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StcChief 12-12-2006 11:03 AM

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.

foxman 12-12-2006 04:11 PM

Quote:

Originally Posted by patteeu
Like what?

I have literally had a customer pee in a vehicle before....

Easy 6 12-12-2006 04:29 PM

Quote:

Originally Posted by StcChief
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.

I sold cars for 1 year & had decent success with it, the problem with people researching the internet is that they come in & think that what they found at Kelly Blue Book or whatever else, is the Gospel. Its not, there are a 1001 factors that can skew what Kelly says.

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.

trndobrd 12-12-2006 05:22 PM

Quote:

Originally Posted by PastorMikH
We got up and asked for our keys. They stalled, left the room, came back, tried another pitch and I had to speak in a loud, forceful tone "I WANT MY KEYS NOW!".


That is unlawful restraint. Next time call 911.

Skip Towne 12-12-2006 05:41 PM

Quote:

Originally Posted by PastorMikH
When shopping for a replacement van for our '98 Safari, we had some interesting experiences.

We started off heading out for OK City. We stopped off at a dealership in Yukon at a GM dealer that had 2 Astros sitting on their lot. I was kinda surprised that a salesman didn't chase my van across the lot as I drove over to the vans. I looked the 2 vans over for quite a while before anyone ventured out. Finally, about the time I'm thinking they must not want to talk to us, out comes a salesman. I asked him about the Red van with Gold trim (:thumb:) and he tells me they want $12.9 for it and it's a '01 has 34K miles on it. I talked to him for a bit to see what his best price was (I wasn't getting carried away Foxman;), after having a cousin that manages a dealership, I know there is usually a lower price than the first one stated). He said that was the best they could do and after visiting a bit more told us if there was anything else he could do for us to let him know. He handed me his card as I climbed into our van and waved as we drove off.

We headed on into the city. And made quick circles of lots, managing to escape the dealership property before the salesmen running after us could catch up. One lot though we were driving through, the car in front of us stopped. THEY STOPPED!!!! There wasn't room to get around them. Not only did they get hammered by salesmen, we had one on each side of the van, one trying to talk to the wife through her window and one trying to talk to me through mine. Luckily they didn't have what we wanted and when they heard what I thought about Chrysler products they surrendered and walked off.

One dealership actually had an Astro. As we pulled up to it, here comes the guy. He's really helpful. We go for a test drive. Then he wants me to take a spin with him in mine. He notices all kinds of things wrong with it - it's odd that the only problem it had other than high mileage he didn't catch. He takes us inside, keeping my keys of course, and starts talking to us about the deal he could offer us. The van was a 2004 Astro 4wd loaded with about 8k miles on it. They want 18k for it. I tell them that's more than we can afford - we were looking for something between 10k and 13k. He crunches numbers, gets us down to taking our van in trade and 17K. When I told him thanks for his time, he told us to hold on, and slips back out. He brings his sales manager in. That guy starts talking. They talk, show me a "deal" to which I say no to, head back out, talk and come back in with another "deal". After a while, I divulge to them that I had found another van, told them the deal but not where, and the salesman flat out called me a liar and that if such a van really existed he'd buy it so he can make 4-5k on it. That's when I had it. We'd been there for 2+ hours at this point. The manager realized the salesman crossed the line with me and the price dropped considerable. He offered us the van at 15K and would give me an aditional 2k for my van. By this point though, I had made up my mind that if they gave me their van for free I wouldn't take it. We got up and asked for our keys. They stalled, left the room, came back, tried another pitch and I had to speak in a loud, forceful tone "I WANT MY KEYS NOW!". They were really, really mad at me for not taking their deal. The first salesman was glaring angrily at me and his tone had changed completely from when we first met - he told me we had wasted his afternoon and he could have been selling cars to people that wanted them. I told him we tried to leave an hour sooner and he wouldn't let us. We were both glad when we got back into our van and pulled out.

We ended up going back to the first dealership. I went inside, found the salesman I talked to, and told him we were interested in his van. We test-drove it and bought it at $12.9.

When I get ready to buy again, if he's still selling at that dealership I will go back and talk to him again.

What do you consider high mileage for an Astro Van?

Fairplay 12-12-2006 05:42 PM

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?"

PastorMikH 12-13-2006 08:29 AM

Quote:

Originally Posted by Skip Towne
What do you consider high mileage for an Astro Van?


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.

patteeu 12-13-2006 09:04 AM

Quote:

Originally Posted by foxman
I have literally had a customer pee in a vehicle before....

:eek: Wow. On purpose? What was their angle?

foxman 12-13-2006 09:27 AM

Quote:

Originally Posted by patteeu
:eek: Wow. On purpose? What was their angle?

The wench that did this, did it in a Mitsubishi Eclipse GT with Leather seats. The salesman had come inside to talk to me to let me know he thought she was a little drunk. While he and I were discussing what approach to take (negotiating with someone who might be drunk) I asked what she was doing because it looked like she was shimming her undies down. She was wearing a skirt and was a local realtor supposedly. We watched in wonder as she appeared to being adjusting herself and then she got out of our car and into her's and left. When the salesman went back out to the Eclipse there was a urine puddle in the passenger seat, were she was.

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.

Bwana 12-13-2006 09:31 AM

Quote:

Originally Posted by scott free
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.

Truer words have never graced Chiefs Planet scott.

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.

Redrum_69 12-13-2006 09:34 AM

Wheres the best place you ever lived?

trndobrd 12-13-2006 09:50 AM

Quote:

Originally Posted by Bwana
Truer words have never graced Chiefs Planet scott.

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.



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.

Bwana 12-13-2006 10:25 AM

Quote:

Originally Posted by trndobrd
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.


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.

foxman 12-13-2006 02:25 PM

Quote:

Originally Posted by Bwana
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.

A little bit of homework can say you $100 or more a month in most cases.

Some of this depends on variables. I have an extended warranty on my Trailblazer and it has paid for itself with one repair to the tranny. With that said, I knew that I had a good chance ant transmission problems after the factory warranty expired because I had them when I was under it, so we bought the GMPP Major Guard before the factory warranty expired. By purchasing it later I accomplished a couple of things. I identified a potential need and I didnt pay any interest on the warranty.

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

PastorMikH 12-13-2006 02:43 PM

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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