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Comments
It is so much more then a car commercial.
We have banks (not FMCC) that offer them but they jack the rate so much on them that it really is not all that advantageous to the customer.
I have never done one. Once in a blue moon I will have a customer ask about it but once you show them the small amount it save you compared to what it cost you they usually back off.
Maybe it works out better on some of the high line stuff, or if GMAC is offering a special rate on it.
I'm a little confused though. Does Edmund's just completely delete someone's profile if they aren't contributing? I mean, what happened to amad1?
-moo
In the past I have bought and sold allot of things on Ebay but now it is nothing more then another site for retailers to push their wares.
I may be wrong, it might work out great for GMC
:shades:
I’m not so sure about that. Until we can confirm that the other biz guys here haven’t received the same offer, I’d say this (new?) guy found the single worst purveyor of dirty tricks that we have on this board. You can tell that by reading any of Mack’s posts. So it must be a genes thing. :shades:
surprising he would want to be your friend on car space
Not really. He’s fishing for a deal or at least how to get one. His type would suck-up to a squirrel for an extra peanut. :sick:
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
Nah, I'm sure he knows that the Mexicans are honest, hard-working people...now the Irish, that's another matter.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
BTW, who would buy a 0% loan? :confuse:
Can any of you auto finance experts explain this?
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
as fas as why they would buy a 0% loan, they probably bought the entire portfolio. Some were good ones to have, and others aren't.
I have to agree, that is strange.
Maybe you should double check your paperwork. Could it be that one of the biz guys (salesman/F&I) got you for more than $178.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
You could be right. I'd better read the letter again. I might be sending my check to the jmoroe credit corp.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
-moo
It's the people who have to have the very top of the line cars who go for these. They can't settle for a lesser model and a shorter term.
I guess being practical makes no sense to them?
Call 1-866-876-3018, that is Mitsubishi Credits number.
1. Your car gets totalled two months into the loan. You owe now more than twice you owed when rolling the negative equity.
2. Lets say at the same time your stock plunged say 30% on some stupid news that later came to be not true or not really relevant to company's performance. Yet, since you have no cash and no bank would finance your new car, so you still have to sell the stock to cover the new forced purchase.
Does the great deal still look so great now?
2018 430i Gran Coupe
LOL
GP
2018 430i Gran Coupe
Looking forward to amad2 new posts. I'm still thinking it's just someone makin' stuff up, yankin' y'alls chains... Too depressing to think that the posts are serious...
'21 Dark Blue/Black Audi A7 PHEV (mine); '22 White/Beige BMW X3 (hers); '20 Estoril Blue/Oyster BMW M240xi 'Vert (Ours, read: hers in 'vert weather; mine during Nor'easters...)
2. I don't quite understand this point. If you worst case scenario anything, then of course the action taken looks bad. But again, as I said, the longer term loan, if structured properly as part of an overall financial plan, can and does make sense.
So, in my case, maybe I am lucky and fortunate, but for me the longer term loan has worked out nicely for me. Of course, I do plan on keeping the car for 5 years, so I intend to not have negative equity. But even if I did, the negative equity and additional interest charges were more than covered by the increase in the value of my investments as well as the comfort of having the lower payment/increased cash flow.
Damon
It's personal preference, but I like to seperate saving/expense part from investment. Former one assumes budget based on low/no risk-high certainty, latter accepts risks as it puts "overflow" money in play. Your scenario mixes them up - usually not a big deal for a single young guy (like me actually), when a slip hurts nobody else and budget adjustments are easy (stop buying expensive coffee, or eating out for a few months). I would not recommend using such schemes in a family budget, where a lot of expenses are not really discretionary.
2018 430i Gran Coupe
I got a 0% loan for 5 years + a rebate if I financed with the car company. How cna I beat that? If I paid cash, I would have gotten $500 more than the rebate. But then I would have had to shell out 25000 right then & there. And what would happen if I totalled my car 3 months later? I would have gotten $20000 from the insurance and I would be in a $5000 hole (in my savings account).
Mack
I grew in a Buick family in a Chevy town. I have owned at least one of every domestic you can think of. Even a Studebaker!
They did this to themsleves but I take no joy in this.
I did have a 1940 Oldsmobile when I was in college that I bought from a little old lady. Heck, it was 30 years old then. I can't believe I took it on the freeways of Los Angeles!
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Stanley?
Sears?
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
He's probably doing this right now:
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Funny, under-rated movie...
'21 Dark Blue/Black Audi A7 PHEV (mine); '22 White/Beige BMW X3 (hers); '20 Estoril Blue/Oyster BMW M240xi 'Vert (Ours, read: hers in 'vert weather; mine during Nor'easters...)
Indirect lenders sell off portfolios all the time, but the consumer never knows as the indirect will collect a fee to administer the loan. This is how they raise money to fund new loans. I never heard of them notifying the consumer and selling the admin.
As far as the 0% goes, the sales end of a manufacturer pays the captive (which in reality may be US Bank, Chase, etc. with a DBA) a profit plus admin fees to support the loan. Then this loan may also be sold.
Are you going by the pictures or by actually sitting in the vehicles and measuring the gaps? Did you happen to tap the hard plastic dash on the Taurus and the soft dash material on the Accord? The Taurus dash looks dated compared to the Accord which I might add the picture you posted is not the 08 but the previous generation.
:confuse:
tidester, host
SUVs and Smart Shopper
So, the sales frontlines - how's this? I have interest in the new MINI Clubman (which comes out tomorrow) and the salesperson has indicated that I should put a deposit on ordering one. My thought is, who orders a car without driving it to see if they like it first? Is that really common?
Mack, out of curiosity, what kind of cymbals are you using (I assume you play Sonor Drums)?
Allot of people when a high demand low quanity model comes out.
I would just make sure to cover with them up front if there is going to be a dealer addendum put on the car.
24-29.9 (months) 0.7%
36 to 41.9 6.9%
48 to 53.9 5.3%
60-65.9 38.6%
66-71.9 3.2%
72 to 77.9 40.1%
84-89.9 4.1%
96-101.9 0.1%
Now I'm not taking any position on these figures other that to say they're troubling. As has been pointed out by several posters there can be good reason to extend the period of the loan in certain circumstances. But, for the salespeople here, look at the roughly 82% of buyers who took out 60 to 78-month loans. I remember that Terry (rroyce) cited the average trade-in period at 39 months. I'm not sure if that still holds true. What shocked me, though, is the 4.2% of buyers who are taking out loans of longer than 84 months!
With such reckless disregard for personal fiscal responsibility won't there be a day of reckoning? Or maybe it has already arrived (there's a follow up article on the explosion of repos--even in affluent neighborhoods)
I know that this paints a bleak picture--although we all know that statistics can be tweaked to interpret different outcomes/conclusions. I'm not one of those malcontents who complain about being misled by the sales folk on this forum. In fact, I have the highest regard for the great members here who share their time, insight and expertise, while putting up with antagonistic cyberbabies. I do think that these statistics explain--at least in part--the real disconnect between many buyer's dewy-eyed perceptions and seller's nuts-and-bolts reality. Can buyers really enter negotiations with a positive attitude if they still owe $xxxx on their previous car? The charade might be maintained for one trade-in, but after that...?
Gogiboy
But i am guessing the majority of people who go out 84 months on a loan are doing so because they want more car than they can afford at 3-5 years financing, and instead of getting a cheaper car, or not adding on the 22" wheels vs. the 18" ones or getting cloth instead of leather, or what have you, they just extend the financing to meet their payment budget.
that's the situation that puts people at a HUGE financial risk - especially since the majority of people aren't going to keep the car that long anyways...
truly a scary thought...
-thene
But, some people don't have that much of a choice. I live in NJ, and it is brutally wxpensive to live around here, and especially keep a car (insurance, etc.) Plenty of people are just making ends meet, so keeping a payment down is vital.
But, my sympathy ends with the people that can't afford something, but get it anyway. If your current ride is 4 YO, then you can keep driving it. If you have to get a replacement, a 2 YO simple car will do the job. You don't need a loaded up 2008.
The loan term/default problem goes away (on an individual basis) for the most part if you cut back.
Say I need a new van (old one gets totalled). If I only have 2k to put down, I can finance 28K to get a new Odyssey, or 10K to get a 2006-2007 Caravan with 30,000 miles. If money is tight, which makes more sense?
Actually, the payments might be the same ($300/month), just for 3 years instead of 7 (all numbers ballparked of course!) Which goes right back to keeping the old car after it is paid off, since in my scenerio, they trade in the Caravan by the end of the loan anyway!
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
I do play Sonors and use Meinl Classics, ride crash and hi-hats, and I also have a Sabian 14 crash and a Paiste 18 thin crash, plus a couple of Wuhan splashes. Long time ago I used Zildjian but my mom sold them when I joined the navy,
Mack
On a car sales note... How does the shorter month of February effect how dealerships do sales to make numbers? Is it based on the previous February or counts like a regular month even though you loose several days of potential sales?
There are definitely some decent domestic products out there compared to back in the '80's & '90's. The C6 Vettes are drop dead gorgeous, I really dig the '08 Bullitt Mustang, The Fusion is a really nice looking car (The headlights look like they were swiped from my '01 Prelude's), I like that Saturn Aura, I even saw a new Focus today that caught my eye. GM's 3.6L DOHC V6 & 6 Speed Slushbox are modern. I really do hope they recover.
2001 Prelude Type SH, 2022 Highlander XLE AWD, 2025 Camry SE AWD
Oddest thing? It's from Lexus! Snobby just isn't what it used to be.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
When it was time for the test drive, he let both of us drive the car for an extended drive. During the drive, he just sat in the back and kept quiet and let us test everything out and talk about things. Of course, when we asked him something, he answered us and let us know what was up.
After the drive, we told him that we were going to try the other competing cars in its class before sitting down and trying to buy the car. He had no problems with that, and didn't try to keep us at the dealership. He treated us well, and didn't pressure us into buying the car. Unfortunately, she didn't like the way the car drove (it was a fully loaded base Cobalt) so much, and her financial situation changed.
HOWEVER, because of how he treated us. When we are ready to buy a car again, he will be the first salesman I contact. I don't know if it was some sort of tactic, or just plain good honest customer service, but I feel that when we're in the market for buying a car again I owe it to him to come to him first and see what his inventory is. And if we find another dealer with a lower price than his on whatever car we decide on, give him a chance to beat or match it.