Big_Thumb, what manufacturers have you worked for and in what finance department?
GMAC pays out the dealer in a minimum of 60 days, to a maximum of 90. Go deal at the end of the month, when payroll is due. Most dealers are family businesses, (GM dealers, anyway) and are hard up at the end of the month.
But what would I know after 20 years working at dealers?
I do know I am glad I don't do it anymore!
Haven't worked at any, but I've bought enough cars over the years to have a pretty good idea of the things they say and do. Some of my friends have sold cars or have had stakes in car dealerships. A few people on this very website sell or sold cars and have explained things quite well over the years too.
The 60 to 90 day thing is part of everyone's business cycle, and it's not going to get you a better deal on your transaction. I work for a consulting engineering company, we deal with 60 to 90 day payment schedules too. It's handled by accounting and it's not an issue unless the client defaults, and then only to the extent that our legal department may get involved. Payroll continues as normal.
For dealerships, the revenue coming in is very important, and that's dependent on sales volume and markup. That's also why the financing and lease deals have been nuts this year, markups are getting squeezed so they're trying to pump up sales numbers.
Most of the dealers around here started as family businesses but are now multi-dealer corporations. Here in Freddy, the group that owns the Chevrolet Cadillac dealer also owns the local Toyota dealer; the group that owns the Pontiac Buick GMC dealer also owns the local Hyundai dealer. Honda owns the local Mazda dealership etc. This diversification helps them weather the rough stuff a bit better. Most of them also are involved or own dealerships in other cities around the province or Maritimes. This is usually the rule not the exception in most areas. The day of the small independent new car dealer are waining fast.
When I bought my Vibe in '05 I was given the option of 100% financing including all taxes and fees. They also asked if I had anything outstanding on my trade in, 'cause they'd roll that into the loan too. I declined and put a small down payment on it to take advantage of the 0.9% financing available at the time while still not being too upside down equity wise. That was through GMAC credit, so your assertion that GMAC requires 10% down is bull$hit. I've had similar offers from Chrysler finance, and Toyota finance too. I'm sure everyone else here has had similar experiences too.
For the lease on my Subaru (Subaru Volvo dealer owned by the same group that owns a number of Ford dealers) again I was offered 100% with no down payment other than the first month. The documentation and administration fees I always get waived or no sale. Again that was through GMAC.
When I bought my first car, the best I could do for financing was 11%! Do that for four years and the 1990 Colt Turbo started to add up! 135hp and a bit less than 2000lbs, fun little car that!
