Banks disguised as car dealerships

Dec 03, 2020

I recently went in search of a new car. Not a Ferrari, don’t worry. I was looking at two different models of cars and wound up getting price quotes from three different dealerships. I told every dealership prior to purchase that I would be paying in cash for the car. I was VERY clear about that.

Wouldn’t you know it….all three of the quotes I got back from every dealer included the purchase as if it was financed. It was an ‘honest’ mistake by all three I’m sure :)

What is the lesson here? Dealerships make money on financing, warranties and extras. That is where their margin is and that is what the manufacturers want them to push. The whole ‘car’ thing is just a way to get people to borrow money. Don’t ever borrow money for a car and don’t ever lease a car. You will be pushed in that direction, but it is never a good deal for you and will inevitably cause you to spend more. Dealers know that a monthly quote sounds more manageable than the outright cash price.

I took the above picture and thought it was a pretty hilarious license plate.

Thanks for reading! Can RHF help further guide your investing?