Dennis Dillon financing: deal or no deal?

[Rado]

Good luck with the future purchase ! As mentioned read the fine print ! And Ask questions to the finance guy if you decide to use DD, person, Also READ the finance papers. When I purchased my 2015 it was reduced $5.000.00 ! When I was doing the finance papers at the dealer (not DD) she was charging me the original price :O, She had to redo the papers :O Oooops If I did not catch that it would have been about $50 or 75$ a month more :O SO double check everything

 

[Kukailimoku]

Thanks all again for providing your feedback. Seems like I’d be better off securing my own financing @ around 3% instead of the hassle of refinancing, potential penalties, etc...

Their financing deal tied to the $1K “discount” of MSRP is a 7 year term @ around 5% w/
$10K down. Rep told me to just do it and refi after the obligatory 6mo minimum.

Maybe more trouble than it’s worth.

Dude! Sounds like got hosed. Or break-even at best, AND you have the hassle-factor of paying off and getting financing somewhere else.

Check out the math:

Assume $40000 truck.
5% per year is $2,000 interest each year.
They say they let you pay it off in six months? That's half a year.
Half a year's worth of interest on $40k is, - wait for it.... - $1,000.
So you pay $1,000 interest during that half-year minimum.

Guess what you got back for the hassles of playing the game? Yup, $1,000

 

[chrisbh17]

FWIW if you really read the paperwork (bill of sale, cash back rebate terms, etc), at least in my case, there was ZERO reference to any minimum amount financed nor a minimum amount of time it needed to be open.

I financed very little on my truck, paid it off a week later and gladly took the 500.00 cash back off the final price.

 

[dexter]

Financing depends upon your situation.

I could have paid cash when I purchased my truck for 43,000.

But, I got 1.5%/36 months from Penfed and left my money in a mutual fund that is paying me 7%.

I think my payment was 1,150/mo for 3 years.

 

[HM_SanDiego]

Dude! Sounds like got hosed. Or break-even at best, AND you have the hassle-factor of paying off and getting financing somewhere else.

Check out the math:

Assume $40000 truck.
5% per year is $2,000 interest each year.
They say they let you pay it off in six months? That's half a year.
Half a year's worth of interest on $40k is, - wait for it.... - $1,000.
So you pay $1,000 interest during that half-year minimum.

Guess what you got back for the hassles of playing the game? Yup, $1,000

Respectfully,
Your numbers are wrong - on an auto loan @ 5%, and a loan amount of $40,000.00, over 5 years, the total interest or cost of the loan, IF paid out over the entire 5 year period, would be $5291.00 - so, if the loan were paid off in 6 months (refi’d, cash, whatever) or the next day, or whenever, the amount of interest paid, or the ultimate cost of the loan, would be based on the actual loan period (I.e. a day, week, month, or whatever)

 

[slacadjuster]

evening all-

I’m planning to purchase a ‘19 ram from DD sometime in November. They’re offering an additional $1K off in exchange for financing thru them for 6 months minimum at a much higher rate than what I can get elsewhere.

So two questions...

1) who does DD finance through?

2) what’s to prevent anyone from agreeing to finance thru them for the extra discount, then send in a check for the full balance after driving off the lot?

*i know there are threads about this topic on the forums, but wanted the freshest intel from y’all who may know better.

I live in SoCal

Thanks in advance!

Anything with DD initials can't be all bad, lol

 

[JD Martin]

Good luck with the future purchase ! As mentioned read the fine print ! And Ask questions to the finance guy if you decide to use DD, person, Also READ the finance papers. When I purchased my 2015 it was reduced $5.000.00 ! When I was doing the finance papers at the dealer (not DD) she was charging me the original price :O, She had to redo the papers :O Oooops If I did not catch that it would have been about $50 or 75$ a month more :O SO double check everything

To build on this, the finance guy may just have been bull****ting you because they may lose credit for the deals if you finance out too soon. I have twice, in the last 5 years, bought brand new vehicles using the dealer's financing in order to get an extra rebate, and then either paid it off as soon as the first note came (on one vehicle) or financed back out using my credit union (on the other), and not in either case was I assessed any kind of penalty where I had to pay back the incentive.

 

[JoeCo]

To build on this, the finance guy may just have been bull****ting you because they may lose credit for the deals if you finance out too soon. I have twice, in the last 5 years, bought brand new vehicles using the dealer's financing in order to get an extra rebate, and then either paid it off as soon as the first note came (on one vehicle) or financed back out using my credit union (on the other), and not in either case was I assessed any kind of penalty where I had to pay back the incentive.

Agreed. The way I look at it is that most dealers will do/say whatever to sell you the vehicle, but after they won't give you the time of day should a problem or concern arise. So I don't feel bad playing by the same tactics of "sure I'd love to finance with you" while fully knowing I'll refinance ASAP. Fair is fair, they want to lie to make the sale, I'll lie to get the best price possible and then adjust it to work more in my favor.

 

[JD Martin]

Agreed. The way I look at it is that most dealers will do/say whatever to sell you the vehicle, but after they won't give you the time of day should a problem or concern arise. So I don't feel bad playing by the same tactics of "sure I'd love to finance with you" while fully knowing I'll refinance ASAP. Fair is fair, they want to lie to make the sale, I'll lie to get the best price possible and then adjust it to work more in my favor.

I see it like this - I didn't sign anything that said I wouldn't refinance, so I have a fiduciary responsibility to my board of directors - myself, my wife, and my dog - and my shareholders - the kids & grandkids - to protect as much of those finances as possible

 

[Rado]

Just look at the fine print in may or may not bite you in the rear end :O ! Today a lot of banks will be up front and say NO EARLY PREPAYMENT penalty ! SO double check your paper tell you if there is a pre payment

 

[JoeCo]

I see it like this - I didn't sign anything that said I wouldn't refinance, so I have a fiduciary responsibility to my board of directors - myself, my wife, and my dog - and my shareholders - the kids & grandkids - to protect as much of those finances as possible

Absolutely! Life is expensive enough as it is, no reason to throw money away unnecessarily when it can be much better spent elsewhere.

Just look at the fine print in may or may not bite you in the rear end :O ! Today a lot of banks will be up front and say NO EARLY PREPAYMENT penalty ! SO double check your paper tell you if there is a pre payment

Good point, got to read the fine print just in case. I've only refinanced just this one time (always went with a check in hand from my credit union prior to this deal) but had no issue whatsoever doing so.

 

[Chris Mays]

I know this is an old thread but the reason most of these finance folks at the dealer tells you to wait 4-6 months to pay it off is because they get a kickback from the financial institution they finance you through. Many of these institutions will charge back the dealer if the loan is paid off prior to 3, 4, 5 or 6 months (it financial institution has their own rules). Read your contract but majority of the time nothing will happen to you if you want to just pay it off ASAP after leaving the dealership. I worked at a Dodge dealership in a previous life and that’s how it worked.

 

[Rado]

I know this is an old thread but the reason most of these finance folks at the dealer tells you to wait 4-6 months to pay it off is because they get a kickback from the financial institution they finance you through. Many of these institutions will charge back the dealer if the loan is paid off prior to 3, 4, 5 or 6 months (it financial institution has their own rules). Read your contract but majority of the time nothing will happen to you if you want to just pay it off ASAP after leaving the dealership. I worked at a Dodge dealership in a previous life and that’s how it worked.

Yes this is a old thread but all the advice is still good
As for dealer financing I agree with you ! The dealer gets a kick back as they do not work for free lol But I hate payments so I try and pay off early !

 

[TWILLIAMS9]

On my 19 I financed through Chrysler Capital for an extra $1,000 rebate initially and then just refinanced it 2 months later. I called Chrysler Capital before I bought the truck and made sure their loans did not have any early payoff penalty.