Car Forum / Honda Cars / December 2005
Experience at Honda dealer
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pichula - 26 Nov 2005 17:57 GMT I went last week to a Honda dealer to trade in my car for a new Accord Value Pack (VP, base model). I was surprised by all their tactics to get the most out of my money. I don't blame the salesperson because he was nice and helpful, but I think the sales manager went a little too far in his methods. I also have to say that after the deal was done, they were all nice guys and very helpful with all the process. I'm going to enumerate the things I consider bad tactics because they were just too many:
1) When I told them I wanted the Value Pack, the manager said that it had no power windows. That I better choose the LX or EX. That's not true.
2) When I came back next day he said that VP had no Cruise Control. I checked the car I wanted to buy and I noticed the cruise control was there.
3) When we were negotiating the price he showed me the invoice price, I said the invoice price I saw at edmunds.com was lower. When he noticed I was not accepting that price he showed me that there was about $200 marketing charge and accepted to remove it. Nothing bad about this part because I think dealers usually try to add these hidden charges without telling customers.
4) After negotiating the price for my trade in and the price of the Accord VP, he came with a blank page (where all the totals are calculated) for me to sign. I said I wanted to see the final numbers before I sign the page. I said I cannot sign a blank sheet for them later to add the totals. They accepted.
5) Then he came with the same sheet with a total amount higher than what we negotiated. I told them that we had to subtract the amount I get from my trade in. At this time the manager pretended to be exasperated with me, like if I was asking for too much. He said that he would do it later and refused to write it in the sheet. So I took the pen and had to do the subtraction in front of him and underlined the final amount. He accepted that amount.
6) At about 9:00 PM (they were already closed but there were still a few customers finalizing their deals), I was tired but happy when the manager brought the paper work describing my monthly payments. Let me say that I have very good credit (over 700), and the manager told me he was going to run my information with about 15 banks and get me the best deal. Not true, he got me financing with Honda. How can he run my information with 15 banks and come with a loan from honda financeing? Maybe I'm missing something here. Anyway he got me 6.6% interest which I consider too high but I still accepted. Maybe I should have got the loan with my credit union.
7) He showed my monthly payments at about $35 over what I estimated, and handed me a pen to sign. I asked me how can it be so high? Then he said I was getting the 7 years/100K miles warranty. When I insisted in how much it costed, he said $1600. He said if I don't take the warranty I'm taking a big risk if the car breaks. I asked him how can he tell me these are the best cars in the market and now he's telling me that I'm taking a big risk because they can break. Finnally he accepted to remove the warranty and I got the payment amount I wanted.
I remember at a Chevrolet dealer in 1998 I had a very good experience buying my chevy Malibu, I still remember the name of the Chevy sales person (Mike), I can't believe at Honda these guys gave me such a hard time.
After the negotiation, the manager and sales person were very nice and helpful.
Elle - 26 Nov 2005 18:08 GMT This was a great history for the archives. Good for you for taking hardly any junk off these losers. I /do/ begrudge them saying one thing then doing another /several/ times in the process you describe. It's some kind of harassment, albeit I suppose mostly legal. Point being, it's aggravating dealing with salespeople like this. Surely there are better.
High Tech Misfit - 26 Nov 2005 18:19 GMT > I remember at a Chevrolet dealer in 1998 I had a very good experience > buying my chevy Malibu, I still remember the name of the Chevy sales [quoted text clipped - 3 lines] > After the negotiation, the manager and sales person were very nice and > helpful. Just remember that every car manufacturer has good and bad dealers. You were unfortunate to have landed at a bad Honda dealer.
'Curly Q. Links' - 26 Nov 2005 18:43 GMT > I went last week to a Honda dealer to trade in my car for a new Accord > Value Pack (VP, base model). I was surprised by all their tactics to [quoted text clipped - 61 lines] > After the negotiation, the manager and sales person were very nice and > helpful. -------------------------------
Generally, this old joke is still true:
QUESTION: How can you tell if a car salesman is lying to you???
ANSWER: His lips are moving.
'Curly'
Elmo P. Shagnasty - 26 Nov 2005 18:47 GMT > 6) At about 9:00 PM (they were already closed but there were still a > few customers finalizing their deals), I was tired but happy when the [quoted text clipped - 6 lines] > I consider too high but I still accepted. Maybe I should have got the > loan with my credit union. You should never, EVER buy the money from the same guy who's also selling you the car.
Then you compounded your error by adding your trade to the deal. You should never, EVER put the trade and the new car sale into one deal.
You have three transactions: new car sale, old car sale, and money sale. Letting one guy quarterback all three of them is crazy.
Bozo - 26 Nov 2005 19:03 GMT > You have three transactions: new car sale, old car sale, and money > sale. Letting one guy quarterback all three of them is crazy. Not always true. For example if he really needs the sale he may be prepared to reduce the sales price a little IF he gets the finance as well.
As to the trade-in, you may get a few more dollars with a private sale, but sell to the dealer and no haggling etc
Howard Lester - 26 Nov 2005 19:38 GMT >> You have three transactions: new car sale, old car sale, and money sale. >> Letting one guy quarterback all three of them is crazy. [quoted text clipped - 5 lines] > As to the trade-in, you may get a few more dollars with a private sale, > but sell to the dealer and no haggling etc I think what Elmo is referring to is the principle of first negotiating the new car price (without telling the salesperson you have a trade-in), THEN negotiate the price of the trade-in.
Elmo P. Shagnasty - 26 Nov 2005 21:19 GMT > >> You have three transactions: new car sale, old car sale, and money sale. > >> Letting one guy quarterback all three of them is crazy. [quoted text clipped - 9 lines] > new car price (without telling the salesperson you have a trade-in), THEN > negotiate the price of the trade-in. That's perfectly legitimate. Get the numbers in stone one at a time, independent of one another.
mrdancer - 29 Nov 2005 01:23 GMT > > >> You have three transactions: new car sale, old car sale, and money sale. > > >> Letting one guy quarterback all three of them is crazy. [quoted text clipped - 12 lines] > That's perfectly legitimate. Get the numbers in stone one at a time, > independent of one another. If the numbers are good, it can be a good deal. A good dealer can take the trade-in price off of the price of the new vehicle, thereby reducing sales taxes, maybe to a point where you couldn't get a better deal selling to a third party.
Btw, next time a car dealer tells you that you are taking away his kid's next meal, ask to see where he lives. Chances are he has a nicer house than you do...
Sparky Spartacus - 03 Dec 2005 08:53 GMT >>>>>You have three transactions: new car sale, old car sale, and money > [quoted text clipped - 32 lines] > Btw, next time a car dealer tells you that you are taking away his kid's > next meal Better yet, tell him to switch careers and point out that by extorting more $$$ from you he's taking food from your kids & you care more about them than you do his.
Elmo P. Shagnasty - 26 Nov 2005 21:19 GMT > > You have three transactions: new car sale, old car sale, and money > > sale. Letting one guy quarterback all three of them is crazy. > > > Not always true. For example if he really needs the sale he may be > prepared to reduce the sales price a little IF he gets the finance as well. The point is, the car salesman is in charge of too many things. His job is to find the buyer's hot button (low finance rate, good trade value, whatever) and play to that while jacking the other items around--all toward the end of making the sucker pay the same amount in the end.
The car salesman does this several times a day. The buyer does it once every few years. Who do you think wins?
The only way to prevent this from happening is to separate the deals, so that no one person has any more affect than any other on the entire deal--no matter what the buyer's hot button.
Sparky Spartacus - 03 Dec 2005 08:56 GMT >>>You have three transactions: new car sale, old car sale, and money >>>sale. Letting one guy quarterback all three of them is crazy. [quoted text clipped - 13 lines] > that no one person has any more affect than any other on the entire > deal--no matter what the buyer's hot button. Sorry, the "only way to" is seldom that. If the purchaser does his homework (easy to do these days with the Internet) and behaves rationally there's no reason the sales person should prevail. If he's being a real PITA, just thank him/her for their time and walk out of the dealership. I know this from experience as well as theory.
SoCalMike - 27 Nov 2005 06:10 GMT >> You have three transactions: new car sale, old car sale, and money >> sale. Letting one guy quarterback all three of them is crazy. [quoted text clipped - 4 lines] > As to the trade-in, you may get a few more dollars with a private sale, > but sell to the dealer and no haggling etc id only trade in something i wanted to unload quickly, like if the car had a knocking rod, or a failing tranny.
Drew - 27 Nov 2005 21:58 GMT >>> You have three transactions: new car sale, old car sale, and money >>> sale. Letting one guy quarterback all three of them is crazy. [quoted text clipped - 8 lines] > id only trade in something i wanted to unload quickly, like if the car > had a knocking rod, or a failing tranny. I've been able to get rid of two junk cars for decent trade ins in the past. I love screwing dealers. My sister traded in a Neon that died in fog of smoke as they drove it away from the front door, after she had signed the papers.
Elmo P. Shagnasty - 27 Nov 2005 22:18 GMT > I've been able to get rid of two junk cars for decent trade ins in the > past. I love screwing dealers. My sister traded in a Neon that died in > fog of smoke as they drove it away from the front door, after she had > signed the papers. Yeah. So you think.
Trust me, they knew what they were doing. It's their job, and their incomes depend on it.
You didn't screw anyone. They found your hot buttons, and pushed them.
Sparky Spartacus - 03 Dec 2005 08:51 GMT >> You have three transactions: new car sale, old car sale, and money >> sale. Letting one guy quarterback all three of them is crazy. >> > Not always true. For example if he really needs the sale he may be > prepared to reduce the sales price a little IF he gets the finance as well. Plus Honda Finance may be willing to give you a good, i.e., low, rate to help move cars - rather than posting absolutes, e.g., NEVER xxx, ALWAYS zzz, I think it's generally a good idea to shop around and see what's best when you're cutting your deal. I financed my '03 Accord at 3.64% from Honda Finance, which was substantially lower than even the bank I worked for (where I got a "deal").
Dr Nick - 26 Nov 2005 19:54 GMT >Then he said I was getting the 7 years/100K miles warranty. When I insisted >in > how much it costed, he said $1600. He said if I don't take the warranty just FYI, if you ARE interested in that warranty, you can get it for about HALF that price on either www.hondacarewarranty.com or www.curryhondacare.com . in my accord I'm getting the 8 year 120k warranty and its under 1,000 (I believe like 970 or something) this can be bought anytime up to 6,000 miles on the car. (please note I"m not in any way affiliated with honda or honda care or either of these 2 sites, just trying to save someone some money) enjoy your car!
Gordon McGrew - 26 Nov 2005 22:48 GMT >I went last week to a Honda dealer to trade in my car for a new Accord >Value Pack (VP, base model). I was surprised by all their tactics to [quoted text clipped - 4 lines] >going to enumerate the things I consider bad tactics because they were >just too many: You are right, this is way too many things. At least they backed down relatively easy.
RE #6. I don't think you got too bad a deal on the financing. 30 year mortgages are about 6% now so 6.6% on a car loan doesn't sound too bad. You might have saved a few tenths from your credit union - it would have been good to have gotten a rate quote from them before you ventured into a dealership.
Others mentioned keeping the new car and trade-in deals separate. Part of that is knowing not only what is a good price on new car (which you seem to have done) but also knowing what is a fair price on the trade-in, what Car Max would pay you for it, and what is a fair private party sale price. Even if you aren't willing to sell it yourself, you can use these facts in your negotiations.
>1) When I told them I wanted the Value Pack, the manager said that it >had no power windows. That I better choose the LX or EX. That's not >true. Lying is bad.
>2) When I came back next day he said that VP had no Cruise Control. I >checked the car I wanted to buy and I noticed the cruise control was >there. Lying is bad.
>3) When we were negotiating the price he showed me the invoice price, I >said the invoice price I saw at edmunds.com was lower. When he noticed >I was not accepting that price he showed me that there was about $200 >marketing charge and accepted to remove it. Nothing bad about this part >because I think dealers usually try to add these hidden charges without >telling customers. Burglars usually try to break into your house, but that doesn't mean it's not bad. Marketing (i.e. advertising) is part of their overhead, and a discretionary part at that. Why should you be paying them to advertise to you? It would be slightly more reasonable for them to charge you a heating charge to keep the dealership building warm.
>4) After negotiating the price for my trade in and the price of the >Accord VP, he came with a blank page (where all the totals are >calculated) for me to sign. I said I wanted to see the final numbers >before I sign the page. I said I cannot sign a blank sheet for them >later to add the totals. They accepted. Tell them you will do that if they are willing to sign a blank check on the dealership account for you to fill in later to
>5) Then he came with the same sheet with a total amount higher than >what we negotiated. I told them that we had to subtract the amount I [quoted text clipped - 3 lines] >pen and had to do the subtraction in front of him and underlined the >final amount. He accepted that amount. It would have been so much easier if you had just signed the blank one.
>6) At about 9:00 PM (they were already closed but there were still a >few customers finalizing their deals), I was tired but happy when the [quoted text clipped - 6 lines] >I consider too high but I still accepted. Maybe I should have got the >loan with my credit union. I think you got lucky on this. Then again you probably would have walked if it was 8%.
>7) He showed my monthly payments at about $35 over what I estimated, >and handed me a pen to sign. I asked me how can it be so high? Then he [quoted text clipped - 4 lines] >taking a big risk because they can break. Finnally he accepted to >remove the warranty and I got the payment amount I wanted. They think you will let down your guard when you think the deal is almost complete. Many buyers can't really figure out what a loan payment should be, so it is an good chance to cheat them one last time. These guys are sleaze balls.
>I remember at a Chevrolet dealer in 1998 I had a very good experience >buying my chevy Malibu, I still remember the name of the Chevy sales >person (Mike), I can't believe at Honda these guys gave me such a hard >time. I have dealt with several Honda dealers who were totally straight and honest in their dealings. It is not impossible,
>After the negotiation, the manager and sales person were very nice and >helpful. Just be glad you aren't his dog on a night like that.
Jason - 27 Nov 2005 00:43 GMT > >I went last week to a Honda dealer to trade in my car for a new Accord > >Value Pack (VP, base model). I was surprised by all their tactics to [quoted text clipped - 106 lines] > > Just be glad you aren't his dog on a night like that. Hello, Thanks for your excellent post. If you ever buy another car, get the best deal that you can get at two or more Honda dealerships. Don't ever sign any papers until you think about it for at least one or two days. The salesman will try to make you believe that they will sell that car you wanted during the next two days--therefore, just say, "Go ahead and sell it since I am sure that is not the only new Honda that is in this city." In most cases, that car you wanted will still be unsold for at least two days. Even if it is sold, buy another one from that dealer or another one. Jason
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SoCalMike - 27 Nov 2005 06:12 GMT > Others mentioned keeping the new car and trade-in deals separate. > Part of that is knowing not only what is a good price on new car > (which you seem to have done) but also knowing what is a fair price on > the trade-in, what Car Max would pay you for it, and what is a fair > private party sale price. i thought carmax bought strictly at low blue book tradein value.
Gordon McGrew - 27 Nov 2005 22:15 GMT >> Others mentioned keeping the new car and trade-in deals separate. >> Part of that is knowing not only what is a good price on new car [quoted text clipped - 3 lines] > >i thought carmax bought strictly at low blue book tradein value. I don't know exactly how they calculate the value but at least they give you a bona fide offer to use as a basis. If the dealer discounts the new car price and tries to screw you on the trade-in, at least you have a minimum price that you know you can get for the old car.
Tush Smells Bush Kills!!!!!!!!!!! - 28 Nov 2005 04:17 GMT Carmax is a joke. Their offer was only 50% of the kbb trade-in on my parent's car. They ended up getting three times that amount in an insurance settlement, after it was totalled in an accident.
Gordon McGrew - 28 Nov 2005 06:34 GMT >Carmax is a joke. Their offer was only 50% of the kbb trade-in on my >parent's car. They ended up getting three times that amount in an >insurance settlement, after it was totalled in an accident. My only experience with them was helping a friend car shop. They were low pressure and friendly, but their prices (both buying and selling) were not competitive. If their no-haggle price was just an asking price they might be in the ball park. i guess they have a lot of overhead to pay for.
Still I can see why they might appeal to someone who is used to getting raped in the car buying process.
Tush Smells Bush Kills!!!!!!!!!!! - 28 Nov 2005 17:11 GMT > >Carmax is a joke. Their offer was only 50% of the kbb trade-in on my > >parent's car. They ended up getting three times that amount in an [quoted text clipped - 5 lines] > price they might be in the ball park. i guess they have a lot of > overhead to pay for. I was waiting in an office while they were appraising my vehicle, and the Carmax salesguy kept badgering me about purchasing a car from them. I remarked how expensive their cars were and he just simply said their prices were competitive. Yeah, with new cars maybe. I swear, you can get brand new cars for the prices they charge on most of their used cars.
> Still I can see why they might appeal to someone who is used to > getting raped in the car buying process. Which is why Saturn's still around. Morons keep paying full price for inferior GM products, because they have phobias about negotiating.
SoCalMike - 29 Nov 2005 02:07 GMT >>> Carmax is a joke. Their offer was only 50% of the kbb trade-in on my >>> parent's car. They ended up getting three times that amount in an [quoted text clipped - 17 lines] > Which is why Saturn's still around. Morons keep paying full price for > inferior GM products, because they have phobias about negotiating. saturn knows their target market and prices (IMO) fairly and accordingly. for the longest time my local dealer was giving 0% interest for 60mos, so thats another draw.
toyotas scion division also doesnt haggle, and those cars are exceptional values. an honest to god built in japan car with standard air, power windows/locks and pioneer premium CD system for about $13k.
SoCalMike - 29 Nov 2005 02:03 GMT >> Carmax is a joke. Their offer was only 50% of the kbb trade-in on my >> parent's car. They ended up getting three times that amount in an [quoted text clipped - 5 lines] > price they might be in the ball park. i guess they have a lot of > overhead to pay for. a coworker got a C230 sedan with 8k miles for a shade under $30k. a brand spanking new one would have been a little more. or even less, if hed bought when MBUSA was giving incentives.
> Still I can see why they might appeal to someone who is used to > getting raped in the car buying process. yeah- you only get raped a "little".
Nicholas Coday - 27 Nov 2005 02:11 GMT I think you got reamed on the interest rate. 2 weeks ago I got 5.74% after the rate was increased through my credit union. Honda financing could not come close to that rate
--Nicholas
> I went last week to a Honda dealer to trade in my car for a new Accord > Value Pack (VP, base model). I was surprised by all their tactics to [quoted text clipped - 61 lines] > After the negotiation, the manager and sales person were very nice and > helpful. Brandy Alexandre - 27 Nov 2005 03:14 GMT Nicholas Coday <j.coday@comcast.net> wrote in rec.autos.makers.honda:
> I think you got reamed on the interest rate. 2 weeks ago I got > 5.74% after the rate was increased through my credit union. Honda > financing could not come close to that rate I got 5.1% in October. When I still complained about the monthly payment, they increased the loan from 60 months to 72 without increasing the rate, which should have been at least a point higher. Of course, my credit score was 808, so your mileage may vary.
 Signature Brandy Alexandre® http://www.swydm.com/?refer=BrandyAlx Well, would you?
Dave L - 27 Nov 2005 04:46 GMT > Nicholas Coday <j.coday@comcast.net> wrote in > rec.autos.makers.honda: [quoted text clipped - 7 lines] > increasing the rate, which should have been at least a point higher. > Of course, my credit score was 808, so your mileage may vary. Yes, the business mgr offered to increase the months to reduce my payments too, but that would mean extending the length of the loan and increasing the amount of interest I'd have to pay. He tried doing this so I would go for one of the extra packages they try to sell. I wanted to the the lowest bottom line cost, so declined the offer.
Here are a couple of good sites for auto and other finance calculators: http://www.bankrate.com/brm/rate/calc_home.asp
Or you could go here for the auto payment calculator and fill in your numbers: http://www.bankrate.com/brm/auto-loan-calculator.asp
It really helps with figuring out what you need to pay ahead of time so if they do the financing for you, you'll know if they added other things to the final cost.
Hope it helps! -Dave
Brandy Alexandre - 27 Nov 2005 05:16 GMT Dave L <davelieuREMOVEME@yahoo.com> wrote in rec.autos.makers.honda:
> "Brandy Alexandre" <brandyalx@kittylittercomcast.net> wrote in > message news:Xns971AD814152018675309@129.250.170.93... [quoted text clipped - 31 lines] > Hope it helps! > -Dave Well, It wasn't so much that I couldn't afford it, but that I wanted the lowest possible obligation in case anything happened. I have and intend to continue paying significantly more than the payment amount, and few lenders are actually set up that way. That's why I like the Honda finance. That extra year doesn't amount to a hill of beans in the scheme of things.
 Signature Brandy Alexandre® http://www.swydm.com/?refer=BrandyAlx Well, would you?
Dave L - 27 Nov 2005 22:43 GMT > Dave L <davelieuREMOVEME@yahoo.com> wrote in rec.autos.makers.honda: > [quoted text clipped - 40 lines] > like the Honda finance. That extra year doesn't amount to a hill of > beans in the scheme of things. Yeah, same here. No penalty for the prepay is nice too. That's what I asked, although I have yet to put any significant prepay into it. Those sites are still useful to make sure they don't try to sneak something in. They initially tried to put the extended warranty in but I noticed the payments were higher than I figured. It was no problem after that.
-Dave
Dave L - 27 Nov 2005 03:22 GMT My current credit union is from 5.35% for 48months. I picked up my Accord about 3 1/2 months ago for 4.74% w/Honda financing. I walked in there with a pre-approved loan from my credit union, and they beat their best offer by a quarter point. It really pays to walk in there with a pre-approved check and see what they are willling to do.
-Dave
>I think you got reamed on the interest rate. 2 weeks ago I got 5.74% after >the rate was increased through my credit union. Honda financing could not [quoted text clipped - 67 lines] >> After the negotiation, the manager and sales person were very nice and >> helpful. Gordon McGrew - 27 Nov 2005 22:34 GMT >My current credit union is from 5.35% for 48months. I picked up my Accord >about 3 1/2 months ago for 4.74% w/Honda financing. I walked in there with [quoted text clipped - 3 lines] > >-Dave I am so surprised that the rates are this low. I can understand that Honda might subsidize the loan through Honda Finance as a buyer incentive, but 5.35% from the credit union is outstanding. Lenders in today's paper are advertising 30-year home mortgages at 5.875 to 6.25%. When did car loans become lower risk than home loans?
I usually pay cash for my cars but at these rates I might consider financing.
Dave L - 27 Nov 2005 22:48 GMT >>My current credit union is from 5.35% for 48months. I picked up my Accord >>about 3 1/2 months ago for 4.74% w/Honda financing. I walked in there [quoted text clipped - 15 lines] > I usually pay cash for my cars but at these rates I might consider > financing. I never compared the car loans vs. home loans at the same time. Only looked one up when I needed to. Credit unions normally have very good rates for loans and such, vs. your traditional bank. For the 5.35%, you may be able to get it a little lower if you do direct debit for the monthly car payment.
At the moment, I can pay cash for a new car as well - Matchbox, Hot Wheels, etc... lol
-Dave
SoCalMike - 27 Nov 2005 06:08 GMT > I went last week to a Honda dealer to trade in my car for a new Accord big mistake. sell your car private party first. unless its some piece of crap you wanna unload quickly.
> Value Pack (VP, base model). I was surprised by all their tactics to > get the most out of my money. I don't blame the salesperson because he all salesmen are out to get as much money as possible. ive only met ONE honest one, who was truthful and straightforward. he probably no longer works there :)
> was nice and helpful, but I think the sales manager went a little too > far in his methods. I also have to say that after the deal was done, [quoted text clipped - 9 lines] > checked the car I wanted to buy and I noticed the cruise control was > there. half the time the salesmen dont know sh.t about the cars they sell. they arent enthusiasts.
> 3) When we were negotiating the price he showed me the invoice price, I > said the invoice price I saw at edmunds.com was lower. When he noticed > I was not accepting that price he showed me that there was about $200 > marketing charge and accepted to remove it. Nothing bad about this part > because I think dealers usually try to add these hidden charges without > telling customers. and prices DO change. what edmunds says and what the dealer says may both be right, or wrong. "invoice" doesnt mean much anyway- its just a number to make you feel better than if you paid full MSRP. which a lot of people do.
> 4) After negotiating the price for my trade in and the price of the > Accord VP, he came with a blank page (where all the totals are > calculated) for me to sign. I said I wanted to see the final numbers > before I sign the page. I said I cannot sign a blank sheet for them > later to add the totals. They accepted. smart guy. personally, at that point i mighta walked. theyre sleazy for handing you a blank document to sign.
> 5) Then he came with the same sheet with a total amount higher than > what we negotiated. I told them that we had to subtract the amount I [quoted text clipped - 3 lines] > pen and had to do the subtraction in front of him and underlined the > final amount. He accepted that amount. yup- theyre a.sholes
> 6) At about 9:00 PM (they were already closed but there were still a > few customers finalizing their deals), I was tired but happy when the [quoted text clipped - 3 lines] > deal. Not true, he got me financing with Honda. How can he run my > information with 15 banks and come with a loan from honda financeing? because they make more money when they sell you a loan through honda.
> Maybe I'm missing something here. Anyway he got me 6.6% interest which > I consider too high but I still accepted. Maybe I should have got the > loan with my credit union. yes- ALWAYS have cash down instead of a tradein, and always have financing lined up.
> 7) He showed my monthly payments at about $35 over what I estimated, > and handed me a pen to sign. I asked me how can it be so high? Then he > said I was getting the 7 years/100K miles warranty. When I insisted in jesus mary and joseph- these guys are MAJOR a.sholes.
> how much it costed, he said $1600. He said if I don't take the warranty > I'm taking a big risk if the car breaks. I asked him how can he tell me > these are the best cars in the market and now he's telling me that I'm > taking a big risk because they can break. Finnally he accepted to > remove the warranty and I got the payment amount I wanted. good for you! i like running that line by em, myself... since hondas and toyotas are so "good" :)
what dealership was this, anyway?
pichula - 27 Nov 2005 15:36 GMT Hi, Just to add some info on my trade-in. Although some say negotiating my trade-in and the new car at the same time was a mistake, I still think I got a decent price for my trade in. The blue book (kbb) amount for trade-in was 18,800 (in good condition, not excellent) and they payed me 20,500 (that's what I asked them). The front bumper had a dent, so it needed to be changed, the tires needed to be replaced, etc.
Anyway I'm sure they got the difference back with my new car. I just found out about a person in California that got the exact same car VP automatic tranny for $600 less (he got it at below invoice). It seems invoice price doesn't mean much anymore.
Somebody asked me for the name of the dealer, I would prefer just to say that I'm in Southern Ohio. Actually these cars are built in Ohio, so I think I should have gotten a better price than the person in California.
Anyway, let me add that at the dealer they had the Kally Blue Book web page (kbb.com) in their PCs for any customer to check on their trade-in values. I tried to access carpoint.com but the browser sent a message "Access Restricted", or something like that. They also printed me the value of my trade-in from kbb. com to show me. My question is, if they are so willing to show kbb.com values, is kbb more on the dealers side? or on the customers side? or are they neutral as Consumers Report. I didn't trust very much those trade-in values they showed me.
Elmo P. Shagnasty - 27 Nov 2005 15:55 GMT > Just to add some info on my trade-in. Although some say negotiating my > trade-in and the new car at the same time was a mistake, I still think > I got a decent price for my trade in. 1) It's not ALWAYS a mistake, but it's a very weak point in the whole deal. Eliminate the weak points.
2) you THINK you got a decent price. Remember, it's the salesman's job to find out what your hot buttons are and where you are weak. He discovered that he could get you on the trade-in price, while giving you what you wanted on whatever your hot button was (new car price, discount off of "invoice", extra accessories, interest rate, whatever).
Remember, the more things he has to work with, the more likely he--a professional at this--will succeed at getting the TOTAL deal he needs to send himself to Hawaii.
If you deal with him on ONE THING ONLY, like the selling price of the car, you are on much more equal footing. And if you decide on your maximum price beforehand, and walk out the door when he makes it clear he won't come down that far, then you are in TOTAL control of the deal.
But, the sheeple being stupid as they are, they generally don't walk out. And the salesman knows that. He just beats you down a little at a time, while your weakened state of strong desire makes you just say "aw, screw it, where do I sign".
And when he has the old car, the new car, the trade, and the financing to work with...he finds the things that slide right past you and he pumps those up, while "giving in" on the things you seem to want to focus on.
He does it several times a day, 6 days a week. He's GOOD at that. You? You do it once every few years at the most. You're BAD at it.
So you learn how not to play his game, how to turn the game to YOUR rules. Rule number 1: you have a max price you're willing to pay. Rule number 2: you walk out regardless if he won't make that price or lower.
But then he wants to jack things around with the financing, so that you end up paying huge amounts for the car. Why do you think he won't shut up about "what monthly payment are you looking for?" If you recognize that question as legitimate, that's what he'll go for--because he can hide EVERYTHING in a monthly payment.
Just say no. "Well, how much does it cost?" Don't say you'll get your money elsewhere; make him give a final selling price for the car while he assumes you'll finance it through him. At the end, when he asks for a credit app, that's when you tell him, "No thanks, I'll just bring a check." He may have THOUGHT he could get a little extra by selling the financing (he gets a commission on that, too, you know), but he was wrong--and now he can't go back and jerk the price of the car back up, because he's already put it in writing.
But if you let him jerk all the numbers around all at once, he'll come out with a maximum paycheck and you'll have spent another $5K that you weren't planning on spending.
SoCalMike - 28 Nov 2005 01:28 GMT > So you learn how not to play his game, how to turn the game to YOUR > rules. Rule number 1: you have a max price you're willing to pay. and NOT a monthly payment price. they LOVE to ask how much you can afford a month they can rejigger the numbers to make just about any monthly payment fit.
Sparky Spartacus - 13 Dec 2005 15:57 GMT <snip>
> But then he wants to jack things around with the financing, so that you > end up paying huge amounts for the car. Why do you think he won't shut > up about "what monthly payment are you looking for?" If you recognize > that question as legitimate, that's what he'll go for--because he can > hide EVERYTHING in a monthly payment. When I was negotiating my '03 Accord the salesman asked me about the monthly payment. I answered that I thought it was a function of the amount financed and the interest rate - I think he wet his pants. ;)
Money was much cheaper then, 06/03, and the dealer gave me a rate of 3.64% thru Honda Finance, noticeably cheaper than anywhere I checked (including the bank where I used to work). At that rate Honda's paying to finance my car - I could have bought the car outright but I'm making far more than 3.64% by keeping the principal in my investment account.
Elmo P. Shagnasty - 27 Nov 2005 15:56 GMT > Somebody asked me for the name of the dealer, I would prefer just to > say that I'm in Southern Ohio. Actually these cars are built in Ohio, > so I think I should have gotten a better price than the person in > California. Nope. Not at all. That's not how it works. The transportation fee is set in stone, and it's the same in Ohio as it is in California.
Jason - 27 Nov 2005 19:13 GMT > > Somebody asked me for the name of the dealer, I would prefer just to > > say that I'm in Southern Ohio. Actually these cars are built in Ohio, [quoted text clipped - 3 lines] > Nope. Not at all. That's not how it works. The transportation fee is > set in stone, and it's the same in Ohio as it is in California. Believe it or not, some (if not all) of the Honda cars sold in California were built in Japan. I have a 1999 Accord and I found out that it was built in Japan. One poster told me that it was less expensive to import them from Japan than it was to transport them on trucks from Ohio. The poster was probably guessing--I don't know the real reason. I do know that special pollution control equipment is on all new cars sold in California. The reason that my car was built in Japan instead of Ohio might be related to the pollution equipment. Jason
 Signature NEWSGROUP SUBSCRIBERS MOTTO We respect those subscribers that ask for advice or provide advice. We do NOT respect the subscribers that enjoy criticizing people.
Brandy Alexandre - 27 Nov 2005 19:44 GMT Jason <jason@nospam.com> wrote in rec.autos.makers.honda:
>> In article >> <1133105809.491148.78470@g47g2000cwa.googlegroups.com>, [quoted text clipped - 18 lines] > related to the pollution equipment. > Jason Mine was built in Canada.
 Signature Brandy Alexandre® http://www.swydm.com/?refer=BrandyAlx Well, would you?
Elmo P. Shagnasty - 27 Nov 2005 19:54 GMT > > Nope. Not at all. That's not how it works. The transportation fee is > > set in stone, and it's the same in Ohio as it is in California. > > Believe it or not, some (if not all) of the Honda cars sold in California > were built in Japan. Honda doesn't guarantee that the Accord you buy is from Ohio; some are from Japan, for whatever reason.
And the sticker price and transportation fee is identical, whether it came from Japan or Ohio.
Gordon McGrew - 27 Nov 2005 22:57 GMT >> > Nope. Not at all. That's not how it works. The transportation fee is >> > set in stone, and it's the same in Ohio as it is in California. [quoted text clipped - 7 lines] >And the sticker price and transportation fee is identical, whether it >came from Japan or Ohio. The fee charged is identical but for the purposes of Honda's cost, it makes sense to avoid sending a Japanese car to Ohio, while sending an Ohio car to California. Not always avoidable but when it is...
Elmo P. Shagnasty - 27 Nov 2005 23:08 GMT > >And the sticker price and transportation fee is identical, whether it > >came from Japan or Ohio. > > The fee charged is identical but for the purposes of Honda's cost, it > makes sense to avoid sending a Japanese car to Ohio, while sending an > Ohio car to California. There's much, MUCH more to it than simple transportation.
'Curly Q. Links' - 27 Nov 2005 20:45 GMT > > > Somebody asked me for the name of the dealer, I would prefer just to > > > say that I'm in Southern Ohio. Actually these cars are built in Ohio, [quoted text clipped - 7 lines] > were built in Japan. I have a 1999 Accord and I found out that it was > built in Japan. ----------------------------
The 'J' on the front of your VIN is the proof that it came from Japan. It's also printed on the stickers on the driver's door pillar. I've never owned a non-J, but I'm in Canada.
'Curly'
SoCalMike - 28 Nov 2005 01:30 GMT > Believe it or not, some (if not all) of the Honda cars sold in California > were built in Japan. I have a 1999 Accord and I found out that it was > built in Japan. One poster told me that it was less expensive to import > them from Japan than it was to transport them on trucks from Ohio. The not necessarily. is yours an accord EX? theres more margin on the expensive models, so theyre more likely to import em and have ohio make the "cheaper" models.
Elmo P. Shagnasty - 27 Nov 2005 15:57 GMT > Anyway, let me add that at the dealer they had the Kally Blue Book web > page (kbb.com) in their PCs for any customer to check on their trade-in > values. I tried to access carpoint.com but the browser sent a message > "Access Restricted", or something like that. BIG warning bells should have rung in your head, and you should have walked out.
You got taken--but the salesman was so good, you think you didn't.
That's his job, and he succeeded. And you spent more money than you had to, I can guarantee.
Gordon McGrew - 27 Nov 2005 22:44 GMT >Hi, >Just to add some info on my trade-in. Although some say negotiating my [quoted text clipped - 3 lines] >me 20,500 (that's what I asked them). The front bumper had a dent, so >it needed to be changed, the tires needed to be replaced, etc. Wow, you had a $20,500 trade-in on a Civic? What was left to finance?
pichula - 28 Nov 2005 02:21 GMT < Wow, you had a $20,500 trade-in on a Civic? What was left to finance?
The loan was payed in full and the remaining was applied to the new car.
pichula - 28 Nov 2005 02:21 GMT > Wow, you had a $20,500 trade-in on a Civic? What was left to finance? The loan was payed in full and the remaining was applied to the new car.
speedy - 04 Dec 2005 17:45 GMT Then they would have called you back the next day groveling with a better deal.
You sure put up with a bunch of crap!
-pete
> I went last week to a Honda dealer to trade in my car for a new Accord > Value Pack (VP, base model). I was surprised by all their tactics to [quoted text clipped - 61 lines] > After the negotiation, the manager and sales person were very nice and > helpful.
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