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Old 04-30-2020, 10:48 PM   #41
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Individual dealerships typically don't have much control over the details of finance deals. Finance and lease terms reset monthly... Most deals available today will most likely be better than the ones available tomorrow.
This offer was created specifically by the dealership. It was expiring today, but who knows what deals they create for tomorrow.

As you said in your earlier post, dealerships and auto makers are going to be wanting to move vehicles, and they should be priced to move in the coming months.
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Old 04-30-2020, 11:13 PM   #42
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Well, since you asked...
Much obliged! Thanks.

However a few other variables would also include an assumed (by some) skyrocket in interest rates, and an assumed (again by some) PST.

I also think once this settles you see another green initiative taxing anything that isn't a hybrid or gets less than stellar fuel economy.

This is a blip in the market and I don't think the opportunities are going to last long.
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Old 05-05-2020, 06:10 PM   #43
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I’m in the market for a truck and saw one I like for just over $54,000. The dealer is offering 0% financing for 84 months.

What is the smart way to approach this situation? Some people I’ve talked to said the 0% is the best you’re going to do as far as a deal is concerned, while others say why not offer something like $48,000 as these are desperate times.

Thoughts?
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Old 05-05-2020, 07:12 PM   #44
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Can't hurt to negotiate the price as well. Still that's an awesome loan term.
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Old 05-05-2020, 08:11 PM   #45
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Iím in the market for a truck and saw one I like for just over $54,000. The dealer is offering 0% financing for 84 months.

What is the smart way to approach this situation? Some people Iíve talked to said the 0% is the best youíre going to do as far as a deal is concerned, while others say why not offer something like $48,000 as these are desperate times.

Thoughts?
What is the make, model, and trim? Is it new?
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Old 05-05-2020, 08:37 PM   #46
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Iím in the market for a truck and saw one I like for just over $54,000. The dealer is offering 0% financing for 84 months.

What is the smart way to approach this situation? Some people Iíve talked to said the 0% is the best youíre going to do as far as a deal is concerned, while others say why not offer something like $48,000 as these are desperate times.

Thoughts?
Are you planning on keeping the vehicle for 84 months? Even at 0% financing you are probably underwater for the first 4-5 years depending on vehicle type. It is free money though so you might as well take it even if you prefer to pay it off over 5 and just put the remainder in a high interest savings account.
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Old 05-05-2020, 10:22 PM   #47
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Originally Posted by Ferarri View Post
I’m in the market for a truck and saw one I like for just over $54,000. The dealer is offering 0% financing for 84 months.

What is the smart way to approach this situation? Some people I’ve talked to said the 0% is the best you’re going to do as far as a deal is concerned, while others say why not offer something like $48,000 as these are desperate times.

Thoughts?
I’ve never not negotiated even with 0% financing.

Use unhaggle to figure out what you should pay.

I wouldn’t just go in with a total low ball though (not saying that is)
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Old 05-05-2020, 10:28 PM   #48
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Never go in to buy based on what you can afford for payment. Negotiate any extras as a total. Work on your budget, and determine from there. Many places will try to upsell you on payment numbers so you will add time.
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Old 05-06-2020, 10:52 AM   #49
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Originally Posted by Ferarri View Post
I’m in the market for a truck and saw one I like for just over $54,000. The dealer is offering 0% financing for 84 months.

What is the smart way to approach this situation? Some people I’ve talked to said the 0% is the best you’re going to do as far as a deal is concerned, while others say why not offer something like $48,000 as these are desperate times.

Thoughts?
As a professional in the industry, having sold 100's of vehicles, here is my advice. Now I've only worked at one dealership, rare I know, and sold GM so I can only speak for buying a new GMC for certain, yet Ford is very similar, while Ram tends to be a while other beast.


Where to start..... Current market is really in the tank right now, Canadian sales down in over 70% in April. Long, aged inventory is benefit for buyers, all this being equal, you will pay less for an older piece then a fresh piece. So the general thought is that by waiting, things will get cheaper, not entirely wrong but with the plant shut downs we've seen do to Covid, inventory will become tight tohe next few months. The plant shut downs are not entirely for employee safety, originally yes, however the extended shut downs are 100% to keep value up by creating a shortage.

Better then 0% you ask??? Well that depends, on a new vhicle you will usually pay less if you pay cash vs financing it. There's MSRP, then there's the cash price, finance price and lease price. There are always incentives available beyond the MSRP, these are set from the manufacture and tycally vary month to month ($5500 off for cash, $2500 off for finance, $1500 off for lease for example). Then you have the dealer discount, which comes from the dealer, they can knock another "X" depending on where they need to be profit wise. Other discounts available can include preferred pricing which depending on where you work combines the best discount available and 0% financing, business choice (do you own a business and have a GST number) loyalty credit (what do you currently own?) etc.... The biggest thing is that some incentives can be combined (stackable) hole others cannot be combined. You can not pay the cash price and finance truck at 0%. And no matter what, you will also have to pay GST.

The true question is how the dealer advertises their pricing. In a lot of cases the dealers will advertise the cash price which can be several $1000 less then the finance price. They will do this for several reasons but primarily to be at the top of the "sort list" when you're shopping online, the other reason is because they all want to be able to advertise the lowest price. So in your case is $54,000 the MSRP or the advertised price? If it's the former, then you can expect to play even less, if it's the latter, there's a good chance you will pay more if financing the truck.

Other things to consider include extra warranty, protecting packages the dealer will try to sell you, life insurance, loss of employment insurance and the fees. If you plan on owning the vehicle for a long period of time, consider warranty. If you are make payments for 6 years they will certainly push a 6 year warranty on you. "Well you don't want any additial coasts to come up while you're making payments right?" You will hear this line a couple of time becasue it works and dos make sense. Protection packages are totally up to you as well. They will use the term "protection options" which is a trained word tract and really means additional costs. They tend to be over priced and over valued, terms such as "holding its value better" "protecting your investment" "you want it to stay looking good right" and if you say can get it done elsewhere for cheaper, "but we can build this right into your 0% and have it all done for you when you pick up your new truck". The finance office is relentless, the reason being is that the Internet shopping leaves very little in terms of profit in the sale, but finance profit has potential to be huge.


We've not seen huge discounts yet, the current promotins all revolve around payment differals which I would never recommend and cheap financing. The current market is still definitely an advantage when buying though, rates are mill, inventory is strong and demand is down. The only negative is if you are wanting to trade your old one in, as used vehicle demand is wayyyy down and if you have a truck to trade the US market is not currently an option do to border closure and auctions not running.

Don't not negotiate on payment, negotiate on price. This is the oldest dealer trick in the book, used to get customers away from the price, which lets face it, $50,000 is a lot to spend for most of us, and get them focused on what they can "afford". It is a lot easier to convince somone $675 a month is in their budget vs the fact that they are spending $54,000. Because if $675 is too much, "well just cut out one dinner out a month". "There now you have another $100 to spend, that fits your budget a lot better doesn't it?". Customers always bump themselves on payment, mostly bea use so many are pay,net focused.

I hope this helps you, I'd be happy to answer any questions either on here or by pm. The bottom line is getting a truck you'll love, at a price you can afford from a place that is going to take care of you long after the day you buy the truck.
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Old 05-06-2020, 12:20 PM   #50
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^Question from above, in general this year and last are you seeing mainly cash purchases, financing or leasing? I looked into a new car recently and they didn't even mention the actual purchase price, it was all about the monthly payment.

Also, on the service side, do most dealers pay their service agents a commission based on the upsell or are they all hourly/salary? I've always found dealers service departments more than willing to "recommend" extra services but it is largely dependent on the person you are talking to within service

And finally, will new vehicle prices come down as a result of this pandemic? What about resale values in the next 6-9 months?
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Old 05-09-2020, 02:18 PM   #51
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I was never a fan of playing one dealer against another but it’s almost like you need to be interested in identical cars at two or more dealers so you can do proper comparison shopping. The dealer will never give you their real numbers no matter how good a customer you are.
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Old 05-09-2020, 03:52 PM   #52
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^Question from above, in general this year and last are you seeing mainly cash purchases, financing or leasing? I looked into a new car recently and they didn't even mention the actual purchase price, it was all about the monthly payment.

Also, on the service side, do most dealers pay their service agents a commission based on the upsell or are they all hourly/salary? I've always found dealers service departments more than willing to "recommend" extra services but it is largely dependent on the person you are talking to within service

And finally, will new vehicle prices come down as a result of this pandemic? What about resale values in the next 6-9 months?
Cash deals are typically less then 5%, finance 65% and lease 35% within our brands. These numbers really vary based on brands and geography, luxury brands have a much higher lease penetration and Quebec has a much higher lease ration then western Canada. My dealership does a much higher ratio of cash deals and can run as high ah 15% in a month as we are rural so a lot of older buyers and a lot of farmers, both demos which like to buy with cash. FYI, buying a new vehicle with cash is the worst th you could do with your cash!

I most cases Everyone in the dealership is on some sort of commission and service advisors are no different. They are typically paid a base (usually starting at minimum wage,) plus commission. Their commission can run .5% to 2% of the work order. It's not a huge number but if they have 20-30 appointments a day it can add up fast.

The fall out from the pandemic is still unknown. New vehicle production has been shut down for a month and will open up in stages. Like everything, price is determined by supply and demand. Sales are down big time but currently production is at zero...... MSRP's will not drop but credits will be added to lower ownership cost. Need in k ind that as the year moves along, pricing tends to get better anyways do to newer models being closer. So the truck you were looking at in Febuary will be a less expensive come October. The steps you will see in my experience are 1) payment differals (which were announced almost immediately). 2) Push on leasing, so high residual values and rebates, leasing creates future sales so any current "loss" can be recouped in 3- 4 years on the next deal. 3) An increase in loyalty offers/ rebate. 4) First responder incentives (they are the ones working and actually have an income). Beyond that there will be a push from dealers with cash back "deals", so "buy a truck and get $10,000 to pay off your credit card bills". FWIW these are crap and the cash back is built into the financing, you think 30% depreciation when you drive off the lot is bad, add another $10,000 onto it. Then the 20% off deals and "Employee Pricng" which usually roll out come October/ November. This is all my opinion but we've already seen 1 and 2 and there's only a handful of cards to play.
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Old 05-09-2020, 04:26 PM   #53
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I was never a fan of playing one dealer against another but itís almost like you need to be interested in identical cars at two or more dealers so you can do proper comparison shopping. The dealer will never give you their real numbers no matter how good a customer you are.
I have always had great success playing dealer versus dealer. This was without an economic collapse and global pandemic.

With that said I pay in cash for my cars and trucks. Dealerships are not financing me or taking a trade in. It is a cash sale.

So if you need financing through a dealership and have a trade in you are not going to get the best prices.

Never the less going to a second dealership is like asking for a second opinion from a different doctor.

It is worth your time.
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Old 05-09-2020, 05:10 PM   #54
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I have always had great success playing dealer versus dealer. This was without an economic collapse and global pandemic.

With that said I pay in cash for my cars and trucks. Dealerships are not financing me or taking a trade in. It is a cash sale.

So if you need financing through a dealership and have a trade in you are not going to get the best prices.

Never the less going to a second dealership is like asking for a second opinion from a different doctor.

It is worth your time.
The dealer vs dealer game is the oldest in the book. It is also the easiest way to tell somone does not know the market yet can tell you exactly what they want for their trade or how much the truck is going to cost them. Its fun to point out to them how the other guys were trying to screw them. Like show them how their numbers don't add up or that theyve balloon paymented them to meet their budget but will still owe $8500 once the term is up. You can always tell when a customer has been to a few dealers and I personally encourage them to do so if we've failed in selling them the first time. They can see for themselves how crappy many of the other ones are in how they treat people and how their sales process is not customer oriented then they come back and buy from us.

If you are all about the bottom line cost, then great go ahead and pay cash for the new vehicle, the price can often be a little less bu pt it can certainly be poor choice from a financial perspective, but that's up to you. There was a brief time back in 2019 when the cheapest way was to actually lease the Buick Encore then pay it out as the lease incentives were super strong, it was better then a cash deal. You really have to sit do and work though all the factors involed if you're wanting the lowest cost of ownership. So it will cost you $1500 more to finance at 0% vs paying cash, but will you make $1500 interest on the $50k you're going to drop on your new vehicle? I bet you will so why drop $50k? Keep it in your TFSA and continue making interest on it.

If you are buying a used vehicle you will get a the best/ same price if you finance through the dealer or pay cash. Dealers make more money when you finance and want their customers making payments. Finance customers are also more likely to buy warranty, protection packages etc..
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Old 05-10-2020, 07:35 PM   #55
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It's pretty easy to cross shop multiple dealerships as a cash buyer - there is only one variable to negotiate.

You can always add bank financing afterwards if you want.
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Old 05-11-2020, 10:01 AM   #56
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My lease is up on my F-150 in a couple of months. I'm so bummed because all the trucks right now are so lame.

The Tundra is incredibly outdated - I took it for a spin on Saturday and was completely underwhelmed. I wouldn't touch the Titan with a ten-foot pole. The new Chevs are embarrassingly ugly - the front quarter panel is hideous and the interior looks a decade old even though it's a fresh redesign. I actually like the Rams, but Ram doesn't lease inhouse so their lease rates are atrocious compared to everyone else. It's a work truck, so leasing is mandatory to get the write-off. The Ridgeline can't tow my trailer and all the small trucks don't do anything for me.

That leaves the F-150. It's the best of the bunch, but totally unexciting to lease a 2020 that is exactly the same as my 2016 I've been driving for four years. The 2021 redesign if right around the corner, too, so I'm going to be stuck with the old design when new cool ones are cruising around.

Boohoo, first world problems, but it would be nice to be excited about a new vehicle instead of bored with it before I even get it. I just don't understand how people can opt to own a truck if they don't need one. They're so lame.
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Old 05-11-2020, 10:31 AM   #57
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Curious, how are the Tundras outdated? Is it the interior finishes, technology, options available or something else?
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Old 05-11-2020, 10:36 AM   #58
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My lease is up on my F-150 in a couple of months. I'm so bummed because all the trucks right now are so lame.

The Tundra is incredibly outdated - I took it for a spin on Saturday and was completely underwhelmed. I wouldn't touch the Titan with a ten-foot pole. The new Chevs are embarrassingly ugly - the front quarter panel is hideous and the interior looks a decade old even though it's a fresh redesign. I actually like the Rams, but Ram doesn't lease inhouse so their lease rates are atrocious compared to everyone else. It's a work truck, so leasing is mandatory to get the write-off. The Ridgeline can't tow my trailer and all the small trucks don't do anything for me.

That leaves the F-150. It's the best of the bunch, but totally unexciting to lease a 2020 that is exactly the same as my 2016 I've been driving for four years. The 2021 redesign if right around the corner, too, so I'm going to be stuck with the old design when new cool ones are cruising around.

Boohoo, first world problems, but it would be nice to be excited about a new vehicle instead of bored with it before I even get it. I just don't understand how people can opt to own a truck if they don't need one. They're so lame.
Totally agree. Ford is my preferred truck, but Ram has really stepped up their interior design. I thought leasing a Ram would not be a problem.
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Old 05-11-2020, 03:55 PM   #59
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My lease is up on my F-150 in a couple of months. I'm so bummed because all the trucks right now are so lame.

The Tundra is incredibly outdated - I took it for a spin on Saturday and was completely underwhelmed. I wouldn't touch the Titan with a ten-foot pole. The new Chevs are embarrassingly ugly - the front quarter panel is hideous and the interior looks a decade old even though it's a fresh redesign. I actually like the Rams, but Ram doesn't lease inhouse so their lease rates are atrocious compared to everyone else. It's a work truck, so leasing is mandatory to get the write-off. The Ridgeline can't tow my trailer and all the small trucks don't do anything for me.

That leaves the F-150. It's the best of the bunch, but totally unexciting to lease a 2020 that is exactly the same as my 2016 I've been driving for four years. The 2021 redesign if right around the corner, too, so I'm going to be stuck with the old design when new cool ones are cruising around.

Boohoo, first world problems, but it would be nice to be excited about a new vehicle instead of bored with it before I even get it. I just don't understand how people can opt to own a truck if they don't need one. They're so lame.
Why not just buy out your current truck and do a sale leaseback on it? Keep the lease deduction, keep a truck that's as good as what you'd get, save $, keep your options open if something better comes up later.
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Old 05-11-2020, 06:41 PM   #60
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Totally agree. Ford is my preferred truck, but Ram has really stepped up their interior design. I thought leasing a Ram would not be a problem.
Nothing depreciates like a Ram. Dodge floods the market with trucks year after year making their residual values horrible which leads to higher lease payments. Dodge combats this by offering 96 month financing for lower payments. The never, never plan.....
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