What's a car in the hand worth?
April 3, 2022 1:48 PM Subscribe
A month ago, I put in a non-binding factory order for a car via a dealership at MSRP. I had a bad experience with them, so I ended up going to a second dealership. The second dealership was great and offered me $800 more on my trade-in, so I put in a second non-binding order for an identical car, also at MSRP. But the first car will be arriving in 2 weeks and the second won't be here for 4 months. Which car should I keep?
This is my first time navigating buying a car via a dealership and I'm trying to figure this out as I go, so please be gentle.
At dealership #1, the salesperson was skeezy, impatient, late for our appointment, and acted like I should be grateful that he would sell me a car at all given the current shortage. He randomly gave me the stat that 1/4 of the cars on the road in my area are [CAR MAKE], which seemed outrageous and I later confirmed is not true. He offered $700 for my trade-in, which was about $1k less than the KBB value for my VIN even in the the worst possible condition, and essentially laughed me off when I tried to negotiate. He then ran a credit inquiry and confirmed that I have good credit and could get their best possible interest rates. At the end of the appointment, he gave me a copy of the buyer's order but didn't sign the paper or have me sign it. I tried to arrange a deposit, but they said that deposits "mess up their accounting." I read online that refusing to take a deposit is a red flag. I asked what would happen if I didn't take the car and he said he could sell the car essentially immediately if I gave it up. The next day, he emailed me the next day to say he wanted to follow up on my email inquiry and asked if I wanted to come in to talk about ordering a car (i.e., he forgot that I had just ordered a car from him). Yesterday, I got an email from a different salesperson letting me know that my car is arriving in 2 weeks.
At dealership #2, the salesperson was very kind, patient, and professional. I realize that he was still a salesperson but I appreciated being treated like a human making a big purchase, at least. I showed him the trade-in offer from dealership #1 and he offered $800 more. He didn't run a credit inquiry, as he said that their dealership doesn't think it's good practice to ding their customers' credit until the money is changing hands. At the end of the appointment, he gave me a copy of the buyer's order in writing. I believe we both signed it but I'm not 100% sure. He said that that offer is firm unless I basically total my car between now and when I get the new one. Once he got the order in, he took a $500 deposit and assured me that it was refundable if something came up. He said that all cars ordered directly from this manufacturer are currently arriving with a 4 month lag, and so mine is due in late July or early August. I'm confused as to how Dealership #1 got the same car sooner given that.
Here's what I'm thinking.
Cons of waiting for car #2:
-It appears likely that there will be interest rate hikes between now and early August. My APR would be 2.9% if I got the car now. If my APR got up to 4.4%, it would cancel out the $800 savings.
-My current car runs, but the suspension is pretty much shot, it smells, and my AC broke a couple years ago. I frequently drive out of town for weekend trips, and driving around in it is tolerable but unpleasant. I'm in a part of the country without super hot/humid summers, but I definitely missed having AC last year.
-I run the risk of something happening to my car in the next few months, from expensive repairs to something more catastrophic.
-Hypothetically, dealership #2 could add last-minute hidden fees or otherwise screw me over and then I'd be stuck.
Pros of waiting for car #2:
-I was hoping to spend the next few months saving a bit more for my downpayment so I don't have to take it out of savings.
-I wouldn't be giving my business to a dealership I don't like or trust.
-I'd be saving $800, which is a lot of money to me, unless the interest rate hikes cancel it out.
This is my first time navigating buying a car via a dealership and I'm trying to figure this out as I go, so please be gentle.
At dealership #1, the salesperson was skeezy, impatient, late for our appointment, and acted like I should be grateful that he would sell me a car at all given the current shortage. He randomly gave me the stat that 1/4 of the cars on the road in my area are [CAR MAKE], which seemed outrageous and I later confirmed is not true. He offered $700 for my trade-in, which was about $1k less than the KBB value for my VIN even in the the worst possible condition, and essentially laughed me off when I tried to negotiate. He then ran a credit inquiry and confirmed that I have good credit and could get their best possible interest rates. At the end of the appointment, he gave me a copy of the buyer's order but didn't sign the paper or have me sign it. I tried to arrange a deposit, but they said that deposits "mess up their accounting." I read online that refusing to take a deposit is a red flag. I asked what would happen if I didn't take the car and he said he could sell the car essentially immediately if I gave it up. The next day, he emailed me the next day to say he wanted to follow up on my email inquiry and asked if I wanted to come in to talk about ordering a car (i.e., he forgot that I had just ordered a car from him). Yesterday, I got an email from a different salesperson letting me know that my car is arriving in 2 weeks.
At dealership #2, the salesperson was very kind, patient, and professional. I realize that he was still a salesperson but I appreciated being treated like a human making a big purchase, at least. I showed him the trade-in offer from dealership #1 and he offered $800 more. He didn't run a credit inquiry, as he said that their dealership doesn't think it's good practice to ding their customers' credit until the money is changing hands. At the end of the appointment, he gave me a copy of the buyer's order in writing. I believe we both signed it but I'm not 100% sure. He said that that offer is firm unless I basically total my car between now and when I get the new one. Once he got the order in, he took a $500 deposit and assured me that it was refundable if something came up. He said that all cars ordered directly from this manufacturer are currently arriving with a 4 month lag, and so mine is due in late July or early August. I'm confused as to how Dealership #1 got the same car sooner given that.
Here's what I'm thinking.
Cons of waiting for car #2:
-It appears likely that there will be interest rate hikes between now and early August. My APR would be 2.9% if I got the car now. If my APR got up to 4.4%, it would cancel out the $800 savings.
-My current car runs, but the suspension is pretty much shot, it smells, and my AC broke a couple years ago. I frequently drive out of town for weekend trips, and driving around in it is tolerable but unpleasant. I'm in a part of the country without super hot/humid summers, but I definitely missed having AC last year.
-I run the risk of something happening to my car in the next few months, from expensive repairs to something more catastrophic.
-Hypothetically, dealership #2 could add last-minute hidden fees or otherwise screw me over and then I'd be stuck.
Pros of waiting for car #2:
-I was hoping to spend the next few months saving a bit more for my downpayment so I don't have to take it out of savings.
-I wouldn't be giving my business to a dealership I don't like or trust.
-I'd be saving $800, which is a lot of money to me, unless the interest rate hikes cancel it out.
Can you ask the dealership if they will lock in the interest rate? If that's not an option, are you able to secure financing elsewhere? Often going straight to your local bank or credit union will get you better terms than dealership financing.
posted by mezzanayne at 2:19 PM on April 3, 2022 [2 favorites]
posted by mezzanayne at 2:19 PM on April 3, 2022 [2 favorites]
I'm definitely someone to grudge and punish a retailer for any whiffs of bad treatment if I'm in a certain mood, but further to coffeecat, the salesman will be completely out of your life the moment you drive the car off the lot. Heck, they're probably chafing at this hanging over their head for weeks!
posted by rhizome at 2:39 PM on April 3, 2022
posted by rhizome at 2:39 PM on April 3, 2022
It sounds like you really would benefit from having the car sooner. Why don't you go back to the first dealer but say you refuse to work with the salesperson you talked to before?
posted by medusa at 2:42 PM on April 3, 2022 [3 favorites]
posted by medusa at 2:42 PM on April 3, 2022 [3 favorites]
I'm wondering if dealership #1 really has the car, or is just saying that they have the car to get you back on the lot to have the opportunity to sell you something else. "Oh, you mean you wanted the Sports Wagon? My bad. We do have this lovely Queen Mother Family Truckster in metallic pea...."
I guess I'm more spite oriented (or happy to suck it up driving a beater) than other MeFites, I'd stick with dealer #2.
posted by Larry David Syndrome at 3:49 PM on April 3, 2022 [2 favorites]
I guess I'm more spite oriented (or happy to suck it up driving a beater) than other MeFites, I'd stick with dealer #2.
posted by Larry David Syndrome at 3:49 PM on April 3, 2022 [2 favorites]
As others have mentioned, car dealers are more often than not unpleasant to deal with and holding all the cards may have made dealer #1 more so, but you only have to deal with them for a short time and then they're out of your life. You could choose to deal with the other salesperson that emailed you if you want to avid the arsehole.
I'd be inclined to take car #1 if only because there's no guarantee you'll even get the other car in four months and lots of things could go wrong. BUT, it sounds like you have a formal contract with dealer #2 and, regardless of what they told you, they'll probably try to keep your deposit so, if you go for #1, explore your situation with dealer #2. If they decided to get nasty and if the contract is tighter than described, they may well insist that you have a contract and now own car #2 and will be forced to go through with that sale.
TL:DR - check you can get out of contract #2 and get your deposit back and if so, take car #1.
posted by dg at 8:12 PM on April 3, 2022
I'd be inclined to take car #1 if only because there's no guarantee you'll even get the other car in four months and lots of things could go wrong. BUT, it sounds like you have a formal contract with dealer #2 and, regardless of what they told you, they'll probably try to keep your deposit so, if you go for #1, explore your situation with dealer #2. If they decided to get nasty and if the contract is tighter than described, they may well insist that you have a contract and now own car #2 and will be forced to go through with that sale.
TL:DR - check you can get out of contract #2 and get your deposit back and if so, take car #1.
posted by dg at 8:12 PM on April 3, 2022
While I hate to reward bad salespeople, the world is on fire so I'd take the sooner option. The increased cost is worth it for your peace of mind.
(Also, I just checked my credit union and their current new car loan rate is 2.64%. You may want to look elsewhere for your loan.)
posted by metasarah at 6:21 AM on April 4, 2022 [1 favorite]
(Also, I just checked my credit union and their current new car loan rate is 2.64%. You may want to look elsewhere for your loan.)
posted by metasarah at 6:21 AM on April 4, 2022 [1 favorite]
This thread is closed to new comments.
It seems like what's giving you pause is the salesman at the first dealership, but honestly he doesn't sound that bad - kinda par for the business. And the car industry right now is kinda wild, with less negotiating power for buyers.
posted by coffeecat at 2:15 PM on April 3, 2022