OK, here is the situation: I placed my order for an MCS about 2 weeks ago and I won't take delivery until late November or early December. I also put my current car on sale recently and it turns out I may be able to sell it within the next few days at the price I am looking for. This means that I will need a temporary car until my MCS arrives. I am thinking about offering to pre-pay half of the agreed MCS price to my dealer in return for a loaner until my MCS arrives. Do you think this would be too much to ask? Has anyone done anything like this?

 

Given that a rental car probably costs $300-500/mo, I doubt they'd go for it. BUT, I'd be really interested to find out! Let us know what happens.

 

I've heard of some extraordinary deals being made like this, although they are most likely rare. Yes, I'd ask. No, I wouldn't get too bent out of shape if they say no. I know for sure of one occasion here...but who knows, it might have been the dealership owner's distant relative.

 

Actually, I already checked the rentals in my area and it seems like the cheapest rental deal is more like $650 a month. So a lousy rental car for 2 months would cost me at least $1300!

 

I'm not quite as bad off as you -- my car should show up around Nov 1st, and I haven't put up my Prius for sale yet. Trying to time the sale of the old car vs the purchase of the new car is certainly a pain!!

 

I agree that it wouldn't hurt to ask, but it doesn't sound like a very good deal for the dealership. They foot the bill for a rental for two months, or loan you one of their "lot cars", and in exchange...you pay the exact same amount for the car you were going to pay anyway.

Even if you gave them $15,000 in cash, and they had the means to put it in some kind of short-term investment account earning 5% APR, they'd only make about $150 in interest over the two months.

The truth is, big cash payments (even in advance) don't carry much weight with dealers. They'd rather you financed 100% of the car through them, anyway.

 

I'd go for it and put it on the table......

 

probaly unlikely..Maybe they could get you a better deal on rental thru their connections...my dealer has an Enterprise office right in their service areas for loaners that are not dealership owned.

 

I'll chime in as well, it is unlikely they will go for it but you never know unless you ask. They wouldn't make any additional money by your prepaying any portion of your deal.

Now, in times past, I believe dealerships got kickbacks from certain financing companies by having the customer finance the purchases through them but in most instances that is illegal now. The dealerships could care less if you pay cash or finance, they generally now make the same amount now matter how the vehicle is purchased.

 

I was offered a one week loaner by a Chrysler dealer while my PT Cruiser was being shipped. I didn't really need it, so I turned it down, but I thought it was quite generous considering we were buying a cheap car.

You might get one, maybe not for the entire time. Can't hurt to ask.

 

I don't know why people always say that. My dealer encouraged me to take the offer from my credit union, since it was a better deal than what Mini's financing arm was offering.

 

Dealerships DO want you to finance through them as they make money from the interest. The bank takes the lion's share but the dealership can potentially make many hundreds of dollars from it.

The only reason a dealership would suggest you go somewhere else is if they saw a look of shock when they told you the interest rate. They'd rather you finance through someone else rather than walk away because the interest rate is too high.

 

Have any buddies that might be willing to loan you a car for a few weeks? That plus a week or two week loaner might help out. That would only leave a couple more weeks for a rental out of pocket.

 

I'll rent you my '06 Miata for two months for $2K. You don't list your location. If it's anywhere near snow the deal's off. LOL

 

I am in North Florida and there is no snow here. Perhaps we can work out something if you want to reduce your price a bit.

 

Thanks guys. I will get in touch with the dealer and see what they say. Chances are they will refuse it. In that case, I plan to ask them if they can help me get a good deal on a rental.

 

Go find an old $500 Honda or Toyota that you think will make it the duration and get it. Practice detailing on it for the MINI and when the MINI comes in you'll have a nice looking cheap car you can sale for $600.

 

That sounds like a cool idea! I never thought about this!

 

Yeah, I second SB's suggestion.

Put the offer out there first... but don't be offended if they don't take you up on it.

 

The dealer i bought my mini from wouldnt even take my money till the car came in, only because they said theres no where to apply the money if the car is not even there.

 

thats exactly what I did. My BMW sold in less than a week, and luckily it was on a Saturday morning. I had till Monday morning to find a cheap honda to get me through the next months. It worked out well in the end. I sold the honda to a coworker as his daughter's first car. I had it all lined up so that when the MINI was delivered, I then signed him the title to the Honda

Just be prepared to possibly do a little wrench work to keep a $500 - $2000 car running well for a couple of months. I had purchased an 89 honda prelude that was in GREAT shape for $1700, and then spent many hours tuning it up, replacing an alternator, replacing a censor, adjusting the valves, setting the timing, and welding up a new exhaust pipe. I spent about $300 on parts, and sold it for the $2000 I had in it. I didn't get paid for my effort though

 

Seems you might want to sell your current car a little later. I know you can get what you want now, but if you have to spend money on a rental or old klunker you may not be really gaining anything. I'd just wait and time the sale of my car even if it meant getting a little less for it, and save the rental or klunker money. All this of course assuming the dealer won't help you out any, which seems doubtful.

 

I'm sorry, but I disagree. The dealership wouldn't be the one carrying the loan if you financed through them, the financing they offer is through MiniUSA not through the individual dealership so they do not make any extra money from the interest. If the dealership gets any kickbacks from any financial institution (whether it is MiniUSA or any other company) I'd be very, very, very surprised as that practice is pretty much universally against the law these days. The only money the dealership makes is from the sale itself, they do not receive any interest charges. Every sale to them is basically a cash sale, they get paid in cash* either from the consumer or from the finance company of the consumer's choice.

*By cash, I mean, cash, check, or electronic transfer of funds.

 

and I disagree. That's the last I'll say of it.

 

Beyond the scope of this thread but...

Reserves are legal. Dealers are paid a commission for originating loans. The IRS publishes guidelines on how this is to be treated. See http://www.irs.gov/businesses/corpor...7742,00.html#7