Financing Issues throwing RED Flags

unxpctd · Nov 11, 2017

Danno said:
I'm paying $603 for a loaded power wagon, MSRP just over $60k. I put no money down.

$700+ a month for a mall crawler, someone hit their head.... Really hard over and over.

Did you have a trade in? Assuming you did...because a 60K loan with 0% interest doing 84 months is over $700 a month.

Just checking.

DRkNESS · Nov 11, 2017

I have to say it’s amazing that people are always quick to tell you how “ bad of a deal “ you’ve gotten. We can all go on here and boast about the fantastic deal we got. Heck my truck was $50,000 and even with finance fees, I’m only paying $25,000 for it. Now it’s up to you to prove me wrong lol. My point is no one wants you making them feel they’ve gotten a bad deal. OP just wanted to see if anyone had heard of this before and maybe could offer some insight.

Why can’t we stay focused on the issue at hand and drop the critiquing?

Father Of Four

Flip-er · Nov 11, 2017

when my daughter bought her Mitsubishi they called her back and said they made a mistake on her rate, and her credit was ok, BUT it was in her favor, they called and said they found a better rate, and dropped her rate 2%
cant remember what it was, I think it was like 4.9 or 5.9
BUT it dropped her pymnts.
again this was a few years ago
As far as me and pymnts, I have never paid more then 325 a month for any NEW car or truck I bought, and I always pay them off early.

chrisbh17 · Nov 11, 2017

DRkNESS is right...the amount the truck cost is immaterial to the issue at hand. It could have been a 30K truck that they pulled this "bs" on.

@OP - really fishy goings on, if you ask me. I would be VERY interested if what would happen if you call Chrysler Capital yourself to see whats up. Id also be very interested in seeing exactly what the dealer is expecting to do if you say "no". Cant exactly repossess a vehicle that you are current with payments on. On top of the fact that NC isn't geographically convenient to IL!

nationalminer84 · Nov 11, 2017

Kepler said:
So I received an interesting call from my dealership today...

I purchased a 2017 Ram 1500 a week and a half ago in Illinois and drove her home to North Carolina. All the paperwork was signed buttoned up and I have been driving the truck ever since waiting for my tags to get here. When I purchased the truck I was offered, approved for, and signed paperwork for $xx,*** at an interest rate through Chrysler financing of 0.9%.

So my phone rings today (a week and a half into driving the truck) and it is the finance guy that I dealt with in Illinois. He says he has some interesting news. He tells me that Chrysler has decided they no longer wanted to proceed with the 0.9% interest rate with me and that a different option had to be pursued. He says that obviously this isn't my fault and I shouldn't be punished, (which I can assure him I would not have been the one paying in this scenario) but that he has obtained financing for me through another source local to me and that my payments would remain exactly the same, for the same number of months, but the interest rate would become 4.99%, and the principal loan amount would be reduced by around $8,000.

So as long as I'm not paying and more per month and the loan term remains the same length I don't see any issue. In fact if I was to go trade the truck in next week I would immediately owe 8k less on the trucks principal.

He said he would overnight the new paperwork and that I needed to sign immediately and mail it back. This is just such a weird situation and I am trying to make sure I am not having the wool pulled over my eyes or that I am not holding the short end of the stick.

I do not want to mention the dealership as they were pleasurable to work with and in reading their reviews before I bought the truck they seem to have a very good reputation.

Has anyone else ever experienced something like this or have and thoughts they would like to throw into the fire?

Its pretty simple really when u finance through chryslers promo rate u don't get rebates. So they are getting it done through another bank and giving u the rebates..... Now it could either be Chrysler rejected you after they did a spot delivery (they assumed u were good) but more likely the new bank is giving the finance guy a kickback for the business...... I'd check with a local bank or credit union and see if they can beat the 4.9 if so I'd play nice with the dealer and refi immediately. I don't know about your state or theirs but I know in Michigan if we spot delivered a cat and the bank said no it was our responsibility to honor the original terms at the dealership

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Danno · Nov 11, 2017

The price paid when a guy has the chance to walk out on a bad deal is part of the problem. You love it today and don't care how much it is today but 3 years down the road when something happens and you try to trade or worse get a payout from insurance your gonna be upside down. Not alittle but a lot guessing 10k plus easy. Help the OP don't help him get the shaft in a bad deal. Sounds like a lot of car dealers trying to make a sell looking for commission.

69GWC said:
Ha same could be said for someone paying 60k for a truck.

Depends on the vehicle. F450 can go for $100k, I would never pay $60k not alone $50k for a vehicle. LMAO

unxpctd said:
Did you have a trade in? Assuming you did...because a 60K loan with 0% interest doing 84 months is over $700 a month.

Just checking.

No trade, no money down. Do you pay MSRP? If you do let me know what vehicle you want and I will find it for you selling it to you for MSRP pocketing the change. Everyone should get a min of 10k off msrp, dealers advertise it.

OP if you did a trade, tell them you want your trade back and walk. Odds are they don't have your trade anymore and they are in a pinch. They will jump through hoops because they proably marked up your trade a lot playing the numbers game with the markup in the purchase vehicle. Then the lift etc. Is pretty much straight profit. They already pay the mechanics, have the equipment and bought the lift cheap.

RamInfo · Nov 11, 2017

I think Nationalminer84 has a good point if it’s indeed true that with Chrysler Capital promo financing the buyer doesn’t get the rebates. I think the OP should do a quick check with his local credit union or bank and see what kind of rate he can get there, then call the selling dealer and ask what it would cost for an immediate cash payoff. Have the local financier ready to send certified check or wire transfer. And, part of that call should include pushing the seller for some additional $$ off the deal to compensate for the hassle.

Best,
DG

mtofell · Nov 11, 2017

Danno said:
I'm paying $603 for a loaded power wagon, MSRP just over $60k. I put no money down.

$700+ a month for a mall crawler, someone hit their head.... Really hard over and over.

My 3 year old truck is within 6 months of being paid off and I don't pay $700/mo for my house. I think I bunch of people hit their heads.

Don't get me wrong. I appreciate you guys all paying for the new carpet that I walk on and fresh coffee that I drink as I walk into the bank to put money in my IRA.

Come on guys.... stop spending your hard earned money on minimum payments for a depreciating asset. Get off the hamster wheel.

smiley · Nov 12, 2017

mtofell said:
My 3 year old truck is within 6 months of being paid off and I don't pay $700/mo for my house. I think I bunch of people hit their heads.

Don't get me wrong. I appreciate you guys all paying for the new carpet that I walk on and fresh coffee that I drink as I walk into the bank to put money in my IRA.

Come on guys.... stop spending your hard earned money on minimum payments for a depreciating asset. Get off the hamster wheel.

I have to agree that is why I drive a paid for truck. I will never make payments again.

Topic at hand however I would not do any changes the deal was signed and only way I would make the change is if I went local and got a good rate and then 10k off 8k is what they lead with so go higher maybe even 12-14k. There F up and you should gain from it or else why bother. You were happy with the terms so why should you have to change unless you gain?

unxpctd · Nov 12, 2017

I'm not trying to start any arguments....some people value a nice vehicle over where they live...high payment on the vehicle, lower living costs. Some people can afford both.

Money is relative. Whats a lot to some people is not much to others.

There is no use arguing about some else's truck payment. People pay what they want and for the most part...what they can afford.

My truck payment is huge...but then again...I've traded every 2 years the last 4 years. This isn't the smartest thing to do....and while I know that....its my choice. I can afford it and I don't look back or worry.

Again...everyone is different. Live and let live.

And Danno...I was assuming you paid 60K...if you paid 50K thats more in line. I would agree...noone should pay MSRP. I didn't...got 10.5K off.

et todd · Nov 12, 2017

i doubt you could refinance that much on the truck.after its titled the first time its considered a used vehicle and i know it sounds harsh but the very max a bank would loan on that truck used would probably 40,000 ish.realisticly a fair deal on that truck out the door should be around 42000.based on a 45000 sticker minus 11000 dealer and factory rebates (could go more up to 14000)thats 34000 then the dealer added lift and stuff i guess they charged 10000 for?i would knock 2000 off that so + 8000 for add ons.thats 42000.and thats fair they're still making a nice profit.if you have a credit score above 640 you should be able to still get under 5% easy.not being a wise ass but i've made accepted enough bad deals to have learned.payments on 42000. for 84 months at 4.99 woud be in the 580 range

clifford15 · Nov 12, 2017

You can refinance. Not a problem. I refinanced my wife's new Dart before I made the first payment. I got a much better deal at my CU so I went for it. Cars can be a couple of years old and still qualify for "as-new" financing. YMMV.

mtofell · Nov 12, 2017

clifford15 said:
You can refinance. Not a problem. I refinanced my wife's new Dart before I made the first payment. I got a much better deal at my CU so I went for it. Cars can be a couple of years old and still qualify for "as-new" financing. YMMV.

Yep, Credit Union is the way to go if you need to do the re-fi yourself after all the BS is over. The ones in my area always have the super low rates for newer vehicles. If I remember right it goes by year old and most go up .25% every year or so. Less than a year old should be treated the same as new. At least at my local CUs.

chrisbh17 · Nov 12, 2017

I kinda went thru the CU vs Chrysler thing when I bought my RAM.

They were doing 500.00 cash back if you financed through Chrysler. My credit scores are 800+ at all 3 bureaus so I figured Id get a decent rate plus the 500.00 cash back and just leave it financed with Chrysler.

Pretty sure they never ran my credit, came back with a 5.99% rate (local CU which Im a member of was at 2.19 for new car loan). I made it pretty clear Id finance through them and pay it off immediately. They claimed I had to wait 6 payments "for paperwork reasons".

Financed the minimum required to get the 500.00 discount, paid it off a week after opening. 6 payments my a$$....Chrysler had no problem charging interest from day 1 so dont give me carp about how it "might not yet be in the system".

17crewram · Nov 12, 2017

chrisbh17 said:
I kinda went thru the CU vs Chrysler thing when I bought my RAM.

They were doing 500.00 cash back if you financed through Chrysler. My credit scores are 800+ at all 3 bureaus so I figured Id get a decent rate plus the 500.00 cash back and just leave it financed with Chrysler.

Pretty sure they never ran my credit, came back with a 5.99% rate (local CU which Im a member of was at 2.19 for new car loan). I made it pretty clear Id finance through them and pay it off immediately. They claimed I had to wait 6 payments "for paperwork reasons".

Financed the minimum required to get the 500.00 discount, paid it off a week after opening. 6 payments my a$$....Chrysler had no problem charging interest from day 1 so dont give me carp about how it "might not yet be in the system".

Holy cow. I just bought mine about a month ago. I was quoted 2.89% if I didn't go through chrysler. Decided it was a better deal than the $500 off. A week later our credit union dropped their rates and redinanced @ 2.19% and after 6 months get $150 cash back. Saved over $600 on top of the $500.

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HemiStarPower · Nov 12, 2017

I financed through the credit union as well, 2.25% for me, credit score at 800. Chrysler was offering 0% but they wouldn’t let you get the rebates, so I saved more money with the Credit Union. Plus even at 0% Chrysler charges you something every month, I saw it in the fine print.

Also, when I bought my other vehicle they gave me money off for using their financing, they gave me the 6 month minimum, once it hit my account we refinanced with our Credit Union for the better rate.

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et todd · Nov 12, 2017

didn't know exactly what they counted as brand new nice info to know.on my 2015 i got all rebates and 2.99 through chrysler capital.they got bad reviews online but i never had a issue with them.went through a credit union with my 16.

nationalminer84 · Nov 13, 2017

chrisbh17 said:
I kinda went thru the CU vs Chrysler thing when I bought my RAM.

They were doing 500.00 cash back if you financed through Chrysler. My credit scores are 800+ at all 3 bureaus so I figured Id get a decent rate plus the 500.00 cash back and just leave it financed with Chrysler.

Pretty sure they never ran my credit, came back with a 5.99% rate (local CU which Im a member of was at 2.19 for new car loan). I made it pretty clear Id finance through them and pay it off immediately. They claimed I had to wait 6 payments "for paperwork reasons".

Financed the minimum required to get the 500.00 discount, paid it off a week after opening. 6 payments my a$$....Chrysler had no problem charging interest from day 1 so dont give me carp about how it "might not yet be in the system".

The 6 months were so that the dealership guy didn't get his commission taken away..... Once you sign the paperwork you own it for the terms and can pay it off next day through cash or refi and they can't do a damn thing to you.... Don't miss the white lies of the car business at all...

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chrisbh17 · Nov 13, 2017

nationalminer84 said:
The 6 months were so that the dealership guy didn't get his commission taken away..... Once you sign the paperwork you own it for the terms and can pay it off next day through cash or refi and they can't do a damn thing to you.... Don't miss the white lies of the car business at all...

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Oh, believe me I knew that

It wasnt hard to find other people on the internet that were fed the same BS. I gathered that the dealer gets a kick back from Chrysler Capital. its X amount of dollars but X minus something depending on how soon it gets paid off.

If they hadnt pulled some bs while I was negotiating the price, I might have given them one or two payments before I paid it off. But since they did, they can lose their commission and I wont feel for them at all.

nationalminer84 · Nov 13, 2017

chrisbh17 said:
Oh, believe me I knew that

It wasnt hard to find other people on the internet that were fed the same BS. I gathered that the dealer gets a kick back from Chrysler Capital. its X amount of dollars but X minus something depending on how soon it gets paid off.

If they hadnt pulled some bs while I was negotiating the price, I might have given them one or two payments before I paid it off. But since they did, they can lose their commission and I wont feel for them at all.

they trained me to just lie I found a better way I just set up an appointment in 6 months to Help them convert their financing half the time I got to do the refi anyways otherwise I got them a simple paper with their 10 day payoff to take to their bank and they were happy.

Financing Issues throwing RED Flags

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