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#12 of 16377 Of loans and fees.... by agt_cooper Oct 31, 2000 (3:35 pm)
In relation to the 20/20 "expose" on dealership loan practices, I came across this little tidbit that is required by Virginia any time a party to the sale of real estate is also going to assist in securing the mortgage and will profit from that assistance. This notice must appear on a loan application in bold type, minimum 10 point size. It must be acknowledged by signatures of all borrowers. NOTICE We have offered to assist you in obtaining a mortgage loan. If we are successful in obtaining a loan for you, we will charge and collect from you a fee not to exceed .... % of the loan amount. We do not represent all of the lenders in the market and the lenders we do represent may not offer the lowest interest rates or best terms available to you. You are free to seek a loan without our assistance, in which event you will not be required to pay us a fee for that service. If you are a member of a credit union, you should compare our interest rates and terms with the mortgage loans available through your credit union. Maybe something like this should be added to the buyers order for dealerships who will also arrange financing for the customer? I'm sure the "suit" who was representing the dealerships on "20/20" would be in favor full disclosure on this "valuable service" that dealers provide......
#13 of 16377 Processing Fees on written buyer's order by coffeebiz Dec 15, 2000 (2:41 pm)
I was at a Toyota dealer this past weekend looking to buy a 2001 Avalon. The negotiations were going well and I ended up with a great price. When the saleman began to fill out the buyer's order whee he lists the car with the options and my down payment (it's like a dealer standardized form) I saw that there was a $399 "processing and delivery" charge that is assessed automatically. I asked the saleguy to explain this fee but he just gave me a roudabout answer. I walked out because I can't think of what kind of service would justify this amount. I was afraid to sign thinking that this was a scam by the dealer to recoup whatever money they lose from potential negotiations.   Is this fee justifiable and if not, how can I negotiate to get it lowered or off the application all together?   Thank you. Replies to this message: klide (Jul 24, 2004 9:08 pm) bowke28 (Jul 25, 2004 8:16 am) klide (Jul 25, 2004 9:30 am) go323 (Jan 17, 2005 3:15 pm)
#14 of 16377 Processing fee by mvargo1 Dec 18, 2000 (8:26 am)
Processing fee is probably just a way to recoup money lost in negotiiations. However, if the fee was not included the final price would probably have been $400 higher. It is also reasonable to assume that a state inspection, Pre Delivery Inspection, Full detail, Full tank of gas, and various notery and other charges could total $399. Your graet price was probably at least $400 lower than any other price you got because of this fee. I'm sure you could attempt to negotiate it, just don't expect it to work.
#15 of 16377 Dealer rate markup. by mvargo1 Dec 18, 2000 (8:28 am)
Who care if dealers are making money on the financing of a car loan. What's the difference if a bank makes the money or a dealer does.
#16 of 16377 100% Survey by cardreamer Dec 21, 2000 (7:43 am)
What does it mean when a fleet manager says that they want to get "100% survey" when selling a car at fleet prices?
#17 of 16377 To coffeebiz by bobst Dec 21, 2000 (7:54 am)
Congratulations on having the sense to walk out of the dealer when they tried to add in that silly 'dealer processing fee'   In the future, the best way to avoid this fee and other surprise add-on charges is to make an 'out the door' offer. For example, when we bought our last Honda, we offered $20,300 OTD. They accepted, we gave them a check for $20,320 ($20 for a fancy license plate), and drove the car home.
#18 of 16377 question to dealers: percentage of monthly-payment buyers by h_bosi Dec 21, 2000 (9:46 am)
I am in the process of buying a new vehicle. The thing that is so the same in different dealers is this (or a variant thereof), "how much of a monthly payment can you afford?"   Granted, I can understand why many buyers NEED to know upfront what the monthly payment is. It just isn't my style, because a purely payment-driven purchase leaves me wondering about too many things (actual price & trade-in, interest/lease rate, residual, etc.)   What do you estimate the percentage of buyers who are monthly-payment based, vs someone like me who just let the payment comes out whatever it will come out, depending on the price, financing,trade-in, etc.?   Just curious.   /BOSI
#19 of 16377 bosi by audia8q Dec 21, 2000 (1:20 pm)
good question. The answer really depends on the product line and location. I worked for 17 years in the car biz in a very wealthy part of connecticut. We never worked deals on payments. But now that I am in the Nashville area, very few consumers seem to have any interest in the selling price, they want to know "how much per month"....so I mold the process to fit that particular consumer buying patterns. Also, nobody walks into a MB dealer and says "I have $500 down, what are my monthly's"...but at a Hyundai store I would say that 95% of the buyers are payment buyers.   Rich
#20 of 16377 I've never used "Dealer Financing" by ls1v8 Dec 21, 2000 (1:54 pm)
Whether it was GMAC, FOMOCO or a third party dealer "preferred" Bank. I always have my financing approved prior to visiting a dealer. Are people like me in the minority for all new car buyers?

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