Help negotiating on a price

[Absolutely Red 12]

Originally Posted by nookandcrannycar

Re financing, it's usually better (if possible) to get pre approved by your bank or a credit union so that all you have to negotiate with the dealer is the price.

I'll respectfully disagree with that statement.
Dealer financing is always a better rate thank bank or credit union. (With tier I credit of course)
You need to make the deal on the car first, then bring ip financing, once you locked in the price.

I bought a Ford 10 years ago, stating I will get financing from the CU.
We made the deal, then deducted the rebates, and I told them I would be back with a CU check.
They shat their pants, no way was I leaving without the car!!
The manager bought me and the wife breakfast, (Galpin Ford has a restaurant), asked if they could run my credit.
He came back with 0.9% financing. I told them I would rather have the rebates, along with CU financing, as it would be less in the long run.

Guess what, I got the rebate along with the 0.9 financing!! Plus a Ford Credit loyalty rebate on top of that!!

DO NOT let the dealer run the "Four Square System" (search this) make one negotiation at a time.
If you have a trade, then bring it up after the deal, and financing have been dealt. You can always Carmax it for more.

[nookandcrannycar]

Originally Posted by Absolutely Red 12

DO NOT let the dealer run the "Four Square System" (search this) make one negotiation at a time.
If you have a trade, then bring it up after the deal, and financing have been dealt. You can always Carmax it for more.

^^^^^ This x 10...(at least SOME things haven't changed in the car business )

Your reference to 'dealer financing'...do you mean the dealer's outside inexpensive source or do you mean the actual dealer (or a financing source that the dealer owns) taking the paper?

When my dad was in car sales (20 + years ago = his last year -- new and used -- and he has passed ) dealer financing was more expensive for the customer. That was also before the Internet helped level the playing field for for customers able to arm themselves with information and required a sharper focus and attention to more varied profit streams on the dealer end.

Given the cost of a Yaris, do you think most people with Tier 1 credit would even bother to play the spread rather than pay cash? Playing the spread (rather than paying cash) has never appealed to me for 2 reasons -- 1. I'd rather be able to not be required to have collision and save that premium (and this makes more sense the cheaper the car is as the total of the spread = fewer dollars) and 2. There could be some screw up where a computer system malfunctions and the automatic payment doesn't get applied in a timely manner --- with cash, that situation wouldn't exist.

[Absolutely Red 12]

Originally Posted by nookandcrannycar

^^^^^ This x 10...(at least SOME things haven't changed in the car business )

Your reference to 'dealer financing'...do you mean the dealer's outside inexpensive source or do you mean the actual dealer (or a financing source that the dealer owns) taking the paper?

Sorry, Factory financing, always a great deal for tier 1!!

[daf62757]

Originally Posted by Absolutely Red 12

Sorry, Factory financing, always a great deal for tier 1!!

When in the interest rate is below 3%, its great no matter who gives it to you.

[yougojay]

I have to say I wish msmith would have brought some closure to this thread. Did she get the 2012 or a Yaris at all? If she did, she should be posting here!!!
Sorry, peeves me, I like closure -
This is the first car I have ever financed, I got a 1.9% interest rate & the payments are under 100 bucks a month - I may pay it off after awhile, we'll see. They knocked $800 off of the sticker price, we're happy.