Dealership Academy: The Final Boss

MSRP, Rebates, Junk Fees, and the F&I Room.

Step 1: Choose Your Scenario

The Commuter

Car MSRP: $22,000

Factory Rebate: $1,500

Trade-in Value: $3,000

Pre-Approval: 6% APY

The Truck Buyer

Truck MSRP: $45,000

Factory Rebate: $2,500

Trade-in Value: $8,000

Pre-Approval: 5.5% APY

The Junior Dev

Car MSRP: $35,000

Factory Rebate: $1,000

Trade-in Value: $6,000

Pre-Approval: 6.5% APY

Slick Rick (Salesman):

"Great news! The MSRP is . I am going to give you a massive discount right off the bat! Plus our standard lot fees, your Out-the-Door price is . Sign here!"

He is hiding behind the Factory Rebate and padding the deal with Junk Fees.

The Deal Sheet

MSRP:$0
Factory Rebate:-$0
Dealer Discount:-$0
Junk Fees:$0
Current OTD:???
The Finance Manager:

"Congratulations on the car. Let's get the paperwork done. I ran your credit, and I got you approved at 8.5% interest. Not bad! Now, which protection package are we adding to your loan today?"

He marked up your interest rate AND presented "The Menu".

Platinum Protection

10-Year Warranty, Tire & Wheel, GAP, Key Replacement, Paint Protection

Adds $4,500 to Loan

Gold Protection

7-Year Warranty, GAP, Tire & Wheel

Adds $2,800 to Loan

A La Carte (GAP Only)

Protects you if the car is totaled.

Adds $900 to Loan

Decline All Coverage

Assume all financial risk yourself.

Adds $0 to Loan

Game Over