BEWARE OF THE F & I or FINANCE OFFICE!
The Finance Dept. in the dealership, otherwise known as the "Business Office" or the "F&I Dept." has only ONE JOB;
To make sure you walk out with the HIGHEST PAYMENT POSSIBLE!
What the public doesn't realize is that the dealership makes as much, and often more money in the Finance Office than it does on the actual sale of the vehicle!
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ABOUT YOUR CAR LOAN PAYOFF. . .
The "payoff" is the amount of money remaining on YOUR car loan! This is money that YOU owe! The car
dealer doesn't owe it! You do!
So, when you trade in your vehicle, the "payoff"
balance must be paid off, or the bank will not
release your title to the car dealer you're trading to!
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BEWARE OF CAR DEALER ADS. . .
It never ceases to amaze me how so many people fall for the phony nonsense that car dealers put in their ads! Yet week after week you see the most outrageous ads run by the car dealers. And let me tell you, those big color newspaper ads aren't cheap!
Whatever you think the ads are saying, Don't Believe Them! There's a catch, an angle or something misleading in MOST car ads.
I emphasize "MOST" because there ARE honest dealers out there who have too much integrity to pull some of the shenanigans that go on!
By the way. . . the sole purpose of all the gimmicks you see in car ads, is to get you in the door at the dealership, and not let you leave until you buy a vehicle.
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Car Salesmen's Slang and
Irreverent Terms!
- An "Up" is someone who walks on the car
lot. A customer!
- A "Beback" is a customer who leaves without
buying, and comes back at a later date.
- A "Laydown" is a customer who
buys at whatever price the salesperson quotes.
- A "Roach" is how car salespeople refer
to people with bad credit!
- A "Get-Me-Done" is somebody
who has borderline credit at best, and will take almost
any vehicle at any terms just to get financed.
- The "Bump" is where the Sales Manager
sends the salesperson back out to get a higher price, or
to "Bump" the customer for more money!
- A "Lowball" is an unrealistically low price that the
salesperson gives the customer before the customer
leaves to shop price at another dealer.
- "Upside Down" is when a person owes more money on their trade-in then the vehicle is worth.
- "Negative Equity" is related to Upside Down above. It is the amount that you still owe on your car loan after subtracting how much you are actually getting for your vehicle.
- "Positive Equity" This is when your trade-in is actually worth more than the amount you owe on it. Needless to say, this doesn't happen very often!
- "Croak and Choke" pertains to the Finance Manager selling Credit Life Insurance and Disability Insurance on the car loan!
- To "Brick" somebody, or to "Spot Deliver!" Car salespeople are so worried that you'll change your mind once you buy a vehicle, that they want you to take it NOW! Very often, the dealer will have the customer sign bank papers before the loan is officially approved, just to get the customer down the road.
- "Buyers are Liars!" Every car salesperson is instilled with this belief!
- "The T.O." If one salesperson can't close you he or she will T.O. you or turn you over to a Manager or a Closer, who in turn might T.O. you to someone else, and someone else again until you buy.
- "A Packed or Loaded Payment!" Packing or loading payments is a slang term used to describe a practice used by the auto industry to get customers to agree to purchase additional products, such as credit insurance, service contracts, chemical protectants, and security devices, without revealing their true impact on their monthly payments.
Packing is played out when a customer finances their vehicle through the dealer. A customer agrees to a purchase the car at a monthly payment that is much higher than what is needed to cover the price of the vehicle. That creates a "pack" or room in the payment to add in the optional products....of course without the customer knowing he's actually paying more for the extra stuff!
- "Buyers Remorse!" This is when a car buyer starts having second thoughts about the car purchase. Once the euphoria of getting a new or different vehicle wears off, a person begins wondering if they got ripped-off, did they do the right thing, can they really afford the payments and on and on it goes. There are countless reasons a person second-guesses themselves.
Car sales people call this "Buyers Remorse" or "Coming Out of the Ether!" This is the sales person's worst nightmare, because this is when the buyer starts looking for ways to back out of the car deal.
- "A Today Buyer!" This is a customer who is prepared to purchase a vehicle the same day they enter the dealership. The large majority of buyers are not in this category. Most people want to think it over and look around before making a decision.
However, it is the car sales person's job to turn you into a "Today Buyer!" They are trained in techniques that do just that. They have a Selling System in place that is designed to take control of you, culminating in you taking delivery of your new or used vehicle before you leave the dealership. They will go to great lengths to put you in that vehicle "today" including doing a Spot Delivery! BEWARE!
- "ACV" This stands for Actual Cash Value. This is what dealers use when referring to the amount of money they are actually putting in a trade. They have to differentiate this number from what they tell the customer. Very often the customer is led to believe that he is getting more for his trade than what the ACV is!
- "Quarterback" Car salespeople hate it when you bring someone
with you to to the car dealership to help you negotiate a deal. For example a young woman may bring her father to help her. Or she may bring another relative or even worse...a boyfriend. They call these people "quarterbacks!"
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WHAT ARE
PROGRAM CARS?
Dealers often advertise "Program Cars" in their
ads. "Program Cars" are usually advertised as "Smart Cars," or "Factory Official Cars" or "Factory Demo's." They are usually one or two year old vehicles with 30,000 miles or less on
them. Read more...
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CREDIT INACCURACIES. . .
Having spent part of my career as a Finance
Manager in several car dealerships I often encountered people with glitches on their credit reports.
In many of those cases the glitches were inaccuracies of various sorts. The customers had no idea these discrepancies existed. In some cases they were denied credit due to this inaccurate information.
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BEWARE OF THE
SPOT DELIVERY
The "spot delivery" is a technique that car dealers use to get you to take delivery of a vehicle immediately after you agree on a car deal.
Car sales people know they have to get you when you're "HOT," or when you're all worked up emotionally. Everything is Now, Now, Now! In the Car Business There's No Tomorrow!
The F & I Manager will throw together some bank papers for you to sign, and then, usually, after you're down the road, he'll get the deal approved at the bank, and hope they go along with the rate and terms that he signed you up for!
If they can't get the loan bought anywhere then they have to get the car back from you! Not a pleasant situation for them or you!
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