• futatorius@lemm.ee
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    5 days ago

    Or they give you more on the trade-in and claw it back by offering you shit terms from their captive finance company.

    Some carmakers don’t make a profit manufacturing and selling cars, they only make it on finance.

    • brbposting@sh.itjust.works
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      4 days ago

      Interesting, wonder how the economics work for the different players. Also, tangentially:

      A decade or two ago, a lady working in dealer finance lamented how internet bank rate comparisons had really rained on their parade

      “I want this rate”, she explained customers would say, pointing at a printout or their phone and expecting a match.

      Imagine how fat those margins would’ve been when they knew a customer hadn’t yet called around researching rates!

    • crusa187@lemmy.ml
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      5 days ago

      Good point, this is fairly common as well. I’d recommend avoiding financing entirely if at all possible because of this, simply not worth it for a car unless it’s the only way you can get one that’s in decent shape.

      If you have to finance, often times you can get a much better rate from your local credit union instead. Use that to make the purchase, instead of the dealer’s financier.