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Old 06-07-2013, 07:49 PM   #1
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Tips for dealing with dealer finance dept?

I have seen many posters reference how a dealership will "make up" any discounts given during the negotiation process when the customer sits down with the finance department (I.e. -- unecessary fees/costs).

Can anyone give some specific examples of things to look out for to avoid getting hosed during this process, especially any fees the dealership may state are required, but really aren't? I would hate to negotiate a good/fair price, only to lose it all on the back end.

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Old 06-07-2013, 08:01 PM   #2
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look at the dealer document fee. I called shenanigans on one dealer. See my post. http://www.wranglerforum.com/f33/472...ia-245651.html

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Old 06-07-2013, 08:09 PM   #3
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Check into your local credit unions. You can have the financing mostly arranged before you even sit down (and likely at a lower rate).
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Old 06-07-2013, 09:23 PM   #4
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My advice on dealing with dealership financing. Don't. Go to a credit union or bank and work out what the interest rate and monthly payments will be.
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Old 06-07-2013, 09:26 PM   #5
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I got pre-approved for my loan, did'nt say anything until the end and let them beat it.
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Old 06-07-2013, 09:44 PM   #6
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i hate when the dealership tries to push their financing when you tell them you have their own. i try negotiating price of vehicle, and they just keep talking about lower interest rates, frustrating.

my bank is USAA and they are affiliated with certain dealerships, when you go to their dealerships they can't try to compete with financing of USAA so they can only talk about price of vehicle and trade-in.

It was a much more comfortable experience for me. Now if I went to the dealership without getting a loan first from USAA then the dealership would offered me financing through their own source.
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Old 06-07-2013, 09:52 PM   #7
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Old 06-07-2013, 10:44 PM   #8
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I was a car salesman for a while. I was told to tell my customers that we were given 5 coupons a month to use on specific customers. These coupons will allow the customers to take a percentage off of whatever they purchase through financing. At this point in the process they rarely would ask questions. I personally never did it regardless of the back end money I could potentially get from it. If a salesman explains to you, in depth, what each product you have available, then he's not going to bs you. On that note, paint protections are a huge ripoff, if you're buying new, the only thing I would consider purchasing is gap.
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Old 06-07-2013, 10:47 PM   #9
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Yes, get your financing in order before you step foot on the lot. One time I used the dealer financing and they racked up all kinds of inquiries on my credit report trying to find a low finance rate for me and it did lower my score. You can only have so many inquiries a year or something before it affects you.
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Old 06-07-2013, 10:55 PM   #10
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I agree with not messing them. With my auto purchases, I setup my loan with a credit union first (check out penfed). They send me a check that I can fill in the final price. I hand it to the dealer and get my keys.

Good luck with your purchase.
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Old 06-07-2013, 11:50 PM   #11
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Do not deal with dealer financing! They are, by far, the biggest scam artists in all industries combined.

1. They will attempt to sell you an extended warranty that you will find is useless later on. If you don't buy it then they will push and push and push until the price drops so low that you end up buying it when, in the end, its still worthless later on! They push this much harder on people who are financing.
2. They will pull your credit MANY times. I once got SIX credit pulls because they shopped me around to different banks. You'll only get, probably, 1 credit pull if you go to a credit union or bank instead. Worse yet.. if you TELL them to only pull your credit once they'll say "ok" then pull it six times anyways.
3. They will give you a terrible rate. I have over an 800 credit rating and they gave me 4.5%. So I got external financing for 3.2%. That's still really high, but whatever, I pay it off very early anyways. I brought that number back to the dealer and, magically, they say "oh hey we can actually get you 3.15%". In other words they pick your finance rate and, due to getting kick backs from the banks, will give you as high of a rate as you'll accept.
4. Watch the contract numbers closely. Things like 'lifetime wax', 'window security etching', 'aftermarket alarm' and insane 'doc' fees magically appear.


If you think dealer service departments are bad... and if you think dealer salesman are bad.... wait until you look on the bottom of their shoes where you'll find the finance department.
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Old 06-08-2013, 02:27 AM   #12
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Sometimes dealing with dealer financing gets you a better interest rate, sometimes you're better off at your local Credit Union. Around here all the car dealers work with two of our Major CUs for local lending but for new vehicles they will check the factory lender too. The deal is when you negotiate and when or if you sign an agreement make sure its "out the door" if they write out the price write "out the door" next to it and have him and you initial it. It's not perfect but it tells them up front you're not playing games, if they then want to tack on fees point to the "out the door" price and tell the you don't care how they want to write it up but end the end that is all you are paying.

Link below talks about Doc fees, IMHO its a good read before you go in.
Which Additional Fees Should I Pay at the Dealership? What is The Doc Fee?
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Old 06-08-2013, 03:18 AM   #13
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Deal with a Credit Union. I have learned that the hard way over the years!!
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Old 06-08-2013, 03:31 AM   #14
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Get a rate from a credit union then negotiate with the dealer. I got 1.74 from penfed then the dealer best it with 1.7
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Old 06-08-2013, 05:37 AM   #15
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I contacted my credit union and they said they would finance me at 1.74% and the dealership beat it with 1.49%
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Old 06-08-2013, 07:26 AM   #16
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Quote:
Originally Posted by Z-TJ View Post
I got pre-approved for my loan, did'nt say anything until the end and let them beat it.
^^ This.

That's how I did it, too. The dealer couldn't beat it so I went with my Credit Union.

Also, watch for the "miracle paint protectant" and "unlimited warranty" crap. Much of it is overpriced and a complete waste of money. The standard warranty will cover everything. If you're having trouble, you'll have three years to get it taken care of. If it's a problematic vehicle, that means you'll have three years to get rid of it or claim lemon law.

The only extended warranty that I actually purchased was to cover the electronics. Being in the electronics industry, I can assure you that things can go bad years down the line and NOT be covered under warranty. Our Jeeps are LOADED with electronics, and while it may have been a waste of money, it gives me piece of mind.

The only other thing I would look into if you're financing most of the price is look into gap insurance. This will be a safety net to cover you between how much you owe versus how much it's worth in the event of a total loss (accident, fire, flood, etc.). You can buy this through your dealer or through your insurance company. Look into it BEFORE going into the finance office.
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Old 06-08-2013, 10:39 AM   #17
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If you are buying an extended warranty, make sure you are getting the Chrysler warranty and not one from Fidelity or some such. Also, be aware that you can buy the Chrysler warranty online at Jeep.com even after you have been driving the Jeep for some time. The online prices were 40% less than the dealer quote in my case, but the dealer matched it.

That brings up an important point: the dealer will always try to beat an offer you have. They are, by nature, competitive. So get the interest rate from the CU, but let the dealer have a whack at getting a better one. The multiple hits on your credit only count as one in the FICO scoring algorithm, so don't let that bother you. Get a number for the warranty from jeep.com and let them beat it.
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Old 06-08-2013, 12:19 PM   #18
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I got pre qualified with my credit union before I went to purchase. The dealer asked what my rate was and then asked me if I would use one of their lenders if they could match it. Knowing that they will get paid on the back end, I asked what was in it for me. After a few moments of awkward silence, a silly grin and glances between him and the finance guy they said nothing was in it for me. The rest of the process went fairly easy after that.

When your are there on the day to buy, if there is cash back from Chrysler for using their financing, take it. Even if the rate is high in comparison to other offers. Make your first payment then refinance at a lower rate with a credit union or bank.

As others have said, don't buy third party or extended warranties. Don't roll dealer installed mods into the financing. They will double or triple the cost of the mods when you do this.

Research what Jeep offers in the way of packages. A lot of dealers out there have packages or editions that they make up on their own, then charge crazy extra prices for them.

They will use take off wheels/tires, that they essentially stole from a customer who had aftermarket wheels installed right away, and charge crazy high prices for them for those who are looking at a base Sport.

Spend some time reading here, get well informed then make a good, fair deal.
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Old 06-08-2013, 12:50 PM   #19
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Every dealer I have ever made a purchase from lost my future business because of their finance people. They are rejects from the used car lot. All the dealers in my area pull this crap. Magic wax, magic stain blockers, anti-theft packages, gps tracking, extended warranties, maintenance packages, undercoating, rust proofing, window etching, vin tagging, etc. It's all a scam. I told my guy I wasn't interested in any of it and they still did the pitch. I almost walked out. I once had a dealer add in a $100 coupon book after the papers were signed. I was pretty upset about that one. They are never happy with the sale, they always try to increase their take. Here's my speech: "No, no, no, no thanks, no, no, I don't think so, no, no, no, no, no, I'm about to walk out if you don't stop now, no I'm serious."
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Old 06-08-2013, 01:47 PM   #20
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I have a great local credit union (actually 2) that i use all the time. They offer the low new vehicle rates 1.9 to 2.9% depending on nat'l rates regardless always cheaper then bank or dealership rates. make the best deal on your vehicle possible without telling them you have your own financing, let them think you are going to finance a chunk of it (dealer will often give a better price on a financed vehicle as they make money back thru interest) when you actually sit down to sign the final paper work whip out your check book lol. All of the sudden they will offer you a much lower rate then they originally said.
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Old 06-08-2013, 02:22 PM   #21
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Recently I was told if I financed, through Chrysler, the dealer would wave the $299.00 doc fee. I was paying cash, up to that point, but could finance for a month or two and then pay it off. Am I missing something?

Win
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Old 06-08-2013, 02:28 PM   #22
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Quote:
Originally Posted by WininUtah View Post
Recently I was told if I financed, through Chrysler, the dealer would wave the $299.00 doc fee. I was paying cash, up to that point, but could finance for a month or two and then pay it off. Am I missing something?

Win
check to make sure they don't have an early payoff penalty.
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Old 06-08-2013, 05:16 PM   #23
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Settle on a price ahead of time, arrange your own financing, and walk in with a check. I bought mine over the phone from a dealer 300 miles away to get the options I wanted (Gecko unlimited sport with 3.73, 6 speed, and nuthin' else!) I told them about my $500 rebate, affiliate rewards number, etc, agreed on a fair price and paid a deposit with a credit card. I walked in with a cashiers check for the balance when I picked it up. I didn't even enter the finance guy's office. Nor was I bothered with offers of paint protectant, extended warrantys, service plans, etc. Best car buying experience ever!
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Old 06-08-2013, 10:29 PM   #24
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meh. I wish I could get a good finance rate. but I have a young credit history, so everyone is giving me absurd interest rates. BOOOOOO.
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Old 06-08-2013, 11:06 PM   #25
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meh. I wish I could get a good finance rate. but I have a young credit history, so everyone is giving me absurd interest rates. BOOOOOO.
Credit is evil.
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Old 06-08-2013, 11:10 PM   #26
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Credit is evil.
Lol, and it's not that I have bad credit either. In the high 700's, but that don't mean a thing to lenders if you've only had credit for less than two years.

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Old 06-08-2013, 11:17 PM   #27
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Lol, and it's not that I have bad credit either. In the high 700's, but that don't mean a thing to lenders if you've only had credit for less than two years.

Yeah I know haha. I was just referencing William Taft.
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Old 06-09-2013, 01:40 AM   #28
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Quote:
Originally Posted by WininUtah View Post
Recently I was told if I financed, through Chrysler, the dealer would wave the $299.00 doc fee. I was paying cash, up to that point, but could finance for a month or two and then pay it off. Am I missing something?

Win
Assuming Utah is home, there are not regs on how much they can charge so the Doc fee can be zero if you negotiate. Pretty lame when they make more money if you finance then if you pay cash. I'd be incline to tell the dealer your paying cash, and you'll pay $50 to the doc fee, take it or leave it.

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