How best to finance a vehicle

[duccarlos]

Any of the guys that actually work at dealers have any advise about dealing with the finance guy?

[muskrat]

I don't know if they like cash anymore.  I think that a lot of dealerships seem to just be banks with lots of cars on the lot.   I am looking for a car too, and have visited several dealerships recently and one of the first questions they ask you is what you want your monthly payment to be.  It seems like nobody ever pays for a car in full anymore.  

when you get this quote run like hell.  the next thing you'll be doing is meeting the "pit" boss and playing tic-tac-toe to determine your payment.  You'd be surprised what can be added into your desired payment.  most of these practices are long gone but there are dealers still pulling these stunts.

Also, the trick to any purchase is to own more than the bank does, if you finance.  If you don't set a schedule in which you plan on paying it down early then look at the amortization table to determine your break even line when you're no longer upside down.  If you need to buy gap insurance for a couple of years until you own more than the bank do it.  I read that over 80% of cars on the road are never paid off.  The land of credit is tightening so I'm sure those numbers will change.

[muskrat]

Any of the guys that actually work at dealers have any advise about dealing with the finance guy?

the finance department is often separate from the sales department so they can't deal with them at all.  At least this is my experience with my purchases.  They have some worthwhile items but most are not IMO.  My wife purchased the wheel and paint protection on her Benz when I told her NO NO NO, well she ran over curbs and scratched the shit out of them to the tune of three wheel replacements and banging out some dents.  It paid for itself twice over 

[Porsche Monkey]

I'm not going to be much help. Yes we still have people that pay green cash money although its rare.  Had one customer write a personal check yesterday.  See people use credit cards too.  I'm not involved with our finance department at all and don't really follow how they do things.  I would like to believe that our finance department does business in the best interest of the customer.  I would just compare rates and see what suits you better.  Sorry I can't be more help but its not my area of expertise.

[the_Journeyman]

Best way to finance?  Wait until the maker is offering 0, .9, 1.9 or so financing.  If you've got good credit you'll qualify for the low rate.  My wife's car is financed for the low, low rate of 0%.  Timing along with not having to buy RIGHT THEN is the key.

JM

[DoubleEagle]

Are you trading in a car on this new car ?

If so , that is an area where a dealer can really have the upper hand .

Chances are the Dealer will give you the black book wholesale trade in price for your trade.

Way less than NADA used retail. Even less than NADA wholesale.

Obviously the Dealer must make a profit on your used car ( running it through the service Dept. and fixing anything glaring that stands out ) but they want to give themselves a few thousand $ cushion in case after 90 days( if it's their practice ) , and it hasn't sold, they will take it to their local Dealer auction and hopefully sell it for about what they have invested in it.

Dolph

[Grampa]

Any of the guys that actually work at dealers have any advise about dealing with the finance guy?

do not deal with the F& I guy at the dealership.

shop outside loan rates at banks or credit unions prior to going to a dealership.

pick one that works for you and get the money from them..... then go beat the dealer down with cash.  

Never fall in love with a car..... set your price.. two grand back from the MSRP is a good start. walk if they say no or even mention financing through them, unless you get a 0% loan.... even then...hammer the dealer on the price. most dealerships are sitting on old inventory and want to  get it gone.

[Popeye the Sailor]

One of the guys I work with wanted one of the new, high end 'vettes.


He refinanced his house, took the money in certified bundles, all cash, and put it in two briefcases. Then he took his son to the dealer (both decked out in leather coats and sunglasses) and bought the vette like that, because, why not?

[Randimus Maximus]

Lease instead of finance.

[duccarlos]

I'm not going to trade in my current car. I'm going to sell it independently. The day the check clears my bank, I'll go buy, so I have to be very diligent when keeping up on all the incentives the dealers are offering. I will need to finance the difference between the price and what I get for the old car, but I'm hoping it will not be that bad.

Lease instead of finance.

I usually keep my cars for at least 10 years, not a big lease kind of guy.

My problem is that I can't just say "I'm buying a new car on X day". I'm pretty sure that I know what I'll end up buying and I can do my homework as to where I'll be buying it. So I have the what and the where, but not the when. And that's the most important when talking about financing.