Drive Accord Honda Forums banner
1 - 8 of 8 Posts

·
Registered
Joined
·
41 Posts
Discussion Starter · #1 ·
So,
I bought my car the day after xmas, and I signed all documents etc. I got a call yesterday saying that they are out of flex, and have to redo paperwork. They are going to give me the $500, but now take it off of the price of the vehicle, now lowering my taxes, and monthly payment. Anyone have this occur? It makes me nervous. But they said it was common. I have to go there today to re-sign new documents
 

·
Even My Mower Is a Honda!
Joined
·
4,339 Posts
So,
I bought my car the day after xmas, and I signed all documents etc. I got a call yesterday saying that they are out of flex, and have to redo paperwork. They are going to give me the $500, but now take it off of the price of the vehicle, now lowering my taxes, and monthly payment. Anyone have this occur? It makes me nervous. But they said it was common. I have to go there today to re-sign new documents
Yes, it happens as the dealers are only allotted so much each month. It is only really supposed to be used to get a sale across the finish line in tough negotiations but some dealers just make it rain with Flex cash and then run out. It gets applied as down payment assistance so you still get taxed on the flex. So, you just came out ahead as you save a little tax, too.

I tell people that you have not gotten the lowest price on a Honda until the Flex Cash comes out.

Jay
 

·
Registered
Joined
·
1,052 Posts
Yes, it happens as the dealers are only allotted so much each month. It is only really supposed to be used to get a sale across the finish line in tough negotiations but some dealers just make it rain with Flex cash and then run out. It gets applied as down payment assistance so you still get taxed on the flex. So, you just came out ahead as you save a little tax, too.

I tell people that you have not gotten the lowest price on a Honda until the Flex Cash comes out.

Jay
This pretty much nails it! It sounds like they used up all of their Flex Cash trying to reach their year-end goals so now they're going to eat the $500 and you're going to come out ahead. Just be sure that nothing else changes like the interest rate or the term of the loan. Read everything very carefully before you sign it but it sounds like they just used more Flex Cash than they had so they have to give you the $500 back in a form other than Flex Cash (a new deal).

Here's a similar story of a guy who financed a car at $28K but the dealer could only get it financed for $25K so they re-wrote the deal and lowered the price of the car by $3,000...talk about a lucky day! I know dealers were going crazy trying to meet the year-end goals and some of the deals they made were insane. I've even heard of dealerships buying their own cars just to get to a certain year-end sales number (and then turning around and selling them as used cars...completely legal to do, by the way). They lose money on paper but the upside is they meet a year-end sales goal and the benefits from that are greater than the loss on the new/used car deal.

Here's the other thread I mentioned:

http://www.driveaccord.net/forums/showthread.php?t=163146
 

·
Registered
Joined
·
1,361 Posts
Glad to see some folks are really coming out ahead on their deals. Bought my car in August. My wife is due for a new vehicle soon and I think I'll wait until year end next time. Maybe I will get lucky and profit from the dealers eagerness to meet those targets.
 

·
Registered
Joined
·
1,052 Posts
Glad to see some folks are really coming out ahead on their deals. Bought my car in August. My wife is due for a new vehicle soon and I think I'll wait until year end next time. Maybe I will get lucky and profit from the dealers eagerness to meet those targets.
Year end, without question, is the best time to buy a car. I spoke to a guy a few weeks ago who retired early from the car biz. He owned several dealerships and sold them all and is now living life to the fullest. He says the last week of the year is the best time to buy because the dealers are all pushing to meet their year-end sales goals. And losing a few hundred (or even thousand) on a car deal is less of a loss than what will happen to them if they don't meet their year-end sales goals. He was actually the guy who told me that he once bought 12 of his own cars the last day of the year in order to meet a sales goal. By law, he then had to sell them on his used car lot. But he met his sales goal for that year and what he and the dealership received for meeting that goal more than offset the loss of selling 12 new/used cars. :thmsup:
 

·
Registered
Joined
·
41 Posts
Discussion Starter · #6 ·
Ok! I am a little nervous as this is my first new car, and this is new to me a little bit! Thank you for the calming advice!
 

·
Registered
Joined
·
74 Posts
Ok! I am a little nervous as this is my first new car, and this is new to me a little bit! Thank you for the calming advice!
It is me who got a 3k discount on the car price because of the financing issues. Just read everything before you sign, compare your old terms to the new one.
 

·
Registered
Joined
·
1,052 Posts
Ok! I am a little nervous as this is my first new car, and this is new to me a little bit! Thank you for the calming advice!
Yeh, don't worry. Just make sure the interest rate and the term of the loan didn't change...like they tried to add 3 extra payments to the loan or something like that. It all sounds legit to me...they gave you Flex Cash on the sales contract that it turns out they didn't have to give so now they have to rewrite the deal and they're either going to lower the price of the car by $500, or refund you $500, or do something to give you the $500 that used to be the Flex Cash.

If you're unsure about anything DON'T SIGN it. Once you sign it, it's a legally binding agreement (in the vast majority of states anyway). So, if you're unsure about anything, ask if you can take it home and have someone review it for you. Maybe even bring in your current sales contract so you can compare everything at the dealership. :)
 
1 - 8 of 8 Posts
Top