| It's done! The negotiating is over, the sales person has | | | | payment is. This leaves $15 of "leg," a common term |
| taken three passes at you and you've even gotten to | | | | used to describe how much the payment has been |
| meet the sales manager (closer), and have finally | | | | packed. This may not sound like much, but over a 72 |
| agreed on payments. Whew...What a relief that's over | | | | month contract this equates to $1,080. |
| with. Now all you have left to do is sign some papers | | | | The good Finance Manager will essentially give that |
| and you're on your way in your new car. At this point | | | | back to you, but the unscrupulous Finance Manager will |
| all you can think of is showing off your new car to all | | | | fill that with with etch (a worthless product for most |
| your family and friends...Boy, what a nice car. | | | | people, but it's only got a cost in the $70 range, so |
| STOP and focus. The most important part of your car | | | | there is a lot of finance profit) or some other |
| buying adventure is about to take place and trust me, | | | | inexpensive item, so they can profit from you. Again, |
| you'll want all your whits about you. If you think you're | | | | most people are none the wiser. They will see that |
| out of the woods you're wrong. The Finance office is | | | | their payment is the same and gladly sign away. |
| where the majority of scams take place in this | | | | Don't let this happen to you. The two most important |
| business. I'd be willing to say that 80% or more, of all | | | | documents you'll sign in the Finance office are the |
| car dealership scams you hear of on the news involve | | | | Retail Installment Contract and the Purchase Order. |
| the Finance Department. That being said, I don't want | | | | Never sign either one of these blank. The rest of the |
| you to automatically assume that all Finance Managers | | | | papers you'll sign are typically for the states Motor |
| are going to scam you, but if you've run into the one | | | | Vehicle division, and it is usually only important to verify |
| that will, you'd better be ready. | | | | that your personal information is correct. |
| I want to quickly state that I do not believe that the | | | | I can't begin to tell you how many people will sign a |
| majority of Finance Managers are bad people with | | | | blank purchase order! Don't let this be you. There is no |
| bad intentions, but the ones that are will stick it to you if | | | | reason why this form, no matter what they tell you, |
| you give them the opportunity. I've personally seen | | | | should not be printed. The Finance Manager should |
| some very elaborate ways to stuff unwanted | | | | also fully disclose these forms at a pace that is |
| products into a contract, and the customer is none the | | | | comfortable for you to follow along. If they are going |
| wiser. | | | | to fast stop them and ask them to explain further. |
| For most people, if their payment stays the same as | | | | You'll also want to watch out for highlighted contracts. |
| what was quoted on the sales floor they believe | | | | This can be a sign that the Finance Manager is trying |
| everything must be in order and they will sign away, | | | | to get your attention to the signature line and keep |
| but what if the payment you were quoted on the | | | | your focus off the rest of the numbers on the |
| sales floor was packed? Packed is a term used to | | | | contract. |
| describe "payment packing" in the car business. I'll save | | | | I personally will highlight Motor Vehicle forms, to speed |
| an depth explanation of "payment packing" for another | | | | up the process (I've signed literally thousands of deals, |
| article, but it's the practice of quoting inflated payments | | | | and it can get a little repetitive), but I never, never |
| to help the Finance Manger sell products to you in the | | | | highlight contracts. I always give customers a full |
| Finance office. | | | | disclosure and ask them if they have any questions as |
| If you're dealing with a legitimate Finance Manager and | | | | to what we've just gone over. |
| decide that you do not want an extended warranty, | | | | Another key point is to bring reading glasses, if you |
| GAP insurance, or any other products they are | | | | use them. It blows me away that people that have a |
| offering, then the Finance Manager will reduce your | | | | hard time reading small print don't bring their glasses. |
| packed payment to your real base payment and | | | | Remember, this is typically the second largest |
| away you go. | | | | purchase most people will make, so you'll definitely |
| On the other hand, if you're dealing with an | | | | want to know what it is you are agreeing to pay for |
| unscrupulous Finance Manager then they'll try to fill that | | | | over the next six years. |
| packed payment with a product you did not opt for, so | | | | Always remember that at this point in the transaction |
| they can make money. I've seen Finance Managers | | | | you have not legally committed to anything. If you feel |
| stuff up to $2,000 worth of products into a deal | | | | the Finance Manager is being deceptive get up and |
| without the customer having a clue, because they | | | | leave. If you feel they've broken the law call your |
| weren't paying attention. | | | | states Attorney General office. |
| How does this work? Let's start back at the sales | | | | Keep in mind, when you're on your way into the |
| persons desk. Your real base payment, consisting of | | | | Finance office it's time to clear your head, put on your |
| sales price minus down payment, plus tax, title, license, | | | | reading glasses and know what's on your contract. |
| dealer doc fee, and your finance charges, is $300. The | | | | In the mean time... |
| sales person quotes you payments of $315 and you | | | | Take care and beware. |
| agree to that, not knowing what your real base | | | | |