If you are near the beginning of your car loan, then the balance of the loan is high, and the interest is based on the balance of your loan. A higher interest rate could also contribute to the higher per-day charge.
In any case, the finance company does NOT want to repo your car. That is the last thing they want, just as it's the last thing you want. Try calling them back and talking to them about a payment plan to pay off the extra. If you don't get a satisfactory answer, ask to speak to a supervisor. Tell them you want to work with them. That's a good place to start.
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
I'm sure your Ford loan worked that way, too. They just never told you.
I still don't think its quite right, though. How big is your payment?
My guess is she recited the total interest charge to you, not just the difference between the interest if you paid on time and the interest when you pay late.
'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
No it was not the total she is saying I am adding another $240 a month plus the interest I was originally occurring. This is why it did not make any sense to me. My loan was 14K I now owe 14,700 6 payments later.
As qbrozen pointed out, it's the 19% interest that is causing the interest to pile up at a greater rate than you are paying off the loan. This will continue to happen if you continue to pay late on this loan. You will want to review the terms of your contract carefully, because there may be a provision, if you get a certain amount behind or are X number of days late a certain number of times, for them to "call" the note - this means that they would have the option to require you to pay the entire balance immediately, or face repossession. I can't tell you without reading your specific contract.
You are in a hole right now, but it isn't insurmountably deep. The way out is to pay on time, EVERY month, from here on out.
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
I have just purchased a new 2012 Subaru Forester. But the dealer did not offer me the manufacture 0.9% APR financing special offer. Instead, the dealer had a bank financed the car with a higher APR. Is the dealer obliged to offer manufacture financing incentive? Is there any way I can ask the dealer to fix this? Thanks!
The finance person at your dealership must have obtained your credit score. You are entitled to that score, I believe. You should also check with one of the three credit agencies (Transunion for example) and pay for your actual score, not your credit report. You can also go to Credit Karma and get a good free estimation of your score. I use Credit Karma regularly.
With your score, you can see if you qualify for the special manufacturer captive financing. Typically, a score of 720 or more will qualify for the best auto finance rates. Note, the dealer may use a beacon score but your credit score is sufficient to determine if you qualify for the best or better than average rates.
If you have a sufficient score, you could confront the dealer and request an explanation. If you did qualify for the special manufacturer rate and you were not offered this by the dealer, you may find the dealer willing to correct the situation. There are laws and regulations in place regarding disclosure which the better dealerships observe. Unfortunately, it seems some dealer finance people skirt such laws and regulations.
As has been stated many times, in every situation, the dealer finance person is the dealership's best sales person. They have the responsibility of making as much back-end profit for the dealer as possible.
One highly profitable back-end profit avenue is financing. Dealers have access to finance rates which we customers may not have. A dealer can make a profit when the finance sales person finds a buyer willing to finance at a higher rate than the rate for which they qualify. For example, a dealer has a rate with a certain bank for three percent for which the customer qualifies. The customer finances at four percent. Bingo, the finance sales person has made a back-end profit with this one percent difference.
Clearly, it may not be in the dealer's best interest to finance a customer with the special manufacturer's financing.
If the dealer will not help you, you should consider an immediate refinance of the loan. If cancelled, the dealer will recieve a charge back from the bank for any profit made on the financed loan. You should also cancel anything else you may have purchased in the finance office such as an extended service contract, GAP, etc. Once cancelled the dealer will receive additional charge backs for those cancelled products as well. Dealer finance people hate charge backs.
People really do need to know their credit score before they enter a dealer's finance box.
" There are laws and regulations in place regarding disclosure which the better dealerships observe. Unfortunately, it seems some dealer finance people skirt such laws and regulations. "
I have a score higher than 720. Are you aware where to find the law regarding the disclosure in Texas.
You also said "The answer is no they are not." If there is such law, why they are not obligated to tell me the manufacture financing option.
If you are in the process of car shopping, using online forums and tools and plan to visit a dealer soon, a reporter would like to hear from you. Please email PR@edmunds.com by Tuesday, November 13, 2012 and provide a few lines about your experience so far.
This will depend completely on what vehicle you intend to lease. Could you give us an idea of what interests you, so we can point you in the right direction?
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
I am just seeing if maybe anyone can help me out with a question. First, a little background on my financial history:
I have a credit score average of 565. I have a significant amount of debt but not credit card. Most of the debt is collections for accounts like personal loans, a cable company, student loans (all current and in good standing). I have a car loan out with a really high interest rate of about 25 percent/payment of 377.41 for 36 months (yikes, i know but i have a great job that pays well and i can afford to pay a high interest rate payment).
Although this interest rate is really high, i have not missed a payment nor have i been late on a payment. I have had the loan for about 22 months, so almost 2 years.
My question is, if i were to apply for a loan for a new car, and possibly trade this vehicle in, would i have a good chance of getting this loan approved? Will the history of good payments and ability to pay a high interest rate show that i am dependable with paying a car loan even if the interest rate is rediculously high? i want to be sure that i am not wasting my time if i go in to a dealership and running my credit if there is no point to do so. I am in need of a new vehicle, as my current one im still paying on is getting run down from driving long distances to work and back.
Any help and input form anyone who is a finance guru or has experience working with bad credit consumers would be greatly appreciated. Thank you so much!
Well, i was thinking about a Ford Focus, newer model with low mileage. not neccesarily brand spanking new, i am more than happy to be approved for a certified used vehicle.
I have heard about Ford financing being a good option to look into. I am just very hesitant to walk in to a dealership with unrealistic expectation and running my credit for no reason if there is no possible way for me to get approved. Also, i plan on having a down payment of about $1000. I hope this helps out a little more.
A reporter would like to talk to a car buyer in his/her 20s who has a 72-month or longer term auto loan. If you would like to share your story, please send your daytime contact information to pr@edmunds.com no later than Tuesday, 7/16/13 at 10 a.m. PT/1 p.m. ET.
Hi, everyone. I need a small assistance in car financing/leasing. I'm a citizen of Russia and moove to US for to years for a work. I would like to buy a Volksvagen CC, namely this one: Wished car. I'm buying a car with a Company who deals with expats and who can provide a car financing or leasing without credit history. I received the quote from the Compony today. Could you please assess it for reasonableness. Actually I have enough money to purhase it at full price, but I've got money on deposit in Russia with very good interest rates. So, if the quotes a reasonable, it is more profitable for me to use financing or leasing.
The quote is as follows:
$ 19,477.00 Capitalized Price of Vehicle1 $ 616.75 * Motor Vehicle Excise Tax 3.2500% State OK $ 111.75 * Initial License Fee $ 0.00 Registration Fee Order Information $ 995.00 * Other:Application Processing Fee Driver Name $ 4,869.25 * Capitalized Price Reduction $ 0.00 * Tax on Capitalized Price Reduction $ 0.00 Gain Applied From Prior Unit Lic. Plate Type Unknown $ 0.00 * Security Deposit GVWR 0 $ 0.00 Extended Service Contract $ 14,607.75 Total Capitalized Amount $ 608.65 Depreciation Reserve @ 4.1666% $ 77.78 Monthly Lease Charge (Based on Interest Rate - Subject to a Floor) $ 686.43 Total Monthly R">ental Excluding Additional Services $ 0.15 Reduced Book Value at 24 Months $ 400.00 Service Charge Due at Lease Termination
Why the priceon the website is lower than the one stated in the quote. The company said that the difference refers to documentary fees and administrative fees. Is it reasonable?
This is my first post here. Sorry if this topic is already discussed here.
I have purchased Toyota car with financing from dealer just 2 days back. on the day pf purchase, finance manager checked my credit score/report and said my apr rate would be 4.99%. I was planning to opt 0%(they had some special financing option available with lower rebate) but he convinced me for 4.99% in the stressful environment at dealership.
Now, today when I calculated the actual amount I will be spending for finance, it comes out as $2600 over the period of 5 years. I don't want to pay this much and I called the finance manager today and requested him if he can change the rate or give me special financing option. He denied to change anything now as the contract is signed and already sent to bank.
Now my questions are: - Is there any way I can force him to change apr rate or allow me to opt for special financing (0%)? - Can I refinance it so early ? It is just 2 days I took the loan. - any other suggestion?
I have never leased a car so this is all pretty new to me. I did the Chrysler credit app and was approved for "up to" $49,900 in financing. Figured I would see what I was eligible for before dealing with a dealer. The credit score they pulled was 698 from Experian. What tier is that?
Would I have a decent shot at leasing this vehicle? Looking to lease for 36/mo 10k miles. I have a trade w/ some equity some of which can be used to cover relevant fees. Want to cash out some equity if that is even a possibility. Looking to keep my payments at or less than $400 which may be unrealistic.
Any advice and insight would be much appreciated. Would like to have some concrete knowledge before visiting a dealer.
I have never leased a car so this is all pretty new to me. I did the Chrysler credit app and was approved for "up to" $49,900 in financing. Figured I would see what I was eligible for before dealing with a dealer. The credit score they pulled was 698 from Experian. What tier is that?
Would I have a decent shot at leasing this vehicle? Looking to lease for 36/mo 10k miles. I have a trade w/ some equity some of which can be used to cover relevant fees. Want to cash out some equity if that is even a possibility. Looking to keep my payments at or less than $400 which may be unrealistic.
Any advice and insight would be much appreciated. Would like to have some concrete knowledge before visiting a dealer.
A lot of it will depend on that score. If that's your FICO score, then you'll have no trouble qualifying for top tier lease rates. Some dealers use an "auto score" that is on a different scale (up to 900). If that's your "auto score", then yhou may be in a lower tier.
You should cash out any equity on your trade-in, rather than put it down on a lease. But, I don't think you'll get under $400/mo. on a JGC.
If you bought a new car instead of used because low rates and/or longer-terms loans kept the monthly payments more affordable, please email PR@edmunds.com by 9/11/15 to connect with a reporter.
I've read in articles and forums that is best to negotiate the car as if you want to buy or finance it and never mention you want to lease until you get the best price then after you think you got a good deal you say I want to lease it.
well..... I followed this advise and the results were not what I expected.
I talked to 3 different dealers and after I got a good price I mention I wanted to lease, they said that if I want to lease most of the rebates will not apply. is this true? This are couple of examples:
Ford F150 XLT SuperCrew2WD 5-1/2 box MSRP $37,510 Dealer Discount -$3,506 Truck Bonus Customer Cash -$4,000 Final Price $30,004
I taught it was a good price, but once I mention I wanted to lease the sales guy said the $4000 won't apply unless I finance the truck
Incentives usually have fine print and often a cash incentive can't be used if you finance or lease. Usually you'll see something like a $2,000 incentive or 1.9% financing and you get one or the other, but not both. But it depends, and sometimes you'll see a cash incentive that applies to a retail purchase or a lease.
Lots of advice articles recommend that you do your deal before disclosing that you have a trade-in. I don't recall any that recommend you hide that you are interested in leasing up front. But maybe the confusion is that you still need to negotiate the purchase price when you lease just as you do if you were buying. Don't pay MSRP on a lease in other words.
If you think you might want to lease, the better practice may be to ask the dealer to work the deal both ways so you can play with the numbers.
You can check the fine print at our Incentives page, but we don't have some of the regional incentives listed. I didn't look at every F-150 model, but I didn't see any $3,000 or $4,000 incentives listed.
Oh, it's getting harder to find out, but sometimes there's a "dealer cash incentive". That's one from the manufacturer to the dealer and it's up to the dealer to decide whether to pass it on to the consumer.
That could be the source of the mystery incentives that we aren't showing..
Comments
In any case, the finance company does NOT want to repo your car. That is the last thing they want, just as it's the last thing you want. Try calling them back and talking to them about a payment plan to pay off the extra. If you don't get a satisfactory answer, ask to speak to a supervisor. Tell them you want to work with them. That's a good place to start.
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
I still don't think its quite right, though. How big is your payment?
My guess is she recited the total interest charge to you, not just the difference between the interest if you paid on time and the interest when you pay late.
'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
yup.... that will kill ya.
'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
You are in a hole right now, but it isn't insurmountably deep. The way out is to pay on time, EVERY month, from here on out.
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
http://www.subaru.com/special-offers/index.html
The finance person at your dealership must have obtained your credit score. You are entitled to that score, I believe. You should also check with one of the three credit agencies (Transunion for example) and pay for your actual score, not your credit report. You can also go to Credit Karma and get a good free estimation of your score. I use Credit Karma regularly.
With your score, you can see if you qualify for the special manufacturer captive financing. Typically, a score of 720 or more will qualify for the best auto finance rates. Note, the dealer may use a beacon score but your credit score is sufficient to determine if you qualify for the best or better than average rates.
If you have a sufficient score, you could confront the dealer and request an explanation. If you did qualify for the special manufacturer rate and you were not offered this by the dealer, you may find the dealer willing to correct the situation. There are laws and regulations in place regarding disclosure which the better dealerships observe. Unfortunately, it seems some dealer finance people skirt such laws and regulations.
As has been stated many times, in every situation, the dealer finance person is the dealership's best sales person. They have the responsibility of making as much back-end profit for the dealer as possible.
One highly profitable back-end profit avenue is financing. Dealers have access to finance rates which we customers may not have. A dealer can make a profit when the finance sales person finds a buyer willing to finance at a higher rate than the rate for which they qualify. For example, a dealer has a rate with a certain bank for three percent for which the customer qualifies. The customer finances at four percent. Bingo, the finance sales person has made a back-end profit with this one percent difference.
Clearly, it may not be in the dealer's best interest to finance a customer with the special manufacturer's financing.
If the dealer will not help you, you should consider an immediate refinance of the loan. If cancelled, the dealer will recieve a charge back from the bank for any profit made on the financed loan. You should also cancel anything else you may have purchased in the finance office such as an extended service contract, GAP, etc. Once cancelled the dealer will receive additional charge backs for those cancelled products as well. Dealer finance people hate charge backs.
People really do need to know their credit score before they enter a dealer's finance box.
I have a score higher than 720. Are you aware where to find the law regarding the disclosure in Texas.
You also said "The answer is no they are not." If there is such law, why they are not obligated to tell me the manufacture financing option.
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
I am just seeing if maybe anyone can help me out with a question. First, a little background on my financial history:
I have a credit score average of 565. I have a significant amount of debt but not credit card. Most of the debt is collections for accounts like personal loans, a cable company, student loans (all current and in good standing). I have a car loan out with a really high interest rate of about 25 percent/payment of 377.41 for 36 months (yikes, i know but i have a great job that pays well and i can afford to pay a high interest rate payment).
Although this interest rate is really high, i have not missed a payment nor have i been late on a payment. I have had the loan for about 22 months, so almost 2 years.
My question is, if i were to apply for a loan for a new car, and possibly trade this vehicle in, would i have a good chance of getting this loan approved? Will the history of good payments and ability to pay a high interest rate show that i am dependable with paying a car loan even if the interest rate is rediculously high? i want to be sure that i am not wasting my time if i go in to a dealership and running my credit if there is no point to do so. I am in need of a new vehicle, as my current one im still paying on is getting run down from driving long distances to work and back.
Any help and input form anyone who is a finance guru or has experience working with bad credit consumers would be greatly appreciated. Thank you so much!
I have heard about Ford financing being a good option to look into. I am just very hesitant to walk in to a dealership with unrealistic expectation and running my credit for no reason if there is no possible way for me to get approved. Also, i plan on having a down payment of about $1000. I hope this helps out a little more.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
The quote is as follows:
$ 19,477.00 Capitalized Price of Vehicle1
$ 616.75 * Motor Vehicle Excise Tax 3.2500% State OK
$ 111.75 * Initial License Fee
$ 0.00 Registration Fee Order Information
$ 995.00 * Other:Application Processing Fee Driver Name
$ 4,869.25 * Capitalized Price Reduction
$ 0.00 * Tax on Capitalized Price Reduction
$ 0.00 Gain Applied From Prior Unit Lic. Plate Type Unknown
$ 0.00 * Security Deposit GVWR 0
$ 0.00 Extended Service Contract
$ 14,607.75 Total Capitalized Amount
$ 608.65 Depreciation Reserve @ 4.1666%
$ 77.78 Monthly Lease Charge (Based on Interest Rate - Subject to a Floor)
$ 686.43 Total Monthly R">ental Excluding Additional Services
$ 0.15 Reduced Book Value at 24 Months
$ 400.00 Service Charge Due at Lease Termination
Why the priceon the website is lower than the one stated in the quote. The company said that the difference refers to documentary fees and administrative fees. Is it reasonable?
Thank you
This is my first post here. Sorry if this topic is already discussed here.
I have purchased Toyota car with financing from dealer just 2 days back. on the day pf purchase, finance manager checked my credit score/report and said my apr rate would be 4.99%. I was planning to opt 0%(they had some special financing option available with lower rebate) but he convinced me for 4.99% in the stressful environment at dealership.
Now, today when I calculated the actual amount I will be spending for finance, it comes out as $2600 over the period of 5 years. I don't want to pay this much and I called the finance manager today and requested him if he can change the rate or give me special financing option. He denied to change anything now as the contract is signed and already sent to bank.
Now my questions are:
- Is there any way I can force him to change apr rate or allow me to opt for special financing (0%)?
- Can I refinance it so early ? It is just 2 days I took the loan.
- any other suggestion?
Thanks,
NG
Hello,
Hoping for some help...
I'm looking into leasing a new JGC...this one in particular: http://quirkchryslerjeep.com/new/Jeep/2014-Jeep-Grand+Cherokee-3f3646a00a0a00e07dd18651c9f8edfc.htm w/ a price quote via email of $35995. I live in Massachusetts.
I have never leased a car so this is all pretty new to me. I did the Chrysler credit app and was approved for "up to" $49,900 in financing. Figured I would see what I was eligible for before dealing with a dealer. The credit score they pulled was 698 from Experian. What tier is that?
Would I have a decent shot at leasing this vehicle? Looking to lease for 36/mo 10k miles. I have a trade w/ some equity some of which can be used to cover relevant fees. Want to cash out some equity if that is even a possibility. Looking to keep my payments at or less than $400 which may be unrealistic.
Any advice and insight would be much appreciated. Would like to have some concrete knowledge before visiting a dealer.
A lot of it will depend on that score. If that's your FICO score, then you'll have no trouble qualifying for top tier lease rates. Some dealers use an "auto score" that is on a different scale (up to 900). If that's your "auto score", then yhou may be in a lower tier.
You should cash out any equity on your trade-in, rather than put it down on a lease. But, I don't think you'll get under $400/mo. on a JGC.
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
This is my first time trying to lease a truck
I've read in articles and forums that is best to negotiate the car as if you want to buy or finance it and never mention you want to lease until you get the best price then after you think you got a good deal you say I want to lease it.
well..... I followed this advise and the results were not what I expected.
I talked to 3 different dealers and after I got a good price I mention I wanted to lease, they said that if I want to lease most of the rebates will not apply. is this true?
This are couple of examples:
Ford F150 XLT SuperCrew2WD 5-1/2 box
MSRP $37,510
Dealer Discount -$3,506
Truck Bonus Customer Cash -$4,000
Final Price $30,004
I taught it was a good price, but once I mention I wanted to lease the sales guy said the $4000 won't apply unless I finance the truck
Ford F150 XL SuperCrew 2WD 5-1/2 box
MSRP $35,935
Dealer Discount $2,921
Factory Rebates $3,000
Finance w/ford $750
Final Price $29,264
Again, once I said I wanted to lease they told me that the $3000 rebate is only if I finance/purchase the truck.
I'd greatly appreciate any help/feedback you can provide.
Thanks
Lots of advice articles recommend that you do your deal before disclosing that you have a trade-in. I don't recall any that recommend you hide that you are interested in leasing up front. But maybe the confusion is that you still need to negotiate the purchase price when you lease just as you do if you were buying. Don't pay MSRP on a lease in other words.
If you think you might want to lease, the better practice may be to ask the dealer to work the deal both ways so you can play with the numbers.
You can check the fine print at our Incentives page, but we don't have some of the regional incentives listed. I didn't look at every F-150 model, but I didn't see any $3,000 or $4,000 incentives listed.
That could be the source of the mystery incentives that we aren't showing..