fake financing cars

patooyee · Jan 31, 2015

I've been fortunate in that I've never had to finance a vehicle through a dealership. I've always either had access to cheap loans via a credit union or just paid cash. In fact, its been 15 years since I did anything but paid cash. Hell, before I bought my last vehicle from a dealer it was about 12 years since I bought a vehicle in general. The last new vehicle I bought I bought direct from Ford since I worked at a dealer.

The last time I went to a dealer they were pretty unwilling to negotiate once I told them I was paying cash. They said if I wanted to finance they could do more. They fully admitted that I could pay the loan off after 90 days with no penalty and they didn't care. (I am against debt so I just walked.) Obviously financing is where the dealers are making money these days. Has anyone found that "fake' financing has netted them a more reasonable salesman? I'm in the market for a new (to me) car for the wife and have the cash. But I'm wondering if I should just finance some of it and pay it off in 90 days to get a better deal.

matth_85 · Jan 31, 2015

More than likely. Especially if buying new. New car markup is ****. They make nothing on the front end. Trades, finance, and warranty is where the money is.

5BrothersFabrication · Jan 31, 2015

Finance it in Feb, pay it off in March. **** that salesman.

patooyee · Jan 31, 2015

If I finance it I'd prefer to pay it off as I walk out the dealer door. I could not give 2 ****s about the dealer of the salesman. But most of them have an early pay off penalty of hundreds of dollars that disappears after 90 days.

lowbudgetjunk · Jan 31, 2015

patooyee said:
If I finance it I'd prefer to pay it off as I walk out the dealer door. I could not give 2 ****s about the dealer of the salesman. But most of them have an early pay off penalty of hundreds of dollars that disappears after 90 days.

Wait til the last day of the month, walk into the dealership with a check filled out for what you are willing to pay. That includes tax, destination, etc. bought a three cars this way and a van. There is always a salesman that just needs one more sale. I actually left a check with the last guy and walked out. He stopped me in my truck before I could leave the parking lot. I buy more vehicles than I ever should, but I only pay cash.

John Galbreath Jr. · Jan 31, 2015

I only do business with Stephen Oneal. I don't like playing games. Bought 4 or 5 from him and have never been to the dealership. They have delivered them to me.

Posted with my thumbs from Tapatalk.

Elliott · Jan 31, 2015

Salesman told me one time that the way to get around the early pay off penalty was to pay it all but a hundred dollars, then pay the last hundred dollars the next month, this way the penalty is just based on the last payment. not sure if it's still like this, I don't finance either so it might have changed.

Stretch · Jan 31, 2015

I've never financed directly through a dealer. They can F O with that mess. Whether they are willing to negotiate or not is their problem, not mine. I always go in with the mindset that there are hundreds of cars/trucks at dealers all over the place that I could buy. Sell me on why I should buy from you, not the dealer across town with the same or almost the same truck. Any time the salesperson gets into how I am going to pay for it, I ALWAYS lead them on like I am going to finance. Get it all on paper, final number out the door. I always ask for that before they even run my credit. Flat out told a finance and sales manager a few times that I wanted that final number before they made the inquiry. Then slap the check in front of them or a stack of benjamins. I used this same method on a few cars and even got the nicest **** You ("You're pretty damn smart, kid") from a sales manager one time as they handed me the keys.

kody29 · Feb 1, 2015

patooyee said:
I've been fortunate in that I've never had to finance a vehicle through a dealership. I've always either had access to cheap loans via a credit union or just paid cash. In fact, its been 15 years since I did anything but paid cash. Hell, before I bought my last vehicle from a dealer it was about 12 years since I bought a vehicle in general. The last new vehicle I bought I bought direct from Ford since I worked at a dealer.

The last time I went to a dealer they were pretty unwilling to negotiate once I told them I was paying cash. They said if I wanted to finance they could do more. They fully admitted that I could pay the loan off after 90 days with no penalty and they didn't care. (I am against debt so I just walked.) Obviously financing is where the dealers are making money these days. Has anyone found that "fake' financing has netted them a more reasonable salesman? I'm in the market for a new (to me) car for the wife and have the cash. But I'm wondering if I should just finance some of it and pay it off in 90 days to get a better deal.

It's because most times ford , nissan offer you extra money for fin with them also. Yes they will work a better deal with you if you fin because they can make money on fin charge and warranty. I have a question though with rates in the 1st and 2s why would you pay cash for a depreciating item invest that money and make it work for you.

kody29 · Feb 1, 2015

Elliott said:
Salesman told me one time that the way to get around the early pay off penalty was to pay it all but a hundred dollars, then pay the last hundred dollars the next month, this way the penalty is just based on the last payment. not sure if it's still like this, I don't finance either so it might have changed.

Also guys there is no more early pay off penalties everything is a simple interest loan now if they told you there was a fee they lied to you.

Oh and to everyone that said **** the salesman go :flipoff1:

tonybolton · Feb 1, 2015

The "game" of cutting the selling price for financing has been around forever. What'll happen is that the Finance guy will cut the throat of the salesmen in order to get his "kick-backs" from the finance company. When you go in and pay cash, you're turning the Finance Manager into a paper jockey and he'll get some measly pocket change for the deal, if that.

Even if you say you're with a Credit Union that THEY are linked up with....they'll want you to do the deal there to make it easier for you. They get kick-backs on that too, just not as much as a full blown finance deal.

I was a car salesmen in a previous life.

Coma1 · Feb 1, 2015

kody29 said:
I have a question though with rates in the 1st and 2s why would you pay cash for a depreciating item invest that money and make it work for you.

Agreed. Wife got a new Highlander last year. We had cash and a trade. Ended up financing the whole amount at 0% and put the money in IRA.

tonybolton said:
The "game" of cutting the selling price for financing has been around forever. What'll happen is that the Finance guy will cut the throat of the salesmen in order to get his "kick-backs" from the finance company. When you go in and pay cash, you're turning the Finance Manager into a paper jockey and he'll get some measly pocket change for the deal, if that.

Even if you say you're with a Credit Union that THEY are linked up with....they'll want you to do the deal there to make it easier for you. They get kick-backs on that too, just not as much as a full blown finance deal.

I was a car salesmen in a previous life.

Yep, in 2000 we bought a new Maxima. Thought we would get a deal with cash. No. The dealership gave a better price and paid the first three payments if we financed. We paid it off after the three months.

LandSpeeder · Feb 1, 2015

You said new to you, so that means used. Buy from a person trying to sell on cars.com or autotrader

crawlin85cj · Feb 1, 2015

I pay cash for about 75% of the trucks I buy for work. Same exact deal for cash or finance. Sounds like you need a new dealer...

2010 Jim's Garage 4429
2012 Jim's Garage YJ
2013 Wide Open Design WFO

al1tonyota · Feb 1, 2015

Y'all must be doing something better than me! Holy **** at all the people saying I wanna just walk in and buy a new ______! I can understand Johng and Bj because I know them more personally, but are there that many people that can stroke a check for a 40-75k vehicle? Much less cash?

kmcminn · Feb 1, 2015

I could write a check for a new truck even a new house.

But the check would bounce. Lol

smurfy90 · Feb 1, 2015

al1tonyota said:
Y'all must be doing something better than me! Holy **** at all the people saying I wanna just walk in and buy a new ______! I can understand Johng and Bj because I know them more personally, but are there that many people that can stroke a check for a 40-75k vehicle? Much less cash?

Would be nice if we could!

pholmann · Feb 1, 2015

It would be nice. I'm just not at that place in my life right now. Maybe one day. First things first. Get rid of student loans!!

onealdodge · Feb 1, 2015

I love to read these topics about car dealers since I own and run 2 dealerships. I've been in and around carlots my entire life so I've seen alot of ****.
You all are right. The banks pay the dealer rate spread on financing and or a flat fee for getting them the deal its no secret. So of course the dealerships all want you to finance with them. Rate spread being the dealer submits the deal and let's say the bank gives the dealer a 2% buy rate. The dealer sells the rate to customer x for 3% so the dealer makes 1 point of interest. Keep in mind the higher the loan amount the more they make. This is where the 3 monthly payments apply. If you pay off your loan amount early the dealer gets a chargeback and all rate spread is charged back.Flat fees are paid to dealers by banks or credit unions that do not let the dealers make rate spread. Ex

ealer gets a 2% apr call back from bank and dealer gives customer x 2% apr, bank pays dealer a flat couple hundred bucks.

What's stupid is the manufacturers are giving these extra rebates if you finance with a specific bank you get a extra $ 500 rebate. Of course this specific banks rates are higher than other banks rates 95% of the time so the customer loses that $500 rebate. It's simple math just see which payment is cheaper. Most of the time the better interest rate is cheaper than taking $500 rebate. Manufacturers put all these horse **** incentives out there that customers may or may not qualify for. That's another 30 minute subject.

Just use common sense if the dealer starts jerking you around about financing move on to the next one. Yes, you should get a better deal if you finance due to the above paragraphs but do your homework. Check with your common financing source and have your ammunition when you walk in. If the dealer can beat the rate and save you $$$ great if not write them a check!

patooyee · Feb 1, 2015

I'm buying used. My rule in life is simple. If I CAN'T write a check for it I won't "own" it.

The only exception to this rule is my house and I am trying to pay it off with the quickness.

I also make it a general rule not to buy new. There is no point when there are plenty of 2-3 year old models that still look new for 30-40% less than new. The one exception I made to this was when I worked for Ford and could buy direct.

I also try to buy vehicles that I have above average or exceptional capacity to repair myself. This generally excludes anything FWD since they ****ing suck to work on but I have owned FWD in the past when I got too good a deal to pass up. In this case we are looking for Tahoes / Yukons. Since I have an LS in my buggy I know them in and out, I know a lot about the transmissions, I have sources for cheap parts, and I own computer diagnostic equipment beyond the capabilities of 90% of shops. I haven't paid for a repair since I was 16 unless it was body work.

My wife has been driving the same car for almost a decade now that we own out-right. The money that would have gone toward payments over that decade went into savings instead. So yes, that helps stroke a check for a newer used one now.

I am fortunate to have a company vehicle that I do most of my driving in. I put 40,000 miles on it in 2014. That also helps save for a new used car for her.

Before I had the company car I drove a beat-to-**** 1994 Honda Accord with 275,000 miles on it every day. I paid $200 for it and put an a/c compressor in it. I drove it for years and sold it with 400,000 miles on it. Since most of my driving was for work the miles I put on it were tax-deductible. The resultant write-offs were roughly 3x the value of the car and I ended up selling it for $1200. That also helped save.

I would like to invest, I have a small Roth IRA sitting around doing nothing. I am embarrassed to say that I do not have the knowledge to invest safely. I played with my IRA some for a couple years and only managed to loose 11% of its value. I ultimately took it out of the market and decided its better sitting there until I learn to invest effectively. In was my 2014 new years resolution to learn more about investing. It didn't happen. Its my 2015 resolution also. :-|