Buy Now or wait?

[AH64ID]

#2 happened to me - exactly the same in denver....i guess the " gravy " to them is the selling of extended warranties? cheers!

Same here when I bought my 2018 south of Seattle.

 

[MRoberts]

#2 happened to me - exactly the same in denver....i guess the " gravy " to them is the selling of extended warranties? cheers!

All of the extended warranties are pure profit for them. Think about it, they pay nothing for them up front, yet you/consumer pay up front and the may or may not pay out a claim down the road.

 

[Ram4Sam]

All of the extended warranties are pure profit for them. Think about it, they pay nothing for them up front, yet you/consumer pay up front and the may or may not pay out a claim down the road.

Except in the case of a max care warranty......if you don't make any claims on the warranty, they refund your purchase price, which smacks the daylights out of their pure profit.......

Sam

 

[AH64ID]

Except in the case of a max care warranty......if you don't make any claims on the warranty, they refund your purchase price, which smacks the daylights out of their pure profit.......

Sam

Thats not exactly true. For a time FCA offered a Maximum Care: Money Back Guarantee plan, but it’s not the same as the current Maximum Care plan being offered.

None of the current literature mentions it, nor have I found anywhere to quote that plan.

 

[RammerJam]

#2 happened to me - exactly the same in denver....i guess the " gravy " to them is the selling of extended warranties? cheers!

I don't care much for F&I guys (or gals) at all. I could tell you stories about them, what buttheads they are but there's no point, really. They're just buttheads. And greedy. And dishonest.

They make the great bulk of their money on selling those warranties. The commission on them is staggering.

They also make a great deal of money on buying and selling your loan.

If they can 'sell' you a loan at 5% and they can turn around and get another lender to 'buy' it for 4%, they pocket the difference. 1% of a $50k loan is $500. Combine that with the insane commission on the warranty (and sometimes an Accidental Death and Dismemberment or a small Life policy on the loan) and they're getting fat as heck. Do that 10 times a day....

Sometimes, it isn't their fault. Sometimes the Dealer pressures them incredibly to sell those high-profit warranties. Lots of stress. And if they don't make their quota, they'll find somebody who can. Burn 'em and Turn 'em.

If they can't get you on the loan (because it's through Chrysler Credit or you're paying cash or whatever) and they can't sell you a warranty, all of the sudden, hidden costs start appearing out of nowhere. I won't go back to my Ram Dealer because of it...... OTOH, I did get them pretty good on my trade in (which I very seldom have a trade in... Only the 2nd time in over 35 years)

I loved the Ford Dealer we got my wife's car from. Everything was up front, we knew about all the dealer costs and filing fees going in, the F&I guy wasn't happy but he left us alone after asking once about the warranty.

But we didn't have a trade.

A trade in changes everything. Whole 'nother ball game. The used car department? Wanna talk about crooks and liars? And that's who makes the money. Ask any car salesman. The used car lot is where the money is. They'll give some poor guy 12k for a trade, put a couple hours in it cleaning it up and put it on the lot for $20k +. And get real close to it.

Dealers typically make most of their money in car sales from the used car department. Their biggest moneymaker is their parts and service department. New cars is just the price they pay for the privilege of having a big name Manufacturer on their sign.

You go to the one here in our town (mid-size) and they're lined up 6 lanes across for 200 - 500 yards at Service almost every morning. It moves pretty fast. They got guys running around with tablets taking your name, reading your VIN and sending you on your way. That's the real money.

The new car guys spend most of their time standing around scratching their butts. Except the one I went to in Tampa. Unbelievable. Incredibly efficient

 

[MRoberts]

Spot on RammerJam!

When I traded my Dakota in and worked hard to get to $15k, the dealer sold it for $19k the day after I dropped it off, it hadn't been detailed!

As for trades? Even if you are going to trade a vehicle in, say "NO". They will ask this early on in the negotiations, and if you say yes, it will change the final price you pay. Always, ALWAYS, negotiate the price you will pay for the new vehicle first. Once you have that, tell them you've changed your mind and want to trade in a vehicle.

Before you ever talk to a dealer, on the phone, email, text or in person, know the actual cost of the vehicle you want and know the value of your trade.

 

[Ram4Sam]

Thats not exactly true. For a time FCA offered a Maximum Care: Money Back Guarantee plan, but it’s not the same as the current Maximum Care plan being offered.

None of the current literature mentions it, nor have I found anywhere to quote that plan.

https://www.chryslerfactoryplans.com/warranty_plans/?plan_id=2019

And, actually, I don't really have a dog in this fight.....I have a 8/120 on my 2016....It was free from FCA because of all the the issues I had with my 2014 lemon.....

Sam

 

[AH64ID]

https://www.chryslerfactoryplans.com/warranty_plans/?plan_id=2019

And, actually, I don't really have a dog in this fight.....I have a 8/120 on my 2016....It was free from FCA because of all the the issues I had with my 2014 lemon.....

Sam

That’s the website I’ve seen too, but that option isn’t available when you get a quote.

 

[Ram4Sam]

That’s the website I’ve seen too, but that option isn’t available when you get a quote.

Seems odd they would put that up and not honor it..... but then we are dealing with FCA.......wonder if it takes a phone call...??

Sam

 

[RammerJam]

Seems odd they would put that up and not honor it..... but then we are dealing with FCA.......wonder if it takes a phone call...??

Sam

From what little I've heard from a few people in and around Dee-Troit, FCA is highly respected in the Industry. Lots of people want to leave where they're at and work for them.

I've heard they don't mind spending money

 

[AH64ID]

Seems odd they would put that up and not honor it..... but then we are dealing with FCA.......wonder if it takes a phone call...??

Sam

Might be worth calling. They also show unlimited mileage options which I also understand are discontinued.

 

[Ram4Sam]

I did a little research and found their recruiter on Linkdin.....

 

[seahawkdodge]

When I bought my lemon of an Ecodiesel, the F&I guy had already done the paperwork without any of the warranties. When I sat down he told me if I wanted any of them, he would add them and reprint the papers, otherwise we were good to go.
First (and only) time that happened.

 

[RammerJam]

When I bought my lemon of an Ecodiesel, the F&I guy had already done the paperwork without any of the warranties. When I sat down he told me if I wanted any of them, he would add them and reprint the papers, otherwise we were good to go.
First (and only) time that happened.

Probably because he was fired the next day

 

[seahawkdodge]

Probably because he was fired the next day

Ha ha.

Most finance folks back off after the first "no". But I have walked out on a deal because of the finance office. The GM ended up calling me and taking another $750 off the vehicle's price.

 

[EncoreJoe]

My wife worked the F&I desk years ago. Some simple tips:

• Buy late in the month, especially December.
• Know what the vehicle costs before you step on the lot.
• Don't even look at the window sticker price, start negotiating at the invoice price. That is the only time you will get a good deal.
• First negotiate the final price of the vehicle. Nothing else, not payments, cash, trade. Nothing.
• If you are planning on trading a vehicle in and the dealer asks if you have a trade, LIE and say no you do not. Back to the previous rule. The dealer and anyone working for them, will start lying to you the moment they say Hello. "Changing" your mind about a trade is nothing.
• Once you have the price negotiated to where you want it, based off of the invoice cost, you can tell them you changed your mind and want to talk about trading your vehicle.
• Do not be afraid to get up and walk out! 99% of the time, they will be asking you to come back in before you close your car door.
• Don't be a dick. Be polite and firm.

When I purchased my 02, I did all of these things and walked out when they wouldn't give me $15k for my Dakota trade. The sales rep ran to my truck as I was driving away and offered $13k, I said thanks and drove away. He called my cell 5 minutes later, $14k, nope. I pulled into my driveway, phone rings, $15k please come back. Done deal.

My wife gives 15 minutes to the Sales Rep when she walks onto the lot, which usually brings the Sales Manager into the mix. At a Toyota dealer, they didn't want to give her the amount she wanted for her trade. She told the guy $22k or we walk. He said we can't do that. She said you have ten minutes, go talk to your boss. He leaves, comes back and says they can go to $21k. I AM NOT KIDDING! She looks at him and I quote, "You have five minutes to get this right, I now want $23k for my trade." The sales guy looks at her and says "Wait you said $22K" and she replies "You are wasting my time, now I want $23, go talk to your boss." He left and came back with $22k, she said "Done."

Great information, thanks!

What services are you all using to research the invoice price?

Thanks.

Joe

 

[ScottRoberts]

I'm also curious where y'all are finding the invoice pricing?

 

[MRoberts]

In 2015 I used Consumer Reports to get mine. I believe it cost around $15. Well worth it when I paid 53k for a truck with a window sticker of 66.5k!

 

[ScottRoberts]

Wow, that's some pretty impressive wheeling and dealing right there! I was looking at one that stickered in the $68K range, the dealer had it marked down around $6800, but would not come down off that. No incentives currently for that truck, so that was all dealer discount. I remember being able to find MSRP and invoice price fairly easy back in the early 2000's, but all of the sites I've gone to now seem to just be lead generators for the dealers. You have to enter a name, phone number, and email to get anywhere and then there's just a barrage of phone calls, emails, and text messages. I signed up for a one month subscription to consumer reports, I think it's the same. You can price out a truck, but you have to enter a phone number and email to get to the special pricing info, but I didn't bother with it. Oh well, worth a shot.

 

[BillBaker]

I got a 19' Bighorn 3500, longbed, crew cab, SRW with 25k on it for $45k last year. Good deal!