Eric
Utica,#2Consumer Comment
Fri, January 17, 2003
In the past, I sold cars for several used dealerships, and also processed the credit apps (CAC and others). Note this was back in 1996 or so.
This bank in particular, was a bad credit specialist. The basics, their programs put them as a note holder for the dealerships. In exchange they would make about 20% of the total including interest, and the dealer by the end would receive about 80%.
Auto warranties were highly reccommended, and Wynns was one of the approved ones. From experience, selling decent cars with them. Out of maybe 50 sold, there was one with a claim. And from what I could tell (after I was gone) they didn't take care of it (similiar to this complaint).
Another area to be careful on, don't get buried in a vehicle. With programs such as CAC, there are a few ways the dealership can manipulate the numbers and get more advance up front. Warranties are one of them. Using Kelly Bluebook (california numbers) was another.
I'm not going to bad mouth CAC. The program, if handled right on the dealers part, is a good one. If not, it can be the worst thing the consumer can find.
Overall, if you are getting no money down, even tradein, and it's an older car. You are going to pay a lot. If you trade it in and refinance, you are going to pay even more.
It's wise to figure out the book value. And bring some real good downpayment. In the formulas for CAC, you will have a lot more bargaining. Since the downpayment they keep 100%. In a lot of cases, this actually pays off what they have in the vehicle. Then the 80% is pure profit.. Thus, you have a lot more ground to get them down on price. Since they are paid in expenses.
Also though, with significant downpayments, you may actually be able to get a loan from a better bank that isn't so high on interest. Back then, CAC was 19-24%. If you get a new car paying 50% down, some of the better banks are very likely to give you the loan, if your income supports the payment, and you haven't moved a lot, and have had your job for some time. (if they repo, they will get their moneys worth, and odds are they can find it, and beyond that odds are that you can afford to make the payment).
Note also, tradeins are usually better off sold elsewhere.. The numbers look good, but then if you figure out the values, chances are on lesser cars, you might wind up paying them to take it and they will still sell it (if even for scrap). and if of value, you will still not get what it's worth, unless you are a better salesman then them, and can convince them that it's worth more. They do that several times a day.. It's hard to sell a salesperson, cause they know how your doing it :)
PEACE and Respect,