Buying a new car.

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kcarter609
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Postby kcarter609 » Wed Nov 21, 2012 5:09 pm

DoingHomework wrote:As I'm sure Mr. Carter will tell you, if you try to push the salesman around or bully them too much then they will not want to deal with you. They actually don't make that much on each car so dumping a difficult customer is not that big of a deal. But if you approach the purchase and negotiation in a business-like manner and refuse to tolerate BS then you will both disarm him from the tactics he has been taught and you will also be taken seriously. Remember too, he is not your friend. He is a counterparty in a business transaction.


I disagree with them not making that much. I have a friend who works for a dealer, and if he has people who accept a basic negotiation, he makes $1k per sale. At a Ford dealer no less. If he has to drop down like $5k below the price, he only gets like $200. But they still make enough if they are good. Some can sell multiple cars a day.

I do agree with the rest of your post though. A great addition to what I wrote in my post.

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DoingHomework
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Postby DoingHomework » Thu Nov 22, 2012 2:13 pm

kcarter609 wrote:I disagree with them not making that much. I have a friend who works for a dealer, and if he has people who accept a basic negotiation, he makes $1k per sale. At a Ford dealer no less. If he has to drop down like $5k below the price, he only gets like $200. But they still make enough if they are good. Some can sell multiple cars a day.


Sure. But what I meant was that a salesman is not going to put up with a lot of crap for $200 if he thinks he can dump you and get another customer to pay the sticker price and earn $1000. You have to be reasonable. It's not hard these days to find out in advance how much a specific car costs a dealer. If it "costs" the dealer $17000, you might get the car for $17000 or even $16500, especially if the dealer does a high volume because they get additional kickbacks and incentives. But you are not going to get it for $12000 so if you insist on that you are wasting everyone's time. The bottom line is, go into the situation informed about the car, your rights, and how much you can afford (including your credit quality if you plan to finance) and you will be way ahead.

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Postby MemberSince99 » Sun Nov 25, 2012 1:39 pm

The interest rate really just depends on the lender as well as the vehicle (used or new and type) and amount you put down, total numbers and years, etc. It's not just based on your score, though that plays a big part in getting the best rate. Actually most of them used an auto enhanced score that looks at your past performance on paying off car loans. That may be higher than your FICO score. (Mine was).

In my case I bought a 2013 Altima SV new on Sept 20th and financed it through NMAC (Nissan). I wanted specifically it to be with Nissan so that I could pay the monthly payment with a credit card - big banks may not allow this because they don't want to eat the fees (Wells Fargo where I had my previous loan did not allow it). My scores are listed below, and Nissan gave me 3.49% for 75 months. Could I have done better at say my bank or US Bank? Probably a little, as US Bank was advertising "as low as 2.99%". But I wanted NMAC for the rewards and to run the $$$ through the card. That's how we think here :)

Anyway there are some vehicles Nissan was offering 0% or 0.9% on for a certain number of months too, it just really depends and so it's hard to give you any kind of rate unless you know what you want and how long and all that. But with about a 700 you should do ok.

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Postby Ratfacedudeguy » Mon Nov 26, 2012 2:15 pm

To add to what MemberSince99 said, make sure you do plenty of rate shopping in as short a period of time as possible so they'll all be counted as a single inquiry. If possible, also familiarize yourself with the ins and outs of each institutions policies of assigning rates. For example, my credit union is offering auto rates as low as 1.99%, but there are some caveats to that. To get a 1.99% interest rate, you have to be buying New with an EQ FICO of 740+ and you have to make your payments via automatic transfer from an internal account -- that's all we base our rates on here, but as previously stated other institutions may consider a variety of different factors in assigning a rate. It is also worth noting that this interest rate is good for term lengths up to 72 months which is great if keeping your payments low is important to you. Also, you have to be leary of the 0% financing offers that dealerships will throw at you. The majority of the time, to get a 0% financing offer forces you to forego any rebates they would have extended to you otherwise, which can be anywhere between $1,000 - $2,000, and sometimes even more. When you're talking interest rates this low, sometimes you'll actually save money financing it with interest as opposed to a 0% deal, depending of course on how long you expect to be repaying it and things like that. So get as much information and preapprovals from as many sources as possible and you'll walk into this purchase as an empowered and informed buyer.
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