Car Dealers’ Tricks Regarding Finance

0829 Sooner Solutions logo email and web As mentioned in a previous post, you should always present yourself as a cash buyer when talking to car dealerships, because they are then less likely to withhold discount to subsidize their interest rate.

Thanks to my aggregator, Connective Plant & Equipment, other tricks include:

  • Withholding a Tax Invoice, which is the key in issuing documents to you for execution; a Contract of Sale is not sufficient.
  • Dealers will use all sorts of tactics not to supply a Tax Invoice, such as:
    – Sales person is away and they can not locate the client’s details;
    – Car is not in stock yet; or
    – They are simply too busy.
  • Be aware that the dealership may contact you to quote the finance, as soon as we request the Invoice.
  • The dealership may delay you in picking up the vehicle, saying the funds aren’t cleared.
  • Dealers often quote a base interest rate and not comparison rate, to make their finance option sound more appealing.

Dealerships have the same sources of funds as finance brokers.  The only advantage that you may have with finance from a dealership is the occasional manufacturer interest rate subsidy.

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