Dealer wants me to finance the whole RHO

[Chemicaltick]

What dealership do you work at? Want to stay far away from it!

 

[Dbiznez1]

What dealership do you work at? Want to stay far away from it!

Lol yes please do.


I will also stay away from the home Depot you work at.

 

[Mikey Swift]

 

[RDRHINO]

From my experience, here's the bottom line. A dealership is NEVER going to lose money on a car deal. Period. There are good dealerships and bad. There are good salesmen and bad. Good finance people and bad. I've never been in sales but spent the better part of a decade as a service advisor and I've seen/heard of SOOO may deals that blew out in Finance because of issues like this. As a consumer....I'm gonna pay the way I want to pay UNLESS there is some extra incentive to use XYZ financing for a better discount, etc. Usually it's for a better interest rate and yes sometimes it's written in the contract that there is a penalty for paying off within so many days/months. Sometimes there's a penalty for paying off early at all. That's always a question worth asking.

If you like the deal and you CAN pay if off early, do it. But if you're not comfortable with the terms they're offering....walk away. And tell them straight up why you're walking. Don't be afraid to call their bluff. Chances are they're not going to let you walk. I've threatened to walk on a deal over $10/mo on payments. Ended up doing the deal because they caved. At the end of the day the dealership is trying to move vehicles because the longer they sit on the lot, the more they cost the dealer. So again, if they can't get you a deal you're comfortable....tell them no and walk. And then see what happens. If they let you walk.....they didn't really want the sale.

On my RHO, I put down the equity on my trade-in ($63500 because it was paid off) and then an additional $5k but I also only got about $6k off MSRP because my trade-in was at another dealership waiting for a warranty engine replacement. AND it was the only Flame Red I could find and ordering from MD wasn't an option for that color any longer. And certain options were also closed for ordering so I took the hit. And then paid off the $28k I financed 2 months later.

 

[rpr]

If you’re the type of dealer rep who goes above and beyond to get your customers the best deal possible (very rare breed) then IMHO you have the right to explain this issue to your buyers and ask that they “consider” what you propose with no expectation that they will do so but gratitude if they do. However, you said you’ve been advising your customers to do this, that’s not the same as asking them to keep this in mind as they consider whether and how to pre-pay.

My dealer “told” me to leave the loan in place so they could make more $ off the deal (they acted like I was stealing it but they agreed to the pricing) and they tried to screw me at every turn, kept putting papers in front of me that did not reflect the pricing we agreed to, and they damaged the finish on my truck by running it through a brush wash not calibrated for a wide body truck that cost me quite a bit of $ to repair through paint correction. Scuffs so deep it even irreparably damaged the RAM logo on one door and had to have that replaced.

So no, I was not interested in handing over more $ to my dealer. Hell no, hard stop. If buyers don’t need to keep the loan in place based on their personal finance situations I would think most would likely feel the same way regardless of how their dealer experience was. I’m not saying this is you but most if not all of us have seen waaaay too many examples of purposeful obfuscation and gamesmanship tactics at dealers. That’s the model and it’s very tough for a dealership to stand out and break that mold. So most folks will not give much consideration to what you’re asking as a form of voluntary goodwill to increase your profit based on their experiences at most dealers, particularly when it’s framed as an advisement rather than a request.

Not personal, just reality.

 

[RAM-Ranch-MT]

Simple, move on and buy from a not shitty dealer. Its your money. Theres like 5+ dealers in this forum that are highly rated and run discounts. No reason to deal wit stubborn local dealerships.

 

[Ganooch]

If you have the money to pay it off send 90% of your balance on first statement then your paying dollars in interest. Trust me we are not going to a NICE dinner on a mini deal!!!!


The salesperson is not making money off the finance at 95% of the stores. And even if they did with how much of a loss it's in the front of the deal the little finance reserve we make still doesn't dig us out of these looser deals sir.


At the end of the day you can choose to do it your way and call us scums. But when you turn everything to the Tesla model and you can't negotiate prices and you pay MSRP like the Tesla model is then you will want to negotiate a deal with us scums.


With all due respect if I could create a black list of the customers like you that think we are just scums and refuse to provide service to you folks I would.


We work long hours put up with a lot of BS just to provide for our families. Dont know what business you are in but I wish you the best and I hope it's prosperous for years to come.

Lol, no one called you scum. That seems to be related to some more deeply rooted issues with your job and your customer base. Don't project that onto me, buddy.

I get it, you're doing a job to feed your family. That's what we're all doing. That said, I don't make my money via expectations that others take an unnecessary financial hit to to benefit myself. We're just in different types of jobs I guess.

I wish you success and maybe, just maybe, you're so good at your job that your customers will play this game to help send some extra cash your way. I'm not hating you, I'm hating the game.

And yes, please give me the Tesla model. I'd take that business model over this dealership model any day. In that model, the market dictates the price. There is no hungry middle-man in the transaction flow that needs a piece of the action and hopes that people take interest cost to trigger some tiny bonus to the finance guy.

Let's admit it. The current system is broken and someone will find a way to fix it. Elon may be the guy that does it and others need to start playing this game in a new, more equitable way.

 

[MattH89]

Lol, no one called you scum. That seems to be related to some more deeply rooted issues with your job and your customer base. Don't project that onto me, buddy.

I get it, you're doing a job to feed your family. That's what we're all doing. That said, I don't make my money via expectations that others take an unnecessary financial hit to to benefit myself. We're just in different types of jobs I guess.

I wish you success and maybe, just maybe, you're so good at your job that your customers will play this game to help send some extra cash your way. I'm not hating you, I'm hating the game.

And yes, please give me the Tesla model. I'd take that business model over this dealership model any day. In that model, the market dictates the price. There is no hungry middle-man in the transaction flow that needs a piece of the action and hopes that people take interest cost to trigger some tiny bonus to the finance guy.

Let's admit it. The current system is broken and someone will find a way to fix it. Elon may be the guy that does it and others need to start playing this game in a new, more equitable way.

The problem is many states have laws that outright forbid DTC to protect dealerships. Some of that is slowly changing in large part due to Tesla, but it's kinda like how the tax code works to prop up the tax prep industry. They're both artificial massive industries with a lot of influence to make sure nothing changes and the consumer doesn't get options that would benefit them.

 

[Bigram]

it is really said all of you who DO NOT work at a dealership know more than the person who does work at a dealership.

 

[rpr]

Even sadder that there’s a prevalent dealer mindset that it’s good business to instruct customers to keep loans in place longer than needed so they make more $ off of you.

In all seriousness, even if you disregard all the other institutionalized shenanigans (with kudos to the few who rise above), is there any other industry that has that type of mindset?

 

[MattH89]

Even sadder that there’s a prevalent dealer mindset that it’s good business to instruct customers to keep loans in place longer than needed so they make more $ off of you.

In all seriousness, even if you disregard all the other institutionalized shenanigans (with kudos to the few who rise above), is there any other industry that has that type of mindset?

Universities still claim to make you more employable. Pharma still claims...all of the things they claim. Doctors and hospitals still order extra potentially harmful services you don't need. I don't think it's super unique to choose profit over your customer's best interest

 

[rpr]

I whole heartedly agree on those points, the distinction is that those examples are claims as you say meant to bring business in. That’s a bit different in my mind than guilting customers into needlessly forking over add’l cash on a voluntary basis after you walk out the door.

And don’t get me started on big pharma. I hope you and your families all stay healthy and never have to learn first hand just how broken our medical industry is.

 

[RamFan]

it is really said all of you who DO NOT work at a dealership know more than the person who does work at a dealership.

Working for a manufacture(Mazda), I know the shenanigans that are pulled and will not deal with those type of dealerships ever. Take my offer and my money or I go to another dealership that is honest. No pinstripes, leather protector, wheel locks etc.

I tell them up front my expectations and if they are willing to concede. If not, I don't have time to waste. No, "Let me check with my manager" and put you in the hotseat for 20 minutes BS.

There was a time I was with my girlfriend, who was buying a New 2015 Durango Limited(I did all the negotiating etc) and the finance manager wanted to know if she wanted an extended warranty. I said no. I had to excuse myself to use the restroom. He then went on to tell her, he didn't think I had her best interest in my heart.

Thankfully she waited until we left to tell me that as I would have punched that guy in the face right there.

Chris

 

[Banger]

The problem is many states have laws that outright forbid DTC to protect dealerships. Some of that is slowly changing in large part due to Tesla, but it's kinda like how the tax code works to prop up the tax prep industry. They're both artificial massive industries with a lot of influence to make sure nothing changes and the consumer doesn't get options that would benefit them.

This.
I really think that the dealership is an outdated business model that's a vestige of the past. I'm sure it made a lot sense when Henry Ford was competing with horses and buggies. Just like labor unions were great over a century ago when little kids were working 6 days a week in factories and losing fingers in machines, the model has gone from something useful to something that makes a select few fat and happy.

Cutting out the middleman (dealership) would certainly lower price is new cars were sold DTC. I'm sure in days past, a dealer was needed to educate people about the manufacturer and the various models offered, and provide all the specs and info on them. But in this information era, people can find that out ahead of time.

 

[NWI_Truck]

This.
I really think that the dealership is an outdated business model that's a vestige of the past. I'm sure it made a lot sense when Henry Ford was competing with horses and buggies. Just like labor unions were great over a century ago when little kids were working 6 days a week in factories and losing fingers in machines, the model has gone from something useful to something that makes a select few fat and happy.

Cutting out the middleman (dealership) would certainly lower price is new cars were sold DTC. I'm sure in days past, a dealer was needed to educate people about the manufacturer and the various models offered, and provide all the specs and info on them. But in this information era, people can find that out ahead of time.

This might be a hot take here but I think people should be required to put a minimum of 20% down on a vehicle. Banks will finance 120% loan to value and thats wrong. The second you drive off the lot you are way upside down. If you cant afford the 20% then buy something else. I think this would force manufacturers to be more competitive on pricing as people will need $20k for that $100k vehicle. I know people should be free to do what they want with their money but its setting up so many for failure, just look at all the negative equity people keep rolling into car loans. As for removing dealerships, I think it would have a negative impact on the consumer as you would see many dealerships close, especially in smaller cities, so when you need service and warranty, its a problem. Tesla is a lot smaller compared to what the big 3, so not sure if the same business practices would work. I think the car buying model is definitely outdated and needs to change, not sure what the answer is though.

 

[RDRHINO]

This.
I really think that the dealership is an outdated business model that's a vestige of the past. I'm sure it made a lot sense when Henry Ford was competing with horses and buggies. Just like labor unions were great over a century ago when little kids were working 6 days a week in factories and losing fingers in machines, the model has gone from something useful to something that makes a select few fat and happy.

Cutting out the middleman (dealership) would certainly lower price is new cars were sold DTC. I'm sure in days past, a dealer was needed to educate people about the manufacturer and the various models offered, and provide all the specs and info on them. But in this information era, people can find that out ahead of time.

I definitely agree with the comment regarding information. I'm one of those that does LOTS of research and comparison when making big purchases. And nine times out of ten, I know more about what I'm looking to buy than the salesman. Take my wife's Grand Wagoneer for example. When we initially test drove, the kid they put with us (must've been really new) knew almost nothing about the vehicle. He'd never even sat in one. And every question I asked was met with an "You know I'm not sure..." Now in that particular case I can allow some grace since it was blatantly obvious the kid was new. But for dealerships to have any relevance (at least he sales side) there's never a reason the average consumer should know more about a product than the dealership staff.

I could see dealerships being open for service, but in this day and age, the sales side is pretty obsolete. And with vehicle prices as astronomically high as they've been lately, cuts need to start being made somewhere....