I recently was forced to buy a new car. My 12 year old car was dying a slow and painful death and I had to put it down. It was a very sad day for me. I loved my Saturn and I miss it. I am getting used to the new car and today I finally put the key on my key ring. It isn’t that I dislike the new car. It is a really nice car. I just miss the old one. I didn’t want to be buying a new one. I wasn’t ready to learn all the ins and outs of a new car. And I wasn’t ready for the car buying process.
I have blogged about most everything written above already.
Today I want to talk about how I switched the dealer’s bait and switch back to my advantage. The moral will be: Don’t make me mad, I will win in the end.
I went to the dealership with the financing plan I wanted in mind. I was upfront about this in my email negotiations the day before. I was clear about it while sitting at their negotiating table. I also knew that my credit score is good, real good and I would qualify for whatever financing I wanted to apply for on-the-spot. So, the negotiating started and they played with their numbers and they talked their game and they told me that the financing I wanted was available and I could go that route BUT doing that would cause me to lose this lucrative incentive they worked into the price they quoted me.
My response to that was, “if you do not finance the car the way I intended when I came in then I want to wait and finance it through my bank because that will be my next best option.” They responded with, “you could do that BUT you still lose the lucrative incentive and it changes your trade-in incentive because it is based on financing through us.” “This deal with the incentives actually works to your advantage because what you pay in interest over the life of the loan is less than what you gain in incentives, lowering the overall amount being financed up front.” And there was the bait and switch. They advertise this no interest financing to get you in the door and then offer you financing with a really low APR and incentives so you take the low APR deal. They get the interest paid on the loan, you get a smaller loan and supposedly everybody wins. Only bait and switch deals are illegal if truly bait and switch, but they are careful to make sure they fall outside the true definition of bait and switch, and they are frustrating.
I had everything worked out via email prior to arriving at the dealership, or so I thought until I arrived. They knew full well what they were going to do once I got there. What they didn’t know is who I bank with and that I am willing to pay a small transfer fee to call their bluff. So, I took their financing deal with their lucrative incentives and smiled sweetly and said, thanks. Then I met with the finance guy at the end of a very long and frustrating evening. The finance guy took what we had agreed on in these negotiations and started playing with the numbers even more. I argued, I listened, I called his fancy foot work what it really was and eventually got him to admit it. Until he would use my word for what he was trying to sell me, I wasn’t going to budge. He was insulted when I called his Club Plus plan “just roadside assistance.”
Once I got him to use my terminology and to speak in numbers I could understand, I let him use his coupons and his employee discount code, “because I’m a Vol fan too.” I even let him sign me up for their special payment plan through a third party vendor to make it easier to pay back my loan and it would allow him to reduce my rate another “x” percent. We signed the forms, I left in the car, and two days later I started inquiring about my account number for the financing they set up.
I wasn’t getting much from the dealership, so I went directly to the source, or so I thought. I called Ford Motor Credit and they had no record of me or my financed vehicle. Odd, but maybe it hadn’t been processed yet. I pulled out the invoice and read through all the contract language, including the fine print, after-all I am a contract reader by profession. Then I noticed this tiny little line at the bottom that says, “lien held by PNC Bank, NA.” WHAT? Not only did they bait and switch the whole financing plan I wanted but they changed the financial institution I was under the impression I was working with. I know Ford Motor Credit, I have financed a vehicle through them in the past. I don’t know PNC Bank. I have heard their name and that is it. So I called PNC Bank to get my account info and they had no record of me.
I waited. Then I got an email from the third party payment source stating they had my application and set up the payments with the lein holder. This prompted me to call PNC again to get an account number. Again, no record of me. So, I called the third party payment source. They didn’t have an account number but had everything set up through my Social. What I told her about the run around I was getting concerned her, so she was going to start tracking down the application.
Finally (after my third call to them in 5 days), yesterday I got an account number from PNC bank along with a 10-day pay off amount. I then went immediately to my bank and applied for a refinance loan. There was one piece of information I needed to verify, so I finished up the process today. I have the same rate, term, and payoff through my bank, who I know and trust, as I did through PNC. I received all of Ford’s lucrative incentives for financing through them along with the trade-in incentive and lower rate incentive for signing up for the third party payment plan and I will be paying them the interest amount for no more than 10-days on the loan. I asked them several times in the process if there were any penalties for early payoff on the loan, they said no. When I read the invoice and contract I looked specifically for prepayment penalty language and it states very clearly that there are NO penalties for early payoff.
While the dealer was wheeling and dealing me on their incentives and financing plans, I was already planning on refinancing as soon as I possibly could and I would have done it even if it cost me a tiny bit more money, just to prove a point. In the end, it cost me a mailing fee to send the payment to PNC quickly and a title transfer fee. The rest is the same as what I had set up through Ford to begin with when I told them, “if I don’t do the financing I came in planning to do then I want to finance through my own bank.” Take that Ford! I got your deals and I’m set up with the bank I wanted to be set up with in the first place!!!
Now, for the kicker in all of this . . .
The shipping label wouldn’t print at the end of the refinancing loan application process, so I was prompted to call a representative at my bank. Ugh! I really didn’t want to talk to another finance person, I just wanted to be done with all of this. But I called because I have no other way of knowing where to send this paperwork.
While on the phone the representative did exactly what I knew she would do, she asked about all my other finances and if there was anything else she could help me with. No, not really. Everything related to money is already through your bank except for my mortgage and that was because you guys wouldn’t/couldn’t refinance it because of the type of loan I have. “Really? What type of loan is that and when did you refinance?” Ugh! I answered her questions because we were waiting for the shipping label to be generated and she was really nice and very helpful, so I was being polite. Then she said, “you know rates, housing values, and time might have changed your circumstances enough that you could benefit from a refinance. Would you like to at least research your options?” Sure, why not, I’m already on the phone with you. So, I get the shipping label, ask my final question about filling out the paperwork on the auto loan refinance and then she transfers me to mortgages.
I tell Stacy about my conversation with the auto loan lady (didn’t remember her name) and Stacy says, “sure we can look at that.” I told her that because I wasn’t planning on talking about my house I didn’t have house numbers in front of me. Stacy said we could go off of what I did know and could fill in specifics later if it looked promising. We ran through some numbers and I looked up home values via zillow and trulia while talking to her and based on those values and what I currently owe on my Mortgage (going from memory) there is a very good chance I could refinance right now and save a tiny bit on the APR, but almost $80 per month on mortgage payments and get rid of PMI. Well, that is interesting information. So, Stacy worked up some rates and saved them to my online profile for me to look at as I want/need to. Then she told me what I need to look at when I get home and can see the actual numbers. She let me ask my weird questions to make sure I understood what she was getting at and clarified the numbers I should be comparing to decide if refinancing would be financially sound right now. She didn’t try to “sell” me on the idea, she didn’t push, she was informative, supportive, friendly, encouraging, and offered follow up assistance when I do have the actual numbers in front of me.
There would have to be a significant benefit to going through the hassle and paperwork invovled in a mortgage refinance, so there is a lot of research left to do before going down that road. But it is nice to know that my bank is looking out for me and my financial health in such a thorough and supportive manner. This! This is why I wanted to finance my car through them if the 0% offer wasn’t going to happen. The 0% offer didn’t happen, I got great incentives to lower the overall cost of my car, my loan is now through the bank of MY choice, and I may have the ability to save on my home loan while getting it through the bank of MY choice also.
Thanks for making me mad Ford financing guy. I switched your bait and switch and I won. Then I got the victory lap prize too.