Ask a car dealer anything?
d@weezel music
Joined: Jun 2002
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That's a good one. It depends, mostly on the customer's credit. If the customer has excellent (over 710) credit, they are about the same. If they have lower than 710, it's all about how much "bump" can be put into the rate.
As far as the salesman is concerned, it doesn't matter. Salesmen are usually paid on "front end" gross, which is basically selling price - invoice + incentives. All finance products are considered "back end" gross, and that's what the F&I managers are paid on.
Many people assume the dealer only makes money on financing or leasing if they "bump" the interest rate (that is, charge the customer a higher rate than the current "buy" rate). That's not the case. Even on subsidized loans or buy rates, there is a profit for the dealer.
One thing that is definitely NOT the best for the dealer, is paying cash. It boggles my mind when people come in and ask if they get a discount for paying cash. No, you don't. We're already making less money on you, that would be stupid.
As far as the salesman is concerned, it doesn't matter. Salesmen are usually paid on "front end" gross, which is basically selling price - invoice + incentives. All finance products are considered "back end" gross, and that's what the F&I managers are paid on.
Many people assume the dealer only makes money on financing or leasing if they "bump" the interest rate (that is, charge the customer a higher rate than the current "buy" rate). That's not the case. Even on subsidized loans or buy rates, there is a profit for the dealer.
One thing that is definitely NOT the best for the dealer, is paying cash. It boggles my mind when people come in and ask if they get a discount for paying cash. No, you don't. We're already making less money on you, that would be stupid.
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Joined: May 2002
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From: Tampa
d@weezel music
Joined: Jun 2002
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What if you don't want the vehicle. For example, say I have a 36-month lease and after 12-months I decide to prepay the other two years. Can I do that?
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From: Clarksville, MD
Checking it twice
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From: Twixt Hell/Ann Arbor MI
You thought coming into the Basement on this site was a good idea because...
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Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming ...."WOW! What a ride!!!!!"
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Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming ...."WOW! What a ride!!!!!"
LUNCH with THEOLDMAN...On a break for now...
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Joined: May 2002
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From: Tampa
For a lease, I don't worry about anything outside of the $ I want to pay monthly and what i want to put out of pocket. let the dealer figure out how to make it happen as long as you get those 2 numbers where you want them