April 15, 2007

Hello Tony

Hello - my name is Sandra and this is my situation. I live in Minneapolis, MN and I've been dealing with a new & used car dealership here called Denny Hecker and I'm afraid I'm being taken advantage of.

You see, my credit is bad due to a repossession, and I have $2,000 for a deposit. I went to this car dealership to see a couple of '02 Toyota Camrys they advertised in their website, and by the time all my numbers were ran - they had me test driving a Hyundai and a Nissan Sentra.

When I asked them about the Camrys they wanted to avoid talking about them until my husband bluntly asked the financing officer "why is my wife even looking at these vehicles when she stated an interest in the Camrys?" He was told that the Camrys in question "couldn't be located on their huge lot" and then finally that a larger deposit ($2,800) would be needed for those Camrys.

What this dealership seems to be doing is showing us vehicles they want us to buy and not the other way around.

Now I know my credit is bad and that may hinder me in some ways, but the financing officer stated he found a bank that would loan me the money needed for a vehicle around $14,500 but apparently there are stipulations on what vehicles can be purchased.

What the heck is going on here???? Please help.

Sincerely,

Sandra

Answer:

Hi Sandra,

When you have bad credit the dealership is going to try to get you financed through what's called "Special Financing" or a "sub-prime" lender. These companies have many stipulations associated with their loans. One of the most significant one is they will only finance a certain percentage over the car's book value.

Some cars are better suited for this type of financing because they can be purchased by the dealership at a low wholesale price and the amount that can be financed on them provides the dealer with a fat profit.

Notice that this is all about the dealer and not the customer. That's how the dealer looks at these types of deals. They think that you will take whatever they want to shove down your throat, because you can't get regular financing.

You do not have to put up with this attitude. At the very least they should have told you the truth about why they won't show you the cars you came in looking for. The real truth is that on a "Special Financing" deal they can't make enough profit on those cars. These jerks lied to you when they told you they didn't know where the cars were. That's weak! You shouldn't deal any further with them.

Anyway, why would you want to do business with a car dealer who can't even find their own cars?!

Remember, regardless of your credit circumstances you have the same right to be treated fairly and with dignity just the same as someone who has good credit. If this is not the case then tell them you are taking your business somewhere else and get up and leave. You have the ultimate control over the situation by doing this.

Shop around and sooner or later you will find a dealer and sales person who will be honest and fair with you.

By the way, don't give any dealer a deposit until you are sure you are buying the car and you are sure the financing has been approved. This is very important, because dealers like to play games with your hard earned money. If the deal falls through you may have a hard time getting your money back, and once you give them a certain amount they tend to come back asking for more.

Don't put yourself in that position. Don't hand over any money until you are totally sure of all the details and that nothing is going to change. Remember, you are the customer and you are in control of the purchase.

All my very best...

Tony Iorio

Final Comments From Sandra:

Thank you so very much. You confirmed every suspicion I had about what's going on.

I can take it from here!

Sincerely,

Sandra