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Negotiating Time!


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Okay, I have a question, because as I should have anticipated the dealer had another trick up his sleeve.

I financed about $10,000 on this car, and the finance guy quoted me a rate of 3.8% over the weekend. Shows me my FICO score yada yada. Tells me that AAA won't honor the rate of 4.09 that they approved me for (I didn't buy that, but I did think he could really get me a better rate).

I tell him well are you going to process the application and he says "I don't need to, this is what we call a buyable deal, anyone is going to approve it".

So I say okay. I go home and come to pick it the car up yesterday and the finance guy pulls me into his office and says the bank came out with a different credit score, so it puts me a tier lower and now I'm stuck with 4.5%. It comes out to just about $3 a month more but its really the principle of the thing.

Heres what I think happened. The finance guy wants to entice me with a low rate, so he pulls my application with the highest of the 3 credit scores from the bureaus. I think they are supposed to use the middle score but I'm not sure. I think he new this but wanted to get me in a position where I'd come when picking up the car and be willing to accept the 4.5% rate. Offcourse the finance guy claims he had no way of knowing that would happen. I don't buy it. What do you guys think?

I'm thinking to post a complaint to the BBB, which incidentally, has on record another complaint for deceptive sales practices from this dealership.

 

You should have done your homework and secured your own financing ahead of time. This way you're not dependent on the rate they quoted you initially and you don't have to deal with the finance dept. at all if you don't want to. Let's say you can get 3.99% from the credit union - you tell them to beat 3.99% or no deal. Or just take the 3.99% and tell the finance guy to take a hike.

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You should have done your homework and secured your own financing ahead of time. This way you're not dependent on the rate they quoted you initially and you don't have to deal with the finance dept. at all if you don't want to. Let's say you can get 3.99% from the credit union - you tell them to beat 3.99% or no deal. Or just take the 3.99% and tell the finance guy to take a hike.

 

Thats exactly what I did, I had my own financing set up ahead of time, I just let him convince me he was going to give me 3.8%. You are right though, I should have walked out and just went with my original financing. I just didn't want more delays cause we needed the car for a trip we are taking.

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Sounds like your credit is good. Go online to Capital One and apply for a loan. It will give you the rate you can get right there. You can have a check mailed to you to use for the loan or wave the rate in front of the finance department and get a lower one. I went in with a Cap One loan and got an incredible rate from the bank at the dealer, they wanted that loan.

 

 

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Sounds like your credit is good. Go online to Capital One and apply for a loan. It will give you the rate you can get right there. You can have a check mailed to you to use for the loan or wave the rate in front of the finance department and get a lower one. I went in with a Cap One loan and got an incredible rate from the bank at the dealer, they wanted that loan.

 

Unfortunately I had already signed the new deal at 4.5% instead of sticking to my guns. So this is what I did instead. I looked up the dealer on the BBB, found out the president's name from their website. I googled his name, found he had a LinkedIn account, as do I. I sent him a message on Linked In. About an hour later they call me back and say the "convinced" the bank to honor the 3.8% rate. The power of the consumer at work.

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  • 1 month later...

Never ever just leave a deposit with paperwork to be done later. Do the deal all at once. Haggle on the price as long as you need to but once you are ready to sign... go in and either wait for the paperwork to be done, or tell them you will come back and sign, but you are NOT leaving a deposit. Once they have your deposit you are buying that car from them. If they say they must have the deposit AND you have to come back to do the paperwork, something is wrong. Run from that deal.

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