Finance manager experience...

Messages
17,281
Location
Upper Midwest
That's usually for tier one credit. A good F&I guy has tricks for screwing [some] people out of that and moving them to a bank he prefers to deal with. Then he can get a piece of the pie and load his pockets up a bit more. Smart people know their credit score before they walk into a dealership and finance a car. They also shop loans on their own. Occasionally a savvy shopper can get a better rate from a dealer than on his own, the key is knowing how to work the dealer.

My days for selling cars are long gone, and the banking industry might have changed a little bit. But a good thief F&I guy just changes with the times.
It wasn’t that high, when we got our Tiguan it was 785? Something around there. I watched the dealer do everything they could to get people in the program.
 
Last edited:
Messages
10,759
Location
MA
That's an interesting one and I wonder, are the banks in on that just as much as the dealer ? I mean, the bank gets to loan out more money so they win as well. Along this same line, a friend had an auto loan that was on the high side of interest rates but improved their credit enough to qualify for much lower interest. I told her if you refinance, do not extend the loan term or even start over. Pay it off in the same time frame as the original, just pay less interest. She started getting numbers back and all but one was adding thousands to the payoff amount and she asked 1-2. They had a minimum amount they'd refinance and her payoff was below that so they added a service plan/extended warranty and made the cost of it the difference of their minimum and her payoff !! She found one that was just as competitive on their numbers without a minimum loan amount that she went with.
Probably worked the same as mortgages. We had a mortgage arm at one point. Basically you could make money multiple ways. The bank paid a fee if you could get them into a higher rate mortgage. You also got your commission if they made the first few payments. They had a clawback provision and it kicked in if the loan got paid off within a certain amount of time, typically 2-3 months. I suppose that would also apply if you didn't make any payments. Had to be a good loan after a couple months. Your commission was based on a percentage of the loan so the more you borrowed the more the guy made. Probably why the F&I guy wants to sell you as much stuff as possible.

I did buy a warranty once on a TV, the guy was pushing it hard and I asked him how long I had to have it before he got his pay. Told me it was one month and the warranty was refundable if you wanted to cancel in a year. So I did him a favor and held it for two months before canceling.
 
Messages
771
Location
Huntington WV
I'm really beginning to love the VW/Audis. Great looking car!! Congrats!! What's that small Audi coupe I see every once in a while? Almost looks to be the size of an Accord coupe. There's just something about their styling which seems ahead of their time that I like.
The VW/ Audi sedans are close in size to each other. The Audi A3 is the smaller than the Jetta. The Audi A4 is smaller than the Passat. Both VWs have better rear seat head room. In my area I tend to see more A4s than A3. The A5 coupe is essentially a two door A4
20201220_182427.jpg

I love the clamshell hood on my A4
 
Messages
378
Location
Scottsdale, AZ
I typically finance through my FCU but will give the dealer a shot at getting me a better rate. I lie my ass off to the F&I guy during his spiel at the end. My dad has been a Honda, Ford, Nissan, and BMW master tech and my uncle happens to own a parts distributorship for all those brands in Kansas. Of course this is not true my dad is a retired copy writer and my uncle is a retired mail man.
 

CKN

Messages
6,473
Location
Utah
A Finance Guy trying to sell you extra stuff. What the "News" here? Guys who buy VWs must crave attention.......How many more threads are we going to get from the original one?


Let me make a suggestion: I just bought a new Jetta what oil should I use?
 
Messages
36,473
Location
ME
I let the F&I guy think he got us on the 5.9% APR. Punked him by moving some money around and paying it off in six weeks. There's always refinancing if one thinks they can do better than the dealer. Just make sure there aren't prepayment penalties.
 
1. There is an A$$ for every seat.

2. Salesperson would rather sell used cars vice new cars. With new cars, every dealer has one just like it. With used, he is the only one with that car.

3. Biggest fear at a dealer is that the customer will walk out and go to dealer down the street.

4. Sales people never really have a day off. If they have to deliver a car on their off day, they still must come in for delivery,

5. Dealers not only screw customers, they also screw salespersons. Sales people have to watch their sale like a hawk, or the dealer will find any excuse to not pay the sales guy his commission.
 
Messages
766
Location
Central Indiana
1. There is an A$$ for every seat.

2. Salesperson would rather sell used cars vice new cars. With new cars, every dealer has one just like it. With used, he is the only one with that car.

3. Biggest fear at a dealer is that the customer will walk out and go to dealer down the street.

4. Sales people never really have a day off. If they have to deliver a car on their off day, they still must come in for delivery,

5. Dealers not only screw customers, they also screw salespersons. Sales people have to watch their sale like a hawk, or the dealer will find any excuse to not pay the sales guy his commission.

Sounds like you were in the business at one time. When I was much younger, I was.

Everything you stated is the absolute truth.
 
Messages
5,121
Location
Ohio
The banks aren’t in on it per se. Lenders aren’t involved in the sale price of the vehicle, but the lender can limit how much advance (loan amount) they will give. Separate from the loan amount, most lenders limit how much total backend product $$ amount can be sold.
Yeah, when I think about it, the lender isn't going to loan $10k for a car worth $6k either.
 
Messages
11,384
Location
Phoenix
A Finance Guy trying to sell you extra stuff. What the "News" here? Guys who buy VWs must crave attention.......How many more threads are we going to get from the original one?


Let me make a suggestion: I just bought a new Jetta what oil should I use?

I've found the threads on this interesting.
 

CKN

Messages
6,473
Location
Utah
1. There is an A$$ for every seat.

2. Salesperson would rather sell used cars vice new cars. With new cars, every dealer has one just like it. With used, he is the only one with that car.

3. Biggest fear at a dealer is that the customer will walk out and go to dealer down the street.

4. Sales people never really have a day off. If they have to deliver a car on their off day, they still must come in for delivery,

5. Dealers not only screw customers, they also screw salespersons. Sales people have to watch their sale like a hawk, or the dealer will find any excuse to not pay the sales guy his commission.
My son was in the business for a while at a Toyota Dealership-it seems no matter what the new car was-the deal was always a "skinny" and he got a $100.00. I think one guy sold a (once a year) Land Cruiser and got $150.00.
 
Messages
1,511
Location
TX
I picked up our new 2020 Jetta on Friday to replace our 2020 Jetta with the paint defect. The transaction was quite smooth until I got to the finance managers office. One of the first forms he wanted me to sign was the one declining all the additional packages you can purchase at the dealer level. Of course he was taking very fast and told me I was signing to decline coverage on these items BUT he thought I wouldn't notice the "paint and fabric protection" option that was checked off! He had already rolled it into the loan without my approval! I stopped him mid sentence and asked him if there was a charge for that option, he said "no it won't increase your payment". I told him I understood that but I had never requested such an option, so why was it rolled in? He huffed and puffed and found it silly of me to decline it since it wouldn't increase my payment and I told him to take it off. He begrudgingly redid the paperwork without the option.

Then we get down to the interest rate! I have excellent credit so I want worried about getting the best rate, but I did tell my sales man I didn't want to sign any paperwork until I got confirmation that I wold get the rate I wanted. He said OK! Yet, when I get to the finance manager and start signing on the dotted line I see a higher interest rate than I told them I would move forward with! He seemed frustrated that I noticed then told me thats the best the bank could do. I refused and told him I explicitly stated that I wouldn't move forward with the sale without the rate I wanted / knew I could get. He quickly checked with another lender and got the rate I wanted (same as previous Jetta).

I know how dealers can operate, but goodness! I wold hate to think of what they do to the average buyer! One of my coworkers purchased a 2015 Malibu about a year or so ago and the dealer sold her and her husband a $3000 third party warranty. I cringed when she told me.

Anyway, I was very careful to review all the details and because of that wasn't taken advantage of.
and you had to through all this nonsense for a barely noticeable blemish on the paint. oh my. you must be bored to the teeth.
 

gregk24

Thread starter
Messages
7,429
Location
FL, USA
A Finance Guy trying to sell you extra stuff. What the "News" here? Guys who buy VWs must crave attention.......How many more threads are we going to get from the original one?


Let me make a suggestion: I just bought a new Jetta what oil should I use?
Says the guy who follows all the threads and posts on them...

If you don’t like it don’t follow.
 
Messages
1,447
Location
Maryland
Today the profit margin is a lot smaller than a few years ago. Dealers really do not make that much on the sale of a new car. The finance guy is the profit center for dealers today. They are under pressure to make the dealer as much as they can. And the good ones make a lot of extra money on the deal.
You have to watch them like a hawk. As people have said they will usually try to slip something in somewhere.
 
Messages
952
Location
montreal ,canada
Today the profit margin is a lot smaller than a few years ago. Dealers really do not make that much on the sale of a new car. The finance guy is the profit center for dealers today. They are under pressure to make the dealer as much as they can. And the good ones make a lot of extra money on the deal.
You have to watch them like a hawk. As people have said they will usually try to slip something in somewhere.
He's their best, toughest salesman, the cleanup hitter.
 
Messages
35,696
Location
NY
It wasn’t that high, when we got our Tiguan it was 785? Something around there. I watched the dealer do everything they could to get people in the program.
It was 750 when I sold cars. I watched the F&I managers do everything they could to swing people out of the program. LOL They made nothing from financing a car during those days if the interest rate was 0%. Don't get me wrong people rolled out of there with the 0% rate, and a lot of people with scores over 750 didn't. They knew who he could work and how. As I said knowing your score before financing a car can be of help. The people that got screwed out of the program the most often had scores from 750 to about 765, and didn't know it.
 
Top