Beware of this Dealer's Finance Department Tactics. I just went through this scenario at this dealership 3 days ago.
FACT 1: Dealers make more money on financing and extras than on the car itself.
FACT 2: There is NOTHING a dealer can sell you that you cannot get elsewhere for a lot cheaper. Don't buy anything other than the vehicle.
SCAM 1: You will be told that your credit score is lower than it actually is. This allows them to charge you a higher interest rate. 1% on a $30,000 loan over 6 years will cost you $1,800.
The finance guy who all of a sudden is your best friend will tell you that he is going to help you out and get you a lower rate by dropping the interest rate by a half percentage... say from the phony 4.75% you ‘qualified’ for to a 'low' 4.25%. Any credit union would charge you far less.
SCAM 2: Now the finance guy has saved you money he will keep saying... "It's the same deal you agreed to". He will make small talk to sell you extended warranty. After all, if you are trading a car with 30,000 miles on it... and have only had it for 2 years... your factory warranty of 2 years or 24,000 miles... is going to expire... SAY NO TO EXTENDED WARRANTIES.
Now he is going to start sliding bits of paper for you to sign. This is where you have to pay extra attention!
SCAM 3: $15 Alarms are often installed by the dealer to lower their insurance costs. SAY NO. YOU DO NOT WANT THE $400 ALARM. They can remove it. He will argue that it is already part of the deal that you ok'd so there is no extra cost. Ask him to show you on the window sticker where the specific alarm he is mentioning is listed.
SCAM 4: VIN ETCHING. So every car on the lot has already had the vin number etched on the glass! This is something you can do yourself with a $20 kit from any auto parts store. You don't have to pay for the VIN ETCHING. And the dealer in the next town has a vehicle without VIN ETCHING.
This is the point where you should be seriously insulted and offended. Stand up and in a respectful tone say... 'OK. Look... this is not smelling right. I never agreed to pay for VIN ETCHING. I never agreed to pay for an alarm. I am going to go home, and I will call 'sales rep name' in the morning.
The finance guy will act surprised. He will say... "wait.. wait. You are going to leave? But the car is prepped and ready. Your trade-in is already in the service department... blah blah blah." At this point... you can escalate this as much as you like... all the way to "Get me my car back here in 5 minutes before I call the cops."
The finance guy at this point is going to walk out and 'see what they say'. He is really just walking around the corner... getting a swig of water... and think how to close the deal and stick you with SOMETHING… usually GAP Insurance.
He comes back and says... “Look ok... it's a lot of stuff to take in... because we are great guys, we will not charge you for the Alarm or the VIN Etching. Obviously we cannot remove the VIN Etching but you will get a call from the service department to remove the alarm. This call will never come. If it does… have them remove it at first service interval.
SCAM 3: GAP Insurance. People will go back and forth about this... bottom line is... the finance guy is telling you between the lines that you have so grossly overpaid for this vehicle and that the minute you drive it off the lot… it’s going to be worth $10k less than you paid for it. Some kid is going to slam into you on the way home... before your first payment is due and your insurance will cover the actual value of the car… and you will be on the hook for the remaining $10k. No matter what… refuse GAP INSURANCE. You can get the same thing from your insurance provider for a few bucks a month.
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