Last post on Nov 20, 2013 at 9:45 AM
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Car Buying, Car Selling
#3202 of 3350 Re: Novice negotiating online--Confused--Does this guy even want to sell a car? [Mr_Shiftright]
Apr 10, 2013 (2:25 am)
Nothing more than a bet, exactly. And most likely a losing bet.
As has been stated, people concerned about the reliability of their vehicle should buy a vehicle that has a stellar reliability record. With today's vehicles there are many to choose.
An extended service contract probably costs an additional $40 or so on a monthly payment. People concerned about possible repairs after the OEM warranty expires should take that extra $40 each month and put it in an interest bearing account. If a repair is later needed, the cash is available. Of course, if there are no repairs the cash is still available for other things.
Why anyone would choose to pay the dealer and service contract provider a huge profit for an overpriced extended service contract is a mystery.
#3203 of 3350 Re: Novice negotiating online--Confused--Does this guy even want to sell a car? [ken117]
by MrShift@Edmunds HOST
Apr 10, 2013 (11:28 am)
I feel the same, but there may be one or two cars where it could be a decent bet to make. Of course, if you buy a car that has a reputation for trouble, the insurance company offering the warranty is going to make the wager on the bet all the larger.
#3204 of 3350 2001 hyundi accent gl sedan
Apr 14, 2013 (5:40 am)
my hyundai isnt shifting into over drive i found 2 broken wires by the shifter and reconnected them drove it down the road it tried to shift then just reved up what else can be wrong im asking you cause the car originally came from your dealership
#3206 of 3350 Re: Novice negotiating online--Confused--Does this guy even want to sell a car? [boomchek]
Apr 15, 2013 (3:29 am)
Advising folks not to buy anything in the dealer's F&I office, The Box, is certainly not irresponsible. The simple fact is almost every product sold in The Box is overpriced, usually by at least 100 percent over cost and those products can almost always be purchased elsewhere for a much, much lower cost.
Products sold in The Box which might have some value to some buyers may include GAP, dent coverage, and perhaps a maintenace contract. However, to be of value these products must be purchased at a fair price, which is rarely the price set by the dealer.
An extended service contract may cost the dealer $900. The dealer may offer such that contract at $2,500 and negotiate down to $1,800. An unsuspecting buyer might think they got a great deal. However, a savy buyer could easily find the same contract from a dealer on line, after the sale, for perhaps $1,200. Now really, isn't a thirty-three percent profit for the dealer more than fair?
Seems the only folks suggesting a buyer purchase an extended service contract at the dealer at the time the vehicle is purchased are the dealer and the dealer's top sales people who occupay the F&I office. In other words, the same people who make the huge profits from those F&I prodcut sales.
Anyone can, as mentioned in your post, find a situation where someone benefited from an extended service contract. The F&I office is full of such examples. F&I folks use those examples to instill fear into the minds of the buyer as they know such fear is a powerful sellng tool.
Extended service contracts are priced to allow the dealer and contract provider to make a healthy profit. Such profit will not be realized and the service contract provider will not remain in business unless the majority of service contracts ultimately provide no net cost benefit to the buyer.
Smart car buyers research the cost of the vehicle they intend to purchase. They go into the dealership with a confident pricing goal. However, fewer buyers truly understand the profit margins and actual values of the products sold in The Box.
A buyer might purchase a $30K vehicle at a cost which results in a profit of 2-3 percent to the dealer. Those same buyers might spend $3,000 for various products bought in The Box without realizing that $3,000 resulted in a 100 percent or more profit for the dealer.
Truly, a buyer's best bet is to say no to everything in the F&I office. The word no is the only way to maintain the integrity of the vehicle purchase.
#3207 of 3350 Cross-State Purchasing
Apr 24, 2013 (6:26 am)
I will be moving from Florida to Washington state in June to start a new job, and I had wanted to get preapproved for a loan so I could go to Washington state and purchase a car almost immediately - cabs and rentals are very expensive and I'm under 25 so rentals are even worse.
I got approved through a bank for a 2.3% interest rate and was excited about it, but it wasn't until I called the loan agent back that someone told me: I can't apply for a loan with a Florida address and buy a car in Washington, because the car has to be registered in the state I purchase it and that has to match the loan information. Worse, she explained that I can't buy and register a car -at all- until I have a Washington license and an address there.
Is there any way I can go about this and buy a car when I touch down in Washington state so I don't have to pay over $1000 for a rental car while I search for an apartment? Do I really need the Washington state license to register a car there? Is there anything I'm missing?
Thanks for any help
#3208 of 3350 Re: Cross-State Purchasing [aca20031]
Apr 25, 2013 (1:39 pm)
I am no expert on the State of Washington, but that doesn't sound right to me. Maybe you got some bad information or something was lost in the translation. It should not be that difficult. You could try calling a dealer in the area you are moving to and ask them.
Hopefully, someone who knows for sure will chime in.
#3209 of 3350 Re: Cross-State Purchasing [aca20031]
Apr 25, 2013 (4:43 pm)
You were given the right info.
What you need to do is establish residence in Washington apply for new states license then you could register car in that state. not what your doing.. unless you want to travel back across country to register where you use to live. that would be crazy..
What does seem funny to me is if you are approved for a loan it should have no bearing on what state your buying a car. your approved on a specific amount.
Call bank or credit union back and tell them you will be buying in Washington state and living there at time of vehicle purchase..
#3210 of 3350 Re: Cross-State Purchasing [brian125]
Apr 25, 2013 (4:58 pm)
Its true - Have to have a valid license you're registering the car in ... I sell here in MD ... and MD will allow you to register here and give you a temporary license number, but you need to convert it into a real license within a set period of time. Perhaps you should contact Washington's DMV to see if thats possible.
The reason why the bank is saying that - Banks typically do not want to fund the loan if the vehicle is being titled or registered to an address/state where the buyer isn't living OR doesn't have any history at that address. It raises a red flag - and they will sometimes consider it a "straw" purchase and deny the loan that originally had been approved.
Good luck - Contact the DMV there for help - Because you're better off paying $1000 for a rental, rather than buying in Florida and paying tax there and then re-registering in WA and perhaps having to pay an additional tax or fees!
#3211 of 3350 buying a new vehicle damaged at factory and repaired
Apr 26, 2013 (11:34 pm)
Im looking at purchasing a new 2013 Jeep Grand Cherokee Overland Summit. The car was broken into after it was produced before it was delivered and the factory repaired the vehicle. The dealer than bought the vehicle from a Chysler auction. The car has less than 10 miles. The wheels were stolen and some damage was done to the door. Most importantly the radio/information system was ripped out of the dash. Everything was repaired and the dealer supplied me with an itemized list of what was repaired. Total cost of factory repairs was between 4 and 5 thousand. It has full factory warranty on it. The estimated fair price of this vehicle now, is approx 46000, the dealer wants to sell it for 42000. I am in process of doing a check on the VIN to make sure its clean.
Is this a fair discount for a vehicle damaged like this?
What was the estimated discount the dealer bought this vehicle for?
Is there anything else i need to be aware when buying a repaired new vehicle like this i need to be aware of?
Thanks for any informed Input