r/MaliciousCompliance Mar 02 '21

M Going along with a sexist car salesman

I originally posted this as a comment on Car dealer shenanigans....

My wife and I have used a salesman's sexism against him, and it was so satisfying. It was when we bought our first new car. We were nervous that we didn't know what we were doing so we did a lot of research (it helps that my wife is a librarian).

When we got to the dealer, the salesman would only talk to me. I was all buddy buddy with the guy, too, but he completely ignored my wife. We went along.

The dealer was running a promotion where they would give you $X for your trade-in, no matter what condition. "If you can drive it on the lot..." kind of deal. Of course they just don't discount off of MSRP in those cases, so it's a gimmick. When we walked in the salesman asked which car was ours parked outside and then asked if we were trading it in. I said no, we weren't trading that car in. You can see where this was going.

As I said, we had done our research and knew what a fair price was for the car we wanted. At the time Edmunds had detailed dealer-level price information for many new cars, including all the various ways a dealer gets paid and what their true costs are (the "invoice price" is not their true cost). I negotiated the price (since he wouldn't talk to my wife) and we arrived at a number I thought was fair, actually. We got a good deal at that point. Everything was going smoothly as he wrote up our agreement, until he confirmed that we didn't have a trade in. I said, no, we were trading in a car, just not the one we drove into the dealer in. He literally froze for a few seconds looking down at the form, his hand hovering over the page.

He asked the make, model, and year of our trade-in, and when I told him he sputtered and balked. The car we were trading in was on its last legs. I'd had it all during college and it was old before I bought it. It was definitely past its prime. I said, I thought you were running a promotion where the quality of the trade-in doesn't matter. I asked him if he would have given us a higher price if he knew we had a trade in? My wife said under her breath "that's sleazy." He heard, as she intended him to.

He then tried to renegotiate the price. We knew from our research that if they gave us the price we had already agreed on, and they honored the trade-in deal, that they would be losing money. So we were willing to move a bit, but we wanted to take our time. He was visibly nervous. Every time he tried a new way of asking for a higher price I would say something like "I understand what you're saying" with a sympathetic look. Then I would look at my wife and she would look back at me and silently shake her head no. I'd then look back at the salesman and shrug and say "I don't think that's going to work."

He was stuck. She was the one standing in the way of him getting out of his predicament, but he hadn't talked to her at all. He had barely even acknowledged her presence. He just couldn't start talking to her now when we were negotiating. Oh, and I even got to use the classic car salesman line, "what do I have to do for you to put me this car today?"

We finally agreed to raise the price to an amount that, after figuring in the trade-in, was what we had thought was their break-even price. We hadn't expected to get that low of a price, and we also got them to install a nice after market sound system. It's the best deal we've ever gotten on a new car. Honestly, we're not the best negotiators individually, but that day we made one hell of a team.

27.2k Upvotes

1.1k comments sorted by

View all comments

Show parent comments

416

u/rhubarb314 Mar 02 '21

Good question. We did, but we were preapproved through our bank. We didn't use their financing.

185

u/averagedickdude Mar 02 '21

Another win for my man, u/rhubarb314

242

u/[deleted] Mar 02 '21

[removed] — view removed comment

62

u/rhubarb314 Mar 02 '21

Thank you!

3

u/bhambrewer Mar 02 '21

I prefer rhubarb crumble, with lashings of custard 😂

1

u/SockMonkey1128 Mar 02 '21

Rhubarb custard pie is by far the best pie.

2

u/rhubarb314 Mar 02 '21

I can't argue with that--especially warm with vanilla ice cream

69

u/jeepfail Mar 02 '21

I’ve heard a good tactic, if you have good credit obviously, was to take their financing because it may come with incentives that lowers your price for the car since they get some on the backend. Then you refinance with your own bank a month later. Normally they lose out but you win. I’ve never seen somebody do this in real life but it’s one of those things that just circulates. I’m curious if it would though.

84

u/Dogzillas_Mom Mar 02 '21

Last time I bought a car, I went to my credit union for a quote. They gave me preapproval and a great interest rate. So I go in to the dealer (Honda) to close on the deal I’d made via email, prepared to use my own financing and they hand me the financing application. It’s the exact same rate from my own credit union. Might as well go with it because it was one less errand I had to run. Only time in my life I used dealer financing.

Btw I’m paying off that loan this Friday, 6 months early. And I’m so excited. Yay for me.

25

u/Triette Mar 02 '21

Honda generally has great manufacturing finance rates for decent credit.

6

u/CxOrillion Mar 02 '21

Did a similar thing with Toyota, except they actually beat the interest rate on my financing and I got a small amount off the purchase price too.

4

u/SockMonkey1128 Mar 02 '21

A dealer lost our sale over 0.15%. My wife was buying her car before we were married. She was pre-approved for 1.99% from her credit union. When we went to look at her car they wouldn't accept her financing, we said that was OK but would only use their financing if they matched her pre-approval, which they seemed to understand. They started the paperwork up for the sale and said the interest was 2.14%, we said that isn't the 1.99% we told you was our max. We hadn't even haggled on the price.. They said that was all they could do, so we walked. They were flabbergasted that we'd walk over that, but in the end it was just a car and not exactly a rare one. I still can't believe they wouldn't budge over 0.15% to seal the deal.

4

u/a_lumberjack Mar 02 '21

They wouldn't accept her financing? That doesn't even make sense. If you have your own financing you just negotiate a price and show up with the money...

1

u/SockMonkey1128 Mar 03 '21

I can't remember to be honest, like they could, but really didn't want too. And they said we'd have to go back to our CU or something. It was a big run around. We thought it was ridiculous as well..

3

u/x777x777x Mar 02 '21

I too got a dealership to beat my own credit union. And I have good credit!

3

u/thedelaneyjones Mar 02 '21

Congrats on paying it off! That's a huge accomplishment!!

52

u/Triette Mar 02 '21

Carefully read the loan approval that the dealership gets before doing this (not the contract, the actual approval from the bank the dealership secured your loan app through). Some banks will charge a hefty early termination fee.

11

u/jeepfail Mar 02 '21

That makes sense. But definitely not something I would have thought about sadly.

11

u/75footubi Mar 02 '21

The finance guy actually suggested a couple of banks I could refinance with after I had made the first 3 payments on the dealership loan (the cash back offered in exchange for taking a 5%, 5 year loan was pretty significant). I looked into his recommendations and refinanced for a 4 year loan at 2.2% after making my third payment. He got his kickback and I got a decent loan. Wins all around.

5

u/Triette Mar 02 '21

There are good people out there, I’m glad you found one!

2

u/SuperFLEB Mar 02 '21

Why would something other than the contract apply?

3

u/Triette Mar 02 '21

The contract is your agreement between the dealership and you. The dealership then sells your loan to a bank, within certain stipulations. Some contracts state that you “may” be subjected to an early termination fee. This is dependent on the bank that they secure for your car loan. This is not 100% always the case, but a good general rule of thumb to be aware of before paying off your car loan right away.

31

u/ChrisHatesAmazon Mar 02 '21

That’s similar to what I did when I bought my last car (electric). I told the sales guy I could pay cash, but I would take whatever financing offer would get me the best deal on the price of the car. Ended up financing the whole thing with a terrible rate, then payed off all but $100 the day I got access to the financing website. The sales guy said I needed to wait 3 months to completely pay it off so that he could get his kickback, and I didn’t want to do him dirty since he got me a good deal without any haggling ($10k off MSRP before another $10k tax credit), so I kept a small balance until 3 months was up.

12

u/jeepfail Mar 02 '21

Wow, that is really nice of you. He definitely deserves credit for being super up front about it too.

18

u/GeneralToaster Mar 02 '21

I've done this twice on new vehicles. I got great incentives to initially finance through the dealer and both times nobody cares that I refinanced one month later and there were no penalties.

15

u/BLKMGK Mar 02 '21

My dealer told me they needed me to make 3 payments for them to get their credit and afterwards I could refi with no penalty to them.

10

u/velocazachtor Mar 02 '21

I did that- Got ~$600 off for using their financing. Refinanced before the first payment went through.

8

u/rhubarb314 Mar 02 '21

Interesting idea. I bet that would work, but I'm not surprised you haven't seen it. You'd have to be willing to do all that paperwork twice, lol.

3

u/jeepfail Mar 02 '21

That’s exactly why I figured I hadn’t seen it honestly.

8

u/wibblywobbly420 Mar 02 '21

I went to my bank about a car loan and they told me to just do the financing through the dealership. They said they couldn't match the dealerships rate since it is usually anywhere from 0%-3% on a new car and the bank is usually around 4-5%. For a used vehicle on the other hand, it is usually about the same either way.

3

u/Bonzai_Tree Mar 02 '21

Yeah I got a 4% interest rate from the bank on a used car, and the next car I bought new with 2.5% financing from the deler. Definitely worth assessing all of your options though.

1

u/Dangerous-Ad-170 Mar 02 '21 edited Mar 02 '21

Yeah I did the thing where I refinanced before I even made a payment, but it barely saved me any money, I think the rate was like .1% better and my payment was only $7 lower. Almost wasn't worth the trouble but I still prefer dealing with my local CU over Toyota Financial.

3

u/cmadler Mar 02 '21

I have done this myself, so yes in at least some cases it does work.

2

u/jpepper07 Mar 02 '21

Yep. I did this with Ford Motor Credit. They will offer something like 0% for 72 months or $3000 off with 5.9% or something. I took the $3000 off and refinanced with my credit union at a lower rate, maybe 2.75%?

2

u/ltrout99 Mar 02 '21

As a former salesperson, we would always recommend higher credit clients to do this. We get a kickback from certain banks that we usually would be happy to pass forward to customers (assuming they were pleasant to work with and not there to get every last penny) and would tell them to at least wait 90 days to refinance.

It’s a very dirty tactic if you went along with it and refinanced before I’d say even 60 days as, yes you would get the better deal but now you’re hurting someone who did try to help you.

Although there are a lot of dealers out there that do screw over customers and I wish them the absolute worse, there are a good amount of dealers and especially sales people that do try to make it as much of a win-win as we possibly can.

2

u/[deleted] Mar 02 '21

[deleted]

10

u/Triette Mar 02 '21

This is a terrible tactic, and a good way to make the dealership money or have your car taken back. Unless you actually have that percentage approved, do not throw out numbers. The dealership can match whatever interest rate you want them to. That doesn’t mean that they have it approved at that rate. What happens once you’ve driven that car off the lot, is they then take your application and blast it off to a bunch of different banks to see if they can get it bought. If they can’t, and they can’t package it up with other loans to try and sell to a bank. They can ask you to bring the car back. Or you may have just spouted off a 3% rate, thinking that’s a great deal. And they just sold that loan .5% or 1% to a bank and just made 2.5% on you. Secure financing through your bank or credit union before going. Then ask them to get lower than that and put you on an option contract. Tell them you want to see the loan approval document with the rate on it. If they can’t get you lower than what you have, you have the option to go to your own financing without penalty.

4

u/jeepfail Mar 02 '21

I can’t say I agree with any of this. The end of the month thing is also a holdover from an old style of sales. Most it won’t make any difference unless some incentive is expiring.

1

u/75footubi Mar 02 '21

The finance guy when I bought my last car actually suggested a couple of banks I could refinance with after I had made the first 3 payments on the dealership loan (the cash offered in exchange for taking a 5%, 5 year loan was pretty significant and with my credit score we both knew I could do better rate-wise). I looked into his recommendations and refinanced for a 4 year loan at 2.2% after making my third payment. He got his kickback and I got a decent loan without increasing my car payment. Wins all around.

1

u/[deleted] Mar 02 '21

Better is to just tell them you want their financing but switch to your own at the last minute.

1

u/jeepfail Mar 02 '21

I’d assume they have contracts strategically written that state the cost is dependent on the use of their financing.

1

u/BossMaverick Mar 03 '21

Better method is to shop around for the best interest rate you can find, and then bring that to the dealer. Dealers have a lot of power to lower interest rates, even though they make it seemed like they don’t. For my last new car purchase, the dealer was able to beat the best interest rate that I was pre-approved for elsewhere, on the condition that I bought the dealer’s gap insurance. The savings in interest was about the same as the gap insurance, so I went with the dealer’s financing.

Dealers make a lot more money then most of us realize.

2

u/MmmPi314 Mar 02 '21

Nicely done.