re: Bought a vehicle yesterday.

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Actually negotiate the best deal(discount) with them doing financing after you let them know you could pay cash. Accept the finance and discount and then at the 30 day mark pay off the whole balance. You probably save $1000-1500 on the price and only burn a $100 or so on the interest for the one month. I know this used to work and I presume it still does.

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I am not sure this works as there is little to no negotiation on a lot of vehicles. Most sought after vehicles it is sticker price or sticker plus market increase fee. So I suppose that is a negotiation point is that markup fee. Helped a family member buy a car this year and the markup fee varied from 0 to $6000, and absolutely no one was going under sticker.

With that said, the approach you mentioned was applicable before. And yes - always get pre approved before going into the dealership.

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Its not illegal in Arkansas. Dealerships can sell the loans with a 2% rate hike above what the bank will actually do.

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That part is not illegal.

The illegal part is telling a customer that a lender is requiring you to get an extended warranty or service contract to qualify for a lower interest rate.

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TL:DR. Dealership held interest rate information from me to incentivize buying an extended warranty from them.

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They aren't making much money right now except on back end products (warranty, gap, reserve)

I can't say I blame them for pushing the warranty but that's terrible business on their part.

Don’t ask me how I know this, but the company that issues these extended warranties cuts a check to these dealerships each month for tens of thousands of dollars. That’s how many they sell which is mind blowing.

This company actually holds “sales” meeting for these F&I guys on how to sell these extended warranties. It’s really sad the way they pressure these people who are just trying to buy a car. There is a special place in hell for these F&I guys who are selling extended warranties on new cars.

"I only pay sticker price and not a penny more."
-Hank Hill

I bought a truck recently and the paperwork was taking forever. I had to work that day and was getting pissed that I wouldn’t be back in time. I told them to save their breath about the extended warranty because I wasn’t getting it. Well, Slick Willy walks in anyway trying to sell it to me. I told him to go away, but he said they were required to explain it. (Frikking lie) He goes through his spiel and I’m playing on my phone and texting. He asked me if I was calculating the best deal. I said no, I’m not paying attention because I already told you I wasn’t getting it. He got pissed and finally left.

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My cousin is a car salesman, he fckks even his own family.

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What a fckkr

We bought a new car a week ago. We knew we didn’t want warranties or gap which was on the proposal, as was etching. I told them to take off warranties and etching. Sales guy said ok — didn’t want to lose a sale over etching ($299).

We go to do paperwork and guy says he has to explain all warranties — I almost waivered. My husband said “we talked about this” lol (warranty was $3000 or so) Guy was great — no pressure at all. Then the $299 for etching catches my eye. I said “ oh no … that’s coming off”. He said they never take it off and I said well you better call the salesman because he said his manager agreed to do it. Finance guy says it helps them with their insurance to which I say “the car had been here for two days .. and y’all put it on MY car without asking” (we had put a deposit when it was in transit). He took it off — again, he wasn’t rude or anything, you could just tell that it wasn’t a thing he typically does.

We paid sticker plus a little but We also qualified for 0% financing which offset the extra that we paid. The only reason we bought now is I travel a good bit alone and our prior car was a Honda with 175,000 miles .. and we got what we wanted for our trade. All in all we were happy other than it taking forever to do the paperwork due to some new system they had switched to.

Car notes are a great way to avoid building wealth