Chrysler Capital financing question

[RamInfo]

A quick question--we are shopping for a Jeep and I'm not on any Jeep forums, but Chrysler Capital handles financing for all of them. In order to get price discounts for financing with CC is there a minimum percentage that needs to be financed?

Thx,
DG

 

[chrisbh17]

A quick question--we are shopping for a Jeep and I'm not on any Jeep forums, but Chrysler Capital handles financing for all of them. In order to get price discounts for financing with CC is there a minimum percentage that needs to be financed?

Thx,
DG

Good question and one that I never got a solid answer to. Asked 3 finance guys at the dealer I bought my RAM from, including the finance manager. Got 3 different answers, but ultimately I financed very little through them (I think it ended up being maybe 5%?) just to get the cash back offer.

They tell you that you need to keep the account open for a certain amount of months (got 3 different answers on that, too!) but the reality is there is most likely no prepayment penalty (always check your own fine print....mine did not have any). I paid mine off after a couple weeks.

 

[Dave2018]

chrisbh17 said: Quote"(I think it ended up being maybe 5%?) just to get the cash back offer."

Wish I had done that. Probably the largest mistake I made on the last purchase.

 

[chrisbh17]

chrisbh17 said: Quote"(I think it ended up being maybe 5%?) just to get the cash back offer."

Wish I had done that. Probably the largest mistake I made on the last purchase.

It all felt very "scummy" to me, but I suppose thats not unique for car dealers anymore.

Since I had sold another vehicle, I had a good amount to put down on the truck....handed them a bank check for that and the finance guy was like "you cant have 2 loans on the same vehicle!" "uhhhh, read the check...its a check, from my account at my bank..."

I later found out the whole "you need to keep the account open for X months" is because if you close it "too soon", the dealer doesnt get their full kickback for opening a new loan. Too bad for them!

 

[IRSmart]

Typically CCAP’s minimum amount to finance is round $7500-$10k. The reason dealers tell you to wait is because unless the loan is 3 months old, and if you pay it off before then, CCAP charges the dealership back any profit that they paid to the dealer. So if you’re one of the “screw the dealer” kind of people, pay it off early. Just remember, most dealerships are locally owned family businesses that (and especially FCA dealers) take huge losses on the front in order to make a small profit on the finance side. You’re not exactly doing anybody any favors by paying it off early.

 

[chrisbh17]

Typically CCAP’s minimum amount to finance is round $7500-$10k. The reason dealers tell you to wait is because unless the loan is 3 months old, and if you pay it off before then, CCAP charges the dealership back any profit that they paid to the dealer. So if you’re one of the “screw the dealer” kind of people, pay it off early. Just remember, most dealerships are locally owned family businesses that (and especially FCA dealers) take huge losses on the front in order to make a small profit on the finance side. You’re not exactly doing anybody any favors by paying it off early.

Im doing my wallet a favor by not paying their outrageous interest rates.

I have an 800+ credit score at all of the "big three" and Chrysler "did me a favor" by getting my APR down to 5%. Seriously?

They deserved for it to get paid off a week after.

 

[IRSmart]

Im doing my wallet a favor by not paying their outrageous interest rates.

I have an 800+ credit score at all of the "big three" and Chrysler "did me a favor" by getting my APR down to 5%. Seriously?

They deserved for it to get paid off a week after.

5% is far from outrageous in today’s market, and if you’re ok with the dealer getting charged back for a rate given to you by ccap, that’s your call.

 

[chrisbh17]

5% is far from outrageous in today’s market, and if you’re ok with the dealer getting charged back for a rate given to you by ccap, that’s your call.

It was at the exact same time I could get 2% from my credit union. I understand CCAP wont be as good as a CU, but there is a lot of room between 2% and 5%.

I spoke to my dealer after the initial rate given by CCAP (5.69%), they said they would look around for better options. Of course I never heard back. The worst part about it is that even CCAP admitted they didnt run my credit....then why did they make me pay to unfreeze it so they could run my credit? So I was $60 in the red ($20 x 3 credit beaurus because CCAP wouldnt tell me which ONE they would use) before they even came up with a number.

The same dealer/finance department that gave me 3 different answers about "how much do I need to finance to get the rebate" and "how long does the account need to stay open". If they could at least get their stories straight, maybe I would have kept it open a little longer.

 

[Dave2018]

If i had bought 6 months earlier could have got under 2 percent. Should have let the dealer have a shot though. Mistake i think

 

[chri5k]

.... Just remember, most dealerships are locally owned family businesses that (and especially FCA dealers) take huge losses on the front in order to make a small profit on the finance side. ....

Help me understand this statement. On the face of it, it seems odd.

 

[JoeCo]

It was at the exact same time I could get 2% from my credit union. I understand CCAP wont be as good as a CU, but there is a lot of room between 2% and 5%.

I spoke to my dealer after the initial rate given by CCAP (5.69%), they said they would look around for better options. Of course I never heard back. The worst part about it is that even CCAP admitted they didnt run my credit....then why did they make me pay to unfreeze it so they could run my credit? So I was $60 in the red ($20 x 3 credit beaurus because CCAP wouldnt tell me which ONE they would use) before they even came up with a number.

The same dealer/finance department that gave me 3 different answers about "how much do I need to finance to get the rebate" and "how long does the account need to stay open". If they could at least get their stories straight, maybe I would have kept it open a little longer.

I'm with you, dealer "got me" 5.62% to which I refinanced to 2.75% with my CU. Pretty much every dealership I go into is very nice looking (way more than they need to be) so I'm not going to feel bad about saving myself some money when clearly the dealer can afford the old marble floor and 30 ft tall glass walls treatment for themselves. That doesn't leave me with the impression that they are hurting or need anymore help.

It would be like going up to a very wealthy person and offering them some of your money as if they were homeless.

IRS, appreciate your info as always, this is just how I see it as a consumer.

 

[IRSmart]

Help me understand this statement. On the face of it, it seems odd.

Which part? Almost every FCA dealer sells their product in the red. It’s the nature of the business.

 

[RamInfo]

Interesting comments so far. When I bought my RAM I financed it through CCap for 6 months then refinanced through my local credit union for half the rate, then paid it off in 18 months. This time around, at the local Ram/Jeep dealer, I wanted to pay cash and they want to charge more $$ for the vehicle if I do. They have yet to quote me a firm loan rate even tho FCA is advertising 2.9% for 60 months and both my wife and I have credit scores well above 800, a steady income, and would have no payments other than the vehicle. They are claiming I need to finance 80% of the vehicle for 6months minimum—and I will be looking for that language in any FCA contract I see. When you subtract out 6 months interest from the so-called financing incentive that incentive shrinks by a third to a half. So with all the games being played, and the reluctance to lay all the cards on the table up front, I’m kinda at the point where if they insist on financing I’ll either just pay cash and the higher price (already too high) or do the financing and pay it off on the first payment.

Either way I’ll have a bad taste in my mouth. This should be a simple transaction; everything else is gaming the customer. Next time around I’ll just look for a 6-12 month old unit at one of the major rental companies and avoid the dealerships...
Thanks for the input,

DG

 

[chri5k]

Which part? Almost every FCA dealer sells their product in the red. It’s the nature of the business.

That every dealer on every new car sale makes less than $0 unless the buyer does some sort of financing through the dealer. I can't understand how a dealer can stay in business. I guess through service and used car sales?

 

[bruce219]

Weird,I got 0% on mine.I was going to go credit union but couldn't turn down 0%.I didn't even put anything down once I got zero as it was free money lol.

 

[tidefan1967]

Weird,I got 0% on mine.I was going to go credit union but couldn't turn down 0%.I didn't even put anything down once I got zero as it was free money lol.

Interest rates are much higher now than they were 3 years ago. I got 2.24% on my Ram back in 2017 with a low 700s score. I got 5.25 on my Challenger back in December with a similar score and was happy to get that. I would call Chrysler credit before I got the loan and just ask if there were any penalties for paying it off super early.
All of my local dealers are crooks with their $500 dealer fees and all the add on ********. My previous dealer sells Ford and Chevy products at $99 over invoice to this day with no surprise add ons like paint treatment and BS warranties for $2500. If i didn't like my RAM as much as I do I might consider going back but the new Chevy is ugly as hell and I can't afford a decent F150.

 

[chrisbh17]

Interest rates are much higher now than they were 3 years ago. I got 2.24% on my Ram back in 2017 with a low 700s score. I got 5.25 on my Challenger back in December with a similar score and was happy to get that. I would call Chrysler credit before I got the loan and just ask if there were any penalties for paying it off super early.
All of my local dealers are crooks with their $500 dealer fees and all the add on ********. My previous dealer sells Ford and Chevy products at $99 over invoice to this day with no surprise add ons like paint treatment and BS warranties for $2500. If i didn't like my RAM as much as I do I might consider going back but the new Chevy is ugly as hell and I can't afford a decent F150.

My 5 percent BS actually happened 3 years ago, that's what made it so maddening.

At the time you could get better apr OR cash back but not both. I'm guessing they really wanted me to choose better apr and 5% was a way to try and get me there. If so, that's pretty shady, on top of some shady stuff they pulled with the negotiated price of the truck. Overall probably the worst buying experience I've ever had.

Sent from my Pixel 3 XL using Tapatalk

 

[UgB4e]

I have had really good experiences with Chrysler Capital. I have financed a Jeep and two Rams and have gotten low interest rate each time. My issue is I always sign up for that damn premium warranty or coverage and then my loan is not good when I try and refinance but I can afford my payments with ease so I'm not too worried about it.

 

[madtrucker2016]

5% is far from outrageous in today’s market, and if you’re ok with the dealer getting charged back for a rate given to you by ccap, that’s your call.

why do you put new car sales manager FCA on your screen. Now I wouldn't believe a word you say HA ha

 

[madtrucker2016]

Interesting comments so far. When I bought my RAM I financed it through CCap for 6 months then refinanced through my local credit union for half the rate, then paid it off in 18 months. This time around, at the local Ram/Jeep dealer, I wanted to pay cash and they want to charge more $$ for the vehicle if I do. They have yet to quote me a firm loan rate even tho FCA is advertising 2.9% for 60 months and both my wife and I have credit scores well above 800, a steady income, and would have no payments other than the vehicle. They are claiming I need to finance 80% of the vehicle for 6months minimum—and I will be looking for that language in any FCA contract I see. When you subtract out 6 months interest from the so-called financing incentive that incentive shrinks by a third to a half. So with all the games being played, and the reluctance to lay all the cards on the table up front, I’m kinda at the point where if they insist on financing I’ll either just pay cash and the higher price (already too high) or do the financing and pay it off on the first payment.

Either way I’ll have a bad taste in my mouth. This should be a simple transaction; everything else is gaming the customer. Next time around I’ll just look for a 6-12 month old unit at one of the major rental companies and avoid the dealerships...
Thanks for the input,

DG

It is all a upsell and profit and the dealer rips you off in front of your own eyes .that is how they make money, crooks most of them.