Anyone else almost get "took" by the dealer?

jayhead000 · 03-17-2009, 01:44 PM

Went to pick up my Brabus yesterday, and the dealer was trying to take me for a ride.

almost made me not even want the car anymore and left a little bit of a sour taste in my mouth (oh well the drive home took that right out!) They quoted me a 12.5% interest rate

. I put 4k (+99) down 22, 100 total. Payments woulda been 445! They said I needed to put another 1500, to get it down to 9% and walk out with 385 payments. well I got 385 payments and 6.5 interest at the end of the day (no more down) but not without "walking". Went to Toyota (just to get an idea of what a NORMAL interest rate SHOULD be) and got 6.25 off the bat (based on credit score NO haggle!) on 22k, but what made me mad is even if I were to get a cheaper orphan smart (around 18k) they were still trying to stick me with the 12%, and 1500 more to get the 9%! Does not make sense to me! If the car is 4 less, and the amount financed is the problem, then I should have gotten a lower rate to start with. With out putting anything down! Anyways around 6:45 they called us saying they could get the 6.5, (not through mercedes) so we went back and signed. The reason for the sudden rate decrease was "we forgot to tell the (other) lender about the down payment". Not likely. Can't blame them for wanting to make more money i guess, but with interest rates at all time lows, they can't expect many people (w/good credit) to take a rediculous interest rate. I shouldn't have been so excited when I walked in but I couldn't help it. I guess the take home point here is DO NOT take a high interest rate! even if you are young! (that's the reason this happend to us) Especially if your credit score is over 700. Be prepared and do not let the dealer screw ya because they WILL try. I would have hated to give up my smart (11 months waiting) but that was rediculous! The demand/wait on this car has its down sides

BTW this dealer had a LOT of orphans

.

jose3030 · 03-17-2009, 01:49 PM

Oops.

Mistyped.

Well, I'm glad you got what you wanted in the end.

This sounds kinda like fraud to me, tho.

John_H · 03-17-2009, 01:49 PM

Dealers are hit & miss as far as financing goes; there is no unified "Smart Financing" as the option. The best thing always seems to be to get financing set up with your own credit union (or bank) before the purchase so you don't have to go through any shenanigans (<-- word brought to you by St. Patrick's Day).

Some dealers will have superb financing available off the bat. I'm guessing most don't.

fpage77 · 03-17-2009, 01:50 PM

I got 6.44% on 72 month loan and they wanted way more than that for way shorter period of time.

chieftmc · 03-17-2009, 01:52 PM

ALWAYS have financing "in hand" before buying; be

**jwight** · 03-17-2009, 01:54 PM

...again. Been discussed endlessly, and as John_H said, the best financing is usually through someplace other than a car dealer. The good news is you lucked out; the bad news is you apparently presumed the dealer was looking out for your best interests.

BTW, congrats on the new Brabus!

forestacademy · 03-17-2009, 01:55 PM

RULE 1

Secure financing before going to dealer.

It puts in in the power position.

Don't let the Delaer Dictate the terms of your loan or purchase.

If the dealer / Finance guy can get you a better loan than you can get on your own then you win. If not, then they get nothing and you still get the car.

misscatears · 03-17-2009, 02:24 PM

I'm quite young and I got 3.25% on 36 months, if I can do it then anybody can. Just shop around...

cubefx · 03-17-2009, 02:26 PM

I used E-loan for one of my car purchases few years back. Great service. Very low rates. No prepayment penalties.
You fill out short form online, they call you within a minutes to verify the info. Then they overnight you blank check. The check is good for 30 days for any new car purchase at any dealership. For example, even if you approved for the $17K, you can write the check to the dealer for $14500. That is will be your loan amount. If you do not use the check, it will be void within 30 days. No fees, no penalties.

On the side note. Save up and pay in full.

CUBE

gniwok · 03-17-2009, 02:42 PM

That's a shame you experienced that. Not all of the dealers are like that though. I went through the dealer to finance my Smart last week and got an 8.5% apr rate at first... bought the car with it on a 48 month plan and that was without any of the extras they offered like Lojack or 5 year tire service.

Then the finance guy called a few hours later and said he was still negotiating down my apr rate with the bank... which I didn't even know he was doing and low/behold he got it down to 6.9%... and threw in the 5 year roadside tire service for free!