 That little square room.....
It was 1996. Had to have an Explorer XLT. Had saved up $15 thousand, and was going to finance the rest. Knew exactly the options and colors and upholstery we wanted. Just needed to sign some papers.
Then it happened. We had to go the little square room to talk to the finance manager. I remember feeling like I really just wanted to get out of there. The chairs were hard, the lights were bright. Undercoating, Fabric spray, extended warranty, optional this, optional that, he just went on and on. Finally we got to the finance part. He has 2 plans, a standard plan with 10.5% interest, and an enhance plan with 7.5% interest. It was a no brainer-give me the 7.5% right?
Well, to "qualify" for the lower rate, you had to purchase the extended warranty that was about $950.00. I was trying to do the math in my head and wished I had brought a calculator. I ended up buying the extended warranty, and getting the lower rate. I just wanted out of that room.
Years later, talking about this with a (different) finance guy, he said that the trick is to agree to the extended warranty, get the lower rate, then after 30 days cancel the extended warranty. Within a week you get a check for 99% of the amount you spent on the warranty, but you keep the lower rate.
He also said the most profitable department in a dealership is not service, or parts or sales. You guessed it, IT'S FINANCE. In that little square room with the lights.... | 
