Call back from the car dealer to resign the contract?

[UGAZ]

This is not really related to pharmacy, but I would like to ask everyone's opinions. I bought a brand new car last week from a Toyota dealer with a pretty good deal : 0% down, 0% interest and Out of the door price (after tax and fees) was 1000 dollars below the MSRP. The contract was signed. Yesterday, a guy from the dealer called me and said they wanna meet me up to resign the contract because they can't do 0%, instead will adjust to 0.9% for me and readjust the selling price to make my payment the same monthly. I am just curious if anyone has heard or known about such resigning contracts from car dealer?

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[Carol is Alpha]

Would you like me to pay this meathead sales manager a visit?

 

[pezdispenser]

Google "spot delivery". For example:
http://www.edmunds.com/car-loan/dont-fall-prey-to-spot-delivery-scams-and-yo-yo-financing.html

In your case, you might be ok because $1000 below MSRP isn't a large discount and it's within the dealer's profit margin so they may be able to eat the higher interest to keep your payment the same.

 

[Momus]

Anyone paying 1k below MRSP is not much a deal... Ask them to lower price more. You should fax/email every dealer on the area and have them put in a bid OTD price. Make them compete against each other. MAKE SURE you put it in writing before you drive to the dealer or face a high pressure salesman changing the last mins when you see him in person.

On another side note, anyone buying a new car should know you take -15% hit every yr in depreciation in the first few yrs. For example, for a new 30k car means you losing $4.5k immediately just to have a car smelling new. Sweet spot is to buy a car 3-5 yr old, let someone else eat the depreciation cost. Look up Edmund true cost to own/yr.

 

[lord999]

Depending on the circumstance, if they signed, they eat it, the finance division can easily deal with the dealership. By the way, I'd echo the other audience that considering this time of the year (fresh off the boat if not on Hanjin is the new model year), you got scammed pretty hard.

Also:
http://www.zerohedge.com/news/2016-08-25/subprime-auto-delinquencies-jump-17-july-net-losses-soar-28

And
http://www.zerohedge.com/news/2016-...lar-consumer-auto-loan-bubble-beginning-burst

I'm looking for a new (to me) car too. However, I'm pretty sure I'm going to buy something "gently" used for about 50% of the usual strike price for this model year next. Or why bother, give it two and I probably can get something decent for two pharmacist paychecks.

 

[Carol is Alpha]

Anyone paying 1k below MRSP is not much a deal... Ask them to lower price more. You should fax/email every dealer on the area and have them put in a bid OTD price. Make them compete against each other. MAKE SURE you put it in writing before you drive to the dealer or face a high pressure salesman changing the last mins when you see him in person.

On another side note, anyone buying a new car should know you take -15% hit every yr in depreciation in the first few yrs. For example, for a new 30k car means you losing $4.5k immediately just to have a car smelling new. Sweet spot is to buy a car 3-5 yr old, let someone else eat the depreciation cost. Look up Edmund true cost to own/yr.

It's cheaper to buy a no frills new car and dump it after 6 years. The money you save buying a used car goes right back into repairs which easily become 4 figures a pop. It's cheaper to pay 200 a month for 60 months, trade it in after 72 months right before the a/c craps out, and get a new cheap car. Don't be socially engineered into believing a car is your penis. A car is a depreciating asset.

 

[UGAZ]

The car I bought was 30,500 MSRP. I got it out of the door for 29,500. The actual price sale was around 27,255. So I got discounted nearly 3250 dollars off from Msrp. I always bought used car but this is my first new one and it's a hybrid so I really like it. I have always wanted a hybrid car and a used hybrid Suv isn't available on the market yet.... Except for highlanders, but too bulky for me.

 

[Carol is Alpha]

The car I bought was 30,500 MSRP. I got it out of the door for 29,500. The actual price sale was around 27,255. So I got discounted nearly 3250 dollars off from Msrp. I always bought used car but this is my first new one and it's a hybrid so I really like it. I have always wanted a hybrid car and a used hybrid Suv isn't available on the market yet.... Except for highlanders, but too bulky for me.

UGAZ, you're not worried about your carbon footprint, are you? Do you really need to spend 30K to see a wee green leaf icon flash on your dash? Do you need the validation that bad? Oh, but I forgot the poor drowning polar bears.

 

[Momus]

The car I bought was 30,500 MSRP. I got it out of the door for 29,500. The actual price sale was around 27,255. So I got discounted nearly 3250 dollars off from Msrp. I always bought used car but this is my first new one and it's a hybrid so I really like it. I have always wanted a hybrid car and a used hybrid Suv isn't available on the market yet.... Except for highlanders, but too bulky for me.

OK. If they lower OTD for you, it might make ur sales tax lower (be sure to ask for a refund) . And, if you pay it fast enough (more than installment pay/send an extra check for principal reduction), it might make sense to come back and resign. Your total cost will be lower in the long run. You give them the middle finger to make interest money off you.

But, if you have no plan to pay it faster, it might not make sense to come back and resign (aside from lower sales tax, since your total cost will be the same - no extra payments).

 

[confettiflyer]

MSRP is a useless number, no one pays it and any "discount" from it is not a valid way to evaluate a discount. Much better to go invoice + margin or discount average price paid in your region.


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[confettiflyer]

And I agree with Momus here


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[Momus]

It's cheaper to buy a no frills new car and dump it after 6 years. The money you save buying a used car goes right back into repairs which easily become 4 figures a pop. It's cheaper to pay 200 a month for 60 months, trade it in after 72 months right before the a/c craps out, and get a new cheap car. Don't be socially engineered into believing a car is your penis. A car is a depreciating asset.

You obviously never own a Honda or Toyota with 200k+ miles.

Oh you fail at math if you think dumping a new car every 6 yrs will save you money.

 

[Carol is Alpha]

Even a toyota or honda breaks down and those aren't cheap. I played that game before with a high mileage car. I kept track of all my repairs to run a cost-benefit analysis. Even though I had no car payments for 13 years, I ended up paying for what amounted to a new car after adding up all the major repairs. 20-30 years ago it made sense to hang on to a car, but not anymore. The repairs are too costly now at days. From my experience you are going to pay about 200 bucks a month one way or another. Either a new car payment or a big $1500 repair bill every 8-15 months.

Six years is the sweet spot while a car still has trade-in value. Six years because that's when ac units fail...1200-1500 bucks right there to replace that. Trade in for 4kish as a down payment for new cheap car and be worry free as far as repairs for six years. It's a personal preference. I've been there when I've have no confidence in a car's road worthiness. It sucks.

 

[Momus]

Even a toyota or honda breaks down and those aren't cheap. I played that game before with a high mileage car. I kept track of all my repairs to run a cost-benefit analysis. Even though I had no car payments for 13 years, I ended up paying for what amounted to a new car after adding up all the major repairs. 20-30 years ago it made sense to hang on to a car, but not anymore. The repairs are too costly now at days. From my experience you are going to pay about 200 bucks a month one way or another. Either a new car payment or a big $1500 repair bill every 8-15 months.

Six years is the sweet spot while a car still has trade-in value. Six years because that's when ac units fail...1200-1500 bucks right there to replace that. Trade in for 4kish as a down payment for new cheap car and be worry free as far as repairs for six years. It's a personal preference. I've been there when I've have no confidence in a car's road worthiness. It sucks.

Must have had a Chevy lol. Previous car 14 yrs (then tranny start slipping) and current 8 yrs and nothing. Both Accords. Fluid change and regular maintenence only. I pay $35/mo/insurance for 100/300/50. $110 registration lol.

 

[Carol is Alpha]

I started with a ford, then honda, oldsmobile diesel, now back to ford. The diesel was the most reliable but not my bag. The first ford was actually pretty good and I drove that baby hard. I was really disappointed in the civic since most of the miles were easy highway miles. At the time I was a SEEB buying the hype and figured this will be my last major repair one after another. Maybe mine was a lemon

 

[wagrxm2000]

Anyone who thinks you pay so much in repairs that you've bought a new car clearly is driving the wrong vehicle. I too drove a Honda for ten years after buying it for a few thousand. I didn't have a single repair until it finally crapped out on me and wasn't worth fixing.

 

[sakigt]

Repairs/Maintenance on vehicles that make a car unaffordable are: luxury imports (besides lexus) and domestic pieces of crap. I got a ton of use from my Chrysler but my Cadillac has been acting up. Luckily we can work on most things on our vehicle. I chose a Prius over a Volt because one trip to the dealer in hours wasted was not a risk I would take for a 30 mile EV range.

And the Prius was a 3 year old model year with 28k miles at $7k under original invoice.

I love cars and will get into something less appliance-like eventually but theres no need to spend big money on a brand new car under the guise of saving money

 

[awval999]

Must have had a Chevy lol. Previous car 14 yrs (then tranny start slipping) and current 8 yrs and nothing. Both Accords. Fluid change and regular maintenence only. I pay $35/mo/insurance for 100/300/50. $110 registration lol.

I'm surprised you have such low insurance limits for someone with such a high net worth.

I have 1M/1M

 

[CMUchicka]

Must have had a Chevy lol. Previous car 14 yrs (then tranny start slipping) and current 8 yrs and nothing. Both Accords. Fluid change and regular maintenence only. I pay $35/mo/insurance for 100/300/50. $110 registration lol.

Wow, how come your insurance is that cheap? What your deductible? How old are your cars? I so want to get that rate... I have never gotten ticket or involved in any kind of accident.. i have geico and pays $76/ month

 

[Michael_Scott]

Anyone paying 1k below MRSP is not much a deal... Ask them to lower price more. You should fax/email every dealer on the area and have them put in a bid OTD price. Make them compete against each other. MAKE SURE you put it in writing before you drive to the dealer or face a high pressure salesman changing the last mins when you see him in person.

On another side note, anyone buying a new car should know you take -15% hit every yr in depreciation in the first few yrs. For example, for a new 30k car means you losing $4.5k immediately just to have a car smelling new. Sweet spot is to buy a car 3-5 yr old, let someone else eat the depreciation cost. Look up Edmund true cost to own/yr.

this is what I would do also OP...1000 below MSRP is not a good deal to begin with...I brought a car last year for 5k below MSRP...granted it was not a toyota or honda...but still, if they are hiking your interest you need to tell them to reduce the cost...yea and look into a good used car if you can...

 

[gwarm01]

I'm no car lawyer or anything, but if you signed the contract then I would assume it's a done deal. I wouldn't sign anything else unless they give you a better offer.

 

[owlegrad]

I'm no car lawyer or anything, but if you signed the contract then I would assume it's a done deal. I wouldn't sign anything else unless they give you a better offer.

I would have thoughts so too but it turns out we are wrong. Follow pez's link or google "spot delivery". Crazy stuff. Personally I have never heard of it happening to anyone I know but still.

 

[Deja]

so what would you guys consider to be a good deal? how much below invoice price is a good deal (after tax and fees)?

 

[M0df]

so what would you guys consider to be a good deal? how much below invoice price is a good deal (after tax and fees)?

There are too many factors involved. You need quotes. As many quotes as you can get within reasonable driving distance. Preferably in writing (email will do). You will see approximate floor price and then you go in and offer them even lower price. You figure out how low the dealer will go and once there is no room, ask for some extra maintenance (oil change, whatever). Then you might have a good deal.

Sometimes the dealer needs to meet his end of the month quota or needs to move inventory before new models come out and you can get even better deal. However, you might be an owner of a last year's model in a few weeks.

 

[pezdispenser]

so what would you guys consider to be a good deal? how much below invoice price is a good deal (after tax and fees)?

I usually go for cars that have been sitting on the dealer's lot for >100 days which makes them more likely to cut you a deal at cost to get rid of it. The dealer cost is roughly:

Invoice price - manufacturer's rebates (usually highest towards the end of the model year) - manufacturer to dealer incentives (not necessarily known publicly) + taxes and registration fees

Also make sure you get a good price on your trade-in, and don't buy any high markup dealer add-ons like extended warranties, paint protection, wheel & tire insurance, etc.

 

[WVUPharm2007]

Let them have the car back, buy a factory certified used car with the crazy long warranties if you want it (literally the only advantage of new cars), save thousands, thank me later.

 

[gwarm01]

I would have thoughts so too but it turns out we are wrong. Follow pez's link or google "spot delivery". Crazy stuff. Personally I have never heard of it happening to anyone I know but still.

Wow. I am kind of shocked that this happens, but I guess I shouldn't be.

 

[Old Timer]

I don't find that difficult to buy a new car these days. Find out the invoice price and go from there. The last couple of cars that I bought were 3% under invoice. I might be able to save a few shekels more, but that's a pretty decent deal. No haggling. I check the dealer's website to see what they have. I walk in say I am ready to buy now. I look the choices over and I tell them what I want to pay. They say yes or no. They make money on the financing too so as long as they give me a competitive rate.

I don't mind buying a new car as I keep them for 10-12 years so I don't worry about the depreciation as I have no thoughts of selling my car until it has lost all of it's value anyway. I get a lifetime contract with XM for $500-$800 and call it a day.....

I had a 1991 Buick Skylark that drove until 2009. I got a Cobalt but my kid's car crapped out so I gave her mine for next to nothing and got 2013 Cruze. My wife had a 2001 Venture that had 125k and ran nice, but it was time after 12 years things start to go. She got a 2013 Equinox. We'll keep these cars for 10-12 years. Depreciation is the least of my worries.

If you buy a 5 year old car with 50K on it, how long will you keep it? 10 more years? I'm done driving 15 year old cars. No matter who makes them 15 year old cars are still 15 years old. They don't compete with a new car. Just like no matter what shape your in at 60, the 20 year old will always wipe your ass on the basketball court, because you're 60 and their 20.....

 

[PharmDBro2017]

Honda/Toyota crew checking in. Drive until 200-300k miles, rinse and repeat. Fantastic cars.

 

[UGAZ]

I decided to ignore them completely. They haven't called me back since. I appreciate some of the comments, however, a few points I would like to make here.
1. People who can run cars with 200k or 500k miles, good for you. Nothing wrong with that. I just can't. I live to enjoy life and a Toyota car isn't that fancy to be honest. 30K to me... is just like 2-3% of my net assets. It wouldn't hurt to spend. After all, you live to enjoy life, not to be a f*ing slave for money. Saving another 30k won't make me any richer.
2. Everyone tries to buy below Invoice. Please, don't be so cheap. Let the dealer make some money. The car salesman gets income via commission. If the dealer sells below invoice, sale man will eat ****... Don't be like that... Let them make some money.
3. You don't have to be a dik telling me what to do with my finance since you have no clue how others are doing financially. I hate cheap people. I don't spend ridiculously on things either. Just have to be reasonable.

 

[WVUPharm2007]

I decided to ignore them completely. They haven't called me back since. I appreciate some of the comments, however, a few points I would like to make here.
1. People who can run cars with 200k or 500k miles, good for you. Nothing wrong with that. I just can't. I live to enjoy life and a Toyota car isn't that fancy to be honest. 30K to me... is just like 2-3% of my net assets. It wouldn't hurt to spend. After all, you live to enjoy life, not to be a f*ing slave for money. Saving another 30k won't make me any richer.
2. Everyone tries to buy below Invoice. Please, don't be so cheap. Let the dealer make some money. The car salesman gets income via commission. If the dealer sells below invoice, sale man will eat ****... Don't be like that... Let them make some money.
3. You don't have to be a dik telling me what to do with my finance since you have no clue how others are doing financially. I hate cheap people. I don't spend ridiculously on things either. Just have to be reasonable.

Then don't ask people for advice on an internet forum notoriously filled with people that are frugal with their money.

 

[BMBiology]

Same thing happened to me. I got a new car at a very good price with low interest rate.

A month later I received a letter telling me I may not qualify for their low interest rate and I should give them a call. I then got my laptop and after a few clicks, I paid everything in full.

Cash is king. Remember that and you will do well.

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[Old Timer]

Everyone tries to buy below Invoice. Please, don't be so cheap. Let the dealer make some money. The car salesman gets income via commission. If the dealer sells below invoice, sale man will eat ****... Don't be like that... Let them make some money.
3. You don't have to be a dik telling me what to do with my finance since you have no clue how others are doing financially. I hate cheap people. I don't spend ridiculously on things either. Just have to be reasonable.

First, you have no clue about buying a car. Invoice is like AWP at a pharmacy. They pay way less than invoice. I have purchased a 2007 Cobalt for my daughter, 2009 Cobalt for myself, a 2013 Cruz for myself and 2013 Equinoix for myself. All from the same salesman. He likes me because I don't jerk him around, I know what I want, I drive the car to make sure and I buy it. If they weren't making money, they wouldn't sell me the car. After all you took $1,000.00 off the price. It wouldn't make a difference to you, so by your logic you should just pay sticker price.

I am anything but cheap. Getting the best deal is not being a cheapskate.

 

[UGAZ]

First, you have no clue about buying a car. Invoice is like AWP at a pharmacy. They pay way less than invoice. I have purchased a 2007 Cobalt for my daughter, 2009 Cobalt for myself, a 2013 Cruz for myself and 2013 Equinoix for myself. All from the same salesman. He likes me because I don't jerk him around, I know what I want, I drive the car to make sure and I buy it. If they weren't making money, they wouldn't sell me the car. After all you took $1,000.00 off the price. It wouldn't make a difference to you, so by your logic you should just pay sticker price.

I am anything but cheap. Getting the best deal is not being a cheapskate.

The car MSRP was 30,500 and I got it for 29,500 out of the door price, so I actually paid around 27,000 before tax and fees....not just 1000 below MSRP, just to clarify.

 

[BMBiology]

The car MSRP was 30,500 and I got it for 29,500 out of the door price, so I actually paid around 27,000 before tax and fees....not just 1000 below MSRP, just to clarify.

If $30 k is just 2-3% of your net worth then why not pay in full and get rid of this problem?

I guess this means you have $1-1.5 M? I don't think you are financially savvy from reading this thread but whatever. Your money. Your life.


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[UGAZ]

If $30 k is just 2-3% of your net worth then why not pay in full and get rid of this problem?

I guess this means you have $1-1.5 M? I don't think you are financially savvy from reading this thread but whatever. Your money. Your life.


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Free money....0% down, 0% interest. Why paying off ? Using my money to do other things like traveling, investing.

 

[Old Timer]

The car MSRP was 30,500 and I got it for 29,500 out of the door price, so I actually paid around 27,000 before tax and fees....not just 1000 below MSRP, just to clarify.

You didn't make that clear. I'm glad you got the car you want at a price you found comfortable. I just told you the method I use. No rela negotiation. No back and forth with a sleazy sales person. If you are happy, I'm happy for you. If you keep a care for a long period of time, I would also buy new.

 

[ancienbon]

As a former salesperson at toyota , i can tell you old timer gave some great point. We call people like him informed buyer. They dont waste your time as they know what they want and what they are willing to pay.

 

[ancienbon]

I don't find that difficult to buy a new car these days. Find out the invoice price and go from there. The last couple of cars that I bought were 3% under invoice. I might be able to save a few shekels more, but that's a pretty decent deal. No haggling. I check the dealer's website to see what they have. I walk in say I am ready to buy now. I look the choices over and I tell them what I want to pay. They say yes or no. They make money on the financing too so as long as they give me a competitive rate.

I don't mind buying a new car as I keep them for 10-12 years so I don't worry about the depreciation as I have no thoughts of selling my car until it has lost all of it's value anyway. I get a lifetime contract with XM for $500-$800 and call it a day.....

I had a 1991 Buick Skylark that drove until 2009. I got a Cobalt but my kid's car crapped out so I gave her mine for next to nothing and got 2013 Cruze. My wife had a 2001 Venture that had 125k and ran nice, but it was time after 12 years things start to go. She got a 2013 Equinox. We'll keep these cars for 10-12 years. Depreciation is the least of my worries.

If you buy a 5 year old car with 50K on it, how long will you keep it? 10 more years? I'm done driving 15 year old cars. No matter who makes them 15 year old cars are still 15 years old. They don't compete with a new car. Just like no matter what shape your in at 60, the 20 year old will always wipe your ass on the basketball court, because you're 60 and their 20.....

So true. You usually get better deal on new car. The average people will tell you otherwise.

 

[BMBiology]

Free money....0% down, 0% interest. Why paying off ? Using my money to do other things like traveling, investing.

Because that is not what you are getting.


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[mentos]

27k for a Toyota? To each their own I guess.

 

[mentos]

Avg new car is 33K or something...

LoL if you're going to spend 33k might as well get a Lexus/BMW/Audi. You can get a new Toyota for under 20k. A 27k Toyota is still a Toyota.

 

[gwarm01]

LoL if you're going to spend 33k might as well get a Lexus/BMW/Audi. You can get a new Toyota for under 20k. A 27k Toyota is still a Toyota.

This is how they trick you! I keep thinking I could get a nice Audi or Jaguar for the low 30s, then I select a larger engine, leather seats, premium audio, sportier wheels, the nicer paint.. I can't get a damn car for less than 50k.

I have a reservation for the 35k Tesla Model 3 and I'm already saving because I know I'll make that thing cost at least 10k more once I option it out.

 

[owlegrad]

This is how they trick you! I keep thinking I could get a nice Audi or Jaguar for the low 30s, then I select a larger engine, leather seats, premium audio, sportier wheels, the nicer paint.. I can't get a damn car for less than 50k.

I have a reservation for the 35k Tesla Model 3 and I'm already saving because I know I'll make that thing cost at least 10k more once I option it out.

I was thinking the same thing. Do you want a tricked out lower end car or a bare-bones higher end car? Obviously everyone is different but my thinking is the same as yours. I will take the options every day.

 

[gwarm01]

I was thinking the same thing. Do you want a tricked out lower end car or a bare-bones higher end car? Obviously everyone is different but my thinking is the same as yours. I will take the options every day.

My brother! It's a curse.

When I was younger I was more than happy to drive a used Camry. It was reliable, efficient, and got the job done. I was the kind of guy who would rather spend more money on his computer. Then I got hooked on Top Gear in the mid 2000's because I liked their humor, and now I'm obsessed with cars (also spending money on my computer.)

Right now I drive an older Audi that I picked up used. 2008 TT Roadster 3.2L Quattro. A very fun car for sure, and I got it for less than half of the original asking price, but the technology in new cars is just too appealing. I know I'm going to want autopilot, supercharging, the largest battery, ludicrous speed, everything Tesla will give me. Not to mention media options. I can take solace in the fact that I'll probably drive that Tesla until the wheels fall off or another cool car comes along.

What did old timer say? Shrouds have no pockets? I might as well spend my money on something that I love, so long as a little bit goes into my retirement fund.

 

[owlegrad]

I can take solace in the fact that I'll probably drive that Tesla until the wheels fall off or another cool car comes along.

LOL I love it. I preordered the Tesla as well, although I am second guessing myself on if it will be worth it. But it just looks too cool! Like you say, can't take it with you after all...

 

[WVUPharm2007]

I gots that day one Model 3 reservation, too.

 

[gwarm01]

LOL I love it. I preordered the Tesla as well, although I am second guessing myself on if it will be worth it. But it just looks too cool! Like you say, can't take it with you after all...

The hardest part for me will be waiting until they actually ship that car. It looks cool, which is a big plus. The infamous electric car torque should make it fun to drive. I watch the Model S launch videos and just drool. The battery makes these cars heavier than you'd think, so I'm hoping the 3 has sportier handling and cornering since its smaller. The deal breaker for me might just be color options, as stupid as that is. It's a vanity thing after all, or I would just buy a Leaf or Volt.

I'm also torn because I currently have a convertible. I think the all glass roof looks amazing, but will it be able to support a moon roof? These are the important questions.

Ok, back on topic. UGAZ. You need to get rid of that Toyota ASAP and buy a Jaguar F-Type convertible.

I gots that day one Model 3 reservation, too.

One of us! One of us!

 

[owlegrad]

Wow there are more Tesla preorders here than I would have expected, given how notoriously thrifty this crowd is, LOL

 

[UGAZ]

Because that is not what you are getting.


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See the document before you jumped to conclusions.