devilsfan

I have a bank note from eloan, and I'm going to pick up my car later this week! I also applied for financing through my dealer as well to see if they could get me a better rate. Do they make any money off of the loan if I go through their finance manager? They say they don't. See I'm trying to get a little more money on my trade in. I'll use their financing since it's the same interest rate as eloan, but if they are making money off of my loan through them, I want to ask for a little more on my trade in. I feel like I'm already getting screwed enough. They also told me they aren't making any money off my trade in since they can't sell it on the lot, they have to sell it to a salvage place or something, which I think is bull. How much 'cushion' do they have on my trade in? They are giving me $2000 on my 1993 Honda, can I get $2200? They say no, I think they can... Any advice would help, I'm picking up my A4 2001.5 TQCS-17" on Wednesday or Thursday!!! thanks in advance..

Skydive@AI

Dealers DO make money on paper they write. Depending on how they do the loan, they either get a either take a piece of the interest, or they get a flat fee kickback. THAT'S why they always encourage you to do in house financing. In fact, (and I've said this here before), it is usually a great negotiating tool for you. If you make the deal and let them *think* you'll be using their paper, your "bottom line" will come out better because they make money on the loan. You don't drop the "I think I'll pay cash" bomb until after you're in with the F&I guy doing the paperwork. You're still paying the same for the car, so they can't change the deal based on that little surprise.

Also, in California, (and probably other states), you can make the dealer select the seven day alternate finance priviso... This lets you take their financing at signing, but they have to hold the contract for a week, so that you have that time to secure your own financing.

Be careful with dealer financing. eLoans and their brethren write SIMPLE INTEREST contracts. Dealers may try to seduce you with equal or lower rates, but the contract is FRONT LOADED INTEREST, such that it ends up costing you a bunch more money, even though the rate is the same. You want the words SIMPLE INTEREST, and nothing else.

As for your trade... Unless it's a marque they sell on their lot, they'll sell it at a wholesale auction. They don't know what they'll get, but they have a pretty good idea. Unless it's already got a salvage title, it won't be sold for salvage. Go to Edmunds and get a TMV valuation. Print it, and take it to them. They probably won't give you that, but it's another negotiating tool. Be sure though, if they give you a really good trade in value... they're making it up somewhere else. Typically, dealers make more money on a trade than they do on the car you're buying.

Car Salesmen use a four squrare approach:

Total Purchase Price
Trade In Value
Financing
Down Payment

If they lose ground in one square, they make it up in another. Take away as many of those squares as you can.

Do a search of the archives... Myself and others have written many times about dealers and deals.

Good luck.

RKA

If the dealer is financing the loan through a local bank, there is going to be a kickback of some sort from the bank to the dealer. That's the bank's way of compensating the dealer for referring business. I'm not sure how it would work if the dealer is financing the loan through Audi Financial, but I would be willing to bet there is money coming back to the dealer. The F&I guy (the one arranging the loan) is in this for the money, just like everyone else.

The F&I guy is independent from the used car guy (who assesses the value of your trade in). Each has his/her own interests at heart. The used car guy is going to sell your car at wholesale. He's not going to do it for free. There is probably $1K in it for him (check Edmunds to see what the wholesale is on your car...that's what he'll get for it). He is right in saying they probably won't sell your trade right at the dealership. People just don't go looking for 1993 Hondas at an Audi dealership.

There is probably room to get your $200 and some. Your salesperson is the middleman. If he wants to close the deal, make him work out the nonsense between the used car guy and the F&I guy, so that everyone leaves happy.

s4wood

If you do trade it in...you will feel like you are getting raped...and it will sour your new car purchase experience. BTW, when I sold my A4...I got $2,100 more privately than they will willing to give me on a trade-in.

skabaru

I am looking at rims for my avant, thinking:

radons
moda R3
MM cello
MAS Roger

17 or 18 (can't decide)

but I would love some more pics of your radons!

s4wood

I was planning to do a photo session when the car gets lowered with the addition of H&R coilovers. It is embarassing at this road height. At the http://www.donutzracing.com web site there are a few...but not exactly what you are wanting to see.

Sorry.

skabaru

I am jealous... so pretty... your right, the ones on the site aren't perfect, but nice no less... your ride height isn't so bad, but I understand... look forward to some pics

s4wood

I am getting them directly thru H&R...not thru a reseller. Should be on in the next 4 weeks.

jyoteen

Hey, maybe we can do a Mustard and Ketchup photo shoot sometime :-)

XCCESS

They also make a lot of money on the trade in. Also they will make alot of money with trade in, $1000+, if I were you I will try to do a private sell.

On the Eloan for me, it took them almost 3 month to pay the dealer the draft