Interest rates
- Thread starter Drew L
- Start date
blackbuick87
Senior Member
- Joined
- Mar 11, 2002
You dont want the zero interest financing that the OEM's are throwing around right now?
0% for 60 months would be cheaper than 6 or 7% for 72 months
0% for 60 months would be cheaper than 6 or 7% for 72 months
here's what they are TRYING to pull.......
While buying a new truck, dealership says we qualify for 4.9% financing or the $1,500 cash back/rebate. We say go to an outside source and get the 4.9% AND the $1,500 back from the manufacturer. They say ok to the $1,500 but a bank will give 5.9%. If Ford will qualify us for 4.9% a bank should also. They are trying to keep the point. We're still in negotiations. They are about to loose the sale. Drew
While buying a new truck, dealership says we qualify for 4.9% financing or the $1,500 cash back/rebate. We say go to an outside source and get the 4.9% AND the $1,500 back from the manufacturer. They say ok to the $1,500 but a bank will give 5.9%. If Ford will qualify us for 4.9% a bank should also. They are trying to keep the point. We're still in negotiations. They are about to loose the sale. Drew
Re: here's what they are TRYING to pull.......
Ford may be able to offer 4.9% because they are making money selling you their product. A bank may only be able to give you 5.9% because that is the product they are selling you, the money. I am not saying you cannot get 4.9% somewhere from some bank. The manufacturer can afford to write your loan at a lower rate because they are making money on the car sale. I just got a used car loan rate of ~6% on my newest GN. So getting one near 5% for a new car should not be too hard if you shop around a bit. Try some of the credit unions as they seem to have better rates.
Originally posted by Drew L
While buying a new truck, dealership says we qualify for 4.9% financing or the $1,500 cash back/rebate. We say go to an outside source and get the 4.9% AND the $1,500 back from the manufacturer. They say ok to the $1,500 but a bank will give 5.9%. If Ford will qualify us for 4.9% a bank should also. They are trying to keep the point. We're still in negotiations. They are about to loose the sale. Drew
Ford may be able to offer 4.9% because they are making money selling you their product. A bank may only be able to give you 5.9% because that is the product they are selling you, the money. I am not saying you cannot get 4.9% somewhere from some bank. The manufacturer can afford to write your loan at a lower rate because they are making money on the car sale. I just got a used car loan rate of ~6% on my newest GN. So getting one near 5% for a new car should not be too hard if you shop around a bit. Try some of the credit unions as they seem to have better rates.
check out the following link from edmunds.
http://apps.edmunds.com/apps/calc/CalculatorController?tid=edmunds.n..pcalc.apr_cash_calc.1.*
there is a "low apr vs cash back" calculator that decides if it is better to take the bank loan for a higher rate with the cash back or the low interest rate from the dealer.
David
http://apps.edmunds.com/apps/calc/CalculatorController?tid=edmunds.n..pcalc.apr_cash_calc.1.*
there is a "low apr vs cash back" calculator that decides if it is better to take the bank loan for a higher rate with the cash back or the low interest rate from the dealer.
David
GN One Day...
Senior Member
- Joined
- May 28, 2001
In house loans at a bank are not very competitive in most cases. Some banks have seperate divisions that may do auto financing for dealerships, and work directly with them, but the branches that you can walk in to do not have access to those loan products. Don't get too crazy shopping around, if different types of lenders put inquiries on your credit it will lower your score for a while. If they are all banks within a week or two, it should be fine. Find out where all the dealership sent your app out to. They may have broadcast it to several lenders already who have all checked on you. For the 1% difference, I'm guessing it's maybe $10/mo different, or $600 over the life of the loan? (based on around 20k, take if from there) I could be wrong. Maybe you can negotiate. The dealership makes money, a good bit, off of doing financing rather than you coming in with the check. Tell them to give you the $1500 and the rate, or come off another $1500 from the price, with the rate, and you come out on top. I think. If you go outside for financing, get the offer in writing so they can't come up with a BS excuse for a higher price if you don't do your financing with them, to make up the money they lose by not doing the financing in-house. DO NOT let them quote you payments for your bank rate loan. Many have a "BS" sheet with inflated, false figures on it to spook you out of going to a bank for financing.
PS: I've seen a lot of people on here talk about www.peoplefirst.com as a good online lender. That may be worth looking at.
If you go outside for financing, get the offer in writing so they can't come up with a BS excuse for a higher price if you don't do your financing with them, to make up the money they lose by not doing the financing in-house. DO NOT let them quote you payments for your bank rate loan. Many have a "BS" sheet with inflated, false figures on it to spook you out of going to a bank for financing.PS: I've seen a lot of people on here talk about www.peoplefirst.com as a good online lender. That may be worth looking at.
GN one day.
There is some info there. As you might have figured out, I'm trying to get both. There is nothing wrong with that. If we qualified for a lower interest rate at one place then we should qualify somewhere else. I know what they are trying and it's not making me very happy. I was born at night but not last night. Drew
There is some info there. As you might have figured out, I'm trying to get both. There is nothing wrong with that. If we qualified for a lower interest rate at one place then we should qualify somewhere else. I know what they are trying and it's not making me very happy. I was born at night but not last night.
Drew
