is, that the guy with a 760 for example will be paying the same rate as a guy with a 680 score. So the only people who will end up winning is the banks. Currently dealers can offer better rates then if you walked into the bank because of vollume. The dealer can in a lot of cases beat your rate and still make money, so it's a win-win....but that will likely change in the next few years. Also, life insurance laws vary from state to state, so I can not speak to Missouri or Kansas since I havent lived there since 84, but in North Carolina, it is cheaper for an 50+ year old person to add Credit Life or Credit Accident-Health insurance to a car loan then to get it from an agent. The reason is that the premium is tied only to the amount and length of the loan, instead of the age, weight and vocation of the applicant. An 18 year old and a 50 year old financing $20,000.00 for 5 years are both charged the same amount of premiums. With that said, it isnt for everyone and I never pushed it hard while I was in finance for the past 5 years. I focused more time and effort on... A: Rate B: Warranty c: GAP coverage |
I bought the extended warranty on both vans. The first one had rear end problems and just barely paid for itself. The second one has had several things that I turned in, AC/Heater fan & Switch, do to sluggishness right after we got it, they replaced the throttle body and also the turn signal switch (pre-recall). I figure I'm about at a break-even spot on this van as well.
I didn't get the extended waranty for my final Dodge - a Dakota and from the time I passed 37k miles, I had to start paying for stuff. I had a fuel pump go out, idler bearing, themostat, front axle seals, the AC Compressor was making lots of noise, and a number of other smaller things - all in about a 12k mile time frame. |
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