Well, now that I'm a little bit more familiar with the inner working of the auto finance world, I can understand the dealership's dilema better.
I certainly understand the consumer's point of view. I have a check in my hand from PeopleFirst or eLoan, why is my money not as good as say, if I have a check from xxx Bank? The reason is the longer it takes for the check to clear, the worse the dealership's cash flow is. Basically, the entire dealership stock is bought from a manufacturer with BORROWED money. The longer it takes for them to get paid for selling a car, the more interest they'll need to pay. Normally a retail loan contract takes a couple of days to clear and dealership gets funded before the next "cycle", but if it's going to take them a couple of weeks to get funded, it's going to cost them a few hundred bucks in interest hence eat into their profit margin.
The fact still remains that PeopleFirst and eLoan takes a bit longer to fund their contracts than traditional banks, credit unions, or even manufacturer's own financial services. Hence finance managers will pull every stop that they can to try to convince you NOT to fund through PeopleFirst and eLoan. :dunno:
I do agree though, if your dealership won't take PeopleFirst or eLoan, walk...There are more than enough dealerships out there that WILL sacrifice a few bucks for a good relationship with a customer. Reward those that are willing to go the extra mile for you.:thumbup:
clyde325xiT said:
And if that's the case, then screw the dealer. I can't stand places of business that won't let me pay the way I want to pay when it's a generally accepted means of payment.