Completing the sale...
4/19/05, 03:40 PM
#1
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OOPs... meant to post this in an existing thread (related to a specific build week) instead of a new topic... well, maybe other's have thoughts on this as well... just ignore the presumption if you already have your Mustang or it just doesn't apply.
Presumably we're all going to be walking into a dealership in the very near future and completing our purchases so I'd like to throw into the discussion what remains for us. I know a big part of where the dealer makes his money (and conversely where we lose our money) is in the financing and extended warranty. So I'd be interested to hear everyones thoughts and plans of attack...
My thoughts:
1) Financing - going to walk in with ELoan check at %5.25. I'll make the offer that if the dealership can get me a rate under 5% I'll go with them.
2) Extended Warranty - struggling with this one a bit. Interested in PremiumCare 7yr/60K but think they want around 1200 or so for it... I believe there's a huge markup here so I'll offer roughly %50-%60 of list price (as listed on fordwarrantys.com). If they don't go for it, I think I'd rather put 30 bucks away per month in checking account. This way after 3 yrs I'll 1 grand set aside and by the 6 yr point 2 grand set aside for any problems... and if there are no big problems, I'll have some cash waiting for me... I just can't see paying over 600 for an extended waranty.
Also, a stupid question... since I ordered the car there shouldn't be any dealer options like undercoating or paint protection done without my consent, right?? I understand you might get stuck with that stuff with a car off the lot, but I didn't request/authorize any of that stuff and I don't want to be surprised by that when I go to pick it up.
Presumably we're all going to be walking into a dealership in the very near future and completing our purchases so I'd like to throw into the discussion what remains for us. I know a big part of where the dealer makes his money (and conversely where we lose our money) is in the financing and extended warranty. So I'd be interested to hear everyones thoughts and plans of attack...
My thoughts:
1) Financing - going to walk in with ELoan check at %5.25. I'll make the offer that if the dealership can get me a rate under 5% I'll go with them.
2) Extended Warranty - struggling with this one a bit. Interested in PremiumCare 7yr/60K but think they want around 1200 or so for it... I believe there's a huge markup here so I'll offer roughly %50-%60 of list price (as listed on fordwarrantys.com). If they don't go for it, I think I'd rather put 30 bucks away per month in checking account. This way after 3 yrs I'll 1 grand set aside and by the 6 yr point 2 grand set aside for any problems... and if there are no big problems, I'll have some cash waiting for me... I just can't see paying over 600 for an extended waranty.
Also, a stupid question... since I ordered the car there shouldn't be any dealer options like undercoating or paint protection done without my consent, right?? I understand you might get stuck with that stuff with a car off the lot, but I didn't request/authorize any of that stuff and I don't want to be surprised by that when I go to pick it up.
4/19/05, 03:58 PM
#2
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Technically, there's shouldn't be anything added without your consent.
And call your insurance company. Some of them offer extended warranty like packages into your current auto insurance.
I plan on doing something similar with financing.
And call your insurance company. Some of them offer extended warranty like packages into your current auto insurance.
I plan on doing something similar with financing.
4/19/05, 05:22 PM
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Fordwarrantys.com doesn't show list prices - it shows heavily discounted prices from list which are further discounted by about $180 with their email coupon. If your dealer matches Fordwarrantys.com price (after e-coupon discount) you've done very well. My dealer told me he just couldn't/wouldn't do it and offered to rewrite my deal with no ESP. I think Fordwarrantys.com is about a 30% discount off list, and after their coupon it's more like 40% off... a great price.
I have 5/75 ESP and I have about 20 more days to cancel - I'm really thinking about it because I think I'm going to want to do warranty voiding stuff to it.
If I had it to do over again, I'd recognize that there is NOTHING the F&I guy is going to sell me that I can't buy cheaper tomorrow... I wish I hadn't bought the warranty when I did.
Consider GAP if you have little or nothing down... it cost me about $300 to insure all my negative equity.
Good luck and enjoy your car!!! I just don't want you to set yourself up by asking for the impossible (40% BELOW Fordwarrantys.com price).
I have 5/75 ESP and I have about 20 more days to cancel - I'm really thinking about it because I think I'm going to want to do warranty voiding stuff to it.
If I had it to do over again, I'd recognize that there is NOTHING the F&I guy is going to sell me that I can't buy cheaper tomorrow... I wish I hadn't bought the warranty when I did.
Consider GAP if you have little or nothing down... it cost me about $300 to insure all my negative equity.
Good luck and enjoy your car!!! I just don't want you to set yourself up by asking for the impossible (40% BELOW Fordwarrantys.com price).
4/19/05, 05:40 PM
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Another thing to consider on the financing is loan origination fees and early payoff penalties. Who is the dealer going to secure your financing through if you go with them? The dealership I used to work at used Ford Credit about 90% of the time because they do not tack on any extra fees or make you pay a penalty if you choose to pay of the loan early. If the Finance person can get you a better rate through Ford Credit, I can tell you from experince they are a great lender.
I am not 100% sold on the warranties either, but you can pick those up at a new car rate for anytime during your 3 year 36,000 mile factory warranty. The warranty time starts to expire the day you buy the car,so you might want to wait on that to get the most for your money.
Gap is a great thing to have. I highly suggest it unless you are putting massive money down. The $300 paid for it in the post above is a fair price as well. I have seen it save my customers big time over the years. I had a couple one time that totaled a vehicle that they had financed in a bunch of negative equityinto the loan, actually lower payment buying a new truck becauase the GAP paid it all off.
The main thing to remember is do not buy anything that you do not see the value in. If it seems to you like it will be worth the additional money to you, then that is all that matters.
I am not 100% sold on the warranties either, but you can pick those up at a new car rate for anytime during your 3 year 36,000 mile factory warranty. The warranty time starts to expire the day you buy the car,so you might want to wait on that to get the most for your money.
Gap is a great thing to have. I highly suggest it unless you are putting massive money down. The $300 paid for it in the post above is a fair price as well. I have seen it save my customers big time over the years. I had a couple one time that totaled a vehicle that they had financed in a bunch of negative equityinto the loan, actually lower payment buying a new truck becauase the GAP paid it all off.
The main thing to remember is do not buy anything that you do not see the value in. If it seems to you like it will be worth the additional money to you, then that is all that matters.
4/19/05, 06:45 PM
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Wow, lots of great info already... Thanks! Wasn't even aware of the GAP insurance... since I'll be financing the entire amount I think it behooves me to seriously consider that.
With the extended warranty (Mark, thanks for correcting my misconceptions about the pricing model), I'm really leaning towards just setting money aside on a monthly basis as my own little insurance policy... I tend to baby my vehicles and not push 'em too hard so I think this may be the prudent move for me... it's a gamble either way... and as Aaron noted, we can purchase the extended warranty anytime during the original warranty period (altough I think we get penalized with a higher cost for choosing later down the road)
With the extended warranty (Mark, thanks for correcting my misconceptions about the pricing model), I'm really leaning towards just setting money aside on a monthly basis as my own little insurance policy... I tend to baby my vehicles and not push 'em too hard so I think this may be the prudent move for me... it's a gamble either way... and as Aaron noted, we can purchase the extended warranty anytime during the original warranty period (altough I think we get penalized with a higher cost for choosing later down the road)
4/19/05, 06:59 PM
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I'm 55% sure to cancel my ESP before the 60 days are up (will cost me $50). I change my mind about it almost every day.
It's a hard call, I do have a loaded automatic vert, which I think argues toward keeping the ESP since the tranny, display computer, or convertible top all could take a crap and pay for the warranty right there...
A personal decision - I'd never knock anybody for going either way.
It's a hard call, I do have a loaded automatic vert, which I think argues toward keeping the ESP since the tranny, display computer, or convertible top all could take a crap and pay for the warranty right there...
A personal decision - I'd never knock anybody for going either way.
4/19/05, 07:07 PM
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I got gap coverage on mine too, the finance guy who is also a good friend of mine highly recommended it, and it only raised my payment by $3 a month. I think that's well worth it. I did get an extended warranty because I had a Ranger before that I used the extended warranty for a handful of things. In total, I think that one was worth it, so I decided to do the same for this car.
4/19/05, 08:20 PM
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I purchased the warranty because of all the computer control stuff and working on these new ones is way over my head. I can see it now. One day over the new warranty and something blows up and who is standing there with the check book? It will not be me. I paid 1200
4/19/05, 09:20 PM
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I'm going to walk in with a check from ELoan. I think it might be hard for Ford to match the rate although I'm not sure. Spoke with the Finance guy last week and he wouldn't commit to being able to get my ELOAN rate. Also, if you have a Sam's Club card, ELOAN will give you a cheaper interest rate than what is posted on their website. Not much lower but anything helps.
As for the extended warranty, I probably won't get it but if I should, my husband says that warrantydirect.com is supposed to be pretty good and you can email them for a quote to take with you to the dealer for bargaining.
My 2 cents.
As for the extended warranty, I probably won't get it but if I should, my husband says that warrantydirect.com is supposed to be pretty good and you can email them for a quote to take with you to the dealer for bargaining.
My 2 cents.
4/20/05, 08:33 AM
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I used E-Loan check at 5.25% for 4yrs. The dealer could not match that. I would not normally do business with an online company, but a good friend of mine financed 2 cars with them already and he recommended them. There are a couple of things to watch out for though:
1) Make sure to have you dealership finance person (DFP) call E-Loan and get an ID number that will go on the Title (E-Loan will be the lien holder). They don't mention it in their letter, but it is important.
2) make sure your DFP knows what the E-Loan is and doesn't look at you funny at says: "You'll have to wait until this check clears before you can take your car home". They can say the same about your personal check if you use two to pay (E-Loan plus your check as a "downpayment")
3) E-Loan is very likely to sell your loan very quickly, but it should not be a problem. The only thing to do at that point is to inform your insurance company of the new lender.
4) Your E-Loan check will have something on it that will hurt you in your negotionations if you show it to the dealer - "Good up to $xxx" where xxx is the amount you requested plus a few thousands more. For example if you requested a loan for 15k it might have "Good up to 25k" if you qualified for 25 k loan. If a dealer sees that you "have" 25k he/she might push you harder.
Car warranties can be bought online. I have not used them yet, but we did consider Warrantydirect.com for my wife's Altima. At the end we decided not do purchase it. It is the age old dilemma: do I pay 1000 now or do I "maybe" pay it in 5-6 years. If you have money for the warranty now, I would buy it. If you need them now for something important, I would wait. I did not buy it right away, as I need the money for something else right now.
In any case - good luck in your negotiations!
1) Make sure to have you dealership finance person (DFP) call E-Loan and get an ID number that will go on the Title (E-Loan will be the lien holder). They don't mention it in their letter, but it is important.
2) make sure your DFP knows what the E-Loan is and doesn't look at you funny at says: "You'll have to wait until this check clears before you can take your car home". They can say the same about your personal check if you use two to pay (E-Loan plus your check as a "downpayment")
3) E-Loan is very likely to sell your loan very quickly, but it should not be a problem. The only thing to do at that point is to inform your insurance company of the new lender.
4) Your E-Loan check will have something on it that will hurt you in your negotionations if you show it to the dealer - "Good up to $xxx" where xxx is the amount you requested plus a few thousands more. For example if you requested a loan for 15k it might have "Good up to 25k" if you qualified for 25 k loan. If a dealer sees that you "have" 25k he/she might push you harder.
Car warranties can be bought online. I have not used them yet, but we did consider Warrantydirect.com for my wife's Altima. At the end we decided not do purchase it. It is the age old dilemma: do I pay 1000 now or do I "maybe" pay it in 5-6 years. If you have money for the warranty now, I would buy it. If you need them now for something important, I would wait. I did not buy it right away, as I need the money for something else right now.
In any case - good luck in your negotiations!
4/20/05, 08:45 AM
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:scratch: All who are interested in extended warranties should consider 1 major issue while price shopping. Before pruchasing anyone, be sure to ask your local dealers if they accept them, and if they do, how do they pay? Does the dealer claim the cost to the insurance co or does the car owner have to pay for repairs and get re-imbursed from the ins co...... These warranties are sometime a little cheaper but more of a hassel.
BE carefull... do your haome work. Dealers use who they do because they don't want their customers hasseled nor do they want the problems. Most companies they use are honored nationwide.
By the way, if you think you can put $20-30 aside each month to cover future repairs, your crazy. Even if you don't spend because you have it, it only takes a couple minor repairs at todays cost swallow that money up, then what?
BE carefull... do your haome work. Dealers use who they do because they don't want their customers hasseled nor do they want the problems. Most companies they use are honored nationwide.
By the way, if you think you can put $20-30 aside each month to cover future repairs, your crazy. Even if you don't spend because you have it, it only takes a couple minor repairs at todays cost swallow that money up, then what?
4/20/05, 09:46 AM
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Originally posted by MeanStang@April 20, 2005, 9:47 AM
hey what if u dont finance an u just pay the full amount at the dealer.. can u get a lower total price on the car? is there any reason that this would be a bad idea?
hey what if u dont finance an u just pay the full amount at the dealer.. can u get a lower total price on the car? is there any reason that this would be a bad idea?
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