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Originally posted by jimmy123x:

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Originally posted by jhe888:
They offer .9% to suck in buyers, and make it up in an increased price for the car, lower trade-in, the chance to sell you overpriced warranties.

It is a good rate, but a lot of baggage comes along with it.

This is not true if the offer is through the manufacturers credit company (IE. Mazda credit in this example). Generally a low interest rate given by the manufacturer is in exchange of a rebate if paying cash or taking higher % financing. The dealership could care less which direction you take in financing with Mazda credit as far as price of vehicle or trade in amount goes (that's their profit and the finance percentage doesn't effect that, they make that deal before you even settle on financing)

Actually, if you run the numbers, most dealerships could sell new vehicles at break even and they'd do just fine. The money is in the service department and body shop. So long as sales is putting new vehicles in customer hands and feeding that continual conveyor to the service department and body shop, all is good. Hosing customers over the price of the new vehicle is just gravy.

Credit Card. I can't pass up Reward on that amount of money.

Check. When ready. Showing that you brought cash will hurt your negotiation leverage IMO. Not many people do that. It will look desperate to do the deal. So they hold the line and get an extra grand.

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Originally posted by bigdeal:

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Originally posted by jimmy123x:

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Originally posted by jhe888:
They offer .9% to suck in buyers, and make it up in an increased price for the car, lower trade-in, the chance to sell you overpriced warranties.

It is a good rate, but a lot of baggage comes along with it.

This is not true if the offer is through the manufacturers credit company (IE. Mazda credit in this example). Generally a low interest rate given by the manufacturer is in exchange of a rebate if paying cash or taking higher % financing. The dealership could care less which direction you take in financing with Mazda credit as far as price of vehicle or trade in amount goes (that's their profit and the finance percentage doesn't effect that, they make that deal before you even settle on financing)

Actually, if you run the numbers, most dealerships could sell new vehicles at break even and they'd do just fine. The money is in the service department and body shop. So long as sales is putting new vehicles in customer hands and feeding that continual conveyor to the service department and body shop, all is good. Hosing customers over the price of the new vehicle is just gravy.

This is true, but new cars also has some of the most expense of the dealership (floating the financing of the new car inventory and keeping them clean) so has to show some profit, even though it's usually 10% of the dealerships income. Used cars does bring in good money.....usually 20-25% of the dealers income, and selling new cars, keeps used cars (trade-ins) coming through the door as well as feeding the service department, parts, and body shop.

Is MSRP really hosing someone, if that's the price the manufacturer set? If you look at it from a business perspective, is an $800 profit on an item the dealership purchased for $20,000, 4% an unrealistic return on investment they're holding several months? We're used to seeing dealerships that stock 200+ new cars and sell 200 cars a month. But, a lot of dealerships in the country are small and only sell 100-200 cars a year. Do you think a Rolex dealer could stay in business selling $20k watches for a 4% profit?

The vehicle that I bought before this one I didn't get Plan D on. (I was a new car salesman). I searched inventory on the internet of the vehicle I wanted, I knew what color and options. Of the dealers that had them in a 50 mile radius, I emailed the dealerships and went that route and the prices were very competitive and almost invoice. But, I also was honest and made it clear I was ready to buy from whoever gave me the best price. Honestly, they were all really close of each other. Negotiate price, then negotiate the financing, different financing lengths have different rebates and interest rates and you have to figure out which is better for your situation.

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If you look at it from a business perspective, is an $800 profit on an item the dealership purchased for $20,000, 4% an unrealistic return on investment they're holding several months?

I'll take 4% on my money every two months all day long and twice on Sunday. Even better if I'm using OPM that cost me 8% annually. That 4% is 24% annually, so using other people's money, I get 16% of the $20,000 or $3,200. I can't even calculate a ROI since by using OPM, my investment is 0.

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Originally posted by SeaCliff:
Credit Card. I can't pass up Reward on that amount of money.

The BMW dealership would only allow buyers to charge $5000 on a credit card. Just their policy. I like air miles or hotel points whenever I can get them.

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Originally posted by Bulldog:
I bought my last car with a personal check and trade. Bought the vehicle on a Saturday night and the bank was closed so they could not verify the funds, so i was expecting not to be able to take possession of the vehicle. I was wrong, dealership didnt even blink an eye handing me the keys.

I was a Ford dealer F&I guy in the 1970's. Got scammed by a pro once: his check was NDG. Lost my job on Monday. He & the car were found in Tennessee later that week; he just wanted to show the home folks that he was successful

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Originally posted by RHINOWSO:

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Best way to present down payment?

It's really best if the $5000 is in FIVES and TENS and in a mcdonalds bag and somewhat crumpled up when you bring it to the dealership!!!!!!!!!!!!!!!!