Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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Do I have any chance? I have a call in to my bank but they haven't called me back yet.
You won't get a great rate if you do get a loan.
I'm in the market for a 2009 Honda Fit and live in the North Texas area. I plan on having 20% to put down.
My problems are, I don't even know if I will get financing and if I do what kind of rate I'll get. Here's some of my basics:
- My FICO scores are 710 for TransUnion and 707 for Equifax.
- I have no late or slow pays on my credit, though I do have a relatively short credit history.
- I've been at my job for 8 years and make about $50k.
- I do not have any car loan history. When I was younger I got a bad deal that ended up in a repo, but that has fallen off all three of my credit reports. I have never financed a car purchase since. I do not have that luxury any longer.
- I also have a car that, according to KBB, is technically worthless so no trade-in.
So what's the collective wisdom here? Do I have a decent chance of getting financing and at a reasonable rate, or should I break down and finally learn how to ride a bike?
1. Stability
2. Capacity
3. Collateral
If you apply at different places, be sure to do it in a relatively short period of time (within 2 weeks). That way, your FICO score isn't hit as hard with the numerous
inquiries. www.eloan.com is a good source, as is your Credit Union. There are forums that are interesting to read on www.myfico.com, where you will see you have pretty good scores!
Good luck with your car purchase!
I was very happy with e-Loan by the way.
So, I would wait until you are in the month that the car is due to arrive.
If you choose 0% financing, you most likely won't get the large reabte, but you might be able to negotiate a little bit off the MSRP.
Having said that, yes they have to work with you, but don't expect them to give you both 0% financing and a large rebate.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
If you remove those by taking the Zero percent, you remove the possibility of a big discount.
$3000 is a lot of markup for a domestic car. A dealer isn't going to lose money to sell you a car. If they are at the bottom, then it does become a take it or leave it situation.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
,
You can make the $8000 payment in bank draft, check, sometimes cash or credit card. Most dealers however accept only up to $2000 from credit cards because they get charged service fees from the cc companies.
So your dealer is correct in how you should go about with the process, but I wouldn't leave as mu8ch as $8k for a deposit. $2k should do the trick.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
I'm surprised you wouldn't go with honda's financing, Not sure about your area but they should have pretty good rates right now.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
You know the rate you're getting from Chase. Go into Honda.com and go into their payment calculator, and work out the payments on your own. The calculator will show you the current rates, and what your payments will be.
The only tyhing that might not be on there might be a documentation fee, and insurance, title, taxes.
Print out the payments, go into a dealer, find the car you like that you worked out payments on buy it. If you can get a lower rate from Honda then take it. If not (if at Honda in the finance office they'll tell you you don't qualify for the low Honda rate), then just leave your depsoit, and say you have other financing arranged, and go finish up your Chase loan, come back a day or two later, pay the honda people and take the car. Simple as that.
Good luck!
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
I want to buy a new TSX with 10K down, 807 credit score, income just below 100K.
So right now Acura isn't offering any financing deals on the TSX. In this market can I demand a 2.9% rate from Honda financing as part of my offer to the dealer?
Or will they not entertain any interest rate as part of the deal. Ie just the price and then the money is my business, at whatever rate I can get from Honda or from pvt banks?
Can I demand the rate and will Honda entertain it, or do I have to wait until they offer a deal on the TSX again? It seems everyone is falling over backwards to offer 0% financing, so I feel I deserve something from Honda in this market.
Also, if I get a 2.9% promo rate, can I still get the car at invoice? It seems to be selling for that right now.
Thanks.
Sounds like you've done your homework. Just don't buy anything else at the F&I office.
What I mean is---the difference in car payments over the course of a loan between say 2% and 6% might be $2000-----so if you pay $30K for car X at 2%, or $28K for car X at 6%, it's the same deal.
How can you demand something that doesn't exist????
Work out the best price you can and get your own financing.
Demanding a rate that doesn't exist just tells the dealer that you don't know what you are doing.
There are two sources of loan interest rates:
1. What you or anyone can get from a Bank or Credit Union
2. What you can get from the Car Company's 'captive' finance unit (e.g. Honda Financial). Special 'below market rates' are sometimes offered by car company's in order to help sell cars..... but if there's no program going on company wide, they're never going to create one for an individual.
You can improve on the interest rate you'll pay buy doing a little comparative shopping for your loan, and then a little negotiating with your salesman.
What I've regularly done in the past is to go out to banks and credit unions shopping interest rates and finding out what the absolute best interest rate I can obtain will be.
Then when negotiating with the car salesman, when we get to the financing discussion, I'll tell him or her that I've got my own financing but that I'll finance through the dealer, if he can get me a better rate. (Sometimes I've been know to
dropaccidently misstate the rate that I can actually get from a bank or credit union by 1/4 or 1/2 percent).The salesman almost always comes back with a lower rate than I could get myself, and so I've been able to cut my interest rates that way.
Of course, if the car company is offering below market interest rates, like 2.9% when the market is 6.9% - telling the salesman that I can get that 2.9% rate somewhere else and I therefore want 2.8% is sort of a fool's errand....so I wouldn't recommend that.
The dealer doesn't have the pull to give you subsidized finance rates from the manufacturer, and the manufacturer won't negotiate on rates with individual consumers.
If Honda Finance has a promo on at that time, then yes, you'll get if you qualify for it. But if they're not offering special rates, then you won't get them.
If a manufacturer sees the need to move more units of a certain model, then they'll put on a subsidized rate for that model to help with sales. But usually if the car is a hot seller, or if it's meeting the manufacturer's sales targets, then chances are there won'tbe any rebates or subsidized rates on them.
Your only option if you really want a special rate, is to wait until Honda Finance comes out with a special on the car of your choice.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
Exactly. Now the good news, if you can be patient, is that this happens frequently. I've bought a few Hondas in my time and have always gotten a subsidized rate.
Over 60 months, that $30,000 loan will cost you $1,550 in interest at the 2% rate or $4,800 at the 6% rate. That's about $50 difference per month in car payments and over $3,000 difference overall.
tidester, host
SUVs and Smart Shopper
People need to keep their eye on the PRICE OF THE CAR--what they are paying for it---if one drifts off that, one can get waylaid.
0% is available from almost everyone, or other special rates.
4 companies now have some type of assurance program, which Honda doesn't.
The Japanese govt gave their auto co's billions of $ at 0% for car loans. (A few weeks ago). (The Japanese govt has 1 trillion in cash sitting around).
The fed rate is near 0%, meaning even giving me 2.9% means they are making money.
From an article:
Japan's Finance Ministry has said it will use $5 billion from its $1 trillion foreign currency stockpile to help keep credit flowing. Of Japan's major automakers, only Honda predicts a profit for the fiscal year that ends March 31.
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Their incentives are national policy (or regional). They aren't going to tailor fit a finance plan for one individual. Having good credit is highly commendable, but it's not like a gold medal in the Olympics or anything. :P
And although the assurance programs might sound like great ideas to drive traffic into the showroom, it might turn to a potential disaster if the folks who bought cars start losing their jobs, and cars will start coming back at a loss to the company. It's same thging as heavily subsidized leased vehicles that are coming back with thousands of dollars in loss per unit.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
I bet you gotta have AAA credit to even qualify for the assurance program.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
Negative. Everyone gets it that buys a new car regardless who they finance with. It does not even have to be financed with the captive. If you finance with your own credit union you are covered. At least that is how Fords works.
To the other poster, yes you can demand 2.9% jump up and down and hold your breath till they give it to you.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
Even in this economy, smart dealers are making money.
Research what a REASONABLE price is and buy a car.
If padres waited 2 years already, then he either has unreasonable discount expectiations, or is just not really ready to buy anything. That's just my opinion.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX