Financing question

[Arvid]

Hey guys. Enjoyed trolling here for a while. So much so I thought it’s time to throw my hat into the ring and start shopping for a new ram1500.

I went online to the Chrysler financing site and applied to get pre approved.
I got my preapproval back approving me for x amount of dollars. Got in Touch with my local dealer and sent them my preapproval letter.
1st they are offering me way to little for my trade of 13k about 3 k lower then kelly blue book trade. But I can work on that. Then the msrp price of the night edition I’m looking at is around 51k
They come back with an offer of 530 a month for 75 months. Which is $39,750 and say my trade for 13k on top brings it to $52,750.00. No mention of what apr they are figuring this out with.
Isn’t 0 percent available for 36 months?
Then they tell me they still need all my info for the credit application. When they already have it in the approval letter I gave them. how bad did they try to get me? Lol
Question. Are all the rebates available when financing? Just because I’m financing shouldn’t I still be able to get a significant amount off the sticker price?
And do I really need to fill out alll the financial applications with them when I already have a preapproval letter from Chrysler capital?

Thanks in advance.

 

[TMyers]

Finance companies give incentives to dealerships. (Kick Backs) If they can get you to use "Their" preferred finance company, they make money.

You would be better off going to a Credit Union or Bank yourself and getting preapproved for "X" amount of money, then you can deal. Also, try to sell your truck yourself. Dealerships make their big money on trade-ins.

 

[goldeneyee]

Your preapproval letter doesn't mean a whole lot. You will still have to fill out a credit application. I would suggest you inquire about Chrysler Financial which was offering a $500. dollar rebate when I purchased my Ram. You still qualify for rebates if you are financing. In respect to the "low ball" offer for your trade--negotiate with the dealership and if you hit a brick wall go to another dealership and start over again. Finally don't start the credit approval process until you have a signed deal. You can get denied credit and have a lower credit score with too many credit applications....Just my 2 cents--Good Luck

 

[runamuck]

dealers do get some spiffs from finance companies for giving them the loan and I bet the rate from chrysler finance would not be your best rate. if you go with them be sure you get a little more off the price. you may want to check out credit union rates..it usually just takes 100$ to join one and I have usually got the best rate from them or my own bank..dont be afraid to haggle, you are making them money if they give you the loan. a cpl. times I got over night checks from online lenders so check them out too. I always have my financing lined up before I sign the papers and I dont let them talk to me about any of their add-ons.

 

[troutspinner]

I agree with TMeyers, if you have a local Credit Union. Try them first.

Dealers get kickbacks from banks they work with which is why they want your info. They’ll send it out to a few or even more to get the best rate BUT! your credit can go down by them just doing that so be careful and ask and know how many and try to limit it.

 

[IRSmart]

Fun fact: everyone gets preapproved with CCAP. And yes, you have to provide your full application to the dealer. Your preapproval letter doesn’t provide that information, they’ll need it to finalize your sale. You haven’t really provided a lot of information to give an informed opinion on the deal, but there is only one person that can tell you if you’re getting a good deal or not: YOU

 

[pacofortacos]

You are going about this all backwards imo.

First see if your employer is part of the FCA affiliates system - if so you get a fixed price that is a decent and fair price that limits BS costs also - no haggling nec. ( You "may" be able to haggle a slightly better price without using the affiliate discount - but I don't think much and hassle free is worth something to me).

If you do qualify for the above then you already know your cost for the truck minus any rebates you qualify for as these are in addition to the discount.

Once you know your actual cost of the truck, then haggle on the trade in.

Once you settle on that price (or sell outright), you now know your actual cost of the truck THEN you do the finance stuff.
As mentioned, often times there are additional rebates available if you finance through FCA - which you can do to get the rebate and then refinance through a credit union if you wish.

You never want to do the I can afford X dollars per month - at that point 2 things are true.
A. you are at the dealers mercy as far as price since they know what you want to spend
B. you really can't afford a new vehicle if your budget is that tight. IMO.

 

[Arvid]

You are going about this all backwards imo.

First see if your employer is part of the FCA affiliates system - if so you get a fixed price that is a decent and fair price that limits BS costs also - no haggling nec. ( You "may" be able to haggle a slightly better price without using the affiliate discount - but I don't think much and hassle free is worth something to me).

If you do qualify for the above then you already know your cost for the truck minus any rebates you qualify for as these are in addition to the discount.

Once you know your actual cost of the truck, then haggle on the trade in.

Once you settle on that price (or sell outright), you now know your actual cost of the truck THEN you do the finance stuff.
As mentioned, often times there are additional rebates available if you finance through FCA - which you can do to get the rebate and then refinance through a credit union if you wish.

You never want to do the I can afford X dollars per month - at that point 2 things are true.
A. you are at the dealers mercy as far as price since they know what you want to spend
B. you really can't afford a new vehicle if your budget is that tight. IMO.

I don’t qaulity for an affiliate program.

and I never told them how much I was able to spend a month. I just asked for their best price and their response was not a number it was a monthly payment. The trade I do t care about, wether I trade or sell doesn’t matter to me. I just threw that in there curious to see what they’d offer me. I’ve negotiated trades before and after the final offer of the vehicle. Doesn’t really matter because I can pull the trade anytime and keep the car or sell it privately.
I just thought it was odd they came back with a monthly payment for 75 months instead of the sale price.
And then asking me to fill out the credit application which I do not want to do until I settle one the truck, price and who I’m buying it from. I’ve bought over 20 cars in my lifespan new from a dealer and never had a sales person come at me with monthly payments and not detailing what apr they figured or the bottom line cost of the truck.
It’s like they think you can do math.

it was just sketchy enough to make me walk away from them altogether.

 

[PoMansRam]

Keep in mind, dealerships prefer to do handle all the financing for you so they play the extended service contracts and pre-paid maintenance contracts game with you before you are given and sign for your final total or monthly payment.

They won't be able to roll those into your monthly payment when you come in with the check from your credit union or where ever.

 

[w6pea]

I think I saw a TV commercial a day or so ago about FCA Affiliate Reward Pricing program on select FCA Products open to everyone. Also if you belong to some Organization that is an FCA Affiliate you can get that pricing year round.
Do a Google Search and see if you belong to any of them ARRL,NRA.AARP,etc.

 

[Graygoose]

Agreed, I always get my Tinker FCU approval, they tell me APR, and then calculate months against what I sign the check for...so I can do the math on payment. Then go look, and talk them down. They always ask "whats the payment you want", that shouldn't ever be told...I just say lets deal with price of truck....get them to agree on an out the door price, then write a check. They hate that, because they usually think they will get add ons in the back...I stick with an OTD price...

 

[Arvid]

I have one dealer down from 53,475 msrp to 44,727 out the door. Plus doc fees.
Think I’ll push for a little more. I’m thinking 40-42. What do you guys think?

it’s a night edition with the features and specs I’m looking for. 2020

 

[Nedim1991]

My FCA dealer straight up told me it's never worth it to finance through FCA, even for the additional rebate you get, because their interest rates are so non-competitive.

 

[Arvid]

My FCA dealer straight up told me it's never worth it to finance through FCA, even for the additional rebate you get, because their interest rates are so non-competitive.

they are offering 0 percent at 36 months. That’s the only reason I considered financing. I don’t finance unless I get 0 percent. Just not sure I’ll get all the rebates when financing at 0percent. So might just pay cash.

 

[Graygoose]

I have one dealer down from 53,475 msrp to 44,727 out the door. Plus doc fees.
Think I’ll push for a little more. I’m thinking 40-42. What do you guys think?

it’s a night edition with the features and specs I’m looking for. 2020

I think you can get $41-$42 OTD

 

[pacofortacos]

I don’t qaulity for an affiliate program.

and I never told them how much I was able to spend a month. I just asked for their best price and their response was not a number it was a monthly payment. The trade I do t care about, wether I trade or sell doesn’t matter to me. I just threw that in there curious to see what they’d offer me. I’ve negotiated trades before and after the final offer of the vehicle. Doesn’t really matter because I can pull the trade anytime and keep the car or sell it privately.
I just thought it was odd they came back with a monthly payment for 75 months instead of the sale price.
And then asking me to fill out the credit application which I do not want to do until I settle one the truck, price and who I’m buying it from. I’ve bought over 20 cars in my lifespan new from a dealer and never had a sales person come at me with monthly payments and not detailing what apr they figured or the bottom line cost of the truck.
It’s like they think you can do math.

it was just sketchy enough to make me walk away from them altogether.

Yeah, I would feel the same way.
Sorry I assumed (my bad) that you were doing like countless other car buyer do - I apologize.

There are a few dealers that will deal with you and make it easy.
Actually there is one not too far away ( few hundred miles) that will deal.
Just google the following words.

koons-group-buy.3092/

 

[pacofortacos]

I don't know if you will get that low OTD, that's pretty low before tax and registration/fees.

But if you do, I want you to negotiate my next house purchase!

 

[TMyers]

If you're not dealing with a trade, there are a few dealerships worth looking into that do extreme internet sales. One is Kernersville Dodge. Their website is 31dodge.com. They do a tremendous amount of internet sales. They'll work a deal where they pick you up at the airport and you drive home cheaper than you can buy local. Might be a fun weekend trip and a good truck buying story.

 

[Tim G 2019]

When i bought the truck before the one I have now, i financed through the dealer. They blasted my credit app out to fifteen (15) separate lenders. That put 15 hard pulls on my credit! They are all supposed to count as "one" pull if done within two weeks to allow rate shopping. Tell that to the credit karma and experian app algorythms. They see it as "seeking credit". I'll handle my own financing, thanks.

 

[Donald Parker]

It is either or with the finance and rebates, and the cost difference is not in your favor. FCA is a little more liberal with their underwriting so more people qualify. You are definitely better off bringing your own financing to the deal