mailin 0 #1 November 21, 2005 Maybe someone here can lend some insight, as I've never dealt with this before. I bought a new 2006 Corolla 2 weeks ago. The dealership I purchased the car through got me financing at 13% which was pathetic - so I went to my credit union and got financing through them for 8%. Today I get a call from the financing manager at the dealership (2 weeks after the fact mind you) that he found me financing for 7% with a 7 year warranty (car comes with 3 year warranty). I love the idea of saving money as we spent more than we wanted to on the car, but I find it slightly odd that I'm hearing about this 2 weeks after I have the car and have closed on the loan... The folks at my credit union were wonderful and very helpful - the people at the dealership, on the other hand, were not. What would you do? JenArianna Frances Quote Share this post Link to post Share on other sites
SwampThing 0 #2 November 21, 2005 QuoteWhat would you do? Quote Buy American! The Pessimist says: "It can't possibly get any worse!" The Optimist says: "Sure it can!" Quote Share this post Link to post Share on other sites
mailin 0 #3 November 21, 2005 every American car I've owned and my husband and his family has owned is in the shop with in the first 2 years for a major problem. My husbands Honda is now reaching the 2 year mark and hasn't had anything wrong with it, all we do is oil changes and tire rotations. My grandmother has only owned Toyotas - they have a high resale value and require very minimal work. There's a reason the top 3 car companies on the stock exchange are toyota, nissan and honda. JenArianna Frances Quote Share this post Link to post Share on other sites
airtwardo 7 #4 November 21, 2005 Yup... We have a 3 year old Ford we've nicknamed the 'Exploder"! Next time a rice burner! ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
jumper03 0 #5 November 21, 2005 QuoteWhat would you do? Jen stick with the credit union. I'm getting ready to do the same thing. My truck is financed at 12.5% and I can get it through the credit union for 6.5%Scars remind us that the past is real Quote Share this post Link to post Share on other sites
Jumpah 0 #6 November 21, 2005 There are lots of ways that dealerships make money off you. The following are two really good reads on buying a car. In short, take your time and keep saying "Thanks for the info, we'll think about it and call you back" Confessions of a Car Salesman (Long, but an interesting look into the lifestyle of a high-pressure car salesperson lifestyle) http://www.edmunds.com/advice/buying/articles/42962/article.html Top Ten Dealer Scams (Short and fun) http://www.carbuyingtips.com/scams.htm Check up on what the manufacturers are offering the dealerships for incentives, and find out what most people are paying for the car you want. http://www.edmunds.com Quote Share this post Link to post Share on other sites
Thanatos340 1 #7 November 21, 2005 Tell The Finance Manager at the Dealership that he already Screwed you once, You will pass on a second opportunity. Go with the Credit Union. There are 3 Parts to Most Car Deals that the Dealership will Make money off of. 1. The price of the New Car you are Buying. (Never discuss Monthly payments with the Dealer. That is how they get you away from what is really important which is how much you actually PAYING of the car.) 2. Your Trade. The dealer will try to Get your Trade for next to nothing. The trade should be negotiated as a Separate Deal. One technique a dealer will use is to tell you they are giving you some inflated amount for your car and then they just TAG that extra money straight onto your new Car.) 3. The Financing. Dealers make a alot of money selling Financing. they get kick back from the companies that "Buy" your loan from them. It is always best to get your financing in order before you start Car Shopping. Get preapproved for a loan before you ever go to the dealership, Then if the Finance Manager can beat Your existing deal.. Go for it.) Quote Share this post Link to post Share on other sites
Jumpah 0 #8 November 21, 2005 Quote3. The Financing. Dealers make a alot of money selling Financing. they get kick back from the companies that "Buy" your loan from them. It is always best to get your financing in order before you start Car Shopping. Get preapproved for a loan before you ever go to the dealership, Then if the Finance Manager can beat Your existing deal.. Go for it.) Great point...that stuff burns me up. A Nissan finance manager once offered me a "special 1%-off coupon" to lower the rate they originally offered me. What??? http://www.njcitizenaction.org/craautofinancreport.html QuoteFor example, Nissan Motors Acceptance Corporation settled a lawsuit alleging discrimination by limiting the markup to 3 percentage points and 2 percent for longer-term finance agreements and 2 percent for used vehicles. General Motors Acceptance Corporation imposed a 2.5 percentage point cap on the dealer markup as a result of a settlement negotiated in a lawsuit alleging discrimination in the markup. Ford Motor Credit Corporation subsequently self-imposed a lower cap of 2.5 percentage points following findings of discrimination and consumer gouging in FMCC auto finance markup practices. Quote Share this post Link to post Share on other sites
mailin 0 #9 November 21, 2005 Thanks for the information. I found this interesting: Quote Bonus Scam: "We lowered your payments!" Bone-Us Scam: Ok, here's one more for the road, we got a couple of complaints about this starting in November 2002, and it could be a good candidate for next year's Top 10 List. I call it the "We lowered your payments" scam: About a week after you drive home with your new car, the car dealer calls you up and says "Great news! we were actually able to get you into a better loan with a lower monthly payment and less APR! Just stop by when you get a minute, and resign the papers to get your lower payment." You go down to the dealer to re-sign the paperwork, and this is where a huge red flag should shoot up for you: You notice that they changed your loan from 48 months to 60 months, or even 72 months. What they did in reality was increase the APR on you, then to mask their crime, they spread out the loan over more months, which drives down the monthly payment, and yes there are people out there who believe the dealer and think they are actually paying less. This does not even pass the common sense test either. With most banks, if you increase the number of months in the loan, the APR goes UP, not down! So who are these losers trying to kid? Make sure you point that out to them. How to avoid the scam: If they call you later, just say "No thanks, I like my payment just the way it is." Then hang up on them. If you really want a lower rate, go refinance, or start sending in extra principle, it has the same effect. But changing an existing deal, is always a dangerous proposition, and you can bet you will not come out ahead. We talked it over, and we're going to stick with the credit union. I just don't like companies that do this kind of business. JenArianna Frances Quote Share this post Link to post Share on other sites
tigra 0 #10 November 21, 2005 You might also be able to get an extended warranty through your auto insurance company AND the terms and conditions may be better. Quote Share this post Link to post Share on other sites
Nutz 0 #11 November 21, 2005 Quoteevery American car I've owned and my husband and his family has owned is in the shop with in the first 2 years for a major problem. My husbands Honda is now reaching the 2 year mark and hasn't had anything wrong with it, all we do is oil changes and tire rotations. My grandmother has only owned Toyotas - they have a high resale value and require very minimal work. There's a reason the top 3 car companies on the stock exchange are toyota, nissan and honda. Jen You know, this used to be me. Over the last ten years or so I have bought nothing but American with no problems. (Other than normal maintenance issues.) Saying that other countries make better cars than us just is not true anymore. Most foriegn cars are made in the US now anyway. (Of course my wife is driving a foriegn car right now with an american label on it - so maybe I should shut up. ) My 93 S10 has a quarter million miles on it with no signs of wearing out - I think that is why GM quit making the 4.3 V6. "Don't! Get! Eliminated!" Quote Share this post Link to post Share on other sites
skymama 37 #12 November 21, 2005 Did you get Gap Insurance with either of them?She is Da Man, and you better not mess with Da Man, because she will lay some keepdown on you faster than, well, really fast. ~Billvon Quote Share this post Link to post Share on other sites
Thanatos340 1 #13 November 21, 2005 What is Foreign?? Honda and Toyotos made here is the US and Dodges Trucks are made in Mexico. I was working with a Company last week that makes Exhaust systems and Radiators for GM, Nissan, Mercedes and Honda. All parts made in the US and shipped to US assembly plants. Quote Share this post Link to post Share on other sites
mailin 0 #14 November 21, 2005 Oh yes, GAP insurance was a definite - as we got screwed on a previous car loan because the ins. company paid less than was owed on the car. Its the main reason why I've been fighting my credit report for the last 14 months to get errors corrected. I'll never finance with chrysler financial again JenArianna Frances Quote Share this post Link to post Share on other sites
sunshine 2 #15 November 21, 2005 I guess i got lucky when i bought my new car a month ago. Chevy was offering 5.9% financing. I was actually looking for a decent used car, but with Chevy giving 5.9%, it was cheaper to buy a brand new 2006 than to buy a used car. The whole numbers game is annoying. Sucks that you had to go through all that crap. Car shopping is so freakin stressful, i'm just glad it's over for a looong time. ___________________________________________ meow I get a Mike hug! I get a Mike hug! Quote Share this post Link to post Share on other sites
waltappel 1 #16 November 22, 2005 QuoteMaybe someone here can lend some insight, as I've never dealt with this before. I bought a new 2006 Corolla 2 weeks ago. The dealership I purchased the car through got me financing at 13% which was pathetic - so I went to my credit union and got financing through them for 8%. Today I get a call from the financing manager at the dealership (2 weeks after the fact mind you) that he found me financing for 7% with a 7 year warranty (car comes with 3 year warranty). I love the idea of saving money as we spent more than we wanted to on the car, but I find it slightly odd that I'm hearing about this 2 weeks after I have the car and have closed on the loan... The folks at my credit union were wonderful and very helpful - the people at the dealership, on the other hand, were not. What would you do? Jen The finance business is very competitive. I would read the fine print and go with the best deal. I would definitely look at what happens if you want to pay off the loan early. Walt Quote Share this post Link to post Share on other sites
FlyinseivLP2 0 #17 November 22, 2005 Even your 8% rate is terrible. I bought a truck 2 months ago and got 4.5%. My wife also bought a car last tuesday and we got 4.9% on that. How long is the loan for? The longer the loan the higher the rate, but even at 72 months we could have got 5.5%. I would look around some more. If your credit is really bad that could be a problem though. Quote Share this post Link to post Share on other sites
Diezel 0 #18 November 22, 2005 I got 4.3% 3 years car loan from a credit union I've never heard before through AAA. Give them a buzz, it's free if your a member. In fact they even gave me $15 for just taking that loan Quote Share this post Link to post Share on other sites
kelpdiver 2 #19 November 22, 2005 QuoteDid you get Gap Insurance with either of them? some insurance companies (mine, 21th Century included) cover total replacement during the first year. Quote Share this post Link to post Share on other sites
RevJim 0 #20 November 22, 2005 QuoteThe finance business is very competitive. I would read the fine print and go with the best deal. I would definitely look at what happens if you want to pay off the loan early. Walt It's acttually kind of late for that. A second, later loan means you will pay more, regardless of interest rate, length of loan, of size of monthly payments. You signed the first loan, and therefore comitted to it. Check for pre-payment penaltys while you are at it. To pay off that loan you need to pay off the entire balance, which usually includes interest. The second loan then is automatically higher than the first, and to top it off, you end up paying interest on the interest you just payed off! Ok, granted you will usually get a refund of PART of your interest back from the first loan, but you are then financed for a higher amount anyway... See where they get you? Re-financing a home works roughly the same way. To be avoided if at all possible. Pay it off first.It's your life, live it! Karma RB#684 "Corcho", ASK#60, Muff#3520, NCB#398, NHDZ#4, C-33989, DG#1 Quote Share this post Link to post Share on other sites
Elisha 1 #21 November 22, 2005 Sorry Rev, but you're mistaken on this. The loan is for the amount of purchase. Interest is paid over the LIFE of the loan. If you refi for a lower rate, you pay less since you will paying less interest over the life of the new loan. The original loan amount is that same in any case. Yes, prepayment penalties do exist, but if you can refi for a lot lower, it could still be worth it depending on what the penalty is. Quote Share this post Link to post Share on other sites
RevJim 0 #22 November 22, 2005 QuoteYes, prepayment penalties do exist Shorter answer, read the fine print first.It's your life, live it! Karma RB#684 "Corcho", ASK#60, Muff#3520, NCB#398, NHDZ#4, C-33989, DG#1 Quote Share this post Link to post Share on other sites
kelpdiver 2 #23 November 22, 2005 the crappier/more unethical the loan is in the first place, the more likely it is that there is a penalty for rolling it over. Quote Share this post Link to post Share on other sites
wingnut 0 #24 November 22, 2005 QuoteInterest is paid over the LIFE of the loan. depends on what kind of loan you get.. my car loan i got 3 years ago was a "total amount" i have a set amount i have to pay off, i can pay it off early but i still pay for the entire interest on the whol loan as if i paid it each month... it sucks buti was 22 and didn't know better... atleast i'm very happy with my car and it is worth every penny i will eventually pay for it...... ______________________________________ "i have no reader's digest version" Quote Share this post Link to post Share on other sites
Elisha 1 #25 November 22, 2005 QuoteQuoteInterest is paid over the LIFE of the loan. depends on what kind of loan you get.. my car loan i got 3 years ago was a "total amount" i have a set amount i have to pay off, i can pay it off early but i still pay for the entire interest on the whol loan as if i paid it each month... it sucks buti was 22 and didn't know better... atleast i'm very happy with my car and it is worth every penny i will eventually pay for it...... WTF? I have never heard of a crappy loan like that - no point. Maybe since I have a math/stat (& some finance) background, I wouldn't let myself fall for something lame like that. I have to laugh at most of the Refi junk mail I get (I own a townhouse). While I may pay MI since I have FHA/CalHFA loan(s), my interest rate is still 30 yrs fixed @5% - not something that will be beat. Quote Share this post Link to post Share on other sites
