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Valued Member
socalracer
Posts: 45
Registered: ‎04-16-2012

Re: I can help, I manage a car dealership.

#1 rule of buying a car, always walk off the lot no matter how much you want the car or how good the deal seems. usually it exposes the salesperson or dealerships weakness (price reduction, freebies), and you are the one buying so you need to be in control.

 

I have never bought a vehicle for over invoice or trade in value.


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New Member
labfm5
Posts: 10
Registered: ‎03-31-2012

Re: I can help, I manage a car dealership.

UpNComing..

 

I was trying to work with this dealership about a car. I sent in an offer and this is the reply I got:

 

Our policy is that all offers must be accompanied by a credit card. If we accept your offer we will put $500 Earnest money on it, if we do not accept we put nothing on
your card. If you are not comfortable with this then I need you here to present an offer. How would you like to proceed?

 

 

Is this earnest money practice common? Honestly, I've never seen it before in the auto industry.

 

Regardless, I declined to continue working with this dealership. I asked for official terms/conditions about earnest deposits, since in my opinion, there are just too many variables.

 

Example: if they accept my offer and take the $500, what are the terms? Do I need to buy in 1 day? 2 days? 7 days? 10 days? If they accept the offer, does the offer include fees? dealer add-ons? e.t.c. To me, too many variables that were not being outlined.

 

The dealer did not provide any terms and conditions. Just kept asking for my credit card details. I found that rather suspicious. Becuase I declined to provide my credit card unless I saw their terms, dealer tried to tell me "maybe this car is not for you" and that "he was the #1 VW car salesman in the USA".

 

Really gives VW a bad name.

Established Contributor
jimbo831
Posts: 977
Registered: ‎02-08-2012

Re: I can help, I manage a car dealership.


labfm5 wrote:

UpNComing..

 

I was trying to work with this dealership about a car. I sent in an offer and this is the reply I got:

 

Our policy is that all offers must be accompanied by a credit card. If we accept your offer we will put $500 Earnest money on it, if we do not accept we put nothing on
your card. If you are not comfortable with this then I need you here to present an offer. How would you like to proceed?

 

 

Is this earnest money practice common? Honestly, I've never seen it before in the auto industry.

 

Regardless, I declined to continue working with this dealership. I asked for official terms/conditions about earnest deposits, since in my opinion, there are just too many variables.

 

Example: if they accept my offer and take the $500, what are the terms? Do I need to buy in 1 day? 2 days? 7 days? 10 days? If they accept the offer, does the offer include fees? dealer add-ons? e.t.c. To me, too many variables that were not being outlined.

 

The dealer did not provide any terms and conditions. Just kept asking for my credit card details. I found that rather suspicious. Becuase I declined to provide my credit card unless I saw their terms, dealer tried to tell me "maybe this car is not for you" and that "he was the #1 VW car salesman in the USA".

 

Really gives VW a bad name.


Sounds like you need to run as quickly as possible to a different dealership.  If anyone ever requires me to give them my credit card before considering offers on a vehicle, I would never do business with them again.

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Established Contributor
UpNComing
Posts: 684
Registered: ‎05-02-2008

Re: I can help, I manage a car dealership.


labfm5 wrote:

UpNComing..

 

I was trying to work with this dealership about a car. I sent in an offer and this is the reply I got:

 

Our policy is that all offers must be accompanied by a credit card. If we accept your offer we will put $500 Earnest money on it, if we do not accept we put nothing on
your card. If you are not comfortable with this then I need you here to present an offer. How would you like to proceed?

 

 

Is this earnest money practice common? Honestly, I've never seen it before in the auto industry.

 

Regardless, I declined to continue working with this dealership. I asked for official terms/conditions about earnest deposits, since in my opinion, there are just too many variables.

 

Example: if they accept my offer and take the $500, what are the terms? Do I need to buy in 1 day? 2 days? 7 days? 10 days? If they accept the offer, does the offer include fees? dealer add-ons? e.t.c. To me, too many variables that were not being outlined.

 

The dealer did not provide any terms and conditions. Just kept asking for my credit card details. I found that rather suspicious. Becuase I declined to provide my credit card unless I saw their terms, dealer tried to tell me "maybe this car is not for you" and that "he was the #1 VW car salesman in the USA".

 

Really gives VW a bad name.


That's just silly.  Good call on severing that relationship.  Although I do ask my Salespeople to ask for a deposit when an offer is given by a customer at their desk, we would never ask for one over an email.  If fact we would never ask for any personal info over email for that matter.

 

 

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Regular Contributor
MsTucker09
Posts: 225
Registered: ‎02-16-2009

Re: I can help, I manage a car dealership.

With the preapproval from my cu when I fill out the buyers agreement will I give the dealership my down payment at that time or do I wait until I give the buyers agreement to the cu and after they give me the check to give to the dealer.

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Established Contributor
UpNComing
Posts: 684
Registered: ‎05-02-2008

Re: I can help, I manage a car dealership.


MsTucker09 wrote:
With the preapproval from my cu when I fill out the buyers agreement will I give the dealership my down payment at that time or do I wait until I give the buyers agreement to the cu and after they give me the check to give to the dealer.


It's a matter of preference.  However, I would give only the deposit up front and give the remainder of the down payment with the CU check.

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Moderator
webhopper
Posts: 7,230
Registered: ‎09-16-2011

Re: I can help, I manage a car dealership.


labfm5 wrote:

UpNComing..

 

I was trying to work with this dealership about a car. I sent in an offer and this is the reply I got:

 

Our policy is that all offers must be accompanied by a credit card. If we accept your offer we will put $500 Earnest money on it, if we do not accept we put nothing on
your card. If you are not comfortable with this then I need you here to present an offer. How would you like to proceed?

 

 

Is this earnest money practice common? Honestly, I've never seen it before in the auto industry.

 

Regardless, I declined to continue working with this dealership. I asked for official terms/conditions about earnest deposits, since in my opinion, there are just too many variables.

 

Example: if they accept my offer and take the $500, what are the terms? Do I need to buy in 1 day? 2 days? 7 days? 10 days? If they accept the offer, does the offer include fees? dealer add-ons? e.t.c. To me, too many variables that were not being outlined.

 

The dealer did not provide any terms and conditions. Just kept asking for my credit card details. I found that rather suspicious. Becuase I declined to provide my credit card unless I saw their terms, dealer tried to tell me "maybe this car is not for you" and that "he was the #1 VW car salesman in the USA".

 

Really gives VW a bad name.



Wow that is crazy... who ever heard of a CC for earnest money deposit on a car offer over email?  That's just lunatic.


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Valued Member
jrands
Posts: 37
Registered: ‎02-14-2010

Re: I can help, I manage a car dealership.

[ Edited ]

Hello UpNComing. Like others have said, thanks for having this thread for us. It's been very insightful indeed. For my situation, I'm looking to possibly getting a new car in the next 1-2 months, but thinking if I should even bother. Hoping to get an APR in the 7%< range. My TransUnion score is about 690. I am currently paying for my 2010 GTI (deal was 3.5% for 66 months, $0 down) I bought  back in early 2010. I am looking to get a Subaru Impreza Sport possibly.

 

My DTI ratio (2.7) isn't the greatest primarily due to school loans. Also, my credit utilization isn't the greatest either due to medical bills and what not from last year (wasn't the greatest year!). My total credit limit is about $25,000 and my credit utilization is at about 80 to 90%. So again, not the greatest. My annual income is about $55K. The good news is, when I leased my '08 WRX (24 months), I never had a late payment. Also, I haven't had a late payment for the GTI either (about 24 months in now). I've been with my current employer for 4 years. I have a credit history of about 15 years now and have a one late (30 days+) credit card payment in the 3-4 years.

 

At the time I got the GTI, I believe VW had the 1.9% for 60 months deal going. Also, my student loans were still the primary debt, but my revolving debt was much lower, I think about 50% utilization. Also, my salary was about $48K and I had  FAKO score of about 720, but my Experian Fico Auto score was only 667 :smileysad: My only auto financing history at that time was the two years I paid for my leased WRX. I didn't qualify for the 1.9%, but the local VW dealership was able to get me the terms as stated above. So overall, in your experience, what do you think? Should I even bother looking for a car based on my requirement that I get a loan with an APR of 7% or lower?

 

Thanks!

Established Contributor
UpNComing
Posts: 684
Registered: ‎05-02-2008

Re: I can help, I manage a car dealership.


jrands wrote:

Hello UpNComing. Like others have said, thanks for having this thread for us. It's been very insightful indeed. For my situation, I'm looking to possibly getting a new car in the next 1-2 months, but thinking if I should even bother. Hoping to get an APR in the 7%< range. My TransUnion score is about 690. I am currently paying for my 2010 GTI (deal was 3.5% for 66 months, $0 down) I bought  back in early 2010. I am looking to get a Subaru Impreza Sport possibly.

 

My DTI ratio (2.7) isn't the greatest primarily due to school loans. Also, my credit utilization isn't the greatest either due to medical bills and what not from last year (wasn't the greatest year!). My total credit limit is about $25,000 and my credit utilization is at about 80 to 90%. So again, not the greatest. My annual income is about $55K. The good news is, when I leased my '08 WRX (24 months), I never had a late payment. Also, I haven't had a late payment for the GTI either (about 24 months in now). I've been with my current employer for 4 years. I have a credit history of about 15 years now and have a one late (30 days+) credit card payment in the 3-4 years.

 

At the time I got the GTI, I believe VW had the 1.9% for 60 months deal going. Also, my student loans were still the primary debt, but my revolving debt was much lower, I think about 50% utilization. Also, my salary was about $48K and I had  FAKO score of about 720, but my Experian Fico Auto score was only 667 :smileysad: My only auto financing history at that time was the two years I paid for my leased WRX. I didn't qualify for the 1.9%, but the local VW dealership was able to get me the terms as stated above. So overall, in your experience, what do you think? Should I even bother looking for a car based on my requirement that I get a loan with an APR of 7% or lower?

 

Thanks!


Are you going with VW again?

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Valued Member
jrands
Posts: 37
Registered: ‎02-14-2010

Re: I can help, I manage a car dealership.


UpNComing wrote:

jrands wrote:

Hello UpNComing. Like others have said, thanks for having this thread for us. It's been very insightful indeed. For my situation, I'm looking to possibly getting a new car in the next 1-2 months, but thinking if I should even bother. Hoping to get an APR in the 7%< range. My TransUnion score is about 690. I am currently paying for my 2010 GTI (deal was 3.5% for 66 months, $0 down) I bought  back in early 2010. I am looking to get a Subaru Impreza Sport possibly.

 

My DTI ratio (2.7) isn't the greatest primarily due to school loans. Also, my credit utilization isn't the greatest either due to medical bills and what not from last year (wasn't the greatest year!). My total credit limit is about $25,000 and my credit utilization is at about 80 to 90%. So again, not the greatest. My annual income is about $55K. The good news is, when I leased my '08 WRX (24 months), I never had a late payment. Also, I haven't had a late payment for the GTI either (about 24 months in now). I've been with my current employer for 4 years. I have a credit history of about 15 years now and have a one late (30 days+) credit card payment in the 3-4 years.

 

At the time I got the GTI, I believe VW had the 1.9% for 60 months deal going. Also, my student loans were still the primary debt, but my revolving debt was much lower, I think about 50% utilization. Also, my salary was about $48K and I had  FAKO score of about 720, but my Experian Fico Auto score was only 667 :smileysad: My only auto financing history at that time was the two years I paid for my leased WRX. I didn't qualify for the 1.9%, but the local VW dealership was able to get me the terms as stated above. So overall, in your experience, what do you think? Should I even bother looking for a car based on my requirement that I get a loan with an APR of 7% or lower?

 

Thanks!


Are you going with VW again?


Hi UpNComing, thanks for replying. Sadly, I will not be going with VW again. The GTI is and has been a great car, however I am looking into getting either a 2012 Subaru Impreza hatchback (a bit more rugged plus better MPG) or possibly a Chevy Sonic (better MPG).


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