My dealings with a local dealer. I am not the least bit happy.

[Noland]

[FONT=Verdana, Arial] I went to a local dealer today in search of a new mower and I found one that I liked.
It had a price tag on it, placed there by the dealer.

So I decide to buy it, but when we I tell him that I want to put $2000 down and finance the rest, he says he is going to have to charge me an additional $200.

Now since the manufactuers website clearly states that they are currently offering x% interest rates, I feel that charging me another $200 is being dishonest. Because if I factor in the extra 200 bucks, the APR is more than double the advertised rate.
I have contacted their corporate headquarters but have not yet received a reply.

I say this is a bait and switch and is unethical, if not ilegal.

What say you all?
[/FONT]

 

[MrJimi]

Without knowing all that is involved, I will tell you from my past experiences that the hometown dealer may not always be and the other mans grass may be greener ( not referring to JD) greener in your pocket

 

[MikePA]

What say you all?

You haven't provided enough information. What's the additional $200 for? There are costs associated with taking out a loan. What are the x% financing requirements/limitations? Did the tag say cash price?

 

[Noland]

I was told by the dealer that he takes a 3 percent hit when selling something through the financing program, so I would need to pay that additional 3 percent.

Adding 3 percent to the amount financed, raises the interest rate as far as I am concerned.

There are no resrictions to the loan, that I can find - other than having acceptable credit, which is not an issue.

The tag does not say cash price.

 

[RoyJackson]

I doubt if it's "illegal", but I'm sure the manufacturer would be unhappy. Assuming the dealer you're buying from is an "authorized" dealer, he should be following the manufacturer's guidelines. If he's taking a 3% hit....that's between him and his manufacturer.
So, I'd contact the manufacturer on this one...or find another dealer (or both).

What brand mower is this? And, if you're putting $2K down and still having to finance...boy, that's an expensive mower!

 

[MikePA]

So, in effect, the price on the tag is the cash price. On the plus side, he's being honest, he's passing the cost of financing on to the people who want to use it. He could have buried the financing cost in the price of the mower.

 

[MessickFarmEqu]

I deal with this kinda stuff all the time, its a particular problem with and garden equipment. The profit margin on these tractors is literaly as low as $125 on some models. If the dealer is expected to contribute 2.5-3% to buy down the finacing, there is no profit left.

 

[Nat]

I'll have to give the dealer a show of support here. I had a retail store that sold and installed swimming pools /supplies/ and spas. I had a customer come in and say he wanted a spa and an above ground pool as a package deal, so I cave him a good price. He agreed to the price ,THEN said he was going to pay for it with M/C. I had to pay the bank 1 3/4 % of the total sales price including sales tax, and on a 5,000.00 sale that was a big hit on my profit and let's face it the only reason I or your dealer is in business is for the profit.
I honored the deal, but in the future I always may any concessions as a cash only price. I hope this puts your dealer in a little better light with you. Later, Nay

 

[Noland]

I understand how financing works, and I realize that the dealer needs to make an acceptable profit.

So I guess my beef here is that if the price on the unit is a cash only price, then that needs to be made known prior to me sitting down at the guy's desk to make the purchase. I think that is a reasonable expectation.

 

[jdbower]

I think a "cash only" disclaimer would shoo away a lot of customers who think the only reason is so the dealer can avoid paying taxes. As a consumer the thing I did differently was to tell the dealer I wanted to finance before we started talking price. As a dealer it would be nice if he asked earlier if you wanted to finance but then customers would say he's pushy and presumptuous. I'm afraid there's no easy answer here except for the dealer to just charge EVERYONE an extra 3% in case everyone wants to finance.