Adventures wiht the F&I Guy

[chicagorspec]

Agree can't always match the financing that you can get at the dealership. 30 minutes with the F&I guy saying "No" and signing the papers wasn't a lot of fun, but I wasn't going to get free money (0% for 36 months) anywhere other than the F&I guy through HMFC, even with an 827 credit score.

I think we are approaching the same outcome from two different angles.

1) It absolutely does matter where the money comes from. This will dictate rate, terms and total cost. I agree that you should already have secured funding for the deal BEFORE you even start looking for a car.

However, the F&I department is not there JUST to get you bought (financed) on a vehicle. Even IF you are paying cash, you will end up there to get the paperwork done.

2) I do disagree on the point that "Any finance deal offered by the dealer can be matched or to the betterment of financing by a credit union or your personal bank".

To explain: try finding financing through the institutions you mentioned, and obtain BETTER than Factory financing on new vehicle purchases, ie: 0% for "x" amount of months, or even up to 1.9%. Current rates from the lenders you stated are in the 3.2x% range. The best deal I can get from my CU, with stellar credit, is 2.24% on a new car loan, and 2.15% on a secured loan.

3) Agreed; your FICO score matters. In order to get the best rates, you need a high score. Given the demographics of this forum and the cost of the vehicles, I think everyone on this board realizes the importance of this, and also is smart enough to know how to figure the best deal for themselves.

What I was trying to relay earlier is that a car prurchase is a small part of your financial well-being; one needs to look at the long term effects of any purchase, and how to take advantage of the financial situation they are in. While "cash is king" when you hold onto it, it may not be the best course of action to take when making purchases. Many times if one looks at the situation, it turns out to make better fiscal sense to defer the cost over time.

As always, appreciate your input.

 

[Southern Boy]

I think we are approaching the same outcome from two different angles.

1) It absolutely does matter where the money comes from. This will dictate rate, terms and total cost. I agree that you should already have secured funding for the deal BEFORE you even start looking for a car.

However, the F&I department is not there JUST to get you bought (financed) on a vehicle. Even IF you are paying cash, you will end up there to get the paperwork done.

2) I do disagree on the point that "Any finance deal offered by the dealer can be matched or to the betterment of financing by a credit union or your personal bank".

To explain: try finding financing through the institutions you mentioned, and obtain BETTER than Factory financing on new vehicle purchases, ie: 0% for "x" amount of months, or even up to 1.9%. Current rates from the lenders you stated are in the 3.2x% range. The best deal I can get from my CU, with stellar credit, is 2.24% on a new car loan, and 2.15% on a secured loan.

3) Agreed; your FICO score matters. In order to get the best rates, you need a high score. Given the demographics of this forum and the cost of the vehicles, I think everyone on this board realizes the importance of this, and also is smart enough to know how to figure the best deal for themselves.

What I was trying to relay earlier is that a car prurchase is a small part of your financial well-being; one needs to look at the long term effects of any purchase, and how to take advantage of the financial situation they are in. While "cash is king" when you hold onto it, it may not be the best course of action to take when making purchases. Many times if one looks at the situation, it turns out to make better fiscal sense to defer the cost over time.

As always, appreciate your input.

Amen I agree one size dosn't fit all and I appreciate your positions also

 

[nextcar]

in answer to the original question, it's quite easy.
i've dealt with over 10 dealerships, and i simple say "no thanks, i don't need it."
i might have to repeat it a few times, but they give up.

now, my last dealership was Glendora Hyundai in SoCal, and he was the first finance guy who did not even bring up the subjects of extended warranty or other add-ons.
he simply processed the 36 month 0% APR loan for me.

i was amazed.

 

[sandy]

in answer to the original question, it's quite easy.
i've dealt with over 10 dealerships, and i simple say "no thanks, i don't need it."
i might have to repeat it a few times, but they give up.

now, my last dealership was Glendora Hyundai in SoCal, and he was the first finance guy who did not even bring up the subjects of extended warranty or other add-ons.
he simply processed the 36 month 0% APR loan for me.

i was amazed.

He should be fired.

 

[sandy]

....and all of that probably made sense when your Dad was coming up back in the day. Times have changed, my friend.

Maybe it is just me, but I would rather keep the $40k in the market at 6% and pay 0.9% (or even 1.9% or 2.9%) interest on a car loan, than to make no money on the same dollars by paying the $40k out in cash. In essence, you are losing net dollars by paying cash. Further, $40k today is worth more today than it will be in 2 or 3 years, so why cash out today; work on their money for the term of the loan.

In general I agree. But you really can't consider the 6% you are making on the $40k in the market risk free; it can quickly be more than wiped away by a dip in share prices. So a course of action would depend on one's appetite for risk.

 

[SmoovC]

In general I agree. But you really can't consider the 6% you are making on the $40k in the market risk free; it can quickly be more than wiped away by a dip in share prices. So a course of action would depend on one's appetite for risk.

True, but as long term investments go, 6% is relatively risk free return. Of course, the world could end tomorrow, and none of it would matter anyway....

 

[the M5 beast]

You want to be discussed in their morning sales meeting as the biggest nut cracker they ever had to deal with, not the laughing stock of that meeting.

Believe it or not, I was once banned from a dealership for taking advantage of their used car salesman.