Yup.

It is amazing how some people don't understand or care about the actual details of the transaction. Throw the damn monthly payment numbers out the window. Stop looking at how your trade might factor in or what your existing loan amount is. Figure out the fair price for the new vehicle. By itself. Alone. Cash. THEN start to bring in the other elements piece by piece and understand how they change the deal.

You can do almost all of that yourself with estimated numbers before going to the dealer to negotiate the price of the vehicle. Set a target for yourself (MSRP minus XX or invoice plus XX minus all rebates), look up NADA/KBB value for your trade, check your loan balance, find out what your bank or credit union's financing rate is. Put it all together on your own and you'll know roughly what your target is, for the sale price, trade, and payments and you can evaluate what figures are acceptable to you and what loan term gets you in the ballpark. That way when you're actually at the dealer you know all the elements and can tell when they're doing something weasly like saying they are giving you more for your trade while jacking up the sale price or stretching your term out to get that low monthly payment.

Dealers are there to take your money. They will take all they can get if you don't put up boundaries. Be prepared or pay for it.

Rob

 

So I talked with the dealership today. They said the sale price was the 51,000 because I had a trade in. They said they have to put those numbers down in order to please the bank, otherwise they will make you pay almost the full difference on the trade in. I don't know if that sounds like something that a dealership would do? They said thats why the numbers still did not make sense to me.

I still ask the question on why the financing was so high tho, the dealership is believed that it is because of the life insurance and disability. Now with it being financed for around 47,000 total. It means that I picked up the truck for around 41,000 because the other 6000 was the insurances. So its kinda evening itself out a little. He said on a trade in they pretty much take those insurances off the loan to determine how much is still owning on the truck. So as of right now I have around 32,000 still financed without those. I still wonder where the down payment of 7000 went tho. With the down payment it means that the truck was still too high.

Either way they are working with me to find out what went on exactly, so I guess that's a plus. I was prepared for a "you signed the deal, whats yours is yours go away" It seems as if buying my 07 there, and referring 3 other customers might have them paying a little more attention to me!


I do agree with you guys on the whole looking at your payment thing. That's how I did this deal, and man I won't do it again. There are so many numbers that were not making sense to me. I do wish however the dealerships wouldn't just brush you off when you mention AIR CANADA deal. Because we get better deals then they do, the salesmen most definitely wash their hands with you. When I traded in, they basically said what do you want, what options and we will see what we have. They take you out, you look at a vehicle, then say YUP that one will do. They take you to the finance minister, who gets you a monthly payment. Then they just push you to sign the deal, then of course extended warranties and such. Within 2 days your driving away with a new truck. I will say next time, I AM TAKING MY TIME! none of this monthly payment crap.

 

The $6K you paid for the life & health insurance is where they caught you with your pants down.
Never buy that particular insurance from the dealer, can be had ALOT cheaper elsewhere.
Explain to me what "AIR CANADA" is and what it does.

 

The 6K is what the bank needs. That's what the bank asks for in case of my death or injury. As far as I know that has nothing to do with the dealer, its all in a percentage of the total loan. That percentage is based on my record with them, age, probably driving record. But as I just stated, upon a trade in the dealers don't look at that value as part of your loan. Because that just gets transferred to the new loan (possibly lower values as the bank gains your trust) I don't know if that's true but its what they are telling me.

Air Canada is an airline and it flys people in BIG metal things that fly around 30,000 feet! Haha, sorry for the sarcasm :P I have a family member that works for Air Canada, Air Canada is in partnership with another company, who Chrysler is as well.
So basically you know how the sales guys can get deals on every vehicle in the lot? They call that employee pricing, except its still a little better then what they will ever offer the public. Basically I can get the same rebates that the Sales manager at the dealer does, AND I also get Air Canada bonus cash. This can be anywhere from 500 bucks to 7 grand. This is why the dealers hate guys like us. They work at the dealership to get their deals, where as I just have to have a family member that works in order to receive a better deal then them.

 

The insurance you had to purchase is called "Credit Life & Disability Insurance" and most financial institutions will require it on loans over a certain amount for their own protection. In the US their are laws that state that even though a lender can stipulate you must have it, you do not have to purchase it from the lender or dealer. In other words, you can go to any insurance company that offers it.

Last time I purchased it was on a $30k truck loan, got it through my own insurance company for $525. My insurance company charges a flat rate of .50 cents for credit life for every $1000 borrowed and $1.25 for credit disability for every $1000 borrowed. I guess you are more likely to get disabled than die, LOL.

$6000 for credit life & disability is downright criminal!!!

 

I have bought many new vehicles and have never heard of such an insurance. As long as the truck is worth more than the loan amount, the loan is "secured". If you don't pay the note they repo it. I suppose that the bank figured that once you drove the truck off the lot, the immediate depreciation put you upside down, thus the need for insurance?. I'm with hammer, $6k is a ripoff.

As far as employee discounts go, I get GM employee prices and even with that, they couldn't match the deals that Chrysler was giving on my truck. The best GM ever did was like 20% off MSRP. On a $40k truck that runs about $8k discount. I got $10k plus tow mirrors on a $36k truck - about 28%.

 

I just realized you are in Alberta so I wouldn't know if you got a decent deal or not. Not familiar with CA currency.

 

Everything you say is true but many, many people are perfectly content shopping by monthly payment. They know that they like the vehicle, they can afford the payment and in X years they will own it.

 

I don't dispute that. Doesn't make that a wise path to choose, though. Nor does it lessen my amazement about their choice. They are, however, free to head down that path. I'm just offering help for those not 'content' with being financially abused. If they weren't so 'content' they would own it more quickly and have paid out less in the long run. But, hey, to each their own.

Rob

 

50k seems like a load for a new truck.

I just bought a 2012 slt 4x4 qaud cab 5.7 about a week ago for 33,000. The sticker price was almost 46,000. Not saying its worth 46, just that is what the sticker said. After almost 4k in taxes and 1k trade in, final cost was 38,000.

When i showed up at the dealership they took 9500$ for incentives, then after have a quick talk, another 3500$ off, and 1000 for a POS car. Then they add almost 2000 in stupid environmental fees, (nitrogen,ac,......) then 4000 in hst (tax), 12%. Add another 1000 in financing/paperwork fees.