This is an interesting sales tactic
- Thread starter GWguy
- Start date
mike504
New Member
ProfMoneyWise
Member
Peel the onion back and I suspect you will still find the cost of the insurance in the cost of the car. Would be interesting to see the policy.
ETA: I would also assume to qualify the insurance will require a spotless driving record.
ETA: I would also assume to qualify the insurance will require a spotless driving record.
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I suspect you're right on all counts, I'd love to see the specifics. I'm really curious to know what liability limits they pay for and what deductible on comprehensive & collision they allow for (probably $1,000, which is HIGH). They indicate that the insurance includes both liability and physical damage coverage, great. And they state that the liability limits on the policy exceed the minimum requirements in the two states. But those limits could still be relatively low limits that wouldn't adequately protect people who have assets to lose in the event of an accident.
Interesting sales pitch though!
GWguy
*
I'm not so sure.... MetLife is the policy holder, so whatever their normal rules are for a policy would apply. If you look at it from a cost point of view, what would a premium coverage policy for a questionable driver cost? $2K? $3K? Even $4K? It's not uncommon for a dealer to give you $4K for just turning in a dead car, so for the dealer, it may be a bargain. Once the one year is up, I'm pretty sure it would be up to MetLife as to whether or not they would offer a renewal.
But yes, it would be interesting to see the terms and rules.
But yes, it would be interesting to see the terms and rules.
ProfMoneyWise
Member
Look at those deals a little closer. If you get the rebate or the promised reduction for any car brought in the cost is different on the vehicle (i.e. higher) than if you walked in and put cash on the table.
The cars cost the dealer what the cars cost the dealer. From that point the three ways (from best to least) a dealer makes money is:
Lease
Finance
Cash
Whenever I look for a vehicle I look at the Private Sale choices first. If I do end up with a dealer I negotiate the trade-in and the price first before revealing I am paying cash.
Confessions of a Car Salesman - Yahoo! Autos
Article found at the link gives some insight. I have never sold cars but it seems plausible.
It is about making money. I'm all for that. Just like to know the rules of the game I'm playing so I tend to peel that onion until I feel as if I know the rules.