Last month, I negotiated a leased vehicle for a client and I stressed to the client that they would not have to deal with any other negotiations. Just pick up the car. As in every transaction through a dealership, after you negotiate with the salesman, he turns you over to the Finance Manager.
As I’ve warned you in the past, this is the point when they try to get you to buy packages and options that you don’t need. My client was told that she didn’t have the credit score to receive the agreed on financing, and the Finance Manager would have to increase the payment by $17/mo. I told my client that it shouldn’t matter, because her credit score was good enough for that rate. I coached my client to say, “Thank you, but I am walking out the door.”
Miraculously, without calling the bank, the Finance Manager gives her the original agreed-on price! I found out later that the Finance Manager was furious! She had negotiated $700 less on the front end, and was trying to make it up on the back end of the transaction. If dealerships don’t want to do the deal in the first place, they shouldn’t do it!
Think about this, what other industry/business model negotiates a deal and then adds more onto the end price to get the number they wanted originally?? By educating my clients, I hope they will be informed and understand how the system works and won’t be fooled by it!
