(╯°□°)╯︵ ┻━┻ STONKS! ┬─┬ノ( º _ ºノ)

Nice, the more the merrier

 

Wonderful

 

Looks good? how's the mileage and rust?

 

Nice! What did I miss, did you accidentally pick a big time stock winner?
Or maybe hit the lottery jackpot?

 

His girlfriend bought it.

 

117k. West coast truck, zero rust on the frame. It was my brother's, he took excellent care of it.

 

Nice!

Your driveway is starting to look like a peace keeping mission.

 

I just need a few 240 bravos to mount on the back to make them real desert trucks

 

Nice score

 

This may be more of a personal finance but has anyone heard of getting charged penalties for paying off a car before financing it for 6 months?

looking at buying the wife a car but the sales guy said he’ll work on the price if I do in house financing. I said sure that’s fine I’ll just pay it off asap. And he gave me some crap about paying it off too soon can lead to penalties.

 

Check the paperwork, if the loan has no early payment penalties, then you should be good.

I can't find it now, but my mortgage says it explicitly: "EARLY PAYMENT PENALTY: NONE" or similar. This was a bigger thing pre-08, where a mortgage was expected to make the bank X dollars over the life of it, so if you paid it off early, you're "taking money" from the bank

If your loan paperwork doesn't say anything, then you can pay it off the day after it's open. The bank will expect X dollars of interest over the life of the loan, but if you pay it off next day, they get pennies/dollars instead of thousands. Plus, you got a better number at sale because they (I THINK) get a cut from financing (I don't know that much about dealerships, other than avoid unless necessary )

https://www.experian.com/blogs/ask-experian/how-to-avoid-paying-prepayment-penalty/

"Thirty-six states and Washington, D.C., let auto lenders charge prepayment penalties for loans with terms of 60 months or less. Lenders are prohibited by law from charging a prepayment penalty for an auto loan of 61 months or longer."

I am guessing that 6 months number is the point where the bank kicks over the thank-you cut to the dealer for the loan, but I haven't a clue.

 

99.9% of the time there's no pre-payment penalties on a straight auto loan. They don't want you to pay it off for two reasons: 1, they miss out on the interest if it's in house financed, and 2, there can be claw-backs from the manufacturer if the loan is paid off in under a certain amount of time (at least there was in the forklift world when I was selling them)

If I knew I was going to be paying cash for a vehicle, I'd use the in house financing to negotiate a lower overall price on the car. "Hey, I'll finance with you guys at 4% if you knock off $2k on the price" sort of deal.
Then I just wrote a check the next week and paid it off. Can't bullshit a bullshitter.

For anyone who doesn't enjoy the dealership purchasing process, you can make it relatively simple by going in this order.

1. Negotiate the purchase price of the vehicle first.
1a. You may or may not have a trade-in. You don't know yet until you're happy with the overall purchase price
2. You don't know if you're going to finance yet, and you won't know until you're happy with the overall purchase price
3. Loan terms if interested. The vast majority of the time you're going to be better off with your own credit union financing vs using the dealer's in-house.
4. Trade-in terms if interested

TL;DR Get the price of the vehicle first before they start fucking around with rates/loan terms/trade-ins. I've sat on that side of the table for many years (forklifts, not cars). The salesman wants to talk about purchasing options, because it gives him leverage to manipulate things from a variety of places to get the dealership the most money. You win by getting the price where you want it and refusing to move from that during the process.

 

When I bought my Mazda I listed 27 comps and their price, averaged it, and said "this is what I'm paying, not a cent more or less". Maybe I could have argued to the left of the bell curve for an hour and paid 100$ less. They were happy, I was happy, sales guy got a sale in 3 minutes and off we went.

I'll go back and forth for a couple grand but when it comes down to 100-200$ on a 36k vehicle, I'm not wasting hours and gas going back and forth with other dealerships over 0.5%, and they figured hey, were fine with this price and now this cars gone and we can go to another sale, yee haw".

But otherwise, yeah your methods the way to go. They had a glorious 18 months where they were in control, but we're getting back to normal. Also being willing to walk away is great. When I traded in the Mazda I walked the first time because I wasn't "in need" of the vehicle.

 

When I bought my 2020, I called and asked them to hold it for me because I wanted to come down and take a look. Guy said, "Price is MSRP. I'm not holding it. If you want it, get here quick, cause it'll be gone by the end of the day."

I bought it over the phone before it went through PDI inspection from the factory.

Stupid pandemic.

 

I actually like buying new cars. When the salesman starts his "feel you out" dialogue and asks you what you do for a living, I get great joy out of saying, "I sell forklifts. New, used, and leases. I handle the financing from the sales desk, both in house via Toyota Financial, and third party if required."

Salesman goes but at least he knows he'll sell a car if he doesn't try to fuck around.

I also like to ask for the most junior salesperson, give them a complete purchase/financing packet I've brought from home, and say, "Run this by the sales manager and finance. If they agree to it, it'll be the easiest sale you'll ever make."

New car sales guys make their money on volume. Finance makes its money on interest rates. Sales manager makes his money by being a dick and trying to keep you there for 4 hours.

I dunno about cars, but on new forklifts, we run about a 3% margin. Not even worth arguing over unless someone is buying 10+ at a time. I'll sell you a forklift at cost all day every day if you agree to a 12 month service plan. Toyota paid me $300 per forklift sold as long as the dealership didn't lose money. They'd give me extra bonuses for using their financing, plus I could mark up interest up to 1% extra and pocket that over the life of the loan or lease. Buying electric forklifts? I had battery vendors that would pay me sometimes $1k or more just to put their brand into the new lift.

Car/forklift sales are a racket.


Edit: Remember back in the day when dealerships would say, "We'll show you the actual dealer invoice!" That was actually a thing and not as scammy as people thought it was. Volume > margin. All the money is made on used sales, leases, and the service department. Unless, of course, pandemic. Then they fuck you on new sales too.

 

When we bought the 2021 Corolla Hatchback I had a pretty good experience with our local dealer. The car they had on the lot was the color we wanted and had all the options we wanted. I met my wife there after work on a Thursday. We took it for a test drive and both where plenty happy with the shiny new toy.

When we got back the salesman started to do salesman things. I politely put a stop to that. I asked when would be a good time to sit down with the finance manager or GM. After about 5 minutes of him continuing to try to be the one that gets the sale I again politely told him if I didn't get a sit down with one of the managers within 5 more minutes there would be no sale.

Four minutes later the GM comes and meets me and my wife. After that we head to his office. He starts doing the price and I stop him. I told him I know all about the MSRP, true dealer price and the associated kickbacks from sales. I told him he had one shot to make the best offer he could. I would either except the deal or walk out the door. Keep in mind we hadn't mentioned anything about finance or trade-ins yet. I also hadn't told him I was already approved via Toyota Finance for 1.9%.

He gets his pencil sharpener out and hands me the out the door number. He sharpened the shit out of that pencil because it was way below where I thought he was gonna come in at. It was barely above dealer invoice. I stood up and shook his hand. Then I told him we'd be in Friday after work to pick up the vehicle and finalize the paperwork. He started to ask about how I was paying so I handed him my Toyo Finance number and told him it's already done. He just needs to get the figure on that piece of paper pushed through the loan dept. We where in that showroom for less then 45 minutes and that included the test drive.

Friday I stopped after work and signed the paperwork for everything. Five minutes later I was driving away. lol

 

Did the exact same thing with my 2020. Yes, Covid was raging. However, Toyota was also offering year end incentives in October of 1.9% for up to 72 months on Tacomas so they were flying out the doors. 2 left out of 6 recent arrivals. Black or White. Lol, White it was. No test drive, bought by phone sight unseen. Have to say it was the smoothest transaction when I went there to sign the papers. Not one issue with the truck in 2.5 years. Very happy. But yeah, a little risky.

 

Yep, that's exactly how you should do it. Little bit of research on the front end saves you a shitload of time at the dealer.