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Discussion Starter #1
I want to thank all of you that helped me with my questions prior to going to the dealership yesterday.

I was going to purchase the Lotus but the dealership would not come down in price. They actually went up to 38k when they stated it was 37k on the phone. I am going to purchase one that is nicer in Los Angeles for 33k. Anyways.

They were going to give me a loan at 16% at first and didn't tell me it was 16%, they just showed me my montly payments of $900.00

After debating and telling them that $900 a month was insane. They lowered my interest rate to 6.5%.

I have a quick question. If I didn't negotiate my rate would they have qualified me at 6.5% but charged me the $900.00 a month? Are they allowed to do that?

Thanks in advanced for any responses.
 

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How to Buy a Used Car

Of course they are going to try to get money from you by any means possible. Read the steps of the article above. Get your financing in order before you go to the dealer - chances are your bank or credit union is going to give you a much better rate than the dealer (especially their initial offer).
 

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Caveat emptor. do your number crunching and calculations before you walk in to the dealership. good thing what they quoted was so over the top you didn't bite, but you should know to the penny what the price should be b4 jumping in. Once you sign, it's yours.

Good luck on the purchase in LA. hope it goes better.

Mark
 

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Did they check your credit before quoting you? If not, they had a right to quote you at a safe rate in case the credit wasn't what is expected. It's always easier for you to say yes to dropping the payment than raising it. It's like calling a mechanic over the phone telling him there's an engine light on and how much would he charge to fix the car. How would he know what to quote you if he doesn't know what to look at???
 

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How to Buy a Used Car

Of course they are going to try to get money from you by any means possible. Read the steps of the article above. Get your financing in order before you go to the dealer - chances are your bank or credit union is going to give you a much better rate than the dealer (especially their initial offer).
+1 I went with Fox Federal Credit Union with a 6% loan, had pre approval - THEN go negotiate, then the dealer is looking at you as somebody with cold hard cash in hand, they don't want you to walk ! Of course they would love to make the extra money by financing you through their people but you lose all power then
 

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Oh yeah, how was the test drive? A thread about a visit to a dealership, potential purchase, and all you can talk about is the financing? How was the car? Stick to the important things! :)
 

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Why not pay cash instead? That would lower the rate.
 

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Above comments are correct. Some dealers will sell a car "at a loss" and then kill the buyer with an interest bump. It's sad. I dealt with customers last night that had bought a car last year with Tier 0 credit (best there is) and got a below invoice price on the car. The dealer then bumped them roughly 3% on their loan and made a ton on their financing. I explained this to them last night and they nearly fell off their chair. There are a million "games" in sales. I am honest with my clients and give them a good deal and treat them with respect and ask for a resonable profit. I've found out that this is not the norm, however, but the exception which is sad.
 

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imo... anything over 0% fianancing on a depreciating assest is just... well, "wasteful" - get the best market price and example available (better to pay a little more for something alot better!), buy it outright, and enjoy it.

dealers can, and many will, hide money in the deal anywhere.

when i got my BMW we where throwing #'s and deals around - they happened to be very straight up. in the end they did my price, and we opted to financed some of it at 0.9% instead of cash outright, i built a deck and some other home stuff with that financing. they were a bit shocked when i told them what the payment would be when he reached for the calculator! i ended up paying it off after a year anyways - so i think that "loan" cost me like dinner w/ a glass of wine...
 

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Discussion Starter #11
The test drive went great

I fell in love with the car! It had a few minor issues driving it out of the lot. One head light was out. Blinkers had an issue. I will go to my bank today and see what they can offer me for a loan. They checked my credit and then quoated me the 16% rate stating it was an exotic and harder to get great rates. My credit score was 759. I am in the middle of a short sale condo I am about to own. I have to come up with a nice sum of cash for the downpayment. That is why I am financing the car. I would probably finance it anyways.
 

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I fell in love with the car! It had a few minor issues driving it out of the lot. One head light was out. Blinkers had an issue. I will go to my bank today and see what they can offer me for a loan. They checked my credit and then quoated me the 16% rate stating it was an exotic and harder to get great rates. My credit score was 759. I am in the middle of a short sale condo I am about to own. I have to come up with a nice sum of cash for the downpayment. That is why I am financing the car. I would probably finance it anyways.
Your planets are not lining up.

Giving you the benefit of the doubt, and that all you've shared about your situation and that of the car is true...

1) This Ford dealership has had the car for only a few days, and they don't know much about it. They originally advertised it as an Exige.
2) You said you like the looks of the Exige better than an Elise, because they look 'sweeter.' But YOU thought this Elise was an Exige, also.
3) They've clearly not prepped the car, if lights and blinkers are not working. What else isn't working?
4) They want you to pay absolute top of the used market for that year car.
5) They're telling you the rate for a loan is 16% because the car is an 'exotic.' First, it's not an exotic. It's a fun sports car, but it's not an exotic. Second, I can see where the car type may drive your insurance rate. But in lending it's about your ability to repay measured against the lender's ability to recover it's investment if you default. In other words, they're not being straight with you.
6) If you have the cash you say, and have a credit score of 759, even borrowing $30K for the car shouldn't get you an interest rate in the double digits, no where near.

Again, if all is as you say, I'd say the dealer should be suspect (at least where this car is concerned), the car itself is suspect, it is overpriced, you're paying too much interest.

Why are you buying THIS car?:shrug:
 

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"Some" dealerships/salespersons can make you loose interest in the car, i.e. transiently! I speak from a recent experience.:mad:
 

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I'd stay away from this dealership. I see no compelling reason to buy a used Elise at a non-Lotus dealership. They will most likely know less about the car than you do, and they'll know a lot more about how to screw you over. Like lotusforsale said, the type of car is pretty much irrelevant when getting financing - it comes down to whether or not you're going to pay back and if the car you're buying is worth the money you're being lent. I'd stay away from this dealership and find a reputable Lotus dealership with some good used cars or find a private seller.
 

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bad price, bad deal, bad dealer, maybe bad car
find a car you want - there are plenty, settle on a price, pay cash
if you have the kind of scratch you discuss so openly, there would have to be a very compelling reason to even consider financing
don't finance depreciating assets (cars, girlfriends, etc.)
 

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16% I've never heard of an interest rate that high on a car loan. Maybe 9%, but that's on a 12 year loan. Good luck and definitely be smart about it.
 

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Discussion Starter #17
I agree the dealership is trying to screw me. I am being legit about my circumstances. I didn't like the person trying to finalize the deal with me. That is why I didn't end up with the Lotus last night. The one I am looking at getting now is

Here
 

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Discussion Starter #18
My Truck is still down there (at the dealership) they were looking at it for a trade in. I need to pick it up. When I go there I think I will express my great experience with them.
 
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