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i went in with a 3.64% approval rate. car guy says "oh, we can beat that!". Come back with "how does 3.5 sound?". "well... fine, I guess... not a huge differ
by lowercased 8y ago
i went in with a 3.64% approval rate.
car guy says "oh, we can beat that!". Come back with "how does 3.5 sound?". "well... fine, I guess... not a huge difference, but if it makes it any easier... whatever".
Mind you this was... $9k loan.
I get their paperwork... reviewing it - 3.59%. .05% difference. I mean, yes, it's lower, but ... "damn, we can beat that!". He was so excited! It's about 40 cents per month cheaper.
- stevehawk 8y ago40 cents per month cheaper for you, but he made money on the deal. If a car dealership sells you an extended warranty or financing then they get a cut of it. Se he went from making $0 on your third party financing to making some level of money on you. It's a plus for both of you when it works out.
- lowercased 8y agothat's what I figured - they had to be making some sort of kickback or referral fee or piece of that action.
- shostack 8y agoNot only that, but for many people, you should probably try to negotiate for the lower net cost vs. lower monthly payments with a higher total cost. If you can float the money, why pay more?
- bradknowles 8y agoThe last time I bought a new car for myself, I had a pre-approved loan from my bank in hand. The dealership swore up and down they could beat that deal. Three hours later and they finally gave up and went ahead with our pre-approved loan. Pissed me off to no end that they made us wait that long before they gave up trying.
- lowercased 8y agomy deal only took about 10 minutes. for a late model used car, I wasn't seeing anything much out of the 3.6% range anywhere, so I didn't think they'd be able to do much better. had they surprised me with, say, 2.2%... great, but it's still not a huge savings anyway.
- deleted 8y ago[deleted]