Forced financing................ya it's a thing.

[ZR]

Interesting read about a ridiculous practice. Can tell you it's real, yes have experienced it more than once when trying to buy a car the last few weeks. It would seem in this day and age, at some dealerships paying cash is not welcome.


https://driving.ca/column/lorraine/forced-financing-a-new-upsell-that-might-send-you-walking-away-from-a-car

[MUSTANGWOP]

Went through a similar issue buying my wife's CX-5 a few years ago. We entered with the dealer knowing we would be paying cash but once it came time to do the paperwork, the pressure was poured on to finance. I reminded them that cash was made clear upon enter the dealership and if they don't want my cash, I'll go elsewhere. They basically got really mad that we refused to finance. I stuck it out and held my ground because we really wanted the car.

[Black Sheep]

Crazy world we live in now where cash means nothing…borrow til ya drown

[bluetoy]

Dealerships get paid by banks and finance companies for each loan they get approved. If it becomes a sticking point simply take the loan, then pay it off when you get home. There's no interest and the banks are happy to take your money without any fuss. Done this a few times. helps get a better price on the car. Plus you get the last laugh on the dealer since they don't get any money until 3 to 6 months after the loan is taken and they get nothing if you pay it off before then.

[ZR]

^ Some require signing you will not pay off until X amount of time passes which varies between a few months to one or more years (read some actually enter a dollar amount penalty you agree to upfront). Had no idea any of this was a thing until recently.

[Scrape]

Wow. This is messed up. I've never heard of this before.

[FABMAN]

Stories like these always make me dread buying cars..,an experience that should be fun but instead becomes annoying.

Dealers must dislike buyers like me as I really couldn’t care less if I buy a particular car unless it’s a deal I can live with. If it’s not then I will always walk away and not care one bit as there is always another car around the corner.

[ChickenLips]

wait until central bank issued crypto is introduced, you won't have a choice.

[ZR]

Thankfully it's not all dealers, still lots out there that make it the exciting experience it should be.
I'm of the same mind as you Fab, never ever get emotional or attached to what I'm looking at, makes you do things you'll regret later.
Buying my PP2 from Heritage was as painless as it gets, ordering ZL1 1LE went just as smooth. Only run into this when looking for an SS 1LE or ZL1 to replace the PP2.

[FABMAN]

Thankfully it's not all dealers, still lots out there that make it the exciting experience it should be.
I'm of the same mind as you Fab, never ever get emotional or attached to what I'm looking at, makes you do things you'll regret later.
Buying my PP2 from Heritage was as painless as it gets, ordering ZL1 1LE went just as smooth. Only run into this when looking for an SS 1LE or ZL1 to replace the PP2.

Very true. Dealing with people like Bill at heritage is definitely a positive experience. Buying from him was one of the best car purchasing deals I have ever had and I still refer him to this day.

Unfortunately, most of the other brands that I have purchased haven’t been as favourable.

[ChickenLips]

here's one segments solution

https://torontosun.com/news/local-news/exclusive-maple-leafs-star-mitch-marner-victim-of-etobicoke-carjacking?utm_medium=Social&utm_source=Twitter#Echobox=1652788588

[MUSTANGWOP]

here's one segments solution

https://torontosun.com/news/local-news/exclusive-maple-leafs-star-mitch-marner-victim-of-etobicoke-carjacking?utm_medium=Social&utm_source=Twitter#Echobox=1652788588

Damn!!
I've seen his Range Rover and other cars as his recently late grandmother Lucy (sweet sweet lady) lived 3 doors down from us.

[ZR]

Very true. Dealing with people like Bill at heritage is definitely a positive experience. Buying from him was one of the best car purchasing deals I have ever had and I still refer him to this day.

Unfortunately, most of the other brands that I have purchased haven’t been as favourable.

Know what you mean, experience buying the Ram was brutal but got what I wanted for my trade n flat out stole the Ram. Easy to overlook the neg's when you come out on top.

[Styrofoam04]

Yup, this is regular practice now. They don't make as much money from cash deals especially on used cars.. you can ask them for the invoice and most dealers will show you and you see what they payed for it. The mark up is usually $1000 to $2000 on a used. so negotiating is next to impossible with cash

If you finance then they negotiate and start throwing in other deals as well. I usually ask dealers if i won the lottery can i pay it off? Most of the time there is no restrictions or penalties for paying off the loan. but once they catch wind that you have cash they tighten up even with financing.

This happened recently helping my in-laws buy their car. I told them about this stuff ahead of time.. that cash is no longer king. but they got frustrated and mentioned that they had the cash.. and that was it... it was over.. The best the dealer would do was $500 off or free tires (not both lol). I tried to bring it back to financing, but he knew and straight out told me. IF we go home with the car and pay off the loan he gets nothing. he begged us to at least pay for 6 months before paying it off... We ended up going somewhere else and got a way better deal financing then paying it off right away.

[ChickenLips]

perfect work around. it'll be hard to bite the tongue when you have cash and a lifetime of it having value as a bargaining position.