Financing question?
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Freshman User
Joined: Feb 2004
Posts: 49
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From: Mississippi
Financing question?
What is best to do? Go out on your own to different lenders and try to find the best interest rates or let ford send your credit application to different lenders and handle it for you.
Lead Driver
Joined: Apr 2002
Posts: 7,746
Likes: 7
From: Tampa Bay, FL USA
What I have people do is this: shop the local banks and your credit union. Get your best rate and bring it to the dealer. If the dealer can match or beat it, great. If not, then you know you've got the best rate you can get. Just don't talk financing terms or negotiate payments with the dealer up-front; set the price of the truck first, tell them what rate(s) you can get from your own finance source, and work from there.
Elder User
Joined: Nov 2003
Posts: 626
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From: Orange Park, FL
MSU fan, I did exactly what 1956MarkII said. I went to www.capitaloneautofinance.com and got a quote. They had the best rate at the time, better than the local Credit Unions. I had to agree to have a payroll deduction type process and had to fill out the application over the internet. They called a couple times with questions, but was approved that day for the amount I wanted at 3.85%. They sent a blank check, you are not obligated to anything until you write the check and dealer cashes it. When vehicle delivered and I went to the Ford Finance Department the guy saw I had a blank check. He gave me i higher interest rate than my 3.85%, but if I used Ford Credit I got another $500 rebate. My payments for 5 years from Ford and Capital were identical. I took the Ford offer because our TTL is figured off the price of the vehichle (so since I got another $500 rebate my TTL dropped). The second reason I chose Ford is because I didn't have to do payroll deduction for their rate. Shop around, it is worth it.
Lead Driver
Joined: Apr 2002
Posts: 7,746
Likes: 7
From: Tampa Bay, FL USA
Originally Posted by DVR
no, do it yourself.
they are paid a commision for sending the lender your business. the commision comes from you paying a higher interest rate.
they are paid a commision for sending the lender your business. the commision comes from you paying a higher interest rate.
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Freshman User
Joined: Feb 2004
Posts: 49
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From: Mississippi
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Senior User
Joined: Jan 2004
Posts: 162
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From: new columbia pa
i just got loan for 3.25 from vystar in jacksonville fla and i live in central pa.
shopping around will pay off in the end
shopping around will pay off in the end
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Senior User
Joined: Mar 2004
Posts: 115
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From: Central WI
I saw this on the news the other night- - you might want to read it regarding dealer financing . http://www.cbsnews.com/stories/2004/...in609870.shtml
See "the best possible deal".
It's again probably one bad apple spoiling the whole bunch. I've never had this problem, knock on wood, but it's something to be aware of.
See "the best possible deal".
It's again probably one bad apple spoiling the whole bunch. I've never had this problem, knock on wood, but it's something to be aware of.
Lead Driver
Joined: Apr 2002
Posts: 7,746
Likes: 7
From: Tampa Bay, FL USA
The Toyota dealer that "60 Minutes" went after was charging unconscienable rates, and targeting minorities for even higher rates. That's wrong and it has to stop. There's more to the story than what they told, I just don't know if there's time to go into it here. But my point is this: dealers make money on the financing. We wouldn't arrange financing if there wasn't something in it for us. But if you've shopped the local banks and the best you can do on your own is 5%, and your dealer can get it for 4.5%, aren't you going to go with the dealer's financing? Even if he's making money on it? Does it matter at that point if the dealer's picking up some extra income? You're still getting a lower rate than any bank offered you.
Senior User
Joined: Mar 2004
Posts: 115
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From: Central WI
Originally Posted by 1956MarkII
The Toyota dealer that "60 Minutes" went after was charging unconscienable rates, and targeting minorities for even higher rates. That's wrong and it has to stop. There's more to the story than what they told, I just don't know if there's time to go into it here. But my point is this: dealers make money on the financing. We wouldn't arrange financing if there wasn't something in it for us. But if you've shopped the local banks and the best you can do on your own is 5%, and your dealer can get it for 4.5%, aren't you going to go with the dealer's financing? Even if he's making money on it? Does it matter at that point if the dealer's picking up some extra income? You're still getting a lower rate than any bank offered you.
I Agree 100%. When the consumer saves money and the dealer makes some, everyone's a winner! (And as I remind the folks where I work, "profit" is not a four letter word!)
Mountain Pass
Joined: Mar 2004
Posts: 107
Likes: 20
From: SC
i agree if the dealer can get you an equal or better interest rate use them. if they make money and save you money i would have no problem with that.
the senerio i was refering to was a customer who would qualifiy for X.X% at local bank but uses dealer at a higher rate. the banks make plenty off loans i see no problem with the dealer getting "a piece of the pie" if it cost the consumer no more $.
we all know that the majority of the time the buyer overpays when dealers arrange financing. the average consumer struggles through the deal with the salesperson only to be thrown to the f&i office where the real fleecing begins.
the senerio i was refering to was a customer who would qualifiy for X.X% at local bank but uses dealer at a higher rate. the banks make plenty off loans i see no problem with the dealer getting "a piece of the pie" if it cost the consumer no more $.
we all know that the majority of the time the buyer overpays when dealers arrange financing. the average consumer struggles through the deal with the salesperson only to be thrown to the f&i office where the real fleecing begins.
Lead Driver
Joined: Apr 2002
Posts: 7,746
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From: Tampa Bay, FL USA
Originally Posted by DVR
...we all know that the majority of the time the buyer overpays when dealers arrange financing. the average consumer struggles through the deal with the salesperson only to be thrown to the f&i office where the real fleecing begins.