Ask me anything about buying/selling cars.
06-03-2010
, 03:43 PM
Last edited by muckyuraces; 06-03-2010 at 03:49 PM.
Reason: *shows my dealership personal data* will mspaint in future
06-03-2010
, 03:46 PM
06-03-2010
, 07:48 PM
why look at national vs. region to figure out if he got a good deal? also, did he pay 37.3K otd? depending on that (and where he bought it), it would seem like he made out ok: http://www.dealerfusion.com/search.a...9939&addcart=1
anyway, i think it's great you're helping people figure out buying cars - that business is wacky...
anyway, i think it's great you're helping people figure out buying cars - that business is wacky...
06-03-2010
, 07:55 PM
06-03-2010
, 10:08 PM
First post so be nice
Pretty good thread so far but thought I would add some info that might help. After working 16 years on the bank side of finance for autos and not actually in the dealership I have some insight on how things work. OP is correct that financing has tightened up drastically in the last few years. Several subprime lenders and a major prime/subprime lender folded up shop and left the market. But that does not mean that with large equity a loan will not be made. I on a daily basis make loans to young borrowers with very little or no credit as long as they have large down pmts and I believe I could find them in a few months if they were'nt making pmts. I will waive any income requirements if the equity is there. In short--if they default and i can repo and not lose any money who cares if i proved their income. If you have perfect credit your best bet is to shop for your loan before hand and then compare it to anything the dealer offers you. They are paid by the banks for all the loans they send to the bank and if you get outside financing they are out of luck. Because of this you as a credit worthy buyer have some negotiating room. On the other hand if your credit is less than stellar or non-existent you have to work a little harder. In this case the dealership usually has to pay the bank to buy your loan and allow them to sell the car. This cuts into their profit and that has to be made up somewhere--this means you. Figure a higher sales price and a higher interest rate. Dealers are quoted an interest rate that the banks approved you at and are then allowed to mark that rate up. They are then paid a percentage of this mark up as basically a profit. Just like almost everything the car business is a racket in it for themselves. They have to keep the doors open and the lights on and they cant do that unless they make a profit. There are good dealerships and there are BAD dealerships. Just do your homework and know your stuff and the good dealerships will sell you a car and the bad ones will get pissed and show their true colors quick enough that you can run and save your dollars.
Pretty good thread so far but thought I would add some info that might help. After working 16 years on the bank side of finance for autos and not actually in the dealership I have some insight on how things work. OP is correct that financing has tightened up drastically in the last few years. Several subprime lenders and a major prime/subprime lender folded up shop and left the market. But that does not mean that with large equity a loan will not be made. I on a daily basis make loans to young borrowers with very little or no credit as long as they have large down pmts and I believe I could find them in a few months if they were'nt making pmts. I will waive any income requirements if the equity is there. In short--if they default and i can repo and not lose any money who cares if i proved their income. If you have perfect credit your best bet is to shop for your loan before hand and then compare it to anything the dealer offers you. They are paid by the banks for all the loans they send to the bank and if you get outside financing they are out of luck. Because of this you as a credit worthy buyer have some negotiating room. On the other hand if your credit is less than stellar or non-existent you have to work a little harder. In this case the dealership usually has to pay the bank to buy your loan and allow them to sell the car. This cuts into their profit and that has to be made up somewhere--this means you. Figure a higher sales price and a higher interest rate. Dealers are quoted an interest rate that the banks approved you at and are then allowed to mark that rate up. They are then paid a percentage of this mark up as basically a profit. Just like almost everything the car business is a racket in it for themselves. They have to keep the doors open and the lights on and they cant do that unless they make a profit. There are good dealerships and there are BAD dealerships. Just do your homework and know your stuff and the good dealerships will sell you a car and the bad ones will get pissed and show their true colors quick enough that you can run and save your dollars.
06-03-2010
, 11:31 PM
06-04-2010
, 12:57 PM
06-04-2010
, 03:45 PM
Quote:
First post so be nice
Pretty good thread so far but thought I would add some info that might help. After working 16 years on the bank side of finance for autos and not actually in the dealership I have some insight on how things work. OP is correct that financing has tightened up drastically in the last few years. Several subprime lenders and a major prime/subprime lender folded up shop and left the market. But that does not mean that with large equity a loan will not be made. I on a daily basis make loans to young borrowers with very little or no credit as long as they have large down pmts and I believe I could find them in a few months if they were'nt making pmts. I will waive any income requirements if the equity is there. In short--if they default and i can repo and not lose any money who cares if i proved their income. If you have perfect credit your best bet is to shop for your loan before hand and then compare it to anything the dealer offers you. They are paid by the banks for all the loans they send to the bank and if you get outside financing they are out of luck. Because of this you as a credit worthy buyer have some negotiating room. On the other hand if your credit is less than stellar or non-existent you have to work a little harder. In this case the dealership usually has to pay the bank to buy your loan and allow them to sell the car. This cuts into their profit and that has to be made up somewhere--this means you. Figure a higher sales price and a higher interest rate. Dealers are quoted an interest rate that the banks approved you at and are then allowed to mark that rate up. They are then paid a percentage of this mark up as basically a profit. Just like almost everything the car business is a racket in it for themselves. They have to keep the doors open and the lights on and they cant do that unless they make a profit. There are good dealerships and there are BAD dealerships. Just do your homework and know your stuff and the good dealerships will sell you a car and the bad ones will get pissed and show their true colors quick enough that you can run and save your dollars.
Pretty good thread so far but thought I would add some info that might help. After working 16 years on the bank side of finance for autos and not actually in the dealership I have some insight on how things work. OP is correct that financing has tightened up drastically in the last few years. Several subprime lenders and a major prime/subprime lender folded up shop and left the market. But that does not mean that with large equity a loan will not be made. I on a daily basis make loans to young borrowers with very little or no credit as long as they have large down pmts and I believe I could find them in a few months if they were'nt making pmts. I will waive any income requirements if the equity is there. In short--if they default and i can repo and not lose any money who cares if i proved their income. If you have perfect credit your best bet is to shop for your loan before hand and then compare it to anything the dealer offers you. They are paid by the banks for all the loans they send to the bank and if you get outside financing they are out of luck. Because of this you as a credit worthy buyer have some negotiating room. On the other hand if your credit is less than stellar or non-existent you have to work a little harder. In this case the dealership usually has to pay the bank to buy your loan and allow them to sell the car. This cuts into their profit and that has to be made up somewhere--this means you. Figure a higher sales price and a higher interest rate. Dealers are quoted an interest rate that the banks approved you at and are then allowed to mark that rate up. They are then paid a percentage of this mark up as basically a profit. Just like almost everything the car business is a racket in it for themselves. They have to keep the doors open and the lights on and they cant do that unless they make a profit. There are good dealerships and there are BAD dealerships. Just do your homework and know your stuff and the good dealerships will sell you a car and the bad ones will get pissed and show their true colors quick enough that you can run and save your dollars.
my best suggestion for getting the best price is to go through the internet department of a bunch of different dealerships and see who gives you the best price.
you can always forward emails from one dealer to another to make them go lower, at my dealership we always try to beat our competition and end up whoring out cars
08-22-2010
, 11:39 PM
