Good deal reached on 22 however..

[Hootbro]

I hate dealers that lie and say you cannot payoff early or refinance for X amount of time.

I have had decent dealers tell me upfront what the game is on getting rebates tied to financing and kindly ask me to wait like 3 months so they get their cut on the back end. Usually I will ask and get most times something for the few months of interest I pay back from the dealer to offset it.

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[JUICEBOX]

I am in the mid 700s and I’ve never purchased a car at that rate, when I bought my corvette, I got 4.5% and I thought that was a crazy high interest rate. hard to believe people are even buying while I treat rates are that high.

 

[FRAWLZLINE]

I have been a car salesman for almost 15 years. That 8 something % rate isn't the worst thing I have seen lately. Chrysler Capital is notorious for having an interest rate that is a point or so higher than the other banks. But so do other manufacturers when they attached a rebate to the financing.

Dealerships(speaking from a dealership in New York State) has the ability to mark up interest rates to a certain degree. There is a set limit, however. Dealerships can't just give you what ever rate they want(it isn't the 90s). Some banks have set amounts that the dealerships can mark them up, or else the dealership uses the state limit. It makes sense to start at the highest amount of markup for everyone and then come down if needed, to do otherwise is discrimination.

Speaking to refinancing after accepting financing terms on an interest rate that is tied to the dealership... to be able to refinance at some banks/cu you need a title in hand(again, in NY). In terms of the dealership, they might get penalized if the customer refinances their loan. The amount the dealership makes off of the allowed markup will be charged back if the loan is paid off or refinanced within a certain amount of time(the bank makes that determination, most are 90 days[in NY]).

There is no penalty to you(also, in NY) for refinancing, it is just to the dealership. So as long as you can stomach paying the difference in interest for a little bit of time, you would be being kind to the dealership. You might not care though, in that case, refinance it as soon as your bank allows.

In a nutshell, a dealership might not give you the "lowest" rate they can get. This is an avenue for revenue. Can you blame them? it is a capitalist's market. Do what you can to negotiate the deal or come prepared with your own financing. Also understand "cash is king" is not a real thing anymore since the dealership will make more money when a customer finances.

All in all if you want a good deal and a transparent purchasing experience you can(shameless plug) message me here for anything @ www.simmons-rockwell.com.

 

[Sandevino]

Just cancelled the service contract and got 90% back which is fine. No hassle, no gimmicks just good business.

 

[Sdsteph]

It happens everywhere. I bought my Harley last year before the interest rates spiked. I was on the fence about writing a check or financing. I was pre-approved at my credit union and decided to finance. I told the dealer which credit union and they went direct to them. I was approved at 1.99% but the dealer came back at 2.49%. Fully intending to pay the bike off within 6 months I said ok seeing how they actually didn't rape me on the price of the new bike and gave me $600 more on my trade than I paid for it to a private party. A month later I got a letter from my credit union saying they lowered the interest rate on my loan to 1.99%. They kind of F'd the dealer.

When I purchased my gladiator they were on me hard to finance so I went along with it. When I got into F & I, I pulled out my checkbook and the dude behind the desk got real cold with me.

 

[BringTheLightnin]

I'm in high 600s and tried financing a Rubicon before I bought my sport. They wouldn't go below 12.9% so I walked away. Got my sport at 7.3?% I think. Plan on refinancing in a month or so. Bought my wife a Nissan last year and got 5% with the same credit score

 

[dcmdon]

Makes total sense, ours is more extreme on our 36m term. Interest alone was well over $200 on the first few payments whereas interest on the final payments is in the tens of dollars. If we were to take the same loan at 8.x% versus the 4.99% we got, the interest on the first 3 payments would have totaled close to $1,500. I've never heard of a true fee-free refi so in our case, if we were to refi after 3 months for certain it would be a few k but to your point above, that is pretty much out the window when speaking in 72m terms.

Nope. The shorter the note, the less important the interest rate.

Lets run similar numbers except $50k financed for 36 months

at 8.3% Payment = $1573/month. Of which $1388 is principal and $184 is interest.

At 5% Payment = $1498/month. Of which $1388 is principal and $109 is interest.

 

[TigerInFL]

damn i don't see how someone is paying $1,400+ for a car note. to me that is just insane.

yep IM an old fart and i am alergic to car payments. purchased a used 21 Mojave. Interest rate was 2.9% last August. paid it off in December because I just hated writing a check every month. I know not everyone can do that but don't get in over your head. what you think is not that bad today can be ten times worse tomorrow. it just ain't worth it.

the way you get to do that is not getting in over your head and paying it off and saving your money over time. that way when you go to buy again you have equity in your vehicle. not being upside down!

and remind yourself that vehicle depreciates a ton when you sign on the bottom line. it is now a used vehicle and not near worth what they sold it to you for.

ok, i'll go yell at some clouds now and let you guys continue on.

 

[dcmdon]

damn i don't see how someone is paying $1,400+ for a car note. to me that is just insane.

yep IM an old fart and i am alergic to car payments. purchased a used 21 Mojave. Interest rate was 2.9% last August. paid it off in December because I just hated writing a check every month. I know not everyone can do that but don't get in over your head. what you think is not that bad today can be ten times worse tomorrow. it just ain't worth it.

the way you get to do that is not getting in over your head and paying it off and saving your money over time. that way when you go to buy again you have equity in your vehicle. not being upside down!

and remind yourself that vehicle depreciates a ton when you sign on the bottom line. it is now a used vehicle and not near worth what they sold it to you for.

ok, i'll go yell at some clouds now and let you guys continue on.

Often it just makes financial sense to finance. If your investments are earning more than 2.9% then you are better off financing it all and leaving the money invested.

This is doubly true if you own your own business and would rather have the capital to invest into the business.

Back when I sold cars, Saab would offer 0% financing occasionally for up to 5 years.

There was no "dealer participation", in other words, it didn't cost us anything to write a 0% deal. In fact, we got a $200 spiff.

On many occasions I had to explain to a buyer why it was better for them to keep their money in the bank and just pay monthly. In one case I had an old timer who wanted to pay cash. When he told me he was getting better than 10% on his investments, I ran the numbers and figured out that the 0% financing was saving him about $5000.

He financed based on that.

 

[Boomeribe]

So glad I got in on the 0% deal in 2021, had a huge down payment from my trade-in that was paid off. My Mojave will be paid off next month.

 

[Luis guido]

Jeep.com rate is 7.26 % for 60 months
just see what is the best rate your bank asks to then calculate the cost vs dealer

 

[dcmdon]

So glad I got in on the 0% deal in 2021, had a huge down payment from my trade-in that was paid off. My Mojave will be paid off next month.

Whenever people make financial decisions there are 2 factors.
1) what is strictly optimal from a purely financial perspective.
2) what makes us feel comfortable. I saw this when I worked at the dealer mostly with people choosing to put money down even when it didn't make financial sense, in order to get a payment that they felt comfortable with.

Especially with 0%, I'd say, keep the money in the bank and use the money you would have put down to make the higher payment amount. Some would (understandably) say, "I understand that financially I. should finance as much as possible at 0%, I just don't want to have to look at a $1000/month payment." And that's the human factor.

From a strictly financial perspective, it's smartest to run that 0% financing out as long and slow as you can. You should put as little down and pay only what is required.

It's their money and you are using it for free.

When we bought my Jeep, the interest rates were low enough that it made financial sense to string it along as long as possible. Now, things are different.

 

[GladLad]

That’s some BS there. I bought mine in September 2022 and snagged 0% for 72 months. I’m high 7’s but they called in and paid for a tier bump to get the 0% rate.

Rates suck now but 8% is making back loss on the deal.

Who and the what now; how'd you get 0%, the dealer paid for a decrease?

 

[Sandevino]

Who and the what now; how'd you get 0%, the dealer paid for a decrease?

Chrysler Capital was offering 0% for 72 months on Overland Gladiators in September 2022. I had two other deals on the table and they pulled out the stops to close them all.

 

[GladLad]

Chrysler Capital was offering 0% for 72 months on Overland Gladiators in September 2022. I had two other deals on the table and they pulled out the stops to close them all.

Good timing on that deal, would love to see something like that now.

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