How to talk down a price?

Question

I went today looking at an 08 Ford Escape Limited. I found one I really liked. My dad is cosigning for me because I have BK after divorce. He has an A+ credit score but the dealership said they won't finance me on the loan for $320 a month they would only finance my dad for that amount. They would finance me and my dad together for $380. Are they pulling my leg? How do I talk them down to $320 a month? Should I say $320 or I'm walking away?

Answer 1

What the dealer is telling you is that they will put just your dad on the contract by himself and give him a low interest rate because he has strong credit. They WILL NOT finance you alone. But they will put you on a contract with your dad. That will cost you more per month because of your BK. Your poor credit history is the reason for the spike in the interest rate.

You should be elated that you can still get a car in your name with a cosigner after a BK. Most banks will not take that risk. Their rule of thumb is "A cosigner will not help someone with bad credit. Only someone with little or no credit".

So you have a choice. Do you want a lower monthly payment? Have the car in your dad's name only. Do you want to rebuild your credit? Put it in both your names and pay the higher rate. It's the cost of getting your credit back on track.

One last bit of advice ... go to another Ford dealer. Tell them you want an Escape in the same color and options. Do not tell them you've been shopping. (That is something we all salivate over when we hear it. Because we know you're an emotional buyer and want it badly. And we'll find a way to stick it to you without you ever knowing it.) Get their figures and compare it to the other dealer. If it's a better deal, take it. If not, go back to the other one. Good luck.

Answer 2

I'm not positive. I'm not very good with the car dealing stuff but I know that you should go towards the end of the day because some dealers usually need to make a selling quota everyday and are more willing to negotiate. Hope that helps?

Answer 3

Get a loan from your bank or credit union with dad as a cosigner.  Problem solved and they can no longer work you over on "monthly payment".  You really want to know what you are paying for your car.  Monthly payment should not be a factor at the dealership.  You should walk in there pre-approved for a certain amount.  That way you know your monthly payment on the loan amount before you ever talk to a dealer.

Answer 4

just say do this or ill find some one else and keep lowering the price they will most likely try to keep you

Answer 5

yes. That's exactly what you are going to do. Tell them $320. than they may come back with $350. many times they really don't have a choice cause the bank approves only certain prospects cause of credit issues like yours. so if they don't lower the price on you, you wont have a choice. But you can probably just try to get another car from another dealer. Yo may want to go to get a used car maybe 2004 will be more feasible for you right now or at least until the BK will go off your credit.  hope it helps.