By the way, you hear all this hype about 0% financing for 60 months!!!! Great right? Generally what they do is take profit out of the vehicle and buy down the rate. The money's gotta come from somewhere folks. Dealers don't keep their doors open from Selling vehicle for cost and lenders don't flourish from lending free money. I know alota folks that have walked out of the "booth" on a below invoice deal on the price but after they got outa finance........it was a $8k profit deal to the dealer. Be careful and research/ask questions.
I am sorry, you lost me. Can you please elaborate on this?
I have found that you can actually dicker about the interest rate as well as the price of the vehicle. I was going to finance elsewhere, told them so, told them the rate and they then matched it.
Interesting. Will do that. Thanks. Didn't know if it was possible.
I am sorry, you lost me. Can you please elaborate on this?
The manufacturer has a sort of obligation to the dealer to "keep the iron moving". That means if the slow sellers (undesirable models) are not moving they won't need to be building any more until some of these are gone.
They came up with rebates to let the customer benefit from what is an essentially lower MSRP (because of the rebate). Once this became ordinary and expected, they had to think of a different way to attract buyer's attention. Bang.......... 0% for short and then longer term loans. This was one of the first reactions by the domestics after the 9/11 incident virtuallly stopped auto sales in it's tracks.
The 0% rates are not from independent lenders, they are from the auto manufacturers "captive" finance arms (like GMAC, TMCC, NMAC, FMCC) and are really (as the AZ man said) an additional rebate in disguise. The cost of the money is certainly not 0% to the manufacturer's "bank". By subsidizing (paying for) the money to lend at 0%, the manufacturer is taking away some of his yet unearned potential profit to make a vehicle go away sooner from the dealer's lots.
This is one way of making sure there's room for the vehicles they're building in the factory today.
I have found that you can actually dicker about the interest rate as well as the price of the vehicle. I was going to finance elsewhere, told them so, told them the rate and they then matched it.
I have also haggled the rate down to what I knew I could get at a credit union.
I have also haggled the rate down to what I knew I could get at a credit union.
Jeff
Sometimes, if you give the dealer the opportunity, they may be able to do better than that. Always, always always give the dealer the opportunity to do better. You might save a few bucks.
the dealer couldn't even get close to my APR I got thru my Credit Union. the dealer was around 3.0 higher. I woudln't ever go to buy a car and not be preapproved by my CU. I have never seen/heard of a good rate at a dealership.
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I work in a GM service dept. I go inside to watch and listen to the finance guys, sales managers etc when they are doing deals.
Its almost kinda scary about the way they do things on the finance side. IMO it is a huge game they play.
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