Advantages of pre-ordering?

[Stic5]

TravsSonic and RichieRocket - Sounds like you're both getting good deals on the car itself, but watch for all the other ways a dealer can make money on you. Most people don't realize that dealers will finance you at a higher percentage rate (say 7.9% when you qualified at 5.9%) and pocket the difference. Your trade-in is another way they can make money off of you. You usually get a percentage (your state's sales tax rate) of your trade-in's value back in the form of tax savings on your new car. Dealers never tell you that, they pocket the money! My advice would be to get your financing from your personal bank or some other 3rd party and do your research on the trade-in and know what it's worth (real research, not stupid KBB or NADA) or sell it privately.

 

[TravsSonic]

You usually get a percentage (your state's sales tax rate) of your trade-in's value back in the form of tax savings on your new car.

how does that work and how to i make sure i get it? I'm assuming I end up only having to pay sales tax on the difference between what I am paying for this car vs what they buy mine at?

 

[RichieRocket]

TravsSonic and RichieRocket - Sounds like you're both getting good deals on the car itself, but watch for all the other ways a dealer can make money on you. Most people don't realize that dealers will finance you at a higher percentage rate (say 7.9% when you qualified at 5.9%) and pocket the difference. Your trade-in is another way they can make money off of you. You usually get a percentage (your state's sales tax rate) of your trade-in's value back in the form of tax savings on your new car. Dealers never tell you that, they pocket the money! My advice would be to get your financing from your personal bank or some other 3rd party and do your research on the trade-in and know what it's worth (real research, not stupid KBB or NADA) or sell it privately.

Stic5, thank you for the good advice, however I think I'm OK.

I will not be trading anything in....

I have already told the dealer that I will be financing thru my credit union unless they can do something better.
Currently my CU rate is 2.75% up to 48 months and 2.99% for 60 months.

 

[TravsSonic]

oh yeah, i forgot to mention that. I'll be financing mine through USAA, and i've already been guaranteed the $750 off for buying a GM vehicle.

 

[Stic5]

how does that work and how to i make sure i get it? I'm assuming I end up only having to pay sales tax on the difference between what I am paying for this car vs what they buy mine at?

Exactly. The only way to be sure you're getting it is to ask to be shown exactly how much you are paying in taxes.