hey guys, my wife is looking into trading her car in. my question is even if yur upside down, does the dealership usually work with u if you put money down versus no money down? i guess that way the dealership makes money off the down payment. does that sound right? oh yeah she wants those new 07 camrys.

 

the only thing a down payment affects is your amount financed.....any car deal comes down to a trade difference...IE the amount you can buy the new unit for - the amount for trade in + payoff on trade + TT&L -down payment = amount financed


for those that want to know what a dealer paid for a new vehicle all you have to do is go to KBB.co and look up the vehicle and options of your choice and it will tell you Invoice price.....every single franchise dealer pays the same amount for identical vehicles....volume dealers will sell below invoice more often due to the fact that the more they sell the better allocation they receive the following year.....When a dealer sells a unit for invoice they still make $$$ due to hold back.

If you really want to make a dealer/salesperson squirm ask them what the MEMO price is on the car...they all can print you a copy of the invoice on the spot.

 

But even still. Hold back has nothing to do with public, whether they know it or not, not many dealers will give up hold back. Thats company money that the sales team never see's. Only the GM/Partners...

 

the Ford Dealer I used to work for we got paid off hold back also....some dealers are more aggressive than others.....if you find the right dealer you can get into holdback


what I was saying is most of the dealers around here will sell a unit for Invoice, cuz they still make $$$ off hold back and back end products

 

no way, even though carmax is a set price, 8 out of 10 times you can find a better deal for your money. the place to go is a ford dealership that is blue oval certified, or a chrysler, Chevy etc, that has the highest rating. You will most likely tell because they have a fleet of SVT's, Saleen's or special edition vehicles. don't just buy from any dealership.

 

you got it all wrong, it is their buisness. you see they are their to make money. 9 out of 10 car sales guys only get paid on their sales. so it really is their buisness. It just sucks for you

 

DON'T SAY THIS GUYS, THEY WILL HIT YOU WITH 72MOS EVERY TIME. AND THEY WILL GET YOU AT 550 TO 600, BUT DO THE MATH AND YOU WILL PAY 8K MORE DEPENDING ON YOUR CREDIT.

 

JUST BECAUSE A DEALERSHIP HOLDS A VEHICLE DOESN'T MEAN IT'S NOT WANTED, IT'S JUST THEY WON'T LET IT GO FOR NOTHING, HAVE YOU SEEN NINE BALL'S CAR. I'M SURE THEY WERE NOT JUST GIVING IT AWAY.

 

THE DEAL WASN'T IN YOUR CAR THAT YOU TRADED, IT'S JUST THEY BOUGHT THE OTHER ONE FOR DIRT CHEAP, CHANCES ARE IT WAS AN IDIOT WHO JUST GAVE AWAY HIS KEYS. SO BELIEVE ME, MONEY WAS MADE ON THAT DEAL.
IF YOU REMEBER, I'M SURE HE ASKED YOU HOW MUCH ARE YOU LOOKING FOR YOUR CAR? OR YOU OPENED YOUR MOUTH AND SPILLED YOUR GUTS, COMPLAINING THAT OTHER DEALERSHIPS LOW BALLED YOU. sorry just saw the caps locks and i'm not re typing

 

nope that is dodge my friend, gm might be pulling strong now with their 100k warranty though.

 

the sales people do this everyday, so they willl win most of the time.
like someone said above, end of month.

Carmax is gay, if you are weak and have no ***** go to them, at least you wont have to haggle to get ***???

 

OK I received several PM's. This will be lengthy but so is buying your car. There is a real dialogue, it's like acting.

What brings you to jimmy joe ford? Not how can i help you? because you will say " no thanks, i'm just looking

you: Oh my friend bought a GT and I like it.

Them: Sure lets' step inside so we can narrow your search and get an idea of what you are after. This is the key. Get the customer inside so they will not walk you all over the lot.

Well what features were you looking for. color, model, auto/stick?

you: well i want a poopstang with leather and a red one with 18's.

them: Oh i think he have that in the very back, it's in prep to be put on the show room floor. liars

you: oh really, well lets see it.

them: ok wait right here. they run to the tower and narrow the search. keep in mind this is new cars. If it's used we use to hit the lot every morning, to see if we got anything new. that's how we make money.

so any way, if they can't find it, they will bring the first thing closest to it.
the key is never to let you walk alone. because you can pop smoke. any way you walk out side, after filling out a quick question sheet. name/ blah blah blah. to keep you in their files.

so, the first thing is to make it better. talk talk talk, we are building your trust and really trying to know you, as quick as possible. we have to find things we have in common.

them: so we inject real quickly who you are financing through. If it's a good lender we are in the house, if you say drive/or a high risk lender. stop the bus lets' run a credit score.l

any way, don't worry we can get you approved. I don't tell you a dollar amount. I just go through different loans. the one i really stick with is the short term, high equity loan. it sounds good at first if you can afford it. it's a pay off within 24 to 36 months and you own this baby.

you: ahhh man I could have this paid off, awesome.

any way go back to the dealership right after i showed you a walk around away from the dealership to avoid distractions. i pumped up that no go mustang. with the new car smell.

well as soon as we get back, I had you the keys of the new car, it gives the mind a sense of ownership.

I ask: are you looking to trading anything in? While yes, I'm trading in my WS6 because i lost my mind.

I take your keys, and under no circustances will i ever give them back, so you wont' bail on me, when I'm gone for the next two or three hours, making my money going back and forth.

Well any way. I give the keys to the mgr and they tear your car apart, no matter what.

While that happening, i'm have you fill out credit apps as quickly as possible so i can see your beacon, anything over 575-580 is do able. 700 is awesome. they are not suppose to run it until they have a signed permission sheet. like i said suppose to.

well at this point, i'm trying to hold my gross, if it's a used car i'm at the window sticker for price, so i write that in on top. then i get your appraisal back, with a low ball offer. once i have these, i inked you. which means

i got you to commit to buy, if the terms are agreed.

so once we run your credit we can tell almost were we need to be to make the deal happen. which means we are trying to make a deal for us. the goal is a 10 lbr, it's a term that means i'm going to hit you on the head, while you love it.

so i come back with a window sticker price + my low ball offer for your trade at 24 mos. at 885 monthly payment. with 2k down, when you said i have about 2k to put down.

so I go through these numbers with you as i get back into my office.
I say i have great news guys. we can get you done.

with a sale price of 50k and a trade price of 1k plus your 2k down payment, we are looking at a payment of 885? I don't saying nothing, first person that talks looses.

you and your spouse look at each other, like what ever. and you say i can't pay that! i was thinking some where around 500 a month. as soon as you say 500 a month, i say up to? well i guess up to 575 if we have too.
never up to, stick at 500. any dollar i can get out of you is money on my check.

so I say, well guys I don't know if we can get that low, but i'm going to try.

So l say, well you do know the more you put down the less your monthly will be? is there any way you can put more down?

Your answer should be no? remember i'm trying to get money out of you.

so i say ok but keep in mind the more you put down the less your payment will be. and you say well give me more for my trade?

ok. well let me get this straight, if i can get you out the door today, with a payment of 575, we will have a deal, if so sign here. it's just showing commitment.

you sign, he goes back and pushes those two years to 72 mos at 575. the price never went down anywhere, but you being the payment shopper is now happy, and i just killed you. because i come back and say congrats and try to wrap this up and send you to finance as quick as possible, because time is money.

if it isn't going well, it takes longer. but always remember, keep the values written and infront of you at all times. to get the best deal

you tell them from the top, i don't care about payments, I'm paying this amount and i want this amount for my trade, with 500 or 1k down, try to keep as much in your pocket, because for every 1k borrowed your payment will only move 20 bucks.
always remember the car sales man has no control on price, he just represents the car manager that is kicking his teeth out to get more money off of you.

this is kind of long but it gives you an idea. now this is just the front

when you get in the back, then they make money on extended warranties. you can talk them down also. that is not a flat rate, take it or leave it like most people think.

no finally if for some reason, that can't get you done that same day, they will bale you in the car, which means at all cost we have to keep you in that car, so you won't go to another dealership and keep looking. it doesn't mean you own it, your just borrowing it and hoping for the best.

but if you can, you are always best selling your car outright to someone else and not trading, for any car on used car you can look at a 5k-7k overhead on it,

 

Sure sounds like you worked in a revolving door dealership chicken. I guess they use you up and you have the game all figured out, huh? Good for you, chicken. I hope all continues to go well in your dodge dealership.

 

i went back in the army. I'm a senior battle nco for Texas. It's the only thing i love doing besides serving god!

 

1badchicken. That must have been an american dealership, who thinks their **** dont stink. lol



I sell cars, and our processes are nothing like that. We have morals (yes, a car dealer with morals). We have caps on the Poundage we can make, we cant take over 1500 over what the trade ACVs at, etc..

 

Well hell thats nice.


I love visiting dealerships and listening to the guys throwing "closers" out there left and right. I think I counted 25 from the guy who I got my truck from.

Side note: My 06 Sierra is forsale. (PM ME)


Every friend I've had has been screwed by payment shopping. I've already got financing figured out and know exactly what I can spend per month, what the loan value will be, how much I'm putting down, what I'll deal to on the trade in, etc. In buying the last 3 vehicles I never, not one time, not once mentioned a payment. They'd try and hunt for that information talking about their finance department, but here again, my bank kicks *** and had a rate lower than anyone else could go.
I won't deal with salesmen that push and try to "close" the deal left and right. Though its interesting to listen and make fun of that from time to time.

For instance, my truck was a few k mile demo. The salesman started out by saying (and slipping since he knew me from when he was my principal in middle school) that they were desperate to get rid of it, that it was cold and had been sitting for several months (3.5 i believe, he was honest with this). Get to talking about it and he's throwing papers and pens at me like its going out ot style. He starts dropping bombs about "well, someone else has been looking at it" then it goes to several people, etc etc. I think he tried every close on me that he learned in BillyBob's
Backwoods Used Car Sales School. Horrible skills (to me, good for the sheep out there).


To the true salesmen in here: When trading and purchasing a new new or new used, what would you do. I've read and heard from friends, etc to get the price just peachy on the new whatever, get that locked down however possible, then negotiate the trade in.

 

The price you paid for your SS and where you bought it from is public info.

 

I guess he didn't see the sarcasm in my reply

Not all American dealers are like that though. Hence, Cadillac

 

Nope, haven't seen it. I have seen two different local dealers advertising $4500-6000 off MSRP for brand new GTOs though. It's been the same ad every Saturday for 3 months which tells me either than had a crap load of GTOs, made some poor dealer trades or the cars don't sell. I know they didn't have a bunch because I remember when I was car shopping back in April most dealers had 5-6 in stock but they wouldn't deal on them.

 

Either way, I personally would just go off of trade difference. If you think you know what your car should bring, and you know what the invoice of the new car is...then you'll be ok.

IE:

New Car - 40K
Your Trade - 15K

= 25K Trade Diff.

Now, if you know invoice on that vehicle is 36K, then try looking for a trade diff of 21K. Watch em squirm, because you know they can do it, it will just depend on how much they want to budge. And like was said before, after he presents the numbers, The first one to talk, LOSES.


The trade diff is the only thing getting financed, so in all reality, its the only number that matters. They can do what they want with whatever numbers they have. The end result is the one that matters.