Last post on Apr 23, 2013 at 11:23 AM
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Car Buying, Car Financing
Confessions of an Auto Finance Manager - In this four-part series, written by veteran auto finance manager Nick James, you will learn the F&I man's tricks and how to avoid them. When you're done, you'll be ready to safely navigate this crucial part of the car buying process, and the F&I man will never work his "magic" on you again. (more)
#22 of 25 Re: The OTHER side of the F&I Manager's profits [mwa1]
Dec 18, 2011 (7:28 pm)
Why say what you did in the last paragraph? Just because he has a different opinion, why get negative? If that's your mo at work, glad I don't do business with your organization. And had the same snarky response from the f & i person last time we bought. Turned nasty when we politely refused all the add ons...now what was the point of that? Just left a bad taste which was reflected in the survey I did...gave the salesperson high marks but trashed the f & i guy. So before you insult someone, think before the words spew forth.
#23 of 25 Recent F& I experiences
Dec 22, 2011 (12:46 am)
In March i replace my wife's 2005 CTS with a 2008 model. Since it was CPO and carried over 3 years remaining factory warranty any extended warranty was out of the question. I financed with USAA which included GAP ins in the rate (3.4% if i remember). This dealer didn't play the mop n glo game, so that was good.
The only thing presented to us was a tire & wheel "replacement plan" that cost more than a new wheel and when i read the fine print (and i do read it all the time) i noticed that it did not cover curb scrape incidents, which is the ONLY time i ever messed up a wheel (and i have messed up wheels on curbs before...) It basically only covered blowouts, pro-rating the tires of course, which is what the tire mfr warranty will cover also. IF i blew out and trashed the wheel - not likely unless i were to drive on it - then my USAA ins would cover the wheel damage which they have done in the past.
So I passed on that., and he didn't even bother trying to match my USAA rate on the finance. Not too bad, but then again, i try to come prepared when i'm buying a car.
Fast forward to Nov 2011.
This time i'm looking at a V8 STS for me. Didn't have the wife with me, she was not happy about me even looking for what turns out to be our 4th car, but hey...
Anyway, i ended up getting a Platinum ed V8 STS. very rare cars. I had a pre-approved 3.4% USAA financing, but the sales mgr who was also the sales person, it was a late afternoon, early evening session, mentioned that Ally (the new GMAC) was offering 0.9% APR on this car. I thought that only applied to 2010 or later, but nope this car with only 11,000 mi was eligible. I gave him just my info since my wife was at home in Tampa (I was in Pompano - no V8 STS anywhere near Tampa!!) He told me it took an entire 5 seconds for Ally to approve me at 0.9%, so i tore up the USAA draft.
No mention of mop n glo gap, or anything else. He even orffered and i took him up on reimbursing me for the rental car drop fee (I rented a car to go there - didn't want to put 500 mi on my Fleetwood to go look at a car), and my gas.
Too bad i blew that with a speeding ticket driving back That car is a rocket!
While the items can be a benefit to SOME people, this is NOT KNOWN in advance, and the actuaries have it all priced out so the house (seller) never loses, so i generally don't take these up. The one time i bought a GMPP for a car, we never used it and i ended up turning it in for a pro-rated refund when we traded the car.
Again individual experiences cannot be predicted, but I firmly believe in Cadillac CPO cars with their 6 yr 100,000 mi warranty. We have done well by them the past 7 years.
#24 of 25 Re: Recent F& I experiences [cadillacmike]
Dec 23, 2011 (10:46 am)
Live just west of Pompano and have heard good things about that Caddy dealership. Car sounds like a winner but a speeding ticket? Guess the cop had no sympathy when you told him you just purchased this puppy!
Enjoy the ride!
#25 of 25 Re: The OTHER side of the F&I Manager's profits [mwa1]
Apr 23, 2013 (11:23 am)
Seems I struck a cord as few sales folks enjoy having their profit sources questioned.
Neither insurance for a $40K vehicle nor health insurance can be compared to overpriced extended service contracts peddled by F&I managers. To imply such is simply a straw man argument. The vast majority of folks need both but not so many actually need the extended service contract.
I am simply knowledgable about finance which is what I do for a living. Paying for an overpriced service contract is almost always a bad way to spend one's money. Seriously, I doubt many folks would knowingly give hundreds of dollars in profit to a F&I manager. Mwa1, perhaps if you are an F&I manager you can start a new practice of disclosing to car buyers the actual profit you make for each F&I product sold in the Box. Wouldn't that be refreshing?
I really doubt I will ever file for bankruptcy considering all the money I have saved over the years from not buying overpriced F&I products.