My
Arlington,#2Consumer Suggestion
Thu, January 05, 2006
I am a car dealer. Surprised to hear from me? I am always upset to hear that customers feel that we are trying to rip them off, when most of the time, it is simply a matter of not understanding all the facts. Let me help...the LAW only allows a dealer to "hold points " up to 2%. For example, if your credit score earns a 6% APR, the dealer can only offer you 8% at the most. If they sign you at 6%, they make no money. I know many hate to hear it, but the men and women that work in car dealerships have families and lifes to support, and your purchase funds that. Just like the 125% profit margin you pay on jewelry, 175% you pay on furniture and 275% you pay on clothes. But everyone just walks in and pays for that stuff. Also, there is a limit to the number of lenders a dealership can use. The best bank they have to use, probably the primary lender, may have the best tier "buy rate" at 6.25% (not that bad actually). 0% or 1.9% are advertised manufacturer backed specials that usually come with sacrificing the rebates (which is sizable now-a-days). Every car deal has to make sense to not only you the consumer, but also us the dealer. Profit is not a dirty word, without it, none of us would have ANY money to buy cars with in the first place. I think a perfectly fair question to ask is "What is my buy rate?" and the offering the dealer a fair profit (1% or so). Walking out, like the other guy suggested, just wastes yours and the salespersons time. Besides all this, keep in mind the second half of that guy's title sales-PERSON. We are people too, some that make mistakes and all that deserve to be paid for their work. Until you buy a car, we have made nothing and no one likes to work for free. I admit, there are crooked dealers out ther, but that is a function of human naturs, just like I'm sure there are bad people in your line of work as well. Be educate, don't believe EVERYTHING you read for yourself, and feel free to ask questions. If you run into a dealer like me, I find that full disclosure not only makes the customer happy, they actually PAY MORE when they know how and why.
Stick - Rip-off Report Consumer Advocate
Phoenix,#3Consumer Suggestion
Fri, September 10, 2004
Sean sorry what happened to you. What you say they did to you is called make more backend gross off of the car buyer. Let me explain. Car buyer comes to car dealer. Car dealer's programed sales staff run the car buyer all over the lot. They run you until you can't think as to what is about to happen once they get you in the F&I office. Call it the scene of the slime if you will. By the time you get into the F&I office the desk manager has already pulled your credit report. A credit score 760 will get you the best rates that are out there. Try 0% all the way up to 6%. Many banks let car dealer make what I call backend juice. That means car dealer contracts with YOU at 8% and then they have a chit chit behind the scene with the bank and ask them questions like, Hey Mr. banker we bring you a ton of business, what's the lowest buy rate you will give us on this buyer. She is not a bad risk look how HIGH her credit score is. Can you hook us, the dealer up with say 4%? Wen contracted the buyer at 8% and if you give us a buy rate of 4% we will scoop the Diff. All this goes on way too many times and car dealers and banks will never show the car buyers what really goes on behind the back doors. If you have been banking at Apple Tree bank for 20 years and the dealer just so happens to sent your paper to the same bank you bank with trust me they will still let the dealer bend over their customer, YOU! They do this because customers will never see the car dealers bottom line GROSS SHEET. The other reason car dealers do this crap is because car makers let them, the government let's them and your bank will let them. The way to prevent it, is right after they show you the numbers, GET UP and walk to the door! Tell them that you will go home and have them print up a car buying contract with a better rate and bring it to your home to review. Tell them that IF and ONLY IF you like it you will sign it. Have them write a hand written note that the car dealer has you contracted at a low rate and that they have a bank that approved it and that the dealer give you the name and number of the bank that is doing the loan. Then you the car buyer call up the bank from your home and ASK QUESTIONS before you sign ANYTHING! Car dealers would not want you to do it this way. This way prevents the dealer from bending you over and grabbing some BACKEND GROSS! Car buying victims: have any questions, Post them! Time for me to start kicking a*s and helping the car buyers. If you are a car dealer and you do not like what is posted here at www.ripoffreport.com, Wash off your boots and do better for the consumer. Many of you OLD CAR DOGS tend to forget that the Internet can help car buying victims and you, can't shut it up! Unlike many newspapers that are not willing to interview car buying victims and post their stories. NO CAN'T do that! They, the newspapers love the advertising money they get. To hell with informing the public. Let them become victims! To all you car buyers that do not believe what I say, Take my challenge right NOW. Go to the below URL and try to find a newspaper reporter that will print an in-depth story about car dealer scams and Rip Offs. http://www.onlinenewspapers.com/usstate/usatable.htm Note to car buying victims that have filled a Rip Off Report. After posting your Rip Off Report make sure that FTC gets a a copy to read. Go to the FTC web site and you can file an online complaint about who ripped you off. Use their form to submit a complaint to the Federal Trade Commission. Make sure that you have all of the contact info about the company that Ripped you off before you file your complaint with the FTC. The Federal Trade Commission and www.ripoffreport.com are both on your side and it costs you nothing. https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01 Sean I hope my posting helps you.
Sean
Woodbridge,#4Author of original report
Thu, September 09, 2004
Complaints about Koons Chevrolet. Review of Koons Chevrolet and their selling practices.