: Buying New Car, Concerned... If you're a dealer or car salesman, please read!



Nightshadow
10-31-12, 11:31 PM
Hey everyone,

So I have a question that hopefully someone that actually works in the industry or has worked in it or knows their legal stuff can help out with. Today I visited an auto dealership to see about purchasing an updated Cadillac (I currently drive a 1995 Eldorado) and while there, I started filling out what the salesman claimed to be a "credit application" but it was one of those you can tell has been photocopied many times over. There was nothing written on the back or anything, it looked more like when you fill out a job application. One sheet, general information, that sort of thing. Anyway, I wasn't sure that was the car I wanted and just didn't feel ready to take the plunge and I told the guy I didn't want to sign the application yet and he stated "it's just so we can run your credit and approve you, its not the loan contract" anyway, after a little back and forth I signed it and it already had my general info on there as well as social, employer, work number, etc.

Ultimately I wasn't ready to make the purchase and walked out.

My question is, are they able to be sneaky and attempt to do something with that document? I mean, I am not 100% sure that it was just a credit application. I realize you should never sign anything, EVER without being 100% sure. I screwed up. So what are the liabilities here? Should I consult with a lawyer or am I just panicking for no reason?

HELP!

thebigjimsho
10-31-12, 11:43 PM
Just a hard inquiry.

Nightshadow
10-31-12, 11:59 PM
Ok, I was worried they could somehow turn that into a "promise" on my behalf to buy the darned thing or get me into some sort of contract.

Aron9000
11-01-12, 05:37 AM
Just be aware that having a lot of people check your credit in a short amount of time will lower your score. In the future don't sign that type of paper until you are ready to buy:)

ted tcb
11-01-12, 09:26 AM
I did the exact same thing when I was young. Looked at a VW GT in 1985, wasn't sure about the car,
and filled out a credit app "just in case". I told the salesman I wanted to check out a Prelude, then I
would decide.
I purchased the Prelude, then received a call stating my VW was ready for pickup. I never signed a sales
contract, just a credit app.
Needless to say, the dealer backed off when I vented about unethical sales practices. The salesman
moaned something about "I'll lose my job, the car has been prepped for delivery".

Live and learn ... but you've simply signed a credit check, not a sales contract.
Nothing binding, no deposit to fight for.

I~LUV~Caddys8792
11-01-12, 09:55 AM
Yeah, just a simple pull of the credit, no sales contract or anything legal. If it bothers you, call them up and tell them to shred it. I sell cars myself.

Bro-Ham
11-01-12, 03:42 PM
Do your homework, take control, be creative, don't worry.

If you are not sure you love a car that you want to test drive at a dealership, save your time and tell them you will be writing a check so there is no need to fill out a credit application, then simply get out and test drive the car. If after driving the car you decide you want it, and you wish to see what the dealership has to offer for financing, say your aunt is going to get you a loan from her best friend who is a manager at a credit union, don't tell the dealer which one, but if the dealer wants to give you a competitive quote then you will see how it compares. It is a good idea to actually get an approval from a lender beforehand so you can either use that lender or use their rate to compare to or negotiate with a dealer who may be quoting you credit terms.

If you are uncomfortable giving a salesperson your personal credit information on a fuzzy photocopied credit application, ask to meet with the business manager or make your credit application online.

Buying a car should be fun. Save your time and money by knowing what you are doing as best as possible and everyone will be as happy as possible.

Good luck! :)

Jesda
11-01-12, 04:45 PM
For a used car, bring your own credit/financing.

dkozloski
11-01-12, 05:25 PM
For a used car; save up your money and walk through the front door waving $100 bills in the air. Watch the salesmen fall all over themselves. Money talks.

thebigjimsho
11-01-12, 06:27 PM
For a used car; save up your money and walk through the front door waving $100 bills in the air. Watch the salesmen fall all over themselves. Money talks.

Not if they have their own lines of credit. The "we accept everyone" live off of credit, not as much the vehicle profits...

----------

Everyone is entitled to a credit score check on all 3 agencies. When you're ready to buy, pull the info yourself and show that to any dealer/service.

That's what my mortgage broker did when I was house shopping. So if I used someone else, I didn't need to have multiple hard inquiries on my report. Just one when it was time to get the loan.

CadillacLuke24
11-01-12, 07:22 PM
For a used car; save up your money and walk through the front door waving $100 bills in the air. Watch the salesmen fall all over themselves. Money talks.

I love this idea. Might have to try it!! Yes, yes money speaks quite clearly and loudly :D

drewsdeville
11-01-12, 10:32 PM
For a used car; save up your money and walk through the front door waving $100 bills in the air. Watch the salesmen fall all over themselves. Money talks.

This is the only real solution. Cash is still king. If you bring enough of it, the salesman will happily sell you anything you want. I promise.

Besides, wouldn't it be much more pleasing to actually possess the title of the car you are driving?

MrHolland
11-01-12, 11:01 PM
I disagree, cash is no longer king. Financing through the dealership is THEIR king. Its my experience that they would much rather sell you a car that is financed through one of their lines. Here comes the reason; some dealers will inflate the interest rate a point or two in order to skim a little more for themselves. If Im a dealer, I stand to not make as much money if I take your cash offer. I do however agree, if you bring "enough" cash, I will sell you anything. Be an educated consumer, do your homework and be firm but polite and you can have anything. Good luck.

Oh, walking in fanning hundys and watching the salesmen would be amusing, for as long as it lasted anyway.

drewsdeville
11-01-12, 11:14 PM
I disagree, cash is no longer king. Financing through the dealership is THEIR king. Its my experience that they would much rather sell you a car that is financed through one of their lines. Here comes the reason; some dealers will inflate the interest rate a point or two in order to skim a little more for themselves.


Keeping this relative to the OP, that doesn't help him. Are you saying that he should finance and pay more, in the best interest of the dealer? Why?

Remember, we are discussing this from the consumer's point of view. Everyone knows that the retailer/dealer likes more money...


I do however agree, if you bring "enough" cash, I will sell you anything.

Exactly. That's why cash is king. The consumer gets what they want for their money. No dealer in their right mind will turn down an up-front, zero risk, cash payment. Besides, very popular 0% APR would tell us that dealerships are plenty fine with a cash payment.

When the consumer has cash, the consumer always wins. They pay less, get what they want, and can sleep at night knowing they own their car and don't owe thousands and thousands on a rapidly depreciating vehicle.

MrHolland
11-01-12, 11:26 PM
If a dealer can finance you through one of their lines, it's still zero risk.

-----Just a difference of opinion sir.

I~LUV~Caddys8792
11-02-12, 01:22 AM
Some manufacturers offer a bonus (usually $500) if you finance thru their financing company at their standard rates. Unless you've got immaculate credit and can score better than a 2.9%, then usually that's a great way to go. Both Nissan and Kia do not have early payoff penalties, so if you can pay it off after 3 months, go right ahead. A lot of my "cash" clients just do that and save the $500.

thebigjimsho
11-02-12, 02:39 AM
Cash will get you anything. But PROFITS are king to the dealers.

truckinman
11-02-12, 03:37 AM
Once I went and looked at a 2006 Yukon XL fully loaded. Nav, flip down DVD players auto level shocks, etc etc...anyway when they tries financing it, they told me my credit was worse than it really was. I went home after and checked and sure enough, they were telling me I was 50 or so lower than I really was. Needles to say I opted not to buy from them. Ironically, a couple nights later, I was watching the news and they did a special on how some dealers may try and screw you over. One of the methods was trying to tell the buyer they have worse credit than they really do so they can charge you more interest and keep that extra interest for themselves. Just thought that was interesting.

talismandave
11-02-12, 05:05 AM
We often would take a lower offer on a car we were getting the financing for. As salesmen we would use it as leverage to get management to go lower on price. The only one who is excited about cash at a dealership is the salesman, he makes no more one way or the other and knows the sale will go through and not get hung up in financing. Even as salesmen, we would look at someone who brought cash as a "lay down".(an easy sale, or mark)

When dealing remember you are fighting the management, not the salesman. Running down the car is not the way to get a lower price, and will piss the salesman off. Use the salesman, "confide" in him stuff like how you love it but you can't spend more than X amount, or I would buy it at that price but my dad found me one for 1000 less and he would be upset if I paid more for this one, etc. Get him on your side and he will work harder for you. We didn't make enough on a sale to put up with a jerk. Someone did the hard line confrontational crap would get blown out the door quick so we could get to the next customer.

I~LUV~Caddys8792
11-02-12, 09:25 AM
We didn't make enough on a sale to put up with a jerk. Someone did the hard line confrontational crap would get blown out the door quick so we could get to the next customer.

Last month, I had a fat d-bag try and strong-arm me on a used RAV-4. He came in and looked at it on a Saturday, then on Monday he agreed to buy it at $xxx, then on Monday afternoon, he called me up and chewed me out because I made a tiny error in an email I sent him and he told me he wanted us to hold the car for him until Friday. Well, we don't hold used cars so he told me he wasn't interested in buying it and it ended selling on Friday anyways. :lol:

I don't have enough time/patience to try and please D-Bags. :)

MrHolland
11-02-12, 10:06 AM
^^^Thats what it boils down to, in a high turnover environment, if its not easy for me to sell to you it'll be easy for me to sell to the next guy through the door.

Nightshadow
11-03-12, 01:56 AM
Guys and gals, thank you so much for replying to my thread! It really helps to hear from people that know. I've never before been to a dealer (have always purchased my cars off Craigslist privately).

Anyway I am happy to report I am in the process of purchasing this bad boy:

http://www.grossinger.com/details/used-2005-Cadillac-STS-Chicago-Chicago-IL/1G6DW677X50203980/511111881/

However, when you turn the steering wheel to the left, it makes a weird vibration-type sound, probably the power steering and it veers very slightly to the right if i let the steering wheel loose while going straight. Salesman said they would repair it before we sign any contract until I am satisfied with it. Im guessing its an easy fix. Also I kept hearing what sounded like a munching sound behind the DVD player, as if it was stuck trying to read a CD or DVD the entire time, is that normal?

Either way, I wont accept it without it being repaired first.

Again thanks for all your replies and any additional input on my new purchase is very welcome! Remember Im a newbie at this and it's my first car bought from a dealer ever!

Thanks!

CadillacLuke24
11-03-12, 02:34 AM
Nice! That's a slick STS. We have a certain forum member who can attest to how nice these cars are :D

MrHolland
11-03-12, 10:52 AM
Congrats on your purchase, what a great car!!!! I wish you many miles of Cadillac happiness.

Nightshadow
11-03-12, 11:31 AM
I Luv Caddys8792, check your private messages please. :)

To everyone here, I must say its also very exciting to be able to stay a part of this community, I mostly lurk in the background but I've been a member for quite some time now. I was looking at BMW's but when I saw this beauty I just knew that I am hardcore Cadillac lover. They really are amazing cars.

EChas3
11-03-12, 11:04 PM
Enjot the ride!

MotownPimp
11-04-12, 05:11 PM
Money is money. Dealers make money on financing. Therefore, financing is King (Though cash will not be rejected)

Always, a-l-w-a-y-s, walk into a dealer with financing in hand and knowing exactly what you want to buy. You are only at the dealer to negociate price.

Every inquiry into your credit lowers your score.

talismandave
11-04-12, 11:22 PM
But let the dealer think you are going to finance with them. That gives you the best negotiating position.

Financing paperwork need not be done until the sale is complete, don't let them push you around and sign stuff. Just tell them you will take care of that if we can agree in writing on a price on the car that I like. I only know the laws in Wisconsin, here I tell all friends and family to make sure that on the sale contract they put "Sale subject to financing acceptable to purchaser". That give them (here at least) the option to reject the deal and void the contract. With those exact words they can just say the payment is too high and the deal is voided.

It locks the dealer into the contract and gives you an out.

Perhaps someone in your state could comment if that would apply where you live.