Tried to buy a Mitsubishi Mirage yesterday

[Finklejag]

I was communicating with a Mitsubishi dealer in the next State over about buying a Mirage. I’m looking at the SE trim and they are hard to find. This dealer gets 4.8 google stars on reviews, take that with a grain a salt. They sell their cars with no ADM or dealer installed accessories so they say. So the salesman emails me a purchase order and I notice on the bottom a Thief charge of $299. I replied about it and says it‘s VIN etching and you can decline it. I then asked him if they etched all the windows already because I won’t buy the car if it has been done. He came back and said they put the VIN on different body panels only. He emails me the contract with a 7.75% interest rate and says the loan will be going through BofA. I then went on the BofA website and their rates start at 6.49%, I have a 800 FICO, so I would qualify for their lowest rate. I emailed him back and told him this and I said I think you guys are padding the rate for profit. I haven’t heard back from them since this last email. I know it’s legal for dealers to add points to loans but I feel it’s unethical in my mind. These dealers will try to do everything that is still legal to fleece your money. Having a huge lobbying group with big pockets helps keep stuff like this going.

 

[fsdork]

Wait until you hear the dealer didn't pay sticker to buy the car from Mitsubishi.

 

[ARCOgraphite]

I was communicating with a Mitsubishi dealer in the next State over about buying a Mirage. I’m looking at the SE trim and they are hard to find. ... These dealers will try to do everything that is still legal to fleece your money. Having a huge lobbying group with big pockets helps keep stuff like this going.

I would secure the loan yourself. But you shot yourself in the foot by accusing them. Maybe subconsciously you didn't want the car?

Surprised Mitsu doesn't have any low interest rate offers - I do see 2.9% for 36 months - I suppose that might only be good for middle income/ retired families if you have a high value trade that is paid off.

p.s.: All of the new cars I have purchesed over the past decade have had panel VIN tagged from the factory

 

[GON]

Everything is negotiable. The dealer's rate with BOA is likely less than what BOA quoted on their web-site. Simply let the salesperson know that you will consider executing the deal with a rate of 6.59%.

This guy has some good basic advice- worth watching prior to contacting your salesperson:

 

[eljefino]

Whittle them down to the lowest cash price, forget about the APR. Get a contract without early termination penalties and refinance that thing the following day.

 

[zzyzzx]

I think you guys are padding the rate for profit.

It's a common practice. Ask the dealer what the buy rate on the loan is.

What is a buy rate for an auto loan? | Consumer Financial Protection Bureau

A buy rate is the interest rate that a potential lender quotes to your dealer when you apply for dealer-arranged financing.

www.consumerfinance.gov

 

[Davejam]

I guess you're not familiar with the role of sales in any business.
What you're describing seems pretty fair in the scheme of things.

 

[Pablo]

Just pay cash.

 

[TheOilWizard]

I guess you're not familiar with the role of sales in any business.
What you're describing seems pretty fair in the scheme of things.

Of course the dealership is there to make profit -- but I agree with the OP that padding the APR for additional profit comes across a little questionable at best.

 

[TheOilWizard]

Just pay cash.

Paying cash doesn't really motivate dealerships anymore and can actually work against you. Why would they want to sell a car in full when they can get another customer in their financing office with a nice padded APR? This is a much more lucrative and profitable option in a sellers market. The only exception is when/if there is as vehicle they are wanting to get rid of quickly.

 

[incognito_2u]

I was communicating with a Mitsubishi dealer in the next State over about buying a Mirage. I’m looking at the SE trim and they are hard to find. This dealer gets 4.8 google stars on reviews, take that with a grain a salt. They sell their cars with no ADM or dealer installed accessories so they say. So the salesman emails me a purchase order and I notice on the bottom a Thief charge of $299. I replied about it and says it‘s VIN etching and you can decline it. I then asked him if they etched all the windows already because I won’t buy the car if it has been done. He came back and said they put the VIN on different body panels only. He emails me the contract with a 7.75% interest rate and says the loan will be going through BofA. I then went on the BofA website and their rates start at 6.49%, I have a 800 FICO, so I would qualify for their lowest rate. I emailed him back and told him this and I said I think you guys are padding the rate for profit. I haven’t heard back from them since this last email. I know it’s legal for dealers to add points to loans but I feel it’s unethical in my mind. These dealers will try to do everything that is still legal to fleece your money. Having a huge lobbying group with big pockets helps keep stuff like this going.

What was the out-the-door price quoted to you?

 

[Urshurak776]

Just went throught the same thing when negotiating a Mazda CX-5 for my wife. My credit isn't 800, but well over 700. The thing that made me walk was they pulled my credit score from all 3 agencies, then said they "had to go with the lowest one." No idea if that's bunk or not, but it ticked me off enough to get up and walk out.

 

[andrew_j]

In NH at least dealers are allowed to pad rates up to 3% and split with bank. I got burned on first dealer car(age 21) with 11.99% rate but thankfully a friend who worked at that bank and alerted clueless me refinanced to 7% within months.

 

[PF52]

Just went throught the same thing when negotiating a Mazda CX-5 for my wife. My credit isn't 800, but well over 700. The thing that made me walk was they pulled my credit score from all 3 agencies, then said they "had to go with the lowest one." No idea if that's bunk or not, but it ticked me off enough to get up and walk out.

That's when you get up and tell them there are three dealers you're considering, and you're now on your way over to the lowest one.

 

[Leo99]

When I bought my Camry in 2015 it had the VIN etching on the windows. The sales guy said the etching is free. You pay for the insurance that links the VIN to a database in case your car gets stolen. I don't know what that meant since the VIN is already linked to the owner, but they said that I didn't have to pay it and took it off without another word.

 

[cptbarkey]

I have always line up my own financing when buying a car, the pandemic changed things where dealers can bully the purchaser into their own financing.
Not to criticize your vehicle choice, but have you considered any other vehicles as well? The Mirage crash test scores terrify me and tops the list for crash deaths.

 

[Urshurak776]

That's when you get up and tell them there are three dealers you're considering, and you're now on your way over to the lowest one.

Doing just that on Saturday

 

[ls973800]

That's when you get up and tell them there are three dealers you're considering, and you're now on your way over to the lowest one.

Kind of hard to do when the OP said this was a hard to find model and he had to go to a different state to find one.

 

[Pablo]

Paying cash doesn't really motivate dealerships anymore and can actually work against you. Why would they want to sell a car in full when they can get another customer in their financing office with a nice padded APR? This is a much more lucrative and profitable option in a sellers market. The only exception is when/if there is as vehicle they are wanting to get rid of quickly.

Not my point.

Why pay ANY interest on a consumable?

 

[JTK]

Looks like the base price for an SE is $18595. Once you add the destination fee and an option package or two, you are up over $21K.

That dealer email interaction is mild compared to most I've had.