Why am I writing this post:
Back in 2015, VW got caught cheating on Diesel emissions on what became Dieselgate. At the time, there were several options on how to deal with the cars sold. One of them was for VW to buy back their cars. I had at the time, a 2010 Jetta Sportwagen TDI and a 2013 Jetta TDI. I decided to sell the cars back to VW and get a 2015 Golf Sportwagen TDI and a 2015 Jetta TDI. When I went to the dealer, the Sales Manager asked me “How much are you looking to pay per month in total for both cars?” I answered, “I can do about $700.00 per month”. That was a mistake that I regret to this day.
To make a long story short, the Finance Officer at the dealer, included a Service Agreement and a paint and interior protection package that I did not want, in the deal. After a 72-month financing at 4.75% APR, the total monthly payment amount for both cars was around $710 a month. The Finance Officer was very proud of his accomplishment. I told him that I didn’t want to pay the extra Service Agreement and a paint and interior protection. He said, “you said you wanted to pay about $700 a month and I made it happen.” After making me feel stupid and ignorant for not wanting the “extras” I signed the agreement and got a loan for things I did not want.
Later on, I cancelled the Service Agreements. The money went to both loans as a payment and then I refinanced at 2.19% making my monthly payments less than $700 for both cars. Unfortunately, I was not able to cancel the paint and interior protection. Till this day, I have never used it. That was $2000 down the drain.
I promised to myself never ever to buy a car again from that dealership and, like the Rhyme of the Ancient Mariner, I bound myself to tell my story wherever I go. (see video below)
I hope this helps you as much as it has helped me.
I. Before you head out to the dealer
Make your appointment to pick up the car on a non-holiday weekday as early as possible. If the dealer is marking up the car price, call VW CARE immediately at 1 800 822 8987 and report it.
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II. At the dealer (Realize that the dealer is there to make money and not to be your friend. Also, be fair to the dealer. Dealers make little money on new car sales. You will probably get to meet the Sales Manager and at some point, the Finance Officer is going to introduce himself/herself and ask you questions designed to sell you services you don’t need. This is known as “The Interview” (see video below)
III. Finance Office (The Finance Office person is the number one salesperson at the dealership. They are there to make sure the paperwork is correct, but also to sell you services, insurance and products. They are very skillful at making you feel stupid about saying no to their offers for extra services).
Videos to watch:
1. How Car Dealerships Rip You Off (The Truth)
2. 7 Car Dealership Rip Offs You Should NEVER Pay For!
3. DON'T PAY CASH AT CAR DEALERSHIPS! (Here's Why)
4. How Much Car Can I Afford (20/4/10 Rule) How Much Car Can I Afford (20/4/10 Rule)
5. “The Interview”
6. CAR LOAN contracts. How to read them so you don't get SCAMMED into paying too much. CAR LOAN contracts. How to read them so you don't get SCAMMED into paying too much.
7. The Rhyme of the Ancient Mariner -
Back in 2015, VW got caught cheating on Diesel emissions on what became Dieselgate. At the time, there were several options on how to deal with the cars sold. One of them was for VW to buy back their cars. I had at the time, a 2010 Jetta Sportwagen TDI and a 2013 Jetta TDI. I decided to sell the cars back to VW and get a 2015 Golf Sportwagen TDI and a 2015 Jetta TDI. When I went to the dealer, the Sales Manager asked me “How much are you looking to pay per month in total for both cars?” I answered, “I can do about $700.00 per month”. That was a mistake that I regret to this day.
To make a long story short, the Finance Officer at the dealer, included a Service Agreement and a paint and interior protection package that I did not want, in the deal. After a 72-month financing at 4.75% APR, the total monthly payment amount for both cars was around $710 a month. The Finance Officer was very proud of his accomplishment. I told him that I didn’t want to pay the extra Service Agreement and a paint and interior protection. He said, “you said you wanted to pay about $700 a month and I made it happen.” After making me feel stupid and ignorant for not wanting the “extras” I signed the agreement and got a loan for things I did not want.
Later on, I cancelled the Service Agreements. The money went to both loans as a payment and then I refinanced at 2.19% making my monthly payments less than $700 for both cars. Unfortunately, I was not able to cancel the paint and interior protection. Till this day, I have never used it. That was $2000 down the drain.
I promised to myself never ever to buy a car again from that dealership and, like the Rhyme of the Ancient Mariner, I bound myself to tell my story wherever I go. (see video below)
I hope this helps you as much as it has helped me.
I. Before you head out to the dealer
Make your appointment to pick up the car on a non-holiday weekday as early as possible. If the dealer is marking up the car price, call VW CARE immediately at 1 800 822 8987 and report it.
1. Get advice on the dealer buying process from Marco at WhiteBoard Financing on YouTube (videos to watch below).
NOTE: Marco can be a little condescending. Don’t be put off by it. He does have great advice.
2. Get your FICO credit score:
a. Head out to myFico (www.myfico.com) and sign up for the Premier monthly plan so you can get your 3-bureau Fico score. Make sure that you cancel the monthly subscription right away, otherwise you will be charged again the subscription fee.
b. There are free services where you can get your Vantage score like Credit Karma and Credit Sesame. However, Vantage score is not the same as the FICO score but it can be an approximation.
3. Get pre-approved for an auto loan:
a. Go to Volkswagen Credit (finance.vwcredit.com), your local Credit Union (If you are a member of the Military, check out Navy Federal [www.navyfederal.org] or PenFed www.penfed.org/auto) or your current bank and get pre-approved.
b. Check current national special financing offers here:

2021 Volkswagen ID.4 Rebates and Incentives - Autoblog
View 2021 Volkswagen ID.4 lease offers, cash back rebates, special financing programs and other incentives available locally and nationwide.

c. DO NOT fill out a credit application at the dealership. (Section III bullet 3 below tells you when to do so)
4. If you are going to do a trade-in:
a. Go to Kelly Blue Book (www.kbb.com) and NADA (www.nada.com) and get the fair price for trade-in or selling private of the vehicle you are trading in.
b. Search on TrueCar, Cars.com Edmunds and other online search tools to KNOW what the car you are trading in is selling for at other dealerships in your area.
For example: The fair trade-in value of the vehicle is $10,000. Dealers in your area are selling the same or similar model for $17,000. That's a $7,000 difference!!!! You can ask for $13,000 for the trade-in. That's a $13,000 down payment right there assuming you don't owe anything on it.
5. If you are going to put money down, DO NOT tell the dealer till you have the “Out the Door price” FIRST (see below why)
6. Check with your current Auto Insurance if they offer GAP insurance. You can also check with the Bank, Credit Union and even VW credit, after you do your application for credit, if they offer GAP and how much is it.
7. Make a copy of your driver's license before your visit and write on the paper. “I DO NOT give you consent to pull my credit”
II. At the dealer (Realize that the dealer is there to make money and not to be your friend. Also, be fair to the dealer. Dealers make little money on new car sales. You will probably get to meet the Sales Manager and at some point, the Finance Officer is going to introduce himself/herself and ask you questions designed to sell you services you don’t need. This is known as “The Interview” (see video below)
1. Always answer "I don't know" to these questions. Be firm. Knowledge is POWER to the dealership to pull a fast one on you. You are not required to explain yourself to them.
a. Are you going to lease or finance?
b. Are you paying cash or doing a down payment?
c. Are you going to do a trade-in?
2. For the test drive, most likely they will ask for your driver’s license. Hand them the copy of the driver’s license you made in section I bullet 7 above.
3. There are 4 things that are non-negotiable, TTL (tax, title and license) and Destination Charge because they are government mandated. Anything else can be negotiated.
4. Concentrate on the MSRP and don't fall into the "How much are you looking to pay per month trap".
NOTE: There are plenty of car payment calculators online where you can plug in your known APR and calculate the monthly payments.
5. Anything other than TTL and Destination Charges, ask to be taken off the MSRP. The dealer makes money off these so-called dealer and doc fees.
a. For example: MSRP $43,995 - $700 dealer fee - $300 Doc Fee = $42,995 plus TTL and Destination Charge.
6. Ask for accessories not included in the car for free.
a. For example: Monster Mats and Cargo Liners (See here for other accessories (2021 VW ID.4 Accessories - VWoA Official Online Store)
b. Ask, ask, ask. The worse thing that can happen is that they say No.
7. Get the “Out the Door” price in writing and make sure the extra dealer fees have been taken off the MSRP.
8. Once you have the “Out the Door” price (take a picture of the paper with your phone).
9. Now is the time to tell them you are doing a trade-in and/or you are putting cash down.
a. For the trade-in: if they low ball you, you can always sell the car privately or check with another dealer like Carvana, CarMax, Vroom, etc. and sell your car to them.
10. Have the dealer do another “Out the Door” price minus trade-in and/or cash down and take a picture of it.
III. Finance Office (The Finance Office person is the number one salesperson at the dealership. They are there to make sure the paperwork is correct, but also to sell you services, insurance and products. They are very skillful at making you feel stupid about saying no to their offers for extra services).
1. If you already did your homework before going to the dealership, you should already have a quote for GAP insurance. Say no to the GAP unless it is less than what you have been quoted.
2. Don’t buy extended warranties or service agreements. These are a waste of money. If you get pressured to buy one here are two things you can do:
a. Ask the finance officer to deduct the cost of the extended warranty or service agreement from the MSRP.
b. Before getting the extended warranty or service agreement, read the terms and conditions and find where it says that if, you cancel it, they will refund the cost of the service to the loan.
i. If the price of cost of the service does get refunded, wait till it hits the loan and then refinance the loan because it will be like making a few payments in advance.
ii. If the price of cost of the service does not get refunded, be firm and say no to the extended warranty or service agreement.
3. Tell the Finance Officer the lowest rate you got pre-approved for. Ask if they can lower it. Now you can apply for financing at the dealership.
4. Make sure that the amount financed matches the “Out the Door” price.
5. Read and understand the loan contract (see video below)
Videos to watch:
1. How Car Dealerships Rip You Off (The Truth)
2. 7 Car Dealership Rip Offs You Should NEVER Pay For!
3. DON'T PAY CASH AT CAR DEALERSHIPS! (Here's Why)
4. How Much Car Can I Afford (20/4/10 Rule) How Much Car Can I Afford (20/4/10 Rule)
5. “The Interview”
6. CAR LOAN contracts. How to read them so you don't get SCAMMED into paying too much. CAR LOAN contracts. How to read them so you don't get SCAMMED into paying too much.
7. The Rhyme of the Ancient Mariner -