Avoiding a car crash deal

Oh wow, this is going to be good. *cracks knuckles*

You got to love a good dealer, and you got to love a great dealer. But, be wary of the goodness and greatness they approach you with. Remember, car dealers want your money, they also want to sell you every product of theirs under the sun. Cash? NO, why don’t you finance it rather? Oh, you want to lower your monthly repayment? Take a balloon! In the end, you are the only one getting popped and shoved.

There is a beautiful thing called DIC (stop it, I know what you’re thinking). DIC = “Dealer Introduced Commission” - it drips with milk and honey from the finance houses to the dealers. So, in fact, you are being sold to twice, once by the car salesman and two by the finance and insurance specialist. They work in tandem, like two plastic surgeons getting to work to plump up the look of your deal to make you want it so badly you will let them have your kidney and they plug you with some synthetics.

Let’s come back from our anaesthetic thoughts and be clear, today we’re going to help you to avoid the royal flush from the house. How to know the signs when they are trying to do you in?

THE STICKER PRICE

It’s the sticker and you’re the sucker. Oh, how wonderful, the sales person has offered you a discount? What? Are you serious? Yes they want to give you a R10,000 discount off the advertised price. Well, newsflash my Stonk Soldier, the sticker price is artificially marked up.

An example car is advertised at R 250 000, they tell you they can do R240,000 for you, that is actually their recommended retail price as it sits in their book for far less. If you buy a car in Durban, it probably goes like this - “my good man, today, for you only, R10,000, because you are such a good customer” yet you have just walked into the dealership and the salesperson knows you for less than 20 minutes.

Don’t get sucked in by the sticker, question the prices. Hop onto an online platform, choose your model of choice and scan the pricing, you will see the variance. Opt for the best value, of course that means lowest mileage, lowest price, but aim to see what is the best value for money for you, close to you, the right specification and a reputable dealer.

HOLD THE PHONE

Holding deposit, I am sure you have heard of it.

“We recommend you pay a holding deposit so we can secure the car for you so that no one else can buy it as there is someone who wants to buy it.”

This can be a couple thousand, to tens of thousands of Rands. For higher end, luxury cars, even hundreds of thousands of Rands and in some cases, they will take your deposit and as it is paid, the car magically becomes sold. This now means you will have to request a refund, which in some cases is non-refundable, you have to interrogate the dealer to ensure that you will be able to get your money back on request and not wait weeks or months for its return.

A holding deposit is sort of like what Chuck from Billions enjoys, they will strap you into a deal and convince you to take it, this often happens when you want to weigh up your options first. The dealer will say - “Okay, that is fine, pay us a small deposit and we will hold the car for you, in the meantime we can offer our financial services to help you see what the numbers will look like for you.” - before you know it, that is the deposit on your financial deal and you are locked into a deal.

You are the customer, you aren’t always right but you are always king. Exercise your authority in the deal.

WHATS THE SCORE?

Whats the score? Whats your score? Another recommendation, do not always believe the interest rate you are given based on your “score” that is in the system. In cases where you are financing, do your research ahead of time, head over to ClearScore, create a profile and get an indication of your credit score.

If it is bad, then well, you have come to the right place and you can follow the BankerX hacks and principles to lead you to healthy wealth but we start with fixing your score.

If you have a good score, or a great score, take advantage of that and do not be shy to get on the table like Ric Flair and wrestle the finance specialist for a better rate, I hear they take negotiations well, so you better be like Baby Driver (me) and be a Shrewd Negotiator. In many cases, these finance specialists are top sales people of finance, and will negotiate a deal that looks good for you but is great for them. Some tips to beat the F&I?

  • Ask for a better rate - doesn’t hurt to try right? Rather an answer of no than the unknown.
  • Question the fine print - do not get caught out by admin fees, financial add-ons or accessories that inflate the monetary value of your deal.
  • Take your own ammo - if you have a facility with your bank, get a pre-approval for what is good for you and you find fitting then you walk into the room, American Psycho and bang that stack on the table! 

So let’s get pumped for your newly added arsenal, lol, of weaponry for your next deal and if you need, call in the Baby Driver!

New Jack (T) added, the aftermarket landscape, is a bit like Van Gogh dropping Certified Love Boy with a piece by him as the album cover, hurts to hear right? Not quite, what you may discover may closely resemble “Air on the G String” by J.S Bach especially in today’s era of choice.

Car buying is becoming a thesis study where the conversation rapidly changes introducing a somewhat insipid exercise BUT, it doesn’t have to be. Joining a community actively discussing consumer related queries into a certain brands alleviates the anxiety, when crisis hits, it is quite easy to fall down the wrong rabbit whole and jump into a whirlpool of sharks gunning for your hard earned money.

Such communities provide a platform to question – there’s no such as a stupid question, ask the question a thousand times until you satisfied with the responses. Test those responses with fellow community members and establish a rapport with those in key positions with your motoring queries. Car Clubs in provide safety and reassurance specific to your considerations

An established network will weed out treacherous kickback systems; located in a specific part of town, neighbouring the businesses which certain clients are deferred to. The nature of such systems is Cartel-like, often with disgruntled clients and lawsuits following not too far behind.

Impractical at this point, sifting through endless carnage and dead ends but, do not be despaired, you’re headed in the right direction. The Aftermarket supplies the OEMs, for any and all part queries look to distributors that supply OEMs in your area; keeping in mind part numbers your challenge to obtain in this regard. Depending on the Make and Model of your ride, you will encounter a strange phenomenon to the likes of six different brands for one component – SEEK OEM QUALITY or HIGHER QUALITY components.

Approach Specialist outlets that provide networks linked to service providers/outlets throughout regions closest to you. Revert back to community with your findings and list what aftermarket comments meet your financial and mechanical needs. Now, get the strap and have the hollow points at the end of the clip. It’s go time!

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