Thoughts please - Did I get a good deal?

[dgto]

Hey guys!

After an exhausting and confusing process of researching and meeting with a few bait and switch dealerships, I finally bought a car yesterday - while it's the best offer I received in all my efforts, I'm still a little nervous I got hoodwinked after all the smack these dealers can talk... lol

I was hoping some of you could give me your opinion as to whether you think I got a good/fair deal!

I financed a 2010 Mitsubishi Lancer SE, CVT automatic transmission (MSRP $21,498) with the Sun & Sound upgrade package (MSRP $2,200) and a premium paint colour (MSRP $160) for $370/month all fees and taxes in for 72 months @ 0% financing with $0 down payment. The dealer also "threw in" an IPOD cable for the sound system.

This works out to a total buying price of $26,640.

Thoughts? Any feedback is much appreciated! Thanks.

[97luder]

did you lease it of finance it ?

[dgto]

Originally posted by 97luder
did you lease it of finance it ?

Financed, over 72 mos. @ 0%, $0 down payment.

[InRich]

even if you didnt get a good deal, whats the point in finding out. your deals been made, theres nothing you could do. its just going to sour your experiance if you figure out you got ripped anyway. you might even end up hating the car for the duration of your financing...

[masoncgy]

What were the documentation & adminstration charges? Going off the numbers you provided, your car all in should have come just over $25,000... and your total obligation is $26,640... so did you pay $1,600 in doc & admin charges?

I personally would never pay $370 for 7 years for a vehicle... that's a fairly big commitment & payment schedule for a depreciating asset.

[Mr_ET]

Originally posted by masoncgy
What were the documentation & adminstration charges? Going off the numbers you provided, your car all in should have come just over $25,000... and your total obligation is $26,640... so did you pay $1,600 in doc & admin charges?

I personally would never pay $370 for 7 years for a vehicle... that's a fairly big commitment & payment schedule for a depreciating asset.

Forgot the taxes?:dunno:

Keep in mind in TO taxes are about 13.5% right now if I'm not mistaken.

I'd say you probably got a reasonable deal

[masoncgy]

Oh yeah, I forgot about the PST in Ontario.. nevermind! ;)

[dgto]

Originally posted by masoncgy
What were the documentation & adminstration charges? Going off the numbers you provided, your car all in should have come just over $25,000... and your total obligation is $26,640... so did you pay $1,600 in doc & admin charges?

I personally would never pay $370 for 7 years for a vehicle... that's a fairly big commitment & payment schedule for a depreciating asset.

Hi there,

The numbers I provided were MSRP before taxes, freight, PDI, etc... just for the car with automatic transmission, the sound package upgrade, and the premium paint.

I think there was an administration fee of $495 but I'd have to confirm... the Mitsubishi website Build It Price It tool puts the car I bought at $25,458 before taxes, but including Freight/PDI... and quotes a $399.54 monthly payment for the same financing term I selected (72 mos.)

Also, the 72 month financing term is 6 years not 7, but at 0% interest so no cost on top of the principal.

[Xtrema]

Works out to be $500 off and 0%.

Not unreasonable for a Lancer.

But you better off asking Mitsu owners around TO. Lack of competition in Calgary set up a different kind of expectation from buyers here.


Originally posted by dgto


Hi there,

The numbers I provided were MSRP before taxes, freight, PDI, etc... just for the car with automatic transmission, the sound package upgrade, and the premium paint.

I think there was an administration fee of $495 but I'd have to confirm... the Mitsubishi website Build It Price It tool puts the car I bought at $25,458 before taxes, but including Freight/PDI... and quotes a $399.54 monthly payment for the same financing term I selected (72 mos.)

Also, the 72 month financing term is 6 years not 7, but at 0% interest so no cost on top of the principal.

Confusing.... so you got a car that's $400/month MSRP for $370? That's about ~$2000 off, not bad at all.

And really, what's the point asking when you already signed?

[Jeremiah]

Waiting for troll to plug the dealership he works at...

[Sentry]

Originally posted by Jeremiah
Waiting for troll to plug the dealership he works at...
Haha

3... 2... 1...

[m10-power]

Originally posted by dgto
Also, the 72 month financing term is 6 years not 7, but at 0% interest so no cost on top of the principal.

What's the 'cash' price of this vehicle?

0% financing is BS, really means you pay the financing up front wrapped up in the price of the car. If it was truly 0% then you could get the cash price / # of months. Administration fee? wtfbbq?

[dgto]

I'm not a "troll" trying to plug a dealership lol wow cynical much? I'm 25, just bought my first car... wanted to negotiate the best price I could an have never done it before. Worried maybe I was naiive or taken advantage of bc a few dealers pulled a bait
and switch just to get me to sit down.

Well, according to the Mitsibushi website quote I saved 2000 but I figured they surely highball the quote calculations to help their dealers sell high too... I figure sticker price has to include more than
the $1100 markup they claim is all they have.

I know my deal is done, it won't change
that. I'm just curious and some reaffirmation that I got a good deal would be nice.

Lastly let me say that Im very satisfied
with the feature set for the price I paid along with the long warranty and low financing rate. Finding out I got fooled would suck a bit but I still think sticker price is reasonable for what I got for the money. Just curious is all if some more savvy shoppers can evaluate my "deal".

Car salespeople hardly inspire confidence in my experience anyway.

[dgto]

Originally posted by m10-power


What's the 'cash' price of this vehicle?



I'm looking at my bill of sale and unsure which # to give u for cash price.
total sale price before freight etc. is 23001.41.

Total vehicle price with freight is 24532.41

Total purchase price with taxes and fees all in is 27770.49

Also, there was NO administration fee billed, it's blank on the bill of sale

[stealth1313]

Originally posted by dgto
Hey guys!

After an exhausting and confusing process of researching and meeting with a few bait and switch dealerships, I finally bought a car yesterday - while it's the best offer I received in all my efforts, I'm still a little nervous I got hoodwinked after all the smack these dealers can talk... lol

I was hoping some of you could give me your opinion as to whether you think I got a good/fair deal!

I financed a 2010 Mitsubishi Lancer SE, CVT automatic transmission (MSRP $21,498) with the Sun & Sound upgrade package (MSRP $2,200) and a premium paint colour (MSRP $160) for $370/month all fees and taxes in for 72 months @ 0% financing with $0 down payment. The dealer also "threw in" an IPOD cable for the sound system.

This works out to a total buying price of $26,640.

Thoughts? Any feedback is much appreciated! Thanks. hell If they threw In an iPod cable I would lease that thing for an extra year

[HondaKid]

Was the iPod cable white or black. The deal rides on this.

[FiveFreshFish]

Originally posted by dgto
72 months @ 0% financing with $0 down payment

I know nothing about Lancer pricing but this rate is pretty good.

[Rat Fink]

.

[LMVantage]

Originally posted by m10-power

0% financing is BS, really means you pay the financing up front wrapped up in the price of the car. If it was truly 0% then you could get the cash price / # of months. Administration fee? wtfbbq?

I don't get how 0% financing is BS. It means the manufacturer is paying the interest for you. If pricing for cash or financing has the same starting point, how can they slip the cost of financing (which I presume you mean interest) into the price of the car? Also, cash price, when discounted, is an incentive provided by the manufacturer. That option, or lower interest on financing, both cost the manufacturer money, so either way you're getting a deal. Without those incentives provided by the manufacturer, the dealer only has the gross to play with - that's it. On Japanese imports, that margin is often quite small.

[m10-power]

Originally posted by LMVantage


I don't get how 0% financing is BS. It means the manufacturer is paying the interest for you. If pricing for cash or financing has the same starting point, how can they slip the cost of financing (which I presume you mean interest) into the price of the car? Also, cash price, when discounted, is an incentive provided by the manufacturer. That option, or lower interest on financing, both cost the manufacturer money, so either way you're getting a deal. Without those incentives provided by the manufacturer, the dealer only has the gross to play with - that's it. On Japanese imports, that margin is often quite small.

Lol ok, simply go shopping for a car that's listed with 0 financing, tell the salesman you'll be buying the car outright cash. Make the best deal you can then at the end ask for the 0 financing and see what happens. Then you will see the actual financing cost isn't 0 and is paid up front in the price.

[soloracer]

Originally posted by m10-power


Lol ok, simply go shopping for a car that's listed with 0 financing, tell the salesman you'll be buying the car outright cash. Make the best deal you can then at the end ask for the 0 financing and see what happens. Then you will see the actual financing cost isn't 0 and is paid up front in the price.

Tell me about it. When I was looking to buy a new truck I thought that I should look consider the 0% financing. I figured that I could invest the cash and get a reasonable return while using the car dealerships money for free. So I made a cash deal on a truck and at the end inquired about the 0% financing. I was immediately informed that I could not get the 0% financing for the price we agreed to. If I wanted 0% financing the price was approximately $5000 more. So I asked "How is that 0% when you guys are charging me $5k to finance?". It's nothing more than a scam to get people in the door in my opinion. On top of it, if you go with the so called 0% financing you are paying all the interest up front - which is great for the dealership since they get all their interest without having to wait 60 months and sucks for you since if you pay the loan out early you don't get any benefit as they already got their money.

[soloracer]

To answer the guy who started this thread, you got hosed since you went with 0% financing. Same goes for anyone else here paying a supposed 0% loan.

[LMVantage]

You guys don't understand how car pricing works.

There are two kinds of incentives:
1. Financing incentive - the manufacturer subvents the interest, paying certain banks to lower the interest rate offered for financing the vehicle.
2. Cash incentive - the manufacturer pays the dealership the value of the incentive to drop the price for the customer IF the customer is paying cash. If financing, this incentive is simply not available.

The key to both incentives is that the money comes from the manufacturer, not the dealer. The only amount the dealer has to play with is the gross profit in the car, which varies greatly depending on the make and model of the car.

Paying 0% is getting a smoking deal. You are borrowing $XX amount to purchase a car, and you are not having to pay for borrowing that money. Tell me a bank that will do that for you.

That's the whole reason why you can get a better deal if you pay cash. The only manufacturers I'm aware of offering both 0% financing AND rebates together is Kia and Hyundai.

[soloracer]

Originally posted by LMVantage
You guys don't understand how car pricing works.

There are two kinds of incentives:
1. Financing incentive - the manufacturer subvents the interest, paying certain banks to lower the interest rate offered for financing the vehicle.
2. Cash incentive - the manufacturer pays the dealership the value of the incentive to drop the price for the customer IF the customer is paying cash. If financing, this incentive is simply not available.

The key to both incentives is that the money comes from the manufacturer, not the dealer. The only amount the dealer has to play with is the gross profit in the car, which varies greatly depending on the make and model of the car.

Paying 0% is getting a smoking deal. You are borrowing $XX amount to purchase a car, and you are not having to pay for borrowing that money. Tell me a bank that will do that for you.

That's the whole reason why you can get a better deal if you pay cash. The only manufacturers I'm aware of offering both 0% financing AND rebates together is Kia and Hyundai.

The above post is full of marketing BS. Cash incentive, financing incentive, blah, blah, blah. At the end of the day for the consumer it all comes down to what you are paying for the car after it's been completely paid for. Period. So if you pay "more" to purchase a vehicle with "0% financing" then it really isn't a good deal is it?

Additionally, why would a consumer give a rats ass who is making the reduction? The goal is to pay as little as possible. Does the consumer really care where the discount came from? Of course not, just give me the best final number.

0% financing is just another marketing tool - and not a good one for the consumer either. You would be better off getting your own financing, paying cash to the dealer and paying the bank their interest over the 4 or 5 year term. It doesn't take a genius to figure out.

[stealth1313]

Originally posted by LMVantage
You guys don't understand how car pricing works.

There are two kinds of incentives:
1. Financing incentive - the manufacturer subvents the interest, paying certain banks to lower the interest rate offered for financing the vehicle.
2. Cash incentive - the manufacturer pays the dealership the value of the incentive to drop the price for the customer IF the customer is paying cash. If financing, this incentive is simply not available.

The key to both incentives is that the money comes from the manufacturer, not the dealer. The only amount the dealer has to play with is the gross profit in the car, which varies greatly depending on the make and model of the car.

Paying 0% is getting a smoking deal. You are borrowing $XX amount to purchase a car, and you are not having to pay for borrowing that money. Tell me a bank that will do that for you.

That's the whole reason why you can get a better deal if you pay cash. The only manufacturers I'm aware of offering both 0% financing AND rebates together is Kia and Hyundai. No actually there are 3 types: the third type being
3: ipod cable incentive- this is usually when the dealership is having a very hard time selling a vehicle, they will toss in an ipod cable, they take a huge hit on it, but sometimes it just has to be done.

[LMVantage]

Lets say you want to buy a car that only has $1500 gross in it, meaning, MRSP is $1500 above what the dealership paid for it. Simple math would tell you that you can't get the car for more than $1500 below sticker, am I right? Now, if the manufacturer pays the dealership $1000 as a cash incentive, ONLY if the customer pays cash, the max a cash purchase can get off is $2500, right?

Rebates and gross are not the same. Gross comes out of the dealership's pocket, whereas rebates come from the manufacturer. Both are separate entities.

The only time it makes sense to find your own financing is if a) there is a cash purchase incentive, and b) the incentive is larger than what you will end up paying in interest over whatever term you decide.

I don't get why this is so hard to understand? It's not marketing BS, it's basic business - the manufacturer provides incentives on the vehicles it wants to move most. Hot sellers don't tend to get rebates. This isn't secret knowledge either. You can walk into most dealerships and I'm sure they'd sit down and explain this to you.

[Redlyne_mr2]

Originally posted by LMVantage
Lets say you want to buy a car that only has $1500 gross in it, meaning, MRSP is $1500 above what the dealership paid for it. Simple math would tell you that you can't get the car for more than $1500 below sticker, am I right? Now, if the manufacturer pays the dealership $1000 as a cash incentive, ONLY if the customer pays cash, the max a cash purchase can get off is $2500, right?

Rebates and gross are not the same. Gross comes out of the dealership's pocket, whereas rebates come from the manufacturer. Both are separate entities.

The only time it makes sense to find your own financing is if a) there is a cash purchase incentive, and b) the incentive is larger than what you will end up paying in interest over whatever term you decide.

I don't get why this is so hard to understand? It's not marketing BS, it's basic business - the manufacturer provides incentives on the vehicles it wants to move most. Hot sellers don't tend to get rebates. This isn't secret knowledge either. You can walk into most dealerships and I'm sure they'd sit down and explain this to you.

This

[911fever]

Originally posted by LMVantage
Lets say you want to buy a car that only has $1500 gross in it, meaning, MRSP is $1500 above what the dealership paid for it. Simple math would tell you that you can't get the car for more than $1500 below sticker, am I right? Now, if the manufacturer pays the dealership $1000 as a cash incentive, ONLY if the customer pays cash, the max a cash purchase can get off is $2500, right?

Rebates and gross are not the same. Gross comes out of the dealership's pocket, whereas rebates come from the manufacturer. Both are separate entities.

The only time it makes sense to find your own financing is if a) there is a cash purchase incentive, and b) the incentive is larger than what you will end up paying in interest over whatever term you decide.

I don't get why this is so hard to understand? It's not marketing BS, it's basic business - the manufacturer provides incentives on the vehicles it wants to move most. Hot sellers don't tend to get rebates. This isn't secret knowledge either. You can walk into most dealerships and I'm sure they'd sit down and explain this to you.

amazing

[Sorath]

Originally posted by LMVantage
Lets say you want to buy a car that only has $1500 gross in it, meaning, MRSP is $1500 above what the dealership paid for it. Simple math would tell you that you can't get the car for more than $1500 below sticker, am I right? Now, if the manufacturer pays the dealership $1000 as a cash incentive, ONLY if the customer pays cash, the max a cash purchase can get off is $2500, right?

Rebates and gross are not the same. Gross comes out of the dealership's pocket, whereas rebates come from the manufacturer. Both are separate entities.

The only time it makes sense to find your own financing is if a) there is a cash purchase incentive, and b) the incentive is larger than what you will end up paying in interest over whatever term you decide.

I don't get why this is so hard to understand? It's not marketing BS, it's basic business - the manufacturer provides incentives on the vehicles it wants to move most. Hot sellers don't tend to get rebates. This isn't secret knowledge either. You can walk into most dealerships and I'm sure they'd sit down and explain this to you.


A++ couldn't have said it better

[dgto]

So can you guys help bring some perspective to my specific deal? I don't have much insight to it still... thanks for the sarcastic responses mocking iPod cable colour too, btw..

Although, I'm confused with this 0% financing debate - I was under the impression that the price changes between a cash sale and a financed sale because there are some incentive rebates for a cash purchase from the manufacturer?

Paying cash for the car was not an option for me and I thought stretching the term by an extra year meant lower payments w/o extra interest. Honda's finance rates started at 0.9% but were
around 4% for the 72 mo. term.

I'd like to know if my specific deal was a decent one, that's all. Thanks.

[soloracer]

Originally posted by LMVantage
Lets say you want to buy a car that only has $1500 gross in it, meaning, MRSP is $1500 above what the dealership paid for it. Simple math would tell you that you can't get the car for more than $1500 below sticker, am I right? Now, if the manufacturer pays the dealership $1000 as a cash incentive, ONLY if the customer pays cash, the max a cash purchase can get off is $2500, right?

Rebates and gross are not the same. Gross comes out of the dealership's pocket, whereas rebates come from the manufacturer. Both are separate entities.

The only time it makes sense to find your own financing is if a) there is a cash purchase incentive, and b) the incentive is larger than what you will end up paying in interest over whatever term you decide.

I don't get why this is so hard to understand? It's not marketing BS, it's basic business - the manufacturer provides incentives on the vehicles it wants to move most. Hot sellers don't tend to get rebates. This isn't secret knowledge either. You can walk into most dealerships and I'm sure they'd sit down and explain this to you.

Good god people. Again, who cares if it's a "rebate" or "Gross out of dealerships pocket"? Does the buyer give a damn? NO! Call it whatever you want but what matters is how much they pay at the end of the day.

Say the cash price is $40K but the 0% financing price is $50K. If your cost to finance $40k is less than $10K you are ahead of the game getting your own financing. Simple simon. Do you understand now? How difficult can this be guys?

I know you are in the business so you obviously want guys to take the 0%. But if someone ends up paying you guys up front for all the interest that he would have paid over the course of 4 years it really isn't a good deal for them. It's a great deal for you though since you get your interest paid in full right away and if the guy defaults on the loan who cares since you already pocketed your interest. Pretty sweet deal for you guys.

On top of that - 0% financing is a deceptive practice. If it were true 0% financing you should be able to make your best cash deal and then apply for the 0%. Why does the type of financing make a difference to the manufacturer? So long as the dealership pays them for the car they shouldn't care. Jacking the price up and then telling a guy he got a great deal on the financing is deceptive - and that is why it's marketing BS.

[soloracer]

Originally posted by dgto
So can you guys help bring some perspective to my specific deal? I don't have much insight to it still... thanks for the sarcastic responses mocking iPod cable colour too, btw..

Although, I'm confused with this 0% financing debate - I was under the impression that the price changes between a cash sale and a financed sale because there are some incentive rebates for a cash purchase from the manufacturer?

Paying cash for the car was not an option for me and I thought stretching the term by an extra year meant lower payments w/o extra interest. Honda's finance rates started at 0.9% but were
around 4% for the 72 mo. term.

I'd like to know if my specific deal was a decent one, that's all. Thanks.

Dude, do you really care "why" there is a difference between a cash sale or financed sale? If you do care I suspect it's only because you are concerned you got screwed. Or else why start this thread in the first place right? Also, do you honestly believe that the manufacturer cares? Think of it this way, the dealership is the customer of the manufacturer. You are the customer of the dealership. When you buy a car you pay the dealership and they pay the manufacturer. Clear right?


When you finance a car they will give a bunch of options. Being a dealership they will have arrangements with different lenders and often they will even have a lender directly associated with the manufacturer (ie: GMAC) These lenders are the guys who give you the money to buy the car. They expect a return on their capital - just like any business. No bank is going to lend you money for 0% - period. Even the manufacturer based finance companies can't do it - they have bills to pay as well. Common sense tells you that at the end of the day the buyer pays all 3 of these guys (manufacturer/dealership/finance) for the privaledge of owning a car. Whatever you pay gets divided up between these three entities.

Consumers - especially if they don't have cash in hand - pay very close attention to the big signs that say "0% to 0.4% financing". However, no business can afford to work for 0% so somewhere they have to get it back. Apparently the way they are getting it back is by increasing the price you pay for the car initially. That is why I say it's a marketing ploy. The 0% option is meant to get your ass into their dealership so they can sell you a car.

I suspect the guys I am arguing with are salespeople at a dealership. They have a job to do - sell cars and generate the highest return they can. They aren't going to tell everyone on the internet all the tricks of the trade.

[kylemitz]

Im not going to lie, you probably could have worked out an even better deal. But, at the same time, i bought a mitsubishi 2009 lancer gt last year and it is an awesome car. I have absolutely no complaints about it. The rockford fosgate stereo has amazing sound quality to it, and it is very noticeable how well built the lancers truly are.

All you should be concerned about is how it compares to other car manufacturers. I can honestly say that the lancers are twice the car that any other vehicle is that is directly comparable to it. You will love your car! Good buy! :)

[soloracer]

Originally posted by kylemitz
Im not going to lie, you probably could have worked out an even better deal. But, at the same time, i bought a mitsubishi 2009 lancer gt last year and it is an awesome car. I have absolutely no complaints about it. The rockford fosgate stereo has amazing sound quality to it, and it is very noticeable how well built the lancers truly are.

All you should be concerned about is how it compares to other car manufacturers. I can honestly say that the lancers are twice the car that any other vehicle is that is directly comparable to it. You will love your car! Good buy! :)

Exactly. Besides, he already bought the car. He should have asked his question before he paid instead of after.

[Rat Fink]

.

[Sugarphreak]

...

[soloracer]

Originally posted by Sugarphreak
0% can be a good thing or a bad thing, it isn't all just a gimmick. You can't go to the bank to get a 0% loan... which means that the cost of borrowing is covered, that is worth a few thousand dollars.


That would be true if they honored the lowest price you could negotiate on a cash sale. However, as soon as you mention 0% financing they increase the price of the vehicle. Basically they are getting their cost of borrowing up front in the purchase price. A great deal for them and not for you. So yes 0% financing is a gimmick - one that is intended to make you stop and take a look at what they are selling.

[dgto]

Thanks, Kyle for the reply!