Originally Posted by Dukeryder
There's nothing WRONG with the dealer marking up a couple points on the financing. Nobody is forcing you to finance the bike at the dealership. I don't condone his little lying trick though.
Most dealerships make most of their profit on the financing. An old girlfriend of mine was the finance manager at a large Lexus dealership in Texas and she always hated CASH sales because that meant she nor the dealership made any money of the sale of the car.
Whenever I buy at a dealership I go in and negotiate the price with the salesman; never letting them know how I'll be paying. Once I negotiate the price they want to send you over to the Finance Manager, but you just say "No, please write up a buying agreement", that way you have the negotiated price in writing that the dealer is legal held to uphold. Take that down to your bank or credit union and get a ridiculously low interest rate. Come back the next day to the dealer with your check and drive out knowing they didn't screw you too badly.
I do the same thing but in the reverse order, I get pre-qualified for the loan and then I go to the dealership. I tell the salesweasel I only want two
things from him, the price of the new car and what they give me for my trade-in. When they ask about financing, monthly payments and my payoff I just tell them two get me the "two" things I asked for. I have my trade-in value and price I am willing to pay for the new car already worked out. After they make the first offer I give them my numbers and walk out if they do not get reasonably close to them.