My wife and I recently purchased a new car from a reputable dealer. We had gone to two different dealers to negotiate, and ending up purchasing at the second dealer.
During negotiations, we were surprised that our sales rep at *both* dealers asked to take our credit card with them to show their manager with our offer. This happened after the 2nd or 3rd round of negotiating, and in both cases we refused.
Both reps said they wanted the card to show their manager that we were serious about purchasing.
It%26#039;s been 7 years since we last bought a new car, and at that time we weren%26#039;t asked for our card. I%26#039;m curious: why are dealers asking for them nowadays? Is it a negotiating ploy? Do they try to secretly conduct a credit check without permission (they already had our name %26amp; address)?
Why do auto dealers ask to see your credit card during negotiations?
I have never heard of this - and I don%26#039;t even see the point. Anyone can whip out some credit card and it doesn%26#039;t even have to be working or it could be max out for all the know!
I have only heard of them doing a credit check.
What%26#039;s next? THey ask to see your birth certificate and high school diploma? lol
You did the right thing!
Why do auto dealers ask to see your credit card during negotiations?
no secret they run a credit check...card makes it easyer 4 them...just harder without it...hard to run check with just name and address...
Why do auto dealers ask to see your credit card during negotiations?
They don%26#039;t ask me. Lay down 20 one thousand dollar bills on the table and tell them there%26#039;s a lot of other dealers around if they%26#039;re not ready to deal.
Why do auto dealers ask to see your credit card during negotiations?
that%26#039;s a new one on me.
Why do auto dealers ask to see your credit card during negotiations?
Running a credit check tells the dealer what type of interest rate to charge you. a little sloppy on the credit report means higher interest.
But then when it comes down to signing remember you can always walk away.
Dealers I buy from are real butts about telling me the interest rate up front. I like to get that understood soon. I got a great deal on My pick up, They wouldn%26#039;t tell me the interest rate until I went into the finance dudes office then I had a great price on the truck and 11.5% interest. I literally laughed at the guy and said you are kiddin%26#039; right!
I said I will sign for no more than 4% and I left. later that afternoon I got a call that said how about 4.6% OH Gee that was hard wasn%26#039;t it.
REMEMBER THE LINE----WALK AWAY FROM THE DEALER If they can they will call you back if not go get the car somewhere else!
Why do auto dealers ask to see your credit card during negotiations?
I have been in the automotive business for 15 years, and served in every aspect of the dealership. I can tell you that this is a method to test your seriousness in the vehicle that you are purchasing. This is an old method based on logic. If a customer is willing to hand over their credit card during negotiations, then they are a serious buyer. Plus, you will not leave if they are still holding it. In negotiations, sometimes a sales representative will not be able to tell if a customer is sincere, or discover their objection to purchasing. If the customer does not hand them a credit card, they will usually state their objection right away...%26quot;wait, I don%26#039;t even know if you can get the $400 payment or not for me!%26quot; or %26quot;wait, you have not even told me what my trade is worth!%26quot; This helps get to the root of the issue and bypasses lengthy unproductive measures. No, you can not do a credit check using a credit card alone.
Why do auto dealers ask to see your credit card during negotiations?
During negotiations dealers, (salespeople) attempt to qualify the customer. If they sense that credit may be an issue they want to know so; they dont waste their time, they are assured that you can afford the choice your buying, and that they can work a deal that is beneficial to them regarding maximum profit. As far as taking your card it a good faith effort on your behalf. The salesman usually will ask for a cash good faith deposit or a check. With a credit card he can swipe your card for the agreed upon deposit if the manager accepts the offer. The card itself wont allow the dealer to check your credit but a name and address will. BUT, they are not allowed to access your credit file without your permission. In the past I have presented offers to management with unusual tokens of good faith. Ive taken watches many times, rings, a camera, and most unusual..the couples 3 year old daughter. Often this is done in jest and is part of building a trusting, relaxed, and sometimes humorous relationship with the customer. Whatever it takes! Its best to carry a hundred dollar bill with you to present with the offer. Have you ever tried to make an offer on a house without a good faith deposit? Cant do it. The good faith deposit is a signal to the dealer that if they take the offer negotiations are over. Car sold. Incidently, dealers know to never accept a customers offer. An accepted offer often leaves the customer feeling that he/she offered too much. So a gentle bump to a higher price than the offer is the norm and makes the deal less apt to back up and fall apart.
Why do auto dealers ask to see your credit card during negotiations?
I happened to be privy to a dealership during a patron%26#039;s purchase of a new vehicle under financial duress. The dealer was contacting the credit card companies...and asking how much %26quot;balance%26quot; was on each card so that the maximum down payment could be afforded on her purchase of their vehicle.
Does that answer your question sufficiently?
She had a couple hundred on MC and about a thousand %26quot;left%26quot; on VISA. They determined that she could pay up to her maximum on both accounts and have enough to make the down payment on the vehicle she had selected.
Now...what I wondered was whether or not the amount of negotiated %26quot;payment%26quot; was including or excluding the increases on each of the cards being used to %26quot;meet the minimum down payment%26quot; requirements for a sale.
We got ours repaired instead of selecting a new vehicle.
Amounts used in the antecdote above are inaccurate...I did not memorize the amounts...just the principle involved.
Why do auto dealers ask to see your credit card during negotiations?
No, they don%26#039;t run a credit check or anything like that when they ask for it. They ask %26quot;to take the credit card with your offer%26quot; to the sales manager for two reasons:
1.If you%26#039;re raking the sales person over the coals trying to get the absolute best deal ever given, the sales person also needs to not only sell the car to you, they have to %26quot;sell%26quot; that deal to the sales manager. It%26#039;s hard for a salesperson to ask permission to give a car away, and a credit card from you says that %26quot;if we can sell that car at that price, you%26#039;ll leave a deposit and write this deal now%26quot; to the sales manager. It gives the salesperson an extra bit of leverage with the desk.
2. When you hand the credit card to the sales person you%26#039;ve just said %26quot;yes, I will buy the car if we can get that price.%26quot; To the salesperson, selling cars really has nothing to do with the car. It%26#039;s 99% psychology, and a credit card, or initaling your offer or anything that equals a commitment from you is a tool sales people use to get commitment from you.
Some salespeople will use the credit card to gain commitment, I typically find that it creates more tension and conflict at a critical part in the car buying process than its worth.
Theres a saying that goes, %26quot;The customer that pays the most is usually the happiest.%26quot; People that spend 3 months trying to squeeze every last penny out of the 14 dealers they have working against each other just trying to get the absolute best price will absoutly be miserable by the time they get a car, they will hate the person they get it from and be turned off by the whole buying process. If you%26#039;re willing to accept a fair deal and pay a fair price, buy a car and continue with you life. You%26#039;ll be much happier, than milking out a few hundred dollars and torturing yourself over the course of a few weeks or months. I%26#039;m not saying just lay down and pay sticker price (pay sticker, its quicker :) but if you allow yourself to pay a fair price and carry on with your life, you will have a much better experience, guarenteed.
-Mike
Why do auto dealers ask to see your credit card during negotiations?
STEVENML... is totally correct. Show me the money!
Why do auto dealers ask to see your credit card during negotiations?
lots of bullshit answers.
A sales person at an autodealership asking for your credit card is just wrong. Showing his manager your credit card has nothing to do with buying a car. I would walk out of there and find a dealer who respected me enough to deal in good faith. your credit card is your business not theirs.
I have never been asked for my card and would get up and leave the minute they asked as my card is irrevelant to the purchase of a car exspecially if you%26#039;re paying cash.
Why do auto dealers ask to see your credit card during negotiations?
So that if you want to walk out, they %26quot;lose%26quot; the card until you talk to several additional take-over salesmen.
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