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She is getting married in a couple of months, so the income part will obviously go up. Apparently the fiance has no other debt, and will be moving in with her. Obviously, she could wait until she gets married, and buy the car in both names, and have both incomes to show on the application, but she wants to do this now - and her car is on its last leg.
P.S. - no other debt (she claims).
Then she can easily buy a car.
A married couple that has a decent income, and one is an 810, and the other an 816 (verified recently through Equifax). This couple can get 6.25% on a used car thru their credit union. If thedy were to ask the dealership to try to beat this rate, what are the odds of them being able to better the 6.25?
Under $20,000
Thanks!
One of the salesmen on this board suggested that it would be possible to finance a minimal amount (say $5000) just to qualify for the rebate and then pay it all off after a couple of months. That part is fine with me.
What I was wondering though , is how does this affect the salesman and the F&I guy? I mean does the ammount I finance have any impact on the commission they make? I doubt it would impact the salesman but I wonder if the F&I person would take a hit if I finance a small amount rather than the whole thing. Is there a minimum amount that has to be financed before these folks get their "cut"?
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
And I thought new car rates were now north of that.
We don't make diddily. FMCC pays no flats on amounts less then $7000.
But that is fine it does help me in away because it gets my finance penetration numbers up and that is one of the things I am judged on each month. I would rather have you finance $5000 and give me one more finance deal then have you write a check.
FMCC pays a % of the amount financed. For example if you finance $30K on 0% FMCC would pay the dealer $$160.65, on my pay plan my part would be $3.14. Not exactly a wind fall, but we don't really depend on finance reserve for income any more. It will soon be a thing of the past any how IMO, with banks paying straight flats. Where I earn my income is through the sale of Service Contracts, GAP, Lojack, and Tire and Wheel warranties. 0% helps me to sell those plans because it does not effect the payment as much and the folks who usually wait to buy the ESP just before there factory warranty runs will buy it at point of sale so they can include it in there 0% loan.
It took me awhile to embrace the low rates but I like them now, and they help me do my job better.
Curious - In the past, I have had the F&I guy offer to reduce the vehicle price I had already agreed to with the salesman, if I would agree to buy an extended warranty from him. When F&I guys do things like this, does it hurt the sales guy?
In other words, I assume you would make the commission off the warranty, but the sales guy's commission would suffer from you having lowered the price to entice me to buy the warranty. If my assumption is correct, doesn't this cause a rift between sales and finance?
That F&I guy should be fired, or the management team that is telling him to do it needs to take a long hard look in the mirror. Yes he is stealing from the sales person and obviously sucks at what he does if he has to resort to to that to sell a Service Contract.
Management teams that don't get the fact that we are nothing with out our sales force never cease to amaze me.
The only benefit of the doubt I was giving the F&I guy was that maybe there was more total gross in the deal with the warranty, and that the sales guy got a little bit of a kick back from that as well, but I doubted it.
They have not paid off my trade in yet. Can the dealer make me come in and resign my contract (I live in Georgia)? The purchase price wound up $1000 higher than what I was approved for on my own so I cannot use the "check". :confuse:
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Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name.
2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
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have a Lawyer, hell it don't even have to be a lawyer, just let one of your friends who can pull it off call and tell them that they represent the law firm of Jones and Jackson and that have been retained by you, blah blah blah, you want a copy of the signed subject to form blah blah blah.
Now with that being said, if you signed a Subject To form you may have a problem.
Why can't you just take them the check from your bank like you originally planned?
if you tell them, "fine. i will drive the car back to you. it will have 3000 miles on it by the time i get there, and please have my trade-in ready for me to drive back home." I BET they will find a way to make the deal stick as is and you will have nothing to worry about. They don't want a new car back with that many miles because they will take a bath trying to resell it to someone else. So stick to your guns and they will make the deal happen.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
cause the poster said the car was $1k more than pre-approved for through the bank.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I tried the "I'm going to just bring the vehicle back" they still want me to come in and talk to them. I am supposed to go in tonight. I told them there was no way I was signing at a higher interest rate so if they wanted my check they better get the price down by $1,000.
I have read all the paper work and I cannot find anywhere that says "interest rate is subject to loan approval". If I signed anything that said that, they did not give me a copy.
yup. Once you get there, you will find yourself on their terms and subject to their will.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Maybe call your bank, explain the mess you are in, and aske them if they could bump your approval an extra $1000.
YOU DO NOT want to go back to the dealer, and be on their terms, and at their mercy.
tidester, host
SUVs and Smart Shopper
One time when I bought a Jeep, I went over the figures on the phone with the owner (I had been there once looking at a different Jeep, but didn't buy it), and for the Jeep I was interested in, verbally agreed on all the figures including X interest rate based on my credit score, which was in line with current rates.
But the next day, when I showed up at the dealership, he said, good news, I can get you X (littler bit LOWER) interest rate. I was suspect because I'm sure he wasn't just being nice because I drove like 20 miles to get there to a bad part of town, etc. So after examining the paperwork and comparing figures to what we had discussed the night before, and being satisfied, I bought the Jeep anyway, and I was very happy with it (wish I still had it, but that is another story. . . )
Anyway, I plan to get my credit report, then probably apply at a regular bank/credit union before I apply with Chrysler Financial. I had Chrysler Financial on the Jeeps I've had, and I was very happy with their service and online payment process, and wouldn't mind having them again, but I just want to make sure I get the best interest rate I deserve without dealers getting in the middle first.
Once I have my credit report, what is the best way to go about interest rate shopping without applying to 2 or 3 financial places? Just call them and ask for rates? I don't trust the accuracy of interest rates listed on some interest rate web sites, and not all banks list their rates on their web sites. Thanks for any advice.
In case anyone is wondering, after a few years, I traded it in for a Subaru. Subaru is fine, but I want to have a Jeep again sometime in the future. Will not buy from the Subaru dealer again. We have only two Subaru dealers in the general area, and I don't prefer either one.
Most simple interest contracts state it across the top of the contract. If it does not say it then ask if it is a Simple interest loan.
BTW there are some Simple Interest Loans that do have a penalty for early pay off. Usually 1-3% of the balance when you pay it off. So ask to have that pointed out to you in the contract also. There are times when it is still cheaper to have the early pay off penalty then not depending on how much lower the rate is and how long you plan to keep the car before paying it off
I do not know of any banks that still use 78 loans on auto purchases. I am not even sure if they are still legal.
They do not disclose the buy rate, they tell the dealer cost of funds and then it is up to the dealer what they do from there.
I don't care how much the dealer makes necessarily, but I do want the lowest cost possible..
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They are still legal only for loans of 60 or fewer months.
tidester, host
SUVs and Smart Shopper
MODERATOR /ADMINISTRATOR
Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name.
2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
Review your vehicle
Buyers remorse laws apply to when someone comes to your house and sells you something, not at a car lot where you come and ask us to sell you something.
With that being said, this particular situation has nothing what so ever to do with buyers remorse laws. This has to do with the customer getting the deal he was promised and weather or not a subject to form was signed.
That depends. You need to consider "opportunity costs," i.e. would there be something else that you might want to do with that money in the meantime that would no longer be available to you if you pay cash?
tidester, host
SUVs and Smart Shopper
[LIST=1]
[*]Extended warranty.
[*] GAP
[*] Lojack
[*] Replacement insurance
[/LIST] based on the misleading information given to me. Okay I got deceived- first time buyer. :mad:
[B]Problem 1[/B]
Now I want to opt out of the contract ie have a new contract signed without the above four. I went to the dealer on 10/15/2007 and made my case. Looking at the individual documents, I can opt out within 30 days of receiving these 4 contract. The finance contract has no option for me to cancel/ revoke. The problem is if I opt out from the four, (ie after receiving the documents in the mail); I only get a check for the amount I paid for excluding any finance charges from the bank.
That was the main reason why I wanted to remove these four. To reduce the car loan thus reducing my finance charges and monthly payments. I tell the honda dealer why I want it removed but I'm been told I can't get a new contract removing the above four. :mad:
I definitely wouldn't recommend this dealer to anyone but is there away I could void the present contract. I don't like the hassle of going to court, first it's lenghty and may not be economical.
[B]Problem 2[/B]
At the honda dealer on 10/15/2007 while fight for a solution for the problem above, the dealer's finance manager corrected my assumption that my loan wasn't calculated using the laws of compounding interest but based on the laws of simple interest. It was clearly written at the top of the bank/ loan contract.
Using Microsoft Excel entered the my monthly payments, bank interest rate, loan amount and time ( number of years to pay off my loan). Also I quickly in his presence tried in vain to inform him that the total finance charge I would pay isn't what is printed on the document. If I use the compound interest formula, the total finance charge I would pay is what is printed on the document. . Either he was pretending or he truly was ignorant of the formula. I plan on getting home and using a financial software to verify my assumption. Buyers are deceived into thinking their rates are based on simple interest but truly it's based on compound interest.
Definitely on all grounds based on the simple interest this contract is invalid. What should I do now. I know
What should I do
[LIST=1]
[*]Do nothing but reget doing business with this dealer?
[*]Seek a legal help and fight them in court whatever it takes.
[/LIST]
Buyers are deceived into thinking their rates are based on simple interest but truly it's based on compound interest
You lost me here. A simple interest loan is just that. I doubt very highly that a franchised dealer is using a simple interest contract but conducting business otherwise.
I may be missing your point though.
1) You probably won't get a check back for those four items. In almost every case, extras that are added into the finance contract, then canceled, are paid to the bank to reduce the outstanding loan amount.
2) Your payment won't change, but with the lower loan balance, your interest payments will be less, and your loan will be paid off sooner, saving you the finance charges.
If your dealer told you differently, then I think he is misinformed. The refund of those four items will likely occur just as you wanted it to.
regards,
kyfdx
visiting host
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Of course some of us would sit down and calculate for verification purposes, just as I did later on.
Deceiving the customer is considered in the State of New Jersey as Misrepresentation and may possibly be grounds to void a contract.