Help with Used Dealer Tricks

[00fil00]

Hey guys,

I just reserved a used RAM 1500 sport with a dealer 2.5 hours away. I'm going down to see it tomorrow. It has 28,000km on the clock and I managed to get from $54,777 CAD down to $52,777 CAD & $200 delivery fee. I have no idea if that is good or not.

I worry that I am walking into the lions den as the Chrysler finance manager is throwing figures at me over the phone. OK so here are his 2 options:

Option 1: $383 biweekly for 84 months at 5.99%. This includes factory warranty for x3 years and tire rotations, bump and scratch fixes, and free oil changes for x5 years.
Option 2: If I say I don't want warranty crap then suddenly I don't qualify for the "VIP special deal" good rate that's "only on this month" and I'm bumped up to $382 biweekly for 84 months @ 8%

Hmm... doesn't make sense. I'm clearly being forced into option 1 since they come out the same price, and he even says things like "ok ill put you down for it for now and you can change your mind later - alarm bells" but I can't see the path around it or what I'm missing. It doesn't make logical sense to pick option 2 on paper. Which is why I know it's a trick.

What can I do? My thoughts are that maybe I could pick option 2 and then just pay off the truck quickly in a year so the interest doesn't have much say.
The other option would be to take Option 1 and then within 30 days after owning, cancel the warranty which I think you can do. They will be pissed. They might say I have to come sign the papers for that which would be a 2.5 hour trip to sign a bit of paper.

Are there things I'm missing? How do I get out of the trap that I can't see the door?

 

[davidajpritchard]

Hey guys,

I just reserved a used RAM 1500 sport with a dealer 2.5 hours away. I'm going down to see it tomorrow. It has 28,000km on the clock and I managed to get from $54,777 CAD down to $52,777 CAD & $200 delivery fee. I have no idea if that is good or not.

I worry that I am walking into the lions den as the Chrysler finance manager is throwing figures at me over the phone. OK so here are his 2 options:

Option 1: $383 biweekly for 84 months at 5.99%. This includes factory warranty for x3 years and tire rotations, bump and scratch fixes, and free oil changes for x5 years.
Option 2: If I say I don't want warranty crap then suddenly I don't qualify for the "VIP special deal" good rate that's "only on this month" and I'm bumped up to $382 biweekly for 84 months @ 8%

Hmm... doesn't make sense. I'm clearly being forced into option 1 since they come out the same price, and he even says things like "ok ill put you down for it for now and you can change your mind later - alarm bells" but I can't see the path around it or what I'm missing. It doesn't make logical sense to pick option 2 on paper. Which is why I know it's a trick.

What can I do? My thoughts are that maybe I could pick option 2 and then just pay off the truck quickly in a year so the interest doesn't have much say.
The other option would be to take Option 1 and then within 30 days after owning, cancel the warranty which I think you can do. They will be pissed. They might say I have to come sign the papers for that which would be a 2.5 hour trip to sign a bit of paper.

Are there things I'm missing? How do I get out of the trap that I can't see the door?

Get your own financing from the bank and then you can do a cash deal?

Sent from my SM-N986W using Tapatalk

 

[Sascwatch]

It’s a rough time to buy a used truck, prices are all over the place. I’d shop around and don’t be afraid to travel.

You might also be surprised at how low dealers will go on new trucks, that along with usually lower interest rates might make your payments less or around the same amount as a used truck. Payments on my truck are $200 weekly for 96 months at sub 3% with no down payment.

You can also get pre-approved for financing at your bank which should be a lower interest rate than the dealer offers.

 

[Mountain Whiskey]

$53k for what trim level? Hopefully that is not a Bighorn Sport with 28k miles!

If your credit is good, I certainly would not go for 6%-8% intrest.

 

[mikeru82]

$53k for what trim level? Hopefully that is not a Bighorn Sport with 28k miles!

If your credit is good, I certainly would not go for 6%-8% intrest.

He's in Canada. The Sport is it's own trim level/model.

 

[LimitedGRR]

Hey guys,

I just reserved a used RAM 1500 sport with a dealer 2.5 hours away. I'm going down to see it tomorrow. It has 28,000km on the clock and I managed to get from $54,777 CAD down to $52,777 CAD & $200 delivery fee. I have no idea if that is good or not.

I worry that I am walking into the lions den as the Chrysler finance manager is throwing figures at me over the phone. OK so here are his 2 options:

Option 1: $383 biweekly for 84 months at 5.99%. This includes factory warranty for x3 years and tire rotations, bump and scratch fixes, and free oil changes for x5 years.
Option 2: If I say I don't want warranty crap then suddenly I don't qualify for the "VIP special deal" good rate that's "only on this month" and I'm bumped up to $382 biweekly for 84 months @ 8%

Hmm... doesn't make sense. I'm clearly being forced into option 1 since they come out the same price, and he even says things like "ok ill put you down for it for now and you can change your mind later - alarm bells" but I can't see the path around it or what I'm missing. It doesn't make logical sense to pick option 2 on paper. Which is why I know it's a trick.

What can I do? My thoughts are that maybe I could pick option 2 and then just pay off the truck quickly in a year so the interest doesn't have much say.
The other option would be to take Option 1 and then within 30 days after owning, cancel the warranty which I think you can do. They will be pissed. They might say I have to come sign the papers for that which would be a 2.5 hour trip to sign a bit of paper.

Are there things I'm missing? How do I get out of the trap that I can't see the door?

The dealer has high profit margins on warranty sales so they’ll pimp the warranty option and it nets them a better margin on option 1. Just confirm the warranty company: Is it ram or a 3rd party. 3rd party isn’t bad, but it might surprise you when it’s not a ram warranty. Lots of dealers use Zurich for extended warranties and they’re great.


Sent from my iPhone using Tapatalk

 

[NorthStar]

Hey guys,

I just reserved a used RAM 1500 sport with a dealer 2.5 hours away. I'm going down to see it tomorrow. It has 28,000km on the clock and I managed to get from $54,777 CAD down to $52,777 CAD & $200 delivery fee. I have no idea if that is good or not.

I worry that I am walking into the lions den as the Chrysler finance manager is throwing figures at me over the phone. OK so here are his 2 options:

Option 1: $383 biweekly for 84 months at 5.99%. This includes factory warranty for x3 years and tire rotations, bump and scratch fixes, and free oil changes for x5 years.
Option 2: If I say I don't want warranty crap then suddenly I don't qualify for the "VIP special deal" good rate that's "only on this month" and I'm bumped up to $382 biweekly for 84 months @ 8%

Hmm... doesn't make sense. I'm clearly being forced into option 1 since they come out the same price, and he even says things like "ok ill put you down for it for now and you can change your mind later - alarm bells" but I can't see the path around it or what I'm missing. It doesn't make logical sense to pick option 2 on paper. Which is why I know it's a trick.

What can I do? My thoughts are that maybe I could pick option 2 and then just pay off the truck quickly in a year so the interest doesn't have much say.
The other option would be to take Option 1 and then within 30 days after owning, cancel the warranty which I think you can do. They will be pissed. They might say I have to come sign the papers for that which would be a 2.5 hour trip to sign a bit of paper.

Are there things I'm missing? How do I get out of the trap that I can't see the door?

Ordinarily, in these times when car prices are ridiculous, I’d recommend going in with a face mask and two 9MM Sigs with six clips as the sales force will be waiting with brass knuckles and clubs. But, realizing you’re in Canada then you’ll have to make do with a shotgun.

My only other recommendation would be to wait if at all possible…I can’t imagine how brutal it must be attempting to negotiate in these current times.

 

[Willwork4truck]

Did you try emailing around other dealers/other provinces? Don't act desperate or you are "toast".

 

[Willwork4truck]

Did you try emailing around other dealers/other provinces? Don't act desperate or you are "toast".

When I shopped for my now gone 19 Ltd, I made the mistake of allowing my spouse to voice her opinion in front of the salesman about colors. At the time 95% of the truck interiors were black and she only wanted the Ivory interior. Out of the 5 to 6 exterior colors she wanted the tri-tone Ivory.
Out of like 20 trucks on the lot (Limiteds were in good supply back then) there were 2 with the Ivory in and out.

My negotiating strength dropped from "relatively good" to "sucks" all at once.

Morale of the story, don't ever let on that the dealer has "just what you want" or "I've been looking for one of these all over". That's music to a salesman's ears.

 

[Rexx]

It seems expensive but I don’t know in today’s climate with Covid. I bought my limited brand new last year at the end of February. I did put some money down and have some positive equity on my trade (not that much mind you), and my biweekly payment is less than what they’re offering you with either option.

If you love the truck and are fine with the payments then go for it - it just seems kinda expensive to me.

 

[Johnnyb001]

Off topic but are biweekly or weekly payments on a newer vehicle a thing in Canada? The only places I’m aware of that do that in the US (southeast at least) are “buy here pay here” style used car lots, they specialize in selling a 4K vehicle for $7,500, most of those places the downpayment covers what they actually have in the vehicle, and any payments made before they inevitably repo it for non payment are pure profit. They tend to resale most of their vehicles at least once a year, sell it to the first person, they make payments on time for 3-6mo then it gets repo’ed and it’s back on the lot to sell to the next person that comes along.

 

[Mountain Whiskey]

Off topic but are biweekly or weekly payments on a newer vehicle a thing in Canada? The only places I’m aware of that do that in the US (southeast at least) are “buy here pay here” style used car lots, they specialize in selling a 4K vehicle for $7,500, most of those places the downpayment covers what they actually have in the vehicle, and any payments made before they inevitably repo it for non payment are pure profit. They tend to resale most of their vehicles at least once a year, sell it to the first person, they make payments on time for 3-6mo then it gets repo’ed and it’s back on the lot to sell to the next person that comes along.

Still off, but I did my finance with Capital One and it gives you the option to split it and add additional principal payments. I just took the longer loan at a lower interest rate, did payments to match my pay days and bumped up the principal payment so it matched a 4 year loan.

 

[Rexx]

Biweekly payments are very common in Canada. My mortgage is biweekly as well. Lots of places pay their employees biweekly so having payments biweekly works.

 

[Mountain Whiskey]

Biweekly payments are very common in Canada. My mortgage is biweekly as well. Lots of places pay their employees biweekly so having payments biweekly works.

The mortgage saves years in payments.

 

[00fil00]

I can't figure it out as the consensus is that it's expensive, but any other similar vehicles on Autotrader are $59,000 with 90,000 miles. Seriously. You can check. I dunno what to do now. Everyone says wait but I've been waiting for a year and with no end in sight for everyone buying vehicles up like candy. Man, bummed out now. Made me laugh about entering the sales room fully armed though.

I've cancelled the visit tomorrow as the finance manager refused to send me the cost breakdown so I'm not playing. If I walk away can I get my deposit back by reversing my credit card charges with AMEX?

 

[shaginwagon]

What year is this truck? How much of the OEM warranty is left. How much are they charging for the extended warranty ?

 

[00fil00]

2019. I don't think there's any warranty left as RAM does 3 years I think. I checked Carfax report and 1 previous owner and it was leased. Extended warranty they are mixing in with the final price to be vague but calculated to be somewhere between 3000-5000 for all these fake protection things and oil changes.

 

[CdnSport21]

This is why I bought new, prices on used trucks were already out of hand in March when I ordered. I have to wait for the truck but will be paying the same if not less for my new ‘21 Sport with the options listed below. There were still some great deals (21% off MSRP) to be had on new trucks in March, lots has changed since then.

 

[Johnnyb001]

Biweekly payments are very common in Canada. My mortgage is biweekly as well. Lots of places pay their employees biweekly so having payments biweekly works.

Yeah the option to make biweekly payments on a mortgage is (or was when I had one) fairly common, most are/were a monthly payment, that gave you the option to make half the payment early, with the intent of killing lots of the early interest. Yeah I think back years ago, we figured out splitting the payments like that, and making one extra payment a year knocked like 7 years off of the life of a 30 yr mortgage. It’s amazing.

I’d just never heard of it with a “normal” car note! Thanks for the info guys. And op good luck with your purchase!
Just a thought, I don’t know the legalities of “importing” a vehicle to Canada. But if you’re looking at that kinda expense, and it’s feasible, maybe check with the dealer down in Louisiana (Mark Dodge) or Washington state (Bob Olsen?) mentioned in the how to get the best price thread on here

 

[Rexx]

Just a thought, I don’t know the legalities of “importing” a vehicle to Canada.

Do not do this. Sadly you would end up with a “grey market” vehicle. Any warranty work you’d have to take the truck to a dealership in the USA.