New vehicle order and dealership interest hike at Shaw GMC Calgary?

Not surprised, when i was looking at a 1T i was told that i could not buy w/ cash, they wanted a non-refundable deposit, and the interest rate was dog shit.. I'd go Busters route. If there are no prepayment penalties, pay it off day 1 with a HELOC and tell them to get bent

Ive stuck with the tacoma.

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Originally Posted by Buster

I very much doubt that you have to hold onto the loan for the full 6 months. What is probably happening is that the broker desk at their funder has a holdback on the loan and they claw back the dealership's commissions if you pay it out.

Here's what I would do: check the fine print on the loan to ensure there are no early payment penalties. There shouldn't be as Canadian law makes that very difficult on auto loans. Then I would arrange my own loan ("HELOC that shit playa!"). Then I would take possession of the car, and pay it out the next day. You get the car, a low rate, and most importantly you get to fuck over the dealership.

Also, your salesperson has a nose ring and an anthropology degree....maybe we found Kert?

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This is exactly what is happening. RV Dealers are doing the same thing. I bought a trailer last year and there was a 5% surcharge if I paid cash. Basically forcing me to finance and they advised after 6 months I could pay it out. I agreed to the terms but the day after signing the loan paperwork TD finance called me to verify the details. I asked them at that point if I could pay it out without penalty after 6 months. They advised I could pay it out same day without penalty. So I paid it out and I'm assuming the dealer didn't get their kickback.

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Originally Posted by roopi

This is exactly what is happening. RV Dealers are doing the same thing. I bought a trailer last year and there was a 5% surcharge if I paid cash. Basically forcing me to finance and they advised after 6 months I could pay it out. I agreed to the terms but the day after signing the loan paperwork TD finance called me to verify the details. I asked them at that point if I could pay it out without penalty after 6 months. They advised I could pay it out same day without penalty. So I paid it out and I'm assuming the dealer didn't get their kickback.

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man, you gave me the warm fuzzies going into the weekend.

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Originally Posted by roopi

This is exactly what is happening. RV Dealers are doing the same thing. I bought a trailer last year and there was a 5% surcharge if I paid cash. Basically forcing me to finance and they advised after 6 months I could pay it out. I agreed to the terms but the day after signing the loan paperwork TD finance called me to verify the details. I asked them at that point if I could pay it out without penalty after 6 months. They advised I could pay it out same day without penalty. So I paid it out and I'm assuming the dealer didn't get their kickback.

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nicely done. repped.

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Originally Posted by roopi

This is exactly what is happening. RV Dealers are doing the same thing. I bought a trailer last year and there was a 5% surcharge if I paid cash. Basically forcing me to finance and they advised after 6 months I could pay it out. I agreed to the terms but the day after signing the loan paperwork TD finance called me to verify the details. I asked them at that point if I could pay it out without penalty after 6 months. They advised I could pay it out same day without penalty. So I paid it out and I'm assuming the dealer didn't get their kickback.

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Did the exact same thing with mine. Western RV by chance?

Rangeland

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Originally Posted by Buster

I very much doubt that you have to hold onto the loan for the full 6 months. What is probably happening is that the broker desk at their funder has a holdback on the loan and they claw back the dealership's commissions if you pay it out.

Here's what I would do: check the fine print on the loan to ensure there are no early payment penalties. There shouldn't be as Canadian law makes that very difficult on auto loans. Then I would arrange my own loan ("HELOC that shit playa!"). Then I would take possession of the car, and pay it out the next day. You get the car, a low rate, and most importantly you get to fuck over the dealership.

Also, your salesperson has a nose ring and an anthropology degree....maybe we found Kert?

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Banger post.

North Americans are in a bad state of always needing instant gratification. If everyone balked at these tactics we wouldn't have to deal with this shit. Unfortunately too many people cave in and make extremely poor decisions. You should never pay a penny more than MSRP on any vehicle, pay inflated interest, or settle for paying for dealer add-on packages. It's money thrown away unnecessarily because people want things now. I will always just walk away as this current state is not permanent and the pendulum will swing back in the other direction and I have a long memory as once a dealer fucks me over they will never see my business again.

Well, to tell you the truth, most factories are back to normal, or near normal, Cars manufactures can get chips no problem, but at a higher cost ....

The demand is still higher than supply at this moment, for domestic car, probably will have more inventory in few month, for import, probably next year.

Are we getting big discount as 2019/early 2020? Probably not, but should we pay over MSRP, and high interest rate? Well .. I say we shouldn't.

This is absolutely crazy, I was looking at a used MDX and they said the same thing. We will only sell if it you finance, I was going to get the loan then pay it out. But just decided fuck it, they can sit on their used shit.

I posted about this happening in March-ish 2020 by GoAuto, and was pretty shocked and appalled (this was for a used Mercedes CLS). Seems like it is the trend now, all the dealers are getting greedy.

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Originally Posted by Neil4Speed

I posted about this happening in March-ish 2020 by GoAuto, and was pretty shocked and appalled (this was for a used Mercedes CLS). Seems like it is the trend now, all the dealers are getting greedy.

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They can do what they like. It's not greed, it's them maximizing their profit based on supply and demand. I have no issues with them doing these things.

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Originally Posted by Buster

They can do what they like. It's not greed, it's them maximizing their profit based on supply and demand. I have no issues with them doing these things.

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I agree to a point. ADM I can understand because of supply/demand but tactics like forcing financing and trade-ins is pretty underhanded and reaffirms why the dealership model is widely loathed. We have seen shortages of other consumer goods like PS5's. It's not like the retail industry started bundling every available PS5 with multiple controllers and games to because they could do that and still sell every single one.

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Originally Posted by heavyD

I agree to a point. ADM I can understand because of supply/demand but tactics like forcing financing and trade-ins is pretty underhanded and reaffirms why the dealership model is widely loathed. We have seen shortages of other consumer goods like PS5's. It's not like the retail industry started bundling every available PS5 with multiple controllers and games to because they could do that and still sell every single one.

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I think it’s a workaround to corporate rules, which frown upon charging over msrp or adms. They’ll punish the dealerships by giving them less allocations in the future for doing so.

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Originally Posted by rage2

I think it’s a workaround to corporate rules, which frown upon charging over msrp or adms. They’ll punish the dealerships by giving them less allocations in the future for doing so.

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Maybe some brands but in the US it's pretty criminal what dealers get away with. Look at US Honda dealers with the Civic Type R for example. A lot of the people that pine for that car are types that are just on the cusp of being able to afford it at MSRP and I saw plenty on the forums that had to stretch themselves out to finance CTR's with $5-10k ADM. It's one thing to put ADM on high end cars where owners are typically well off as $20k ADM is not likely to put the typical 911 buyer in a bad financial situation and I'm not defending poor decision making but it just rubs me the wrong way to see them praying on middle class people.

^preying*

I think Savage Geese touched on this in a video last year. He was unable to buy the Hyundai he wanted with cash. They refused to sell unless it was financed and he's in America.

Just don’t feel bad for pillaging the dealers when the shoe is on the other foot.

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Originally Posted by heavyD

Maybe some brands but in the US it's pretty criminal what dealers get away with. Look at US Honda dealers with the Civic Type R for example. A lot of the people that pine for that car are types that are just on the cusp of being able to afford it at MSRP and I saw plenty on the forums that had to stretch themselves out to finance CTR's with $5-10k ADM. It's one thing to put ADM on high end cars where owners are typically well off as $20k ADM is not likely to put the typical 911 buyer in a bad financial situation and I'm not defending poor decision making but it just rubs me the wrong way to see them praying on middle class people.

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If there was no ADM, those people wouldn't get the car at all because inventory would be scarce.

US is a weird one. Mbusa doesn’t care about the insane amg 63 adm’s right now. Mbcanada punishes dealers for doing it here although they have workarounds as well. Flip it as a used cpo and set your own price.

The real fix is to adjust msrp like Tesla. Up the price 10x a year to match the supply demand curve and nobody bitches, even tho it’s the same outcome.

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Originally Posted by rage2

US is a weird one. Mbusa doesn’t care about the insane amg 63 adm’s right now. Mbcanada punishes dealers for doing it here although they have workarounds as well. Flip it as a used cpo and set your own price.

The real fix is to adjust msrp like Tesla. Up the price 10x a year to match the supply demand curve and nobody bitches, even tho it’s the same outcome.

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yeah, people think MSRP is some sort of magic number.