8th Generation Honda Civic Forum banner

1 - 20 of 23 Posts

·
Registered
Joined
·
151 Posts
Discussion Starter #1
Hey Guys,
What do you think of this? The guys at my dealership are telling me that I have to put more money down because American Honda doesn't finance accessories (AKA: HFP Package.) :eek:mg: I call B.S.
 

·
Acorns!
Joined
·
17,760 Posts
I've never heard of anything like that. I've purchased cars with accessories in the past and financed them through the dealership. I don't buy that story.
 

·
Registered
Joined
·
151 Posts
Discussion Starter #8
Okay, so here's what they are telling me-It's kind of hard to explain. Banks finance about 120% of the original purchase price. I am trading my 04 xterra and will be upside down about $2000 (They are giving me 16,500 on an 18,500 balance owed). The car I am getting has the HFP package on it (about $4000). Like I said, according to the dealership, the HFP package is "accessories" so the original selling price that the banks are using to determine the amount they will finance is about $20,000 instead of $24,000. SO, 120% of $20,000 is about $24, 000, which still leaves me with the trade balance.-They want money down to cover this. If they would just include the HFP package in the amount of the selling price, then the amount financed will be $28,000(120% of 24,000), and I could get the car. I just don't understand how wheels, tires, fog lights, and an aero kit that come directly from and are installed by HONDA don't factor into this. I hope I am making sense. . Maybe someone out there works at a dealership and can tell me if there is a way around this and/or if the dealership is just playng games. I'm starting to think that there is someone in line behind me that is willing to fork over more cash-so they just want to get rid of me.... :help: I know they are hard to come by right now and some of the dealerships are really taking advantage.
 

·
Registered
Joined
·
109 Posts
This is correct!!!! fog lights and such ARE ACCESSORY. THESE ITEMS ARE DEALER INSTALLS!!! Which does sound correct to me. I would just purchase the car itself. Then slowly add the accessory on YOURSELF.. you will save a TON of money :)
 

·
Registered
Joined
·
445 Posts
Pixie, madeguy is so correct. The dealership wants you to put more into the car when you buy it. Why? It's more money for them. They make alot of money on accessories they sell over the counter or part of a package deal. My salesman wanted me to buy accessories for the car- I told him no. He showed me the prices-which were high already, then there's the cost of manpower to put it on. There's also the finance mgr who trys to sell all kinds of other stuff. ie. extended warranties, interior protection pkg, exterior protection pkg, etc.-They make money off of there stuff too. Thats why I bought my car w/no accessories. Cheaper to get it online at other Honda dealers. like College Hills Honda, which has excellent pricing. Good luck, the car will be worth the wait.
 

·
Registered
Joined
·
171 Posts
The more money the dealership gets from you (down payment, payment for accessories, etc) the more money they make up front. If you finance EVERYTHING then they don't get there money right up front. Something like that my Uncle was a used car sellsman, he always wanted people to pay more up front... he would take money off the price of the car if you could pay a larger downpayment.
READ THIS..

http://www.edmunds.com/advice/buying/articles/42962/article.html
 

·
Registered
Joined
·
2,059 Posts
mcpaige said:
The more money the dealership gets from you (down payment, payment for accessories, etc) the more money they make up front. If you finance EVERYTHING then they don't get there money right up front. Something like that my Uncle was a used car sellsman, he always wanted people to pay more up front... he would take money off the price of the car if you could pay a larger downpayment.
READ THIS..

http://www.edmunds.com/advice/buying/articles/42962/article.html
First of all, thats how it was back in the day. Now, transferrs are speedy and they usually have the full ammount within 3 days, usually same, if not, next day. The only reason for them telling him to put a bigger DP was because he probably didn't qualify for a bigger loan. Dealers have no problem financing accessories, as they do this constantly. Money down is way to get you approved for a loan. Banks get iffy when the have to put money out there for upsidedown or "balloon" balance from another car. Mostly because that is money that insurance companies dont consider, and gap insurance companies try to stay away from.
 

·
Registered
Joined
·
171 Posts
Agree

pixiedotcom said:
Okay, so here's what they are telling me-It's kind of hard to explain. Banks finance about 120% of the original purchase price. I am trading my 04 xterra and will be upside down about $2000 (They are giving me 16,500 on an 18,500 balance owed). The car I am getting has the HFP package on it (about $4000). Like I said, according to the dealership, the HFP package is "accessories" so the original selling price that the banks are using to determine the amount they will finance is about $20,000 instead of $24,000. SO, 120% of $20,000 is about $24, 000, which still leaves me with the trade balance.-They want money down to cover this. If they would just include the HFP package in the amount of the selling price, then the amount financed will be $28,000(120% of 24,000), and I could get the car. I just don't understand how wheels, tires, fog lights, and an aero kit that come directly from and are installed by HONDA don't factor into this. I hope I am making sense. . Maybe someone out there works at a dealership and can tell me if there is a way around this and/or if the dealership is just playng games. I'm starting to think that there is someone in line behind me that is willing to fork over more cash-so they just want to get rid of me.... :help: I know they are hard to come by right now and some of the dealerships are really taking advantage.

2RotorMotor said:
...The only reason for them telling him to put a bigger DP was because he probably didn't qualify for a bigger loan. Dealers have no problem financing accessories, as they do this constantly. Money down is way to get you approved for a loan. Banks get iffy when the have to put money out there for upsidedown or "balloon" balance from another car. Mostly because that is money that insurance companies dont consider, and gap insurance companies try to stay away from.

Yea! I will defiantly agree with that!
 

·
Registered
Joined
·
151 Posts
Discussion Starter #16
Well, it looks like I'm getting the car. I finally got them to sell it to me without the HFP package. (They were insisting on selling all their SI's with the package.) I plan to put the wheels and kit later-as a couple of you suggested. Thanks for the advice. By the way, 2RotorMotor, I'm a "she", not a "he". hehe. ;)
 
1 - 20 of 23 Posts
Top