Many times a dealership is paid by a finance company for upselling your interest rate. Say that you have fairly good credit, and might qualify for a 5% interest, that is pay $50 a year for each $1,000 financed. If they can get you to agree to a 7% loan, that is $70 a year per $1,000 financed. If they can further upsell you to say a 10% loan, then on a $40,000 contract, you would be paying about $4,000 the first year, and a few hundred less each year after that. Where a 5% load is only $2,000 a year first year, and less as the outstanding amount goes down.
So the dealership gets paid for putting you into a more expensive loan, and the dealership is not breaking any laws by not telling you that you might have qualified for a 7% loan or 8% loan. They are not breaking any laws when they get paid by the lender for 'arranging' a higher interest loan.
I got a loan on my shuttle bus from this source. They offered me 4% and issued the check to the dealership that I bought the bus from. I have automatic direct debit from my checking account. They first run a 'test debit' of about $0.40 and you send them a e-mail confirming that they debited the correct amount, and that it came from your checking account. Everything was handled electronically, I never went into a bank, they never met me or saw my bus. I did send them a copy of my insurance information, and registration. It is registered with them as the lien holders.
https://www.lightstream.com/Sometimes it helps to ask for more than you might need. In other words, tell them that you are interested in a couple of units, one is $50,000 and you want to see if you are approved at that amount. If you need less, at least you are approved for the amount that you will require. You can tell them that you plan on putting 5% or 10% down (well what are you planning on putting down?)
Then at the dealership once you have the loan pre-approved, and a amount available for purchase, ask what their bottom dollar price will be. Tell them it will be a cash deal, with no trade ins. This should also help them go to a slightly lower price. They might say the MSRP is $45,890, what is your best offer? Usually they can discount up to about 25% without to much wining. Many times they can go 30%. So offer them $30,000 on that unit price. They will counter offer and say that they can not make any money at less than $40,000 (or perhaps $41,000). This is when you thank them, and leave your phone number, and go home. When you get home, your answering machine will be full of messages saying how they can actually go as low as $39,500 and to come back.
Anyway give it a try. You should be able to get it at about 75% to 80% of the full MSRP. Some say 70% of MSRP, but I hate to see the selling dealer cry. . .
Some will throw in a extra battery or two, or something else to get the deal done. Forget about those 'cheap' tool kits, or free cheap air compressor, they buy those from China for a few bucks, and pretend they have a MSRP of $149 or something.
Good luck!
Fred.
Money can't buy happiness but somehow it's more comfortable to cry in a
Porsche or Country Coach!
If there's a WILL, I want to be in it!
I havn't been everywhere, but it's on my list.
Kangen.com Alkaline waterEscapees.com
