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I work in auto finance for a lender. There are so many gimmicks used by a dealership to get a customer into a car with financing. A lot of it is the lenders t
by larrydag 8y ago
I work in auto finance for a lender. There are so many gimmicks used by a dealership to get a customer into a car with financing. A lot of it is the lenders too because they offer incentives like markup to the dealers. There is a lot that goes on behind the scenes as far as car market value, backend products like warranty and GAP, and dealer incentives from lenders. It is just too much to understand for the typical customer.
My recommendation is to research the car you want and understand the market value. Then get pre-approved financing through a trusted lender. This will leave a lot of the confusion out of the car buying experience.
- ced 8y agoOT question: why does a car with financing cost less (summing up all the monthly payments) than a car paid cash?
- dangwu 8y agoI’ve never seen this before. With 0% APR they should be identical. Are you missing an initial down payment?
- larrydag 8y agoIt shouldn't. In fact it should be more since there is interest. I'm guessing there are some fees involved.
- deleted 8y ago[deleted]
- toast0 8y agoManufacturer financing is weird. You might be eligible for some rebates only if you take manufacturer financing. The financing arm may be trying to get more loans on the books in general, or specifically good credit loans, or ? Strange incentives all around.
- larrydag 8y agoGreat point. Manufacturers are interested in moving inventory. Not so much with making money on loans. So they will take a small margin or even a loss on the loan as long as it sells the car.
- max76 8y agoHow do you determine the market value of a new car?