Dusterbd13 said:We'll do the paperwork Monday.
So, on Monday you are headed into the belly of the beast! You see, a dealership expereince is two-fold. One, you find a car and agree on the price. It is then that you get the second step called the F&I office (financing and insurance.) This is where the real "crime", the slick talking and the slight of hand happens. Financing is just like it sounds but insurance here is not auto-insurance like Geico, State Farm, etc but rather insurance like extended warranty, True-Coat, etc.
So, starting with Financing. The number one thing to remember is that a car dealership is not obligated to present you the lowest financing rate/percentage you qualify for so they typically present you a rate you are willing to accept. In short, if they can get you to take a higher rate, they make a higher commission for the bank or lender they've signed you up with.
With that said, it is important to first speak with your own bank who is more likely to present you the lowest rate you actually qualify for. Know this rate in the back of your mind when you are talking in the F&I room. Also know that if you finance on your own, the dealership will make NO COMMISSION on selling a loan. They will sweeten their offer. This gives you leverage.
The real shady places might try to tell you to get a loan your score requires a "Credit Life" policy. They will make it sound like homeowners PMI. It is not required. Especially not required if you finance with the bank directly. So, if they try to play that card, finance on your own.
After the financing comes the "insurances" most notable the extended warranty. My recommendation is to pass. These are all huge money makers for the dealership. The scammy ones will even try to "imply" that a lender wont give you a loan without you buying the warranty. A blatant lie and notice I said "imply" because they wont actually say those words. If you want to call their bluff ask them to write those exact words of "required for loan approval" onto the sale document...they wont.
If the F&I guy really over pushes the warranty answer with something like, "you know maybe I should buy that Kia that comes with 10yr." As much as he wants to sell the warranty, he doesn't want you to not buy the car also. Threaten to walk and they will kindly ask you to stay.
I've seen warranty guys push thing like alloy wheel insurance (buy a replacement wheel in advance) and I've also seen them sell pre-paid replacement tires. This is in addition to the items like True-Coat paint and fabric coatings, etc.
How about others? Does anyone else have F&I expereinces to share?
