Buying a new car experience

[johngolf]

In my last car purchase (2017 Ford Explorer) I got to within $1K agreeing on the price. The salesman said lets talk to our finance guy. I said no need, I am paying cash. He said at least talk. I said OK. The finance guy said we can get to your price if you finance thru Ford Motors. He said when they send you your first payment request, write a check for the total amount. I asked would the pay off amount be the same as the amount we are at? He said yes. I did finance it and I asked him how can this happen. He said we are all different profit centers and often one center does not know what another center is doing.

The first payment request showed up a few weeks later and the payoff was the amount we had agreed on. I wrote a check and a few weeks later the title showed up in the mail.

[txfriend]

The reason my wife did not want the 2013 Ford Fusion any longer, was the accident with a

deer destroyed the front right side bumper, the right front fender, and two doors. The car

never looked the same with color matching noticeable in certain lighting and the fit of some panels.

Also, the check engine light came on. I purchased an $8 diagnostic scan tool and cleared the check engine light.

I got an online quote from Carmax for $10,600 and took it in yesterday, they checked it out and

cut a check for the same amount. I could not deposit the check with my phone had to make

a trip to the CU for deposit into the checking account today. All is right in my world again.

[Parnassia]

Originally Posted by Pitt Chick

We never had to do that.

Me neither. Gotta read your loan documents before signing!

[robr2]

Every part of the dealership is a profit center:

new car sales
used car sales
finance
parts
service

all with their own goals.

That being said, the finance manager working in conjunction with sales can work out a better price if they arrange the financing for you. If they can, take it and pay the loan off in about 45-60 days - ask them how long. If you pay it off before then, the dealership will be charged back by the lender a portion of what they made for originating the loan.

[Ruth4Truth]

Originally Posted by Shark01

The last several times, I would get the best “financed” deal possible then tell them I changed my mind and paid cash. No issues…..

I’m not willing to make a banker’s Ferrari payments from interest they squeezed out of me.

That's how I feel about it; why pay more, dragged out over years,no less, than the car is worth? But I'm not clear on what the OP did, exactly; it sounds like he signed up for monthly payments, but paid the whole thing off on the first payment date...?

[txfriend]

Originally Posted by robr2

Every part of the dealership is a profit center:

new car sales
used car sales
finance
parts
service

all with their own goals.

That being said, the finance manager working in conjunction with sales can work out a better price if they arrange the financing for you. If they can, take it and pay the loan off in about 45-60 days - ask them how long. If you pay it off before then, the dealership will be charged back by the lender a portion of what they made for originating the loan.

This is how it worked for me, I was told the first payment was 45 days.

I worked primarily with the GM and FM, and sales had minimal involvement.

[galaxyhi]

Originally Posted by txfriend

My wife wanted a new car, a small SUV. We bought a 2024 Subaru Limited with every option available.

The buying process was as usual with much back and forth. At one point I said let's forget it

and this is when the negotiations began. I wanted to pay cash but found that financing

the car would get me the best deal. They did not want a down payment, so I financed it for 70 months.

Make the first payment in 45 days and pay it off simultaneously.

She drove her new car home and is happy with it.

Don't be surprised if you're surprised when you "pay it off simultaneously".

We did something similar. No prepayment penalty, reasonable interest rate, etc.

Yah, right!

They would NOT let us pay it off...at least not all at once.

"We cannot accept more than $2,999 this time"

"We cannot accept more than $1,499 this time".

To add to it "we cannot credit your last payment until the 5th day after it is received because the payment may be reversed in 4 days'.

It took 6 mos of weekly payments (* note after the 5th day ONLY).
AND the "We cannot accept more than..." Amount changed every time!

Maybe you'll have better luck, but for us, you'd best believe they were going to make darn well sure we paid some interest!!!

Best

[txfriend]

Originally Posted by galaxyhi

Don't be surprised if you're surprised when you "pay it off simultaneously".

We did something similar. No prepayment penalty, reasonable interest rate, etc.

Yah, right!

They would NOT let us pay it off...at least not all at once.

"We cannot accept more than $2,999 this time"

"We cannot accept more than $1,499 this time".

To add to it "we cannot credit your last payment until the 5th day after it is received because the payment may be reversed in 4 days'.

It took 6 mos of weekly payments (* note after the 5th day ONLY).
AND the "We cannot accept more than..." Amount changed every time!

Maybe you'll have better luck, but for us, you'd best believe they were going to make darn well sure we paid some interest!!!

Best

I've been through this many times.

In 1994 a Toyota Supra financed the same.

1999 Mercedes E430 sport almost 2 months, had to wait on money out of Singapore.

2007 Toyota FJ Cruiser same

2013 Ford Fusion, after the trade-in I only owe $8K (split $5k on CC was all they allowed me + $3K check)

2016 Mercedes AMG C63S financed the same

So I don't foresee any difference. I ensure the FM understands my intentions and get the loan
from appropriate sources. But again anything can happen.

[galaxyhi]

Originally Posted by txfriend

I've been through this many times.

In 1994 a Toyota Supra financed the same.

1999 Mercedes E430 sport almost 2 months, had to wait on money out of Singapore.

2007 Toyota FJ Cruiser same

2013 Ford Fusion, after the trade-in I only owe $8K (split $5k on CC was all they allowed me + $3K check)

2016 Mercedes AMG C63S financed the same

So I don't foresee any difference. I ensure the FM understands my intentions and get the loan
from appropriate sources. But again anything can happen.

Yes, things change.

This was a pre-owned Honda bought from a GM dealership and they insisted what GM finance branch they call GMAC now.

This was 2021.

We needed the car and were caught a bit short while waiting for a delayed disbursement that should have arrived in time, but didn't.

Spouse decided not to risk the delay so we took the loan, knowing we'd pay it off rather immediately.

I misspoke in my first post, it took about 4 mos to pay it off. First month payment was regular due. Then began the nightmare.

But we made sure we paid cash for my '22 brand new Honda...from a Honda dealership.
Funny that..the saleslady called me to come in for "paperwork"...she wanted me to fill out financials. I asked why? Was the car here? (We had an order number and expected 3 mos delivery date)
No, but you need your finances in order. Lol.
I had to remind her our trade (paid for cash) and cash were required NO financing.

They did surprise me..the car arrived in 5.5 weeks!

Best

[Johnhw2]

Originally Posted by Returning2USA

Good on ya,

but you have to pay the interest that would have accrued if the loan were extended to it 70-month term correct?

This is usually the rule for car loans called Simple Interest or Pre-Computed interest.

Can anyone confirm this?

You are wrong. Interest is not prepaid before its time and interest is a charge for time use of someone else's money. Watch out for a charge for a financing fee of a 100 bucks or so but again this is not common