Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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A reporter would like to speak with you about your experience; please reach out to PR@Edmunds.com by 7/22 for details.
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It was mentioned that the purchase appointment was made with even a prior agreed to price? so there was some advance work done ont he purchase? Sorry, but a buyer of anything needs to know what the market cost is on all parts of the transaction; on a car this is mainly the purchase price and financing rates, but depending on the deal should also include accessories, warrarties, and if leasing, all the potential gotchas that can get snuck into that arithmetic. This methodology holds true whether buying a coffeemaker for $7.99 at Wal-Mart, to a suit at the department store ($189, but the alterations were another $75 - my own surprise personal experience, but still an OK deal for the quality of what I got), to the home buying process, which can make purchasing a car like pre-school compared to the graduate program at MIT.
Count me among the doubters to the story, or that we have been provided all the facts........
I don't know what other "facts" you might want to know.
I am as honest as they come, which I found out is more than you can say about some dealers.
Some of you thought I should have know better. I didn't. I trusted people. I didn't know you weren't supposed to. Having never done anything like this in my life (financing a large purchase), I expected the loan officer would know a lot more about financing than I would, and that he would help us.
How am I supposed to know what I don't know?
Several of you indicate that I was foolish not to investigate financing before I went to the dealer. It was not like I had two choices in front of me and I purposely chose the stupid one. I just didn't know. I was with my mom. I did most of the car part, and she handled most of the financing part. We did fine with the car, but the dealer ran right over an old lady with the financing. I think that is pathetic.
I have written to the manager, and I will let you know if there is any response, for those of you who did show some concern (and I thank you).
Sent email to dealership manager Thurs, but I believe it was intercepted by our salesman (who I think has been wonderful from the beginning), because all email goes through him since he is Internet Manager.
I think the salesman was trying to keep the peace, and I understand that.
I do not know if the email ever got to the manager. I sent snail mail yesterday to him.
Finance dealer called today.
He apologized.
Wonder if it was because he had to, or if it really was because he wanted to make us happy, as he said. Why didn't he want to make us happy in the beginning?
He has cancelled our loan. We do not have to pay $100 processing fee. They will absorb any penalties that would be incurred.
He will do anything he can to match current bank rates. He wanted to know what offers we had. Since our bank is offering less than 6.9%, he asked us if 6.5% would be acceptable (is that a little lower than 8.74%?).
He indicated that he could not match the less than 4.9% our credit union is offering, but we are free to finance with them with a new loan with no penalty (finance, not refinance, since the original loan contract no longer exists).
I told him we did not want to make a decision today. We are going to the dealership next week to add cruise control to our Corolla, by which point the manager will have received our snail mail.
Will continue to keep you posted.
Terry.
PS: almost the end of the 3rd quarter - Skins 17 .. Tampa 10 ..
Who you were rooting for? :shades:
Well, if he hasn't cancelled the contract, that will be ANOTHER lie he has told us.
Received this from the manager today
(keep in mind he has not received my snail-mail yet)
any emphasis his
As the General Manager of Cramer Toyota of xxxx, I would just like to take a moment to "Thank You" for visiting our store.
Our main concern at Cramer Toyota is your satisfaction. We want you to feel good about your buying experience.
If for any reason you were unable to reach an agreement with one of our salespeople, please contact me personally. I have the authority to make ANY deal and will do everything possible to resolve your concerns. We want to make your car buying decision an easy one. Satisfied customers are our best advertising.
Sincerely,
(signed)
xxx xxx
General Manager
I think this is going to be an interesting week.
Hope your team won!!!
Please go with the credit union! It's offering you the lowest rate.
Good luck.
As far as who qualifies for this rate goes, some banks use a tiered system that provides different lease money factors to consumers depending upon what their credit score is. I believe that Ford Credit uses a pass / fail system though. Either you qualify for the special lease rate that it is offering on a particular vehicle, or you don't. And it is usually fairly easy to qualify for a lease through Ford Credit.
As far as the cash incentives that are available on leases of this truck go, the $1,500 customer cash that Ford is currently providing on the 2006 Escape is not compatible with leases through Ford Credit. As you mentioned, there is a $1,000 bonus for leasing this model through Ford Credit right now though. Also, Ford is running a special program on the '06 Escape that waives the first payment on any lease or finance contact through Ford Credit right now.
Car_man
Host
Smart Shopper / Prices Paid Forums
I called my credit union, but haven't submitted a loan application yet.
They wanted to know if I was financing (which meant the original loan was cancelled) or refinancing.
Instead of calling the dealer, we called the bank that had the loan.
They told us it was cancelled.
Hmmmm.....
So what your saying is: they are "letting" you just drive (pick a number) a $17 or a $20,000 vehicle around without a cashable contract and you don't even have an application in.? .. so if you smash it, you're off the hook and they pay ..? .. if you hit a pack of screaming Nuns, they get sued not you ..?
Unless you had the dealers lender code, you couldn't pull any history on any loan because it's a "internal" loan .. plus dealers don't spend the time calling back 20 or 30 banks a day to say: "hey Bob, we went with ABC bank instead of yours or the customer secured their own financing", because the lenders wait 30 days after the call-back .. I'm not trying to smart here, but nobody is holding their breath waiting for your loan when they see 4,000 a week - they don't have the time ..l.o.l... ... so what you're saying makes no sense at all.
..... I dunno, I have a silly funny feelin' we as readers have been hooked into another "Fantasy Island" story ... darn good try though
Terry.
Question: I would like to buy using a credit card. That may sound weird or funky, but I would be doing it for the miles I get on the card. After taking a look at available finances (with my wife, a CPA), we will be able to pay off credit card completely with one payment :shades: . The Toyota rep has no problems with it...it just sounds funky. We have relatives in China, and we need all the miles we can get. Any thoughts, misgivings, suggestions?
(Car is to be delivered in one month.)
We got a letter in the mail yesterday from the bank the dealer arranged the loan with, with a telephone number we could call. (It was a welcome-type of letter, sent several days ago)
So we called the BANK to ask them about the loan, and THEY told us it was cancelled.
Umm...haven't seen a pack of screaming nuns ever in my lifetime. Think we're safe there.
Really, I can't help how all this sounds. I have just been telling it as it unfolds. I do not tell lies.
I really believe Mr. Finance man did get a hold of the bank because he had a little personal "encouragement".
Do you think he called this major bank and told them that if Ms. Bipwop or her mom call, please make up some story about cancelling their loan? And when we called we just happened to talk to someone who immediately knew about this little secret?
Oh, who needs soap operas? I don't think I could have made this up if had tried!
:shades:
Just got a call from the credit union, and we were approved for a loan of
4.74%
which, if I have my calculations right, is almost half of the 8.74% absolute BEST wonderful deal I was given at the dealership.
The only difference in the two loans was that in the 8.74% loan, my mom was the applicant and I was the co-applicant, and in the 4.74% loan, I was the applicant and my mom was the co-applicant.
(Also, the bank here in town did say they could offer us a loan of less than 6.9%)
So, to all you doubters, to those who told me I that didn't make any sense, that I wasn't telling the whole story or providing all the facts, that the original bank was considering other factors that I was unaware of, and that I was pulling a "Fantasy Island" story over on you all......I love you anyway!
And to the others, thanks for believing in me and giving me support!!
Let me ask for another bit of needed advice:
I need to sell my 91 Nissan Maxima (70K) miles.
This is probably the wrong place to say it, but this car, in "fair" condition (some mechanical defects, but still in reasonable running condition) lists at KBB for $1,800.
I have, in the last 8 months, had a 27-point Nissan inspection and done an oil change, put in new brakes and rotors, new fuel pump, new Nissan battery, new alternator, and new radiator hoses, all to the tune of over $1,000.
The mechanical problems are that the axle boots need attention, and there may be a weak compressor (AC has worked fine for last 8 months, but has made a steady noise).
The car also pulls to the right when you drive with your hands off the wheel.
There are a few other problems, but they are minor.
Here are my questions:
1) what is the best way to sell this car? personal ad, eBay, Kbb/cars.com, edmunds/autotrader ????
Why does my caxfax report show 6 records, and the NADA 17???
I would probably list it $1500 obo. What do you think of this price, or accepting "obo"?
(I would be willing to go to $1300)
One thing though, same as if you were planning to buy, is to figure out what your needs are and pick the right car(s) for your needs. A maxima is quite a bit different than a focus, gets much lower mileage, etc.
Anyway, one advantage of leasing is that you can easily shop prices by looking for advertised manufacturers specials. Some recent deals on mid level Accords come to mind, which might be a good choice for you.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
About selling your 91 Maxima, please tell the potential buyer about the problems with the CV boots and joints. I lived in Ft. Myers for years and Punta Gorda had a reputation for the rough, tough people who roamed that area. If you sell a car with problems and the new buyer realizes he has to spend $1000 or so to fix the car, he could be very upset with you. I would not want to risk making one of those Punta Gorda types mad at me.
Once you have a good understanding of how leasing works, stop by the following forum here at Edmunds.com: Prices Paid: Buying & Leasing Experiences. There you will be able to find out how much other community members have paid for their Maximas lately by visiting the following discussion: "Nissan Maxima: Prices Paid & Buying Experience". When you have an idea of what sort of price you should pay for this car, stop by the "Nissan Maxima: Lease Questions" discussion and I will be happy to estimate what your lease payment should be like on the car that you want using Nissan's actual lease program.
Car_man
Host
Smart Shopper / Prices Paid Forums
You also have to remember that dealers talk with hundreds of people a week .. and you would be amazed on how many potential buyers "think" they're pre-approved because they just got a form letter from a credit card company that said "pre-qualified" for "application" .. or they might have spoken with someone at the local credit union for 2 minutes and the conversation went like: "you're a good customer here and we should be able to loan you $25,000 if everything checks out .."
Unfortunately, good customers pay for all of the "not so good" customers .... maybe the guy just before you might be pre-approved for $25,000 ~ but, he needs $30,000 because he's flipped in his trade, perhaps he's approved but he also needs the Mrs on the contract and he's been out shopping without her, or maybe his lender has "conditioned" him to only $20,000 and he's lookin' at that $25,000 vehicle - or maybe he's just not approved at all ... I know it's hard to believe, but customers "can and do" make things up .. dealers hear it everyday, that's why a legit guy like you gets a second look.
Car buying is alot like home buying .... get pre-approved, and then get a pre-approval letter from the lender that states the amount and the rate, it makes it a whoooole lot easier for you and the dealer.
Terry.
I had one dealer (a Toyota dealer near my house) that would not accept a pre-approval letter when everything is in order from a good bank (USAA FSB). This was 4 years ago. They tried to tell me I needed to go through thier bank because that is the way they do business. I got up to walk, then they changed their tune. The manager came over, and said of course they would accept the USAA draft, as long as we had a backup loan agreement.
Oh....the F & I person tried to tell me my best rate was 8.5 % in 2002. Through USAA I am paying 5%.
My guess is the F & I person knew that they had us over a barrel (replacing a totalled car, and the rental payment was done).
I got the loan through E-LOAN and they gave me what I asked for ($24K, 60mon, 5.65%). As did several other companies but w/ worse rates. I should be fine with the dealer, right? Unless when they call me to say the vehicle is in and they give me the runaround like they did to manamal. If I follow suit their shouldn't be any snags. We'll see what happens.
Thanks
And thanks for the advice about selling the Nissan. Even before that advice, I had written up a page that included everything the Nissan had, and every problem it had.
Very detailed and complete. I am too honest a person not to tell the whole truth (which maybe you finally learned about me). I'm sure I got a lot less for it than I would have had I kept my mouth shut, but I would have never been able to live with myself. You know how it goes: "Do unto others as you would have them do unto you".
It ended up that I never had to advertise. Someone we knew (not very well) bought it from me immediately. kbb value in fair condition = $1800. I was going to advertise it for $1500 obo, since I felt bad about the problems it had. He offered $1350, and I didn't fight because it saved me the hassle of trying to sell it. Oh, and he didn't want me to put the price on the title (I think he was trying to cut tax corners), but I wouldn't go along. Sorry, Charley!
I didn't know that those Punta Gordians were so rough! Thanks for the heads up! :-D
Thanks for the great advice.
I took all of this wonderful advice. I actually realized....although a wonderful vehicle.... the Maxima was quite out of my price range. I am currently negotiating a lease on a '06 Honda Accord EX based on the plethora of helpful topics this site offers. And not to forget... the great assistance from others here as well.
Well appreciated...Thanks again
You may have the same problem at other dealers. IIRC, there are (or were) 2 different types of online loan checks, one that was basically like a bank check (that is, you were already all approved), and the other was some kind of draft that still required final approval. Dealers really didn't like the second kind.
It is reasonable to assume that they have had problems in the past with E-loan, because they let you leave. Sure, they would prefer to finance you themselves, but no way they are letting someone who is effectively just a cash customer walk out without a car for that reason.
If you want to know for sure, ask them if they would be OK with a check from a credit union (same premise as walking in with an E-loan check).
The only thing dealers really don't want is to not get paid! And guess what happens if Eloan stiffs them? You get repo'd!
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
You may have the same problem at other dealers. IIRC, there are (or were) 2 different types of online loan checks, one that was basically like a bank check (that is, you were already all approved), and the other was some kind of draft that still required final approval. Dealers really didn't like the second kind.
It is reasonable to assume that they have had problems in the past with E-loan, because they let you leave. Sure, they would prefer to finance you themselves, but no way they are letting someone who is effectively just a cash customer walk out without a car for that reason.
If you want to know for sure, ask them if they would be OK with a check from a credit union (same premise as walking in with an E-loan check).
The only thing dealers really don't want is to not get paid! And guess what happens if Eloan stiffs them? You get repo'd!
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
In any case, Eloan has a list of approved dealers they know will accept their check. When I got my paperwork from Eloan, the list was part of it. If you can't find it, maybe give them a call and ask them to tell you which dealers near you would be most willing to accept the check.
'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
But, let me echo what was said above .. if you cosign, you are just as responsible for the loan as the niece.
When our 18 year old son wanted us to cosign on a car with him a year ago, we told him we would, but he could only spend what we could afford to make as a payment. Therefore, he got a car with a $150/mo payment (used Saturn).
Has your neice tried getting the loan on her own? 8.5% isn't all that great, so you never know, she may not do too much worse without a cosigner.
'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
The issue here is the discrepancy between the name on the lien and the name on the state registration. Most states require the name on the lien and the registration to be the same. (Note that while you are financing, the "title" is actually in the bank's name -- not yours.) Once the lien is paid, the bank will sign over the title to the name on the lien. If you want to put the title in your niece's name after you have paid the lien and you possess the title in your name, then that is no problem.
You should check on your particular state, but it seems like your neice would have to get a loan in her name after that 1 or 2 years in order to have the car in her name and you and your wife free from accountability.
When the car is registered in your name, then you have to carry insurance in your name, as well. So your neice would be driving a car you are covering on your insurance. Not a good scenario all around.
'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
If your niece loses her job or something and is totally unable to make the payments, are you prepared to make them instead? Even worse if she's unable to make the payments but doesn't tell you until it's too late (deliquency reported to collection or already repo'd). If she even makes any late payments, that will show on your credit report.
Like I said, it's a great thing to be able to do for someone, but you also need to know what you are getting into. As someone else said above, if you can't afford to make the payments, then you shouldn't co-sign.
You can build your credit by being on someone else's loan... whether you yourself pay on it or not.
When I was 16 years old, my parents added me as a user on their credit card. Granted, they never actually gave me a physical card to use...
The result: By the time I got out of college and wanted to buy a new car, I had almost 6 years of some credit history... not a big history, but some history.
Say there's a fairly pricey car, could be anywhere from low to upper 30's, Buyer could put down as much as 25,000. Or less, obviously. Or wait a while and save up so savings equal car price.
So, let's say (hypothetically) the car stickers around $40,000. Buyer and seller negotiate down to 38. At that point, would the dealer be more likely to offer another thousand (or whatever number) off if the buyer takes the dealer's financing? Does it matter if he finances say, $30,000 of it vs. $15,000?
Is the cash buyer at an advantage or disadvantage when negotiating price?
That will probably vary depending upon how the sales manager is paid too. If they don't get a cut of finance income, then it will probably be irrelevant how you intend to pay.
It makes everything so simple. We compute the OTD price we are willing to pay and offer that amount. If they accept, we write a check for that amount and drive the new car home.
If we had financed the car instead, then we would have put our $20700 in the bank where it would have earned about 4.5% interest, which is only about 3% after taxes. I bet the loan interest would have been more than 3%. That is why paying cash makes sense to me.
Paying cash is what Thoreau would have done. He never had to buy a car, but he did have to pay cash for the house he built beside Walden Pond. It cost him exactly $28 and 12.5 cents.
The Sandman
I've got about that much saved up in our dedicated car account. (I do the same thing you do, sandman, put money into a car account as soon as I've bought something - keeps the car payments going to myself instead of to someone else).
Thing is I never imagined myself lusting after a $40,000 car. But now I am...
My frugal Midwestern heart might not let me go through with this until I've added another $15k to our own account.
And, the local banks and credit unions are getting sick and tired of upstart faceless internet companies cutting into their core business to the point, the will usually match or beat thier rates.
I know who I would rather deal with...my local bank!
Although I haven't even had a CU car loan for decades. I like using the power of saving money in advance.
I happen to like my local bank. I'm a person there and not a number. They DON'T nickle and dime me with fees either.
But then, I like State Farm too for the same reasons.