Was this dealership trying to screw me?

[jajo]

My wife and I went in to test drive and possibly buy a new 328 coupe. The car is great, my wife loved it. So, we went inside and talked it over with the salesperson. We loaded it up pretty well with navi, steptronic, sport, premium, and cold weather packages. All in all, the price was 43,670.

Hypothetically, I told him I would put $8,000 down with an interest rate of 6.9% for 60 months. Tax here is 7%.

When calculated for monthly payments, he told me $818.

So, we left the dealership. I was a bit upset, and also puzzled. I came home and calculated the payments myself, and I came up with a bit less than he offered me.

It's not that I can't afford the car, it's the fact that I think they were trying to screw me. Plus, now I feel like going for a 335 coupe. Please let me know who's wrong.... me, or them?

[de Witt]

Originally Posted by jajo

My wife and I went in to test drive and possibly buy a new 328 coupe. The car is great, my wife loved it. So, we went inside and talked it over with the salesperson. We loaded it up pretty well with navi, steptronic, sport, premium, and cold weather packages. All in all, the price was 43,670.

Hypothetically, I told him I would put $8,000 down with an interest rate of 6.9% for 60 months. Tax here is 7%.

When calculated for monthly payments, he told me $818.

So, we left the dealership. I was a bit upset, and also puzzled. I came home and calculated the payments myself, and I came up with a bit less than he offered me.

It's not that I can't afford the car, it's the fact that I think they were trying to screw me. Plus, now I feel like going for a 335 coupe. Please let me know who's wrong.... me, or them?

Did you calculate a monthly payment of $735.95/mo? or 704.63/mo? Dont know how you are handling taxes.

[jajo]

Originally Posted by de Witt

Did you calculate a monthly payment of $735.95/mo? or 704.63/mo? Dont know how you are handling taxes.

I keep getting high 600's when calculating. I dunno, I don't have much experience buying cars, so my calculations are probably (very) off.

The dealership that I take my M5 for service quoted me $707.

[m32m5]

If you take the told purchase price + tax and subtract the $8,000 down (assumes you pay licensing and title fees out of pocket), that leaves a balance of $38,726.90. At 6.9% over 60 months, the payment would be $765.01. In order for the payment to be $818, the rate would have to be 9.75.

So, I'd say yes the dealer was trying to screw you. Was it the finance guy that came up with these numbers?

One thing many people are unaware of is if the dealer sells you on a higher interest rate, they get paid more for that loan from the lender - often times they will say the rate is higher because of qualification when in many cases that is not true.

[BmwNut]

I looks like they marked the rate up 2% to me. Depending on the lender, you can mark rates up anywhere from 1 to 3 percent of the buy rate. That being said, they need to disclose the rate to you correctly for the numbers.
If a dealership does something like that, shop somewhere else. By being open and honest, there is no bad blood when people know you are making money off them, but when you aren't truthful and make someone feel odd, you lose a sale. I'm a manager at a VW dealership, so I know the tricks, but letting you know what is offered, and then having that differ from the rate that goes into the payment price is just unethical.
Also, check and see if that included an extended service contract, or paint protection. Even still, those have to be disclosed...

[TiSiBeast]

Sounds like the whole car is way too high. The 335i is about 40k base....

[jajo]

Thank you everyone for the help.

Today I stopped by another dealership, and it looks like the wife will be getting a black on black 335ci (for less than the 328..ha!).

By the way, the 335 drove very, very nice. Nice pickup, nice handling...

[TiSiBeast]

Originally Posted by jajo

Thank you everyone for the help.

Today I stopped by another dealership, and it looks like the wife will be getting a black on black 335ci (for less than the 328..ha!).

By the way, the 335 drove very, very nice. Nice pickup, nice handling...

Congrats on the 335! Great car - that thing is a giant killer!

[glowrider]

No need to read the thread - to answer the topic question - YES! They're always trying to screw you.