flan wrote:Don't believe anything any employee of a car dealership tells you; their job is to make money for the dealership, by taking it out of your pocket. One of the ways they do that is lying about financing.
Line up financing from your bank or CU before you step foot on a lot. Then, if you decide you're going to finance with the dealer, you can tell them to take a hike if the rate they offer you is not as good. Many car dealerships pad the interest rate they offer (bank says you qualify for 2.5, they tell you 4.5) and pocket most of the difference. Even if they only pad 0.25, that's $5 a thousand borrowed on a 4 year loan.
Frankly, the only reason to finance with a dealer is if your credit sucks (they have better contacts with lenders, and can find anyone a loan), or if there's promotional financing, or if there's an incentive contingent on a loan from the captive finance arm. (It's becoming pretty common for rebates to be contingent on such a loan, and many makes have incentives to the dealer for arranging such a loan. That money should be reflected in the sales price (pre tax!). In the case of the incentives, you need do do the math to see if it's worth going for, based on the rate you'd get elsewhere, and the rate you'd pay the captive financer. (and, of course, your ability to refinance the loan in two months...) If you have good to better than good credit, you will do just as well or better from a bank/CU, and you're their customer.
Thank you for trying to insult car dealers like me, and trying to make up for it in the last paragraph with secondary financing. Some of us aren't all bad, or lyers, or try to "stick it to yah." I've been in the car business 4 years and going, and I care about my integrity and honesty to a customer. My track record, which you have no idea about, but are more than welcome to look it up, backs me up on this.
I'm an open book to my customers, if they can get a better rate from their credit union, who am I to stop them from taking that? I send them in the vehicle they want to buy to that bank so they can bring back a check. But I don't get paid extra if they finance with my dealer's banks, and while my business manager does, he has the same values.
Granted, we don't work for free, I don't expect anyone to believe we do. But it's more than just making a buck. It's about earning your business in the future, and your familys, friends, so on and so forth.
Sorry, I'll step off my soap box now. Carry on.