Last post on Dec 10, 2013 at 1:05 PM
You are in the Prices Paid - Buying & Leasing Experiences
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Honda CR-V, Wagon, SUV
#12443 of 13056 Re: THE #1 con men at Bay Ridge, Brooklyn honda [js1234]
Jul 11, 2013 (12:14 pm)
"Recent post" was me-- I bought the crv exl at bayridge through Gene for 26500 after 1250 incentives from Honda (even though i did NOT qualify for the conquest 500-- they gave it to me at 26,500) .
I DID finance-- for the bare minimum of 7,500. From what I understand, there is NO penalty for paying off the loan immediately--
so to entice them into giving you a better deal, why not tell them you're financing for 7,500 and then just pay the loan in full?
Side note: Bayridge gave me 3/4 of a tank instead of what the manual says should have been "topped off"...and the same salesman that tried to slip the destination charge back into the deal, Kyrie, also told me that the car had zero miles, when in fact it had 30 miles on it. No biggies-- but still kinda lame...
Also, I did speak to samantha at the dealership in Boston and after a different empolyee told me via email that they give the "same prices for all customers" , samantha told me that since I was from NY-- and would NOT service the vehicle there, i could NOT get the same 25,300 quote that the MA resident got...
Seemed unfair, but next time I would NOT tell out of state dealer that I am not a resident UNTIL I had a firm quote and it came time for paperwork...
#12444 of 13056 Re: July Incentives Over? [will123]
Jul 11, 2013 (12:34 pm)
They are coming out with 2014 SUV in september. You should get better prices in August, except your color choices may be limited.
#12445 of 13056 Paying in cash
Jul 11, 2013 (6:08 pm)
Any good incentives when paying in full with cash? Everyone that I have spoke to wants me to finance.
#12446 of 13056 Re: Paying in cash [bella35]
Jul 11, 2013 (7:06 pm)
To my knowledge, no any incentives for paying with cash.
#12447 of 13056 Re: 2013 crv-EXL awd [dghtrfgd]
Jul 12, 2013 (3:45 am)
In reality no extended service contract provides bumper-to-bumper coverage. If the F&I guy made this statement he was lying. The small print will reveal what is not covered, which is probably more than what is covered.
Hopefully, the extended service contract is with Honda. If not, might be wise to cancel.
The story of your financing indicates this dealer may have employed a classic dealer trick to raise its profits. It is not legal for a dealer to tie the interest rate on a new car purchase to a buyer's purchase of an extended service contract. Essentially what the dealer seems to have done is obtain the interest rate for which you qualified, say 3.9%, from a financial institution. Dealers do not set the interest rate on a new car loan, the interest rate is set by the financial institution, bank or credit union.
In this case the dealer likely raised this 3.9% rate to say 6.9% and told you that was the rate. The dealer than sold you an overpriced extended service contract and reduced the interest rate to the 3.9%. Essentially your friendly finance guy duped you into giving the dealership a considerable profit through this deception. You may not have purchased the extended service contract if the dealer had not played with the interest rate?
What you should do is immediately cancel the extended service contract. You have that right. You will not get a check but the refund will go to the bank to reduce your principal. Essentially you will have less payments.
This is a good example of why any potential car buyer should obtain financing from a bank or credit union before they visit a dealership. Dealers can often provide equal or better financing than a person's bank but how does one know if one has not researched financing before visiting the dealer?
#12448 of 13056 Re: Paying in cash [zhyuan]
Jul 12, 2013 (3:55 am)
Actually, telling a dealer you are paying in cash will often result in a higher price. The reason for this is dealers know they can make additional profit if a person finances a vehicle. This additional profit is attained via finance reserve, where dealer increases the interest rate, or through the sale of various F&I products which are sold at exaggerated prices in the F&I office. Dealers know people who finance are more likely to buy the F&I products than are people who pay cash.
A good way to assure there is no price penalty for a cash buyer is to let the dealer finance the vehicle. You can pay off the loan immediately with no penalty. There is no prepayment penalty on a car loan. Of course you will incurr a small amount of interest during the short period between the purchase and the loan pay off but that would likely be offset by any price considerations the dealer allowed due to your financing the vehicle.
An added bonus to this is the dealer F&I people dispise this as they ultimately do not recieve any commission on a cancelled auto loan. That alone may be worth the few dollars paid in interest.
#12449 of 13056 Re: Paying in cash [ltllady]
Jul 12, 2013 (7:00 am)
There are many truths and good points to your last posts. I would like to add that when your buying said vehicle It is always best to let dealer know if they cant meet your asking price tell dealer you will finance the Vehicle thru them at his best rate matching or beating your Credit union, or bank rate to get deal done. If they can't dealer has to then meet your asking price or you walk.
There is no penalty for a cash buyer. Just dealership greed to selling you that vehicle.
Dealers make more money if you finance thru them. Dealers will take advantage of the folks who did not do there homework on finance rates and getting outside approval first. This is a must in the car game!!!!!
The 1st thing you do when buying a new vehicle is getting approved by a outside lender and letting the dealerships either match or beat your rate.
By doing this first any dealer that tells you need to finance the vehicle for xxx price you are ready. If your a cash and carry person like myself you finance a portion thru that dealership and within 7 to 10 days you could pay off loan.
Penn Fed credit union best rates on new cars. $25 to join.. Reduced or free rate if you are military, law enforcement or work for fed gov't. 2 day approval.
When buying a new vehicle you find your target price and Email, Call 20/30 dealerships speak with the internet managers and make your best deal.
You never let any dealer give you a price. once you start buying like this your done .. dealers will play games and never respect you cause they feel your just like all the other stupid buyers that they take advantage of. If you know how and when to buy you will get a good deal.
Getting that lowest price is obtained when negotiating the last couple of days at the End of any month.
Your target price formula is getting;
minus the dealers hold back
minus dealers doc fee's
minus any rebates and incentives due to you.
Now add your dmv and states taxes for your OTD price.
As you get into july / Aug dealers most likely are getting more incentive money to sell that 2013 model cheaper . Thats why you will see pricing below the starting formula to buy.
#12450 of 13056 Re: 2013 crv-EXL awd [ltllady]
Jul 13, 2013 (9:16 pm)
1) what will happen to my interest rate when i cancel the extended warranty?-- they DID link the lower interest rate to my purchasing the extended warranty and lo-jack "package". (they have NOT yet installed the lo-jack-- will that work in my favor?)
2) what do i say if they claim it is "too late" to cancel the warranty?
#12451 of 13056 Re: 2013 crv-EXL awd [dghtrfgd]
Jul 14, 2013 (10:28 am)
You made a bad deal and now you want to back out. Yes you can cancel your service Warranty you have the right to. Will dealer honor his end and redo your agreement. Bayridge Honda will not and why should they... You should of known better you have been reading these posts for sometime now.
Call Penn Fed Union and get pre approved for your loan amount with Bayridge honda in the event something goes bad/ in that event just pay off there loan with Penn fed check.
#12452 of 13056 Re: Honda CRV - EX-L, AWD [rvaz]
Jul 14, 2013 (11:11 am)
May I ask what dealer?