It was a lovely car, it was the right price with a lease, it was exactly what I want. I took my husband there this evening, and oh, sorry, we made an error - there actually are no leases available for 2005’s any more. But you can buy it outright for much larger payments!
Listen, bub, if we want to buy something outright, I have to find a lightly-used car that we can actually afford. It was the lease option that made this viable, and you have wasted our time with your lack of telling me correct information the first time.
And by the way, how come every car salesman we’ve talked to in over a year are all in their first week on the job? :dubious:
I don’t know if this kind of thing exists in the US but in Canada, you can get bank financing which is structured like a lease. At the end of the term you drop off the car to the bank and they deal with it, or you can buy it from the bank for the remaining outstanding baloon sum. I suppose you can finance that amount as well when the lease term ends if you don’t have the cash and want to keep the car.
Well, after sleeping on it, then getting up and doing the math, when all is said and done, it looks like the dealership is offering a 33% interest rate on their financing. :eek: I can buy the freaking car with my freaking credit cards and get a better interest rate than that. I believe I will go to the dealership today and offer them an 8% financing rate, and see what they think of that.
One question - the car sticker price is $18,865, the manager is offering $3000 cash back off the price (the car is a 2005, and he says he wants to move it), and then his ridiculous payment plan - if I offer a better payment plan, will he change the price back to the original $18,865?
Oops - my bad. It’s not a 33% interest rate, it’s 33% increase in the total cost of the car. Which isn’t out of the ball park for buying new cars, apparently, but it still seems high to me.
Please don’t make the mistake of thinking that this is the last car of it’s kind in any dealership lot in the country. Drive the hardest deal you can. Do not back down on anything. BUT be prepared to walk away from any deal you don’t want.
They will play hard ball and so should you.
Also, keep in mind that dealerships do trades all the time. If you know a dealer who will work with you, tell him what car you want and where he can get it and have him do the trade from his own stock for that specific car that you want. It may cost you a $100 in transport fees but if you get the price and finance rate you want, that’s a small price to pay compared to the fleecing you’re getting at the current dealershop.
No matter how much they shake their heads and cry about how impossible your offer is, as long as they keep you from walking out of the dealership, you have the upper hand in the deal. Often, even if you walk out, they will call you to get you back in.
$3000 cash back? Oh, that’s only available with ‘our’ financing.
Okay, so your bottom line price is $18,865. Now let’s add on that tax, title, licsense, rust proofing (oh yeah, that’s extra, and no we can’t take it off cause it’s already on the car), floor mats, destination charges, etc. etc.
Okay, so your happy with a $400/month payment. Oh, you thought that was over 4 years? No, it’s actually over 5 years.
Yep, the lease sounds great. Up, sorry, no more leases this year.
Our 2% financing? Oh, that doesn’t apply to the 2005 model.
Next car I buy will be with my own financing, no trade-in. It’s hard for these guys to juggle numbers if they only have one to juggle.
I was just talking to my sister, the chartered accountant, who recently bought a car herself. She doesn’t like these numbers any more than I do. She also doesn’t recommend leasing. She does recommend talking to my bank and seeing what kind of loan they can do for me. We’ve already walked away from the numbers at this dealership once - I hope they realize that we’ll do it again if they continue to treat us like rubes. If I go back to try to deal with them, I will bring my calculator and scratch paper next time.
I like your idea of one number, Hampshire. Go to my bank, get financing in place, go find car, go buy car, let dealership twist in the wind not getting any commission off of my interest. I hate banks, but I’m learning to hate car dealerships more.
Okay, I’ve found another car I want to buy - this one is a 1999 Toyota Camry. They want $11,988 for it, I want to pay $11,500 or less for it - how do I tell them that? Just flat out say “That price is too much - I’ll give you $11,500 for it”?
Follow the links, put in your zip code, enter all of the options for the particular car you are interested in, and see what it comes up as. If it’s less than what they are offering, print it out and take it with you and ask them why they are gouging you on the price. Make them squirm.
Seriously, these guys are trained to make you and your money part ways. Play hardball. If they don’t have to go into the back to “see the manager” :rolleyes: about the price you are offering then you offered too much. If you are willing to go 11,500, then offer 11,000.
BTW, Mrs Geek drives a Camry. They are good cars. We like ours.
I’ve worked out payments in a computer spreadsheet, with different prices ($500 or $1000 apart) down one side, and interest rates along the top - around what my bank offers, what the dealership says they’ll offer, what rates seem to be going around at the time. If I’m willing to be flexible on length of financing, I’ll do a chart for each financing length (4 years, 3, 5, whatever). I print these out and bring them with me. (I also know what payment I’m really willing to make, but that’s not written on these sheets, that’s in my head.)
Then when they start pulling this, I’m already to look at “Oh, that would be the amount I’m financing? At this rate, I can get this payment”, and I don’t have to rely on them, or take the time to figure it out right there. Also, if their numbers are way off, you can start asking what they’ve changed - added a balloon payment? Put it in for 72 months when I said 36? Anyway, you’re prepared.
Is that $11,988 at a dealership? Than yeah, feel free to tell them the price you want to pay for it…minus $1000 or so. With a car at that price, I’d walk in there, offer them $10K, and see where you go from there. My guess is you end up paying about $11K.