Financing question

[CPTII]

So let me preface this by saying my wife and I save and pay in full. I am not paying finance fees and interest.

so even with preapproval letter (just like when buying a house) you still have to fill out everything all over again. If you can get financing through your local bank or credit union you may get a better deal. Do all of your dealing for prices and incentives before you agree to sit down on financing. Once they know your number they will stop being “flexible”.

 

[Mike Mannino]

Don’t know if we are allowed to mention dealers here but I bought my first online truck this past month and I couldn’t have been more pleased. They kept coming back with better and better offers on my trade until I got the deal I wanted. Actually about 3k more than book trade, sight unseen. Now my trade was nearly new condition, still under warranty, and they listed it 5k above what they gave me which is fine. I got a deal, they make money on both ends, and we are both satisfied. I used Chrysler financing so I’m sure they made money there too. If we are allowed, I’ll post the dealer in a follow up post.

 

[Arvid]

Don’t know if we are allowed to mention dealers here but I bought my first online truck this past month and I couldn’t have been more pleased. They kept coming back with better and better offers on my trade until I got the deal I wanted. Actually about 3k more than book trade, sight unseen. Now my trade was nearly new condition, still under warranty, and they listed it 5k above what they gave me which is fine. I got a deal, they make money on both ends, and we are both satisfied. I used Chrysler financing so I’m sure they made money there too. If we are allowed, I’ll post the dealer in a follow up post.

Feel free to message me.

 

[IRSmart]

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.

They were 100% correct. Credit Karma, credit card apps, etc are junk when it comes to calculating real credit scores. They’re not accurate at all. Don’t rely on them for even an approximation of your credit score, else you’ll be disappointed in the future.

@Arvid Im in MD, if you’d like me to take a look, I’d be happy to.

 

[Arvid]

They were 100% correct. Credit Karma, credit card apps, etc are junk when it comes to calculating real credit scores. They’re not accurate at all. Don’t rely on them for even an approximation of your credit score, else you’ll be disappointed in the future.

@Arvid Im in MD, if you’d like me to take a look, I’d be happy to.

appreciate that very much.
But I’m pretty close to working something out with a small family owned dealership within 15 miles of me.

 

[IRSmart]

appreciate that very much.
But I’m pretty close to working something out with a small family owned dealership within 15 miles of me.

I meant I’d be happy to look at the deal

 

[MarineBSP]

Arvid,

It's what pacofortacos said. Get the information you need on financing from your local credit union or bank. Find out whether you qualify for an 'affiliates' discount where you will avoid haggling AND know what you are agreeing to. Then get quotes on the truck that you want from dealer(s) - see what the totals will be and whether you can afford it. Then make the deal, adding your trade in at the end.

I did a 1 year lease on my 2018 because I got the highest FCA discount that way - they kicked in more money on lease than for outright purchase, and I could not figure out why until I calculated it out. It's required to lease a minimum of one year. Lease finance rates are HIGH compared to auto loans, so during the one year lease I 'lost' nearly half of the incentive for leasing - but made some interest on the money I had saved to buy the truck. A two year lease would have chewed up over 80 percent of the incentive, and for a three year lease the lessee would pay more than if he/she purchased the truck without the lease part of the incentive. I leased one year and bought at the end. "Your mileage may differ" =).

P.S. The most recent stats I have read indicate that dealers now make more income on vehicle financing than on the actual sale of vehicles . . . not a wonderful trend.

 

[Ratket]

appreciate that very much.
But I’m pretty close to working something out with a small family owned dealership within 15 miles of me.

mid you are going to pay cash, then you can absolutely beat them up on the price.

also you need to shop a couple of dealerships. Where in the country are you located?

https://www.dennisdillonchryslerjee..._medium=organic&utm_campaign=googlemybusiness

https://www.davesmith.com/

These two dealers are the biggest in the pacific region. I would defiantly take the time to see what they got.

 

[wfscooter]

Yes to the dealer running a credit app. To get you the best rate is probably naïve. Using calculatestuff.com, 13k trade, 4% interest, and 6.25 sales tax, looks like the dealer is asking 46k for the truck. That should be something they tell you straight up. 2019s in my area 53k stickers are going for around 45k, I’d say you can work them down $1500 on the truck and $1500 up on the trade and everyone’s happy. Good luck, and definitely shop around.

 

[JS4024]

CAUTION!!! Every credit app you fill out is an inquiry on your credit report, lowers your score. Shop the rates before your sign anything at the dealer. Here is the problem.... the dealer will shop your credit app to everyone. Banks will then come back based on your credit worthiness and offer rates. If your credit score is below 750..... you won’t get the best rates. Just got a 72 month for 2.75.... mostly unheard of but I wanted the incentives and rebates over the interest rates as I always pay my loans off a year or 2 early.

 

[Arvid]

Going in Monday to hammer out the final details. Will let you know how I make out.

 

[IRSmart]

CAUTION!!! Every credit app you fill out is an inquiry on your credit report, lowers your score. Shop the rates before your sign anything at the dealer. Here is the problem.... the dealer will shop your credit app to everyone. Banks will then come back based on your credit worthiness and offer rates. If your credit score is below 750..... you won’t get the best rates. Just got a 72 month for 2.75.... mostly unheard of but I wanted the incentives and rebates over the interest rates as I always pay my loans off a year or 2 early.

Wrong

 

[Arvid]

CAUTION!!! Every credit app you fill out is an inquiry on your credit report, lowers your score. Shop the rates before your sign anything at the dealer. Here is the problem.... the dealer will shop your credit app to everyone. Banks will then come back based on your credit worthiness and offer rates. If your credit score is below 750..... you won’t get the best rates. Just got a 72 month for 2.75.... mostly unheard of but I wanted the incentives and rebates over the interest rates as I always pay my loans off a year or 2 early.

That is why I did not want to fill out the dealers credit app.
I was simply mistake by thinking and a credit approval was enough because after you get the approval letter they say to bring this letter to your dealer. If I had known it meant nothing I wouldn’t have bothered.
But I looked at it as like being preapproval for a mortgage when shopping for a house. You’re taken more seriously. So that’s why I came here asking because I’ve never done any financing unless it was a zero percent incentive from the manufacturer.
now when I shop for cars I never tell them what my final plan is. Sometimes I don’t even know.

Trade no trade maybe this maybe that might finance might not. I like to be as confusing to them as they are to us and I feel they do not need to know until I find one being upfront and not playing games.
I get trying to get a couple grand more I can always work around that negotiations. And I know the trade in game they play too by either low balling your trade or giving you full value. Both will reflect on the final sale price of the car they just flip and flop the numbers.
More for your trade less off the new or vice versa.

I’ll go in with a check tomorrow and hammer out a deal for 42k, and I’ll sell my other truck privately in the next week or two. I might finance if it buys me more time to unload my vehicle but not if it drives up the out the door price a penny.

 

[Arvid]

Wrong

can you expand or is every statement wrong?

 

[IRSmart]

can you expand or is every statement wrong?

The part I highlighted and underlined specifically.

edit: well, really the whole post is inaccurate as well, and should be completely disregarded.

 

[Ratket]

The part I highlighted and underlined specifically.

edit: well, really the whole post is inaccurate as well, and should be completely disregarded.

So if he goes to multiple dealers of the course of one week, and they all run credit reports it won’t Drop his credit score?

 

[IRSmart]

So if he goes to multiple dealers of the course of one week, and they all run credit reports it won’t Drop his credit score?

Not at all

 

[Arvid]

The part I highlighted and underlined specifically.

edit: well, really the whole post is inaccurate as well, and should be completely disregarded.

Lol

 

[Stevieboy96]

If a certain amount of apps are filled out in a particular amount of time for the same product ( a vehicle for instance) it is viewed as a single hit on your credit.

 

[Haas]

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.

I'm confused. Why are they adding your trade value to the 39,750? Shouldn't they be taking the trade value off, instead of adding it on?