So been waiting like 6mo for my GLS450 to come in. I was planning on financing with DCU or NWFCU for under 2%. Dealer just called to say my car’s ready, but MB has a mandatory 5% surcharge if you use 3rd party financing. How could it matter who signs the check?
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MB doesn’t care, but the dealer may have only offered that sales price under the assumption you were using their financing that they get a cut on.
You can either tell them to pound sand for not disclosing it previously, you can see if mbfs will match your current rates, or you can take it with their financing and immediately refinance.
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I was reading about this few weeks ago on WSJ. Here is the article: Car Dealerships Don’t Want Your Cash—They Want to Give You a Loan - WSJ
The deal from the start was agreed at MSRP. It’s really sleazy if this is a way they’re trying to claw more. I could understand a local dealership coming up with this kind of greed induced policy, but dealer is claiming it MB Finance, nothing to do with them.
As our ultra multi trusted hacker nominee @mllcb42 said try to get them to match or take their loan and do a refi right away
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That’s really disappointing. I agree with @mllcb42. The next fed meeting is not until May, so you some time to re-finance it before the next rate increase.
Do not mention that you are going to immediately re-fi the MB loan if this is the path that you are forced to go down. If you mention it, they are more likely to say the “new” sales guy didn’t know it was reserved and sold it this morning.
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Which, of course, makes no sense because if you finance it through a different bank, MBFS isn’t even involved.
I’ve seen dealers do this, certain price is only if you finance through them. But the good dealers will usually disclose this in fine print before you ever step inside.
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Take their financing, don’t tell them you plan to refi and then once the car is titled get a refi loan from one of those credit unions. You’ll pay the higher interest for 1-2 months possibly, but far cheaper than whatever surcharge the dealer will try to get from you. Unfortunately these days they hold all the power and they could easily find another buyer for $$ if you walk.
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Thanks for the advise. I was going to just pay cash, but didn’t even think about it getting sold out from under me. Ugggh
Just pay it off ASAP. But be warned if you do this, the dealer may not work with you in the future (they may get charged back but hey that’s their problem).
You can wait 90-120 days and refi. Dealer will still get their kickback. But if you don’t care, you can refi sooner just like others mentioned.
This is exactly the kind of behavior that gives Dealerships such a poor reputation…
The Dealership is making full mark up on the vehicle that they’re selling you at MSRP…
And yet … They’re trying to gouge you with regards to your financing choices …
Personally I would walk out the door and let them keep their SUV…
I have zero tolerance for Dealership’s like this…
….
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I’m all for not screwing a dealer that I have a good relationship with, but there’s no way I’d pay months of interest so the dealer didn’t get a charge back when they pulled something like this at the last moment. Disclose it up front? No problem. Surprise rabbit out of a hat? I’d make sure I refinanced as soon as possible.
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Situation is compounded by fact that the easy to deal with straight manager that set up the MSRP deal (in writing) is out on vacation until next week. I feel like his fill-in feels the power imbalance and is just trying to juice the deal. I’ve been waiting for this car since September.
Really does absolutely sour the relationship when this could have been a positive and very profitable transaction.
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Could you ask the dealer to share in the fee by giving you an additional discount?
and or will they give you until next week when the Sales guy returns from vacation for his thoughts?
otherwise as others say play their game and do the refi.
I assume you’ll get a survey from MB. Can you give the straightfoward manager a great review and then specifically call out the covering manager for being a turd?
Nope. It’ll bone everyone, salesperson to management.
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Plenty of mb buyers pay cash.
If you really want the car, just do the deal with mbfs financing and then be honest on the survey and refinance after a couple of months.