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Financing Question

5K views 34 replies 21 participants last post by  netcoolery 
#1 ·
Finally set down with the dealer today after a few weeks of email haggling. We agreed on a price, then I went to speak with the financing office. There I was informed that they couldn't do the agreed upon price at the 1.9% rate for 60 months because the financing company took too much of a slice of it. They offered me the negotiated price +$1,000 to do the deal at 1.9%. They also offered me 4.9% through Bank of America at the negotiated price. Either way, this conveniently adds about $1,000 to my price. I feel like I'm getting the run around here. Is there a reason other than trying to get more profit out of the financing that would necessitate raising the negotiated price?
 
#2 ·
Check the Bofa auto loan rates yourself, should be 2.99 for 60 if you have good credit, they are probably trying to pocket the other 2%.

Thats what it is here in TX anyway.
 
#7 ·
Your dealer is scumbag. Find another (unless he clearly explained when he gave you a price that it was contingent upon financing with them at some outrageous rate).
 
#10 · (Edited)
Go online to Ally and apply directly then take that approval, with the associated rate to another dealer or to the one you were just at and demand the deal. Captive finance companies don't take money out of the dealer's pocket, they put money in it! If the rate is subsidized it's subsidized directly from Chrysler, not the dealer.

https://online-application.ally.com/online-application/application.do

Just be aware that auto financing uses a completely different scoring than conventional financing so the "score" you get from online sites could be wildly different. To get the top tier rates your auto weighted score needs to be 720 or higher. Doing the online thing or walking onto a local bank and filling out an application will let you know what your position is. Relegate the "finance manager" to a clerk and do the legwork yourself.
 
#12 ·
Bank of America offered me 4.16% for 72 months yesterday! I want to go 72 months, because I have the Lifetime Maxcare and am not really nervous about having a car payment that long, since I won't have to pay for repairs, and it will significantly decrease my monthly "nut".

Not going with BOA though, because I'm sure I can do better than 4.16% for 72 months.
 
#13 ·
You might be surprised, 4.16% for 72 months is a great rate. The only way that might get lower is with a subsidized rate like many banks do where they reduce the rate by .25% or even .50% depending on your current account status, direct debit, etc. Also check the fine print, that rate may require direct debit or that you have an BoA account. Also, rates went up .50% at most banks last week. I have no idea why but they did.
 
#14 ·
Forgot to mention that they were tacking on a $200.00 loan "origination" fee, which I also wasn't thrilled about. I'm gonna keep shopping since it'll be 8 to 10 weeks before the vehicle arrives.
 
#17 ·
Hmm, even more suspicious since any actual approval they may have today is only valid for at most 30 days, it's WORTHLESS when the vehicle actually shows up. So, they dinged your credit report now, shopped it around (2 or 3 more credit inquiries) then they do it all over again in 8 weeks when the truck shows up. That alone could drop your credit score by 20+ points and cost you .5% - 1.5% in rates.
 
#18 ·
I would tell them to match 1.9% or walk. I was pre-approved before going to the dealership for 1.9/60mo. When I went to buy the jeep the dealership said they could not do 1.9, the best they could do was 4.9. I said fine, put a sold sign on it and I will be back in a few days with a check. 10 min later they had 1.9/60mo from Bank of the West lol funny how these things work sometimes...
 
#25 ·
I would tell them to match 1.9% or walk. I was pre-approved before going to the dealership for 1.9/60mo. When I went to buy the jeep the dealership said they could not do 1.9, the best they could do was 4.9. I said fine, put a sold sign on it and I will be back in a few days with a check. 10 min later they had 1.9/60mo from Bank of the West lol funny how these things work sometimes...
they do that because they only make 300.00 from ally. if they shop it and can get someone else to finance it they make a percentage of the deal.
 
#22 ·
The current Fair Isaac model allows for consumer rate shopping without affecting their credit score. Several auto or mortgage lender inquiries occurring within a 30 day period will not reduce a credit score. There's also a 12 month look-back piece that treats clusters of such inquiries as a single inquiry.
 
#24 ·
Well, that's not entirely true. Directly from the Fair Issac (FICO) site:

FICO® Scores do not penalize you for "rate shopping" when seeking a mortgage, auto loan or student loan. To enable you to shop for the best rate, the FICO® Score ignores inquiries for similar financing types made in the 30 days prior to scoring. That means all inquiries made during your shopping period are counted as one inquiry when determining your score. This shopping period is 45 days on the newest versions of the FICO® Score. Each lender chooses which version of FICO® Score it wants to use.
Note that the multiple inquiries count as one inquiry over a 30 day period. In Hollywood's case the inquiries he has over the last few days will "expire" long before his vehicle arrives. He will then add another group of inquiries when he shops for the loan. The net result is at the end he will have 2 inquiries on his report. For many that's not an issue but for some it might put you over the threshold where FICO dings your score because of it.

I'm just saying you need to be careful when shopping for credit. What may seem innocent to you can haunt you for years.

http://www.scoreinfo.org/ is a new site that Fair Issac put up with the changes to the fair credit act Jan 1st. It's worth reviewing if you aren't aware of what's happening in the credit world.
 
#23 ·
Thanks guys. I do feel better. :thumbsup:
 
#31 ·
Although in the case of identity theft thats obviously an issue, but otherwise I wouldnt worry too much about the credit score thing. Some people lose sleep over that kind of crap but really its just a number. If you already have a house, if your able to get a great rate on a auto loan, if you have some good credit cards who cares about the score. All im saying is dont lose sleep over whats going to happen to your credit score because of inquiring about auto loans. I go through cars like underwear and probably have had more credit apps run on me than anyone on this site and have absolutely excellent credit. Since I got married my wife put the hammer down on my car buying issue but that was probably a good thing lol.
Dont worry about it man it will be fine!
:)
James
 
#33 ·
Yeah, thanks. I mean for cryin' out loud, I own a house, my wife and I who both have good jobs are applying "jointly", our bills are always paid on time, if not EARLY. I mean eff 'em if they can't take a joke ha ha. :thumbsup:
 
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