Ask the pack. Car financing

[blackjackdog3]

Anyone heard of a new car dealer charging a $1000 fee if you don’t finance thru them? Doesn’t matter if you pay cash or finance thru another source.

 

[Baddmann]

I always use PenFed and their car buying service.

Except for the last vehicle I purchased. I told them I would send a check and they said they would take $1000 off if I finance through them. I asked how many payments do I need to pay before I refinance and he told me 3. So I did it. Turned out well!

 

[Dawgpile]

Anyone heard of a new car dealer charging a $1000 fee if you don’t finance thru them? Doesn’t matter if you pay cash or finance thru another source.

That's a bunch of ****. Walk if they don't take it off your deal.

 

[o_dawgnabit]

Nope. Never heard of that. Have heard of them offering rebates off the price and such if you do finance through them. But never charging you extra

 

[aTotal360]

Financing is now half of their business model. Sucks.

 

[Dawgbite]

Yep. Recently bought a new Gladiator and every dealer was cheaper if I financed than paying cash. All the online sales have cut into their cash flow so they need a different revenue stream. They get paid by the bank after you make your third payment.

 

[PineGroveBully]

Are they charging you $1000 if you don’t finance through them or are they giving you a $1000 discount if you do?

 

[patdog]

That’s really just two ways of saying the sand thing. I’ve had this happen a couple of times. I’ve just financed through the dealer & then paid the loan off a month of two later.

 

[blackjackdog3]

Are they charging you $1000 if you don’t finance through them or are they giving you a $1000 discount if you do?


Charging a $1000. I can get a lower rate thru my credit union. Told me if I pay cash they charge the $1000 too.

 

[patdog]

See if your credit union will give you a new car loan if you refinance a month after you buy the car on the dealership loan.

 

[T-TownDawgg]

What jackass-owned dealership is this, so I will know to never consider them for a vehicle purchase

 

[Dawgpile]

Charging a $1000. I can get a lower rate thru my credit union. Told me if I pay cash they charge the $1000 too.

I've been in the business over 25 years and never heard of such. Walk away if they won't waive the "fee". Complete ********.

 

[Dawg_4_lifes]

That is why i always steal mine.

 

[patdog]

If they're getting a $1,000 bonus for every car they finance with their manufacturer's finance company, which they obviously are, what else are they supposed to do? Take a loss on the car? Either finance with them and refinance in a month with the credit union, decide if their financing with the $1,000 discount is a better deal than the credit union without it, or walk away.

 

[CookieMonster.sixpack]

That is why i always steal mine.

Tough to beat free.

 

[Dawgpile]

There may be a stimulus for the dealer to finance with the captive lender (Ford Motor Credit, Chrysler Credit, GMAC, etc) but a dealer should NOT be entitled to demanding a fee for not financing through their department. The primary income stream for a dealer is sales price vs. cost. Another income stream is from the finance office via points on interest rate and product (warranty, gap, etc.) sold. Adding a fee to the buyer for paying cash or using outside finance is, again, complete and total ********. I've NEVER heard of such from any dealer before, and would love to know what dealer is actually trying to get away with this dumbass ploy to add to their bottom line.

 

[patdog]

The primary income stream for a dealer is sales price vs. cost.

Cost includes any incentives they receive from the manufacturer. If the manufacturer is paying them $1,000 if they finance though their finance company, the car costs them $1,000 more if they sell it for cash. Like I said before, I’ve come across this twice, and both times I took the discount and paid off the loan a month later (once refinanced with my bank & once wrote a check to pay off the loan). No big deal.

 

[goodknight]

Walk out the door and never look back. Too many dealers out there.

 

[Dawgpile]

Vehicle cost to the dealer is NOT dependent upon financing. You're confusing rebate/financing deals for purchase offered by the manufacturer with what's trying to be charged to blackjack. Yes, the dealer has an interest in arranging financing and is losing the opportunity to make money in the finance department by his outside financing and they are trying to make it up by charging him a $1k fee. It's ********.

ETA: If you believe that it's a legit charge on a car deal, you should DM me the next time you're in the market.

 

[patdog]

I'm really not. Cost is cost. And you obviously haven't read my posts where I've said I take the discount and then pay off the loan. Doesn't matter to me if the dealership plays this game or not, I'm gonna take the discount and not take their financing for more than a month or so. I'm not gonna fight them over something that's so easy to get around. And, as I said earlier, if you don't like the deal, walk away.

 

[dorndawg]

That is why i always steal mine.

 

[ronpolk]

I'm really not. Cost is cost. And you obviously haven't read my posts where I've said I take the discount and then pay off the loan. Doesn't matter to me if the dealership plays this game or not, I'm gonna take the discount and not take their financing for more than a month or so. I'm not gonna fight them over something that's so easy to get around. And, as I said earlier, if you don't like the deal, walk away.

There is a difference in the dealership offering to take $1,000 of the price if you use their financing vs charging you $1,000 if you want to pay cash.

I’d walk away from the deal if we had agreed on a price and then they presented a fee for me wanting to pay cash or finance elsewhere.

 

[patdog]

There’s no difference. Either way, you’re paying $1,000 more if you pay cash. Just 2 ways of saying the same thing. Do agree though that if they spring this on you after you’ve gone to a desk, that’s unacceptable & I would walk away for sure. Both times I’ve come across this, the dealership was up front about it before we agreed to a price.

 

[ronpolk]

There’s no difference. Either way, you’re paying $1,000 more if you pay cash. Just 2 ways of saying the same thing. Do agree though that if they spring this on you after you’ve gone to a desk, that’s unacceptable & I would walk away for sure. Both times I’ve come across this, the dealership was up front about it before we agreed to a price.

You agree to buy a car for $40k. Then the dealer tells you that price is contingent on you financing with them. If you don’t, the price will be $41k. You don’t see a difference in that?

 

[patdog]

Again, both times I’ve come across this, the offer was either $40k if you finance with us or $41k if you don’t. You can call it a discount if you finance or a fee if you pay cash. Doesn’t matter, it’s the same either way. If I agree to $40k though, and then they try to spring ANY fee after the fact, whether it’s a financing charge, rustproofing, documentation fee, etc., I’m flat out refusing & walking away. I’ve had dealerships call me 2 days later & suddenly be able to waive those “non negotiable” fees.

 

[Dawgbite]

There may be a stimulus for the dealer to finance with the captive lender (Ford Motor Credit, Chrysler Credit, GMAC, etc) but a dealer should NOT be entitled to demanding a fee for not financing through their department. The primary income stream for a dealer is sales price vs. cost. Another income stream is from the finance office via points on interest rate and product (warranty, gap, etc.) sold. Adding a fee to the buyer for paying cash or using outside finance is, again, complete and total ********. I've NEVER heard of such from any dealer before, and would love to know what dealer is actually trying to get away with this dumbass ploy to add to their bottom line.

Carl Hogan Jeep Chrysler Dodge in Columbus. Delois Price is only if you finance. Yes, I walked away.

 

[My Bru]

If you are financing cars, you aren’t doing it right.