Dealer trying to screw me on Financing

[ewbldavis]

X3. You signed the paperwork, so they can do what they wish.

 

Refinance. We have done it on a couple vehicles.

[bwc3030]

This is exactly what I did. The dealer told me he could give me 4k more for my trade in if I financed through them as they get a kickback from the bank. He said just pay it 3 months and then refinance. That is what I did and my rate is now 1.99% and my FICO is 804 last I checked.

 

Thanks for adding nothing of value to the OP question.

the question was :

I'm still within the 5 days, but they're not willing to work with me. What can I do? What options do I have?

 

I simply offered a solution. I think there was also another posting with similar answer.

[twinterfun]

Not sure there is any 5 day rule, but some dealerships give you 5 days. Home mortgages have a 3 day right of recession which allows you to change your mind.

 

I would disagree that going through the dealership financing is a bad idea. Done it both ways and several times going through the dealership was the best rate even when I was an employee of a bank.

 

Just got my new 2015 yesterday and I went through the dealership for the financing to get the extra rebate. They said I had to make 4 payments, which I was told from two different dealerships, one I trust and one I don't trust. Got 3.4% for 72 months with a 803 score. Not a great rate but I will refinance or payoff in 4 months.

 

Biggest issue I had with the dealership was the doc fee. Was $299 at first but got it down to $164. Other small town dealerships I worked with are $50 so I had issue with the $299 flat fee.

 

Kickbacks to the dealerships vary by lender. Some its a straight % of the loan such as .50% or .75% while others get some at the front and then its paid out over the term of loan.

[fondupot]

Just tell them you will use their financing to finish the deal, but in a few days time you are just going to refinance the loan with someone else for a better rate.

 

See how quickly the finance guy is able to find you better financing. They don't get paid if you refinance their loan within so many days.

 

This just happened with my cousin, he was getting quoted 4.29% from Hyundai financing. Finance guy said it was the best he could do. So we said, ok continue with the paper work, but on Monday (it was Saturday) we are going to refinance the loan with someone else. The finance guy took a step out and came back with a better rate of 2.39% from a different bank.

[2004lebanshee]

Not sure there is any 5 day rule, but some dealerships give you 5 days. Home mortgages have a 3 day right of recession which allows you to change your mind.

 

I would disagree that going through the dealership financing is a bad idea. Done it both ways and several times going through the dealership was the best rate even when I was an employee of a bank.

 

Just got my new 2015 yesterday and I went through the dealership for the financing to get the extra rebate. They said I had to make 4 payments, which I was told from two different dealerships, one I trust and one I don't trust. Got 3.4% for 72 months with a 803 score. Not a great rate but I will refinance or payoff in 4 months.

 

Biggest issue I had with the dealership was the doc fee. Was $299 at first but got it down to $164. Other small town dealerships I worked with are $50 so I had issue with the $299 flat fee.

 

Kickbacks to the dealerships vary by lender. Some its a straight % of the loan such as .50% or .75% while others get some at the front and then its paid out over the term of loan.

 

I did the same thing with my 15. I refinanced a week later. look at your loan paper and if it says no penalty just like mine did the go and refinance. The loan officer is trying to cheat you IMO. Mine told me I couldn't refinance. I knew better and said ok just to shut him up. It will say clear as day on your loan sheet on the back. Got 4.5% with a 820 from GM and went down to a 2.2% from a credit union with NO fees what so ever.

[edillen3953]

Just refinance. They are screwing you to get a bigger kickback. I got 2.9 thru GM. My CU will give me 2.29. I went with GM to get the extra rebates. In a couple weeks I will refi with my CU.

[Sidewayz]

Secure financing with your lender before the 1st payment is due.

I actually reverse screwed a dealership by telling them I wanted the lowest price for the vehicle but didn't care about the finance rate. They lowered the price 2800.00 and the rate was 15.9% with a credit score in the 760's. I signed the paperwork and walked in the next week with a cashiers check from my credit union @ 1.9%. They were pissed and didn't want to accept my payment and the general manager made many attempts to redo the paperwork. I left and contacted Ford Motor Credit and they happily accepted payment and closed the loan out.

[JRaschke11]

best option is to save up some money and pay cash for it, then no need to worry about financing. That's what I did , much less stressful.

The old days of "cash is king" are long over.

 

I saved and could have paid cash for my truck, but with a 1.74% loan rate for 60 months why would I? I can invest that $50k and make a hell of a lot more than I would pay in interest.

[foghorn23]

You don't have to wait any time to refinance. Once you get the account number from the loan company you can call for a payoff. Even if you have not made the 1st payment. The finance guy will tell you to wait 90 days before paying it off but, this is only so they get their kickback from the loan company. I did my loan that way. If they screw you then why wait and let them get what they want. When I called my bank to get the refinance loan she laughed and the part when I said i had to wait 90 days and told me she loves when customers tell her that is what the dealer said.

 

Bingo. Unless there's some unusual clause you can pay it off any time. If you pay it off early just contact the finance company and don't even deal with the dealer. If you feel like a fight let the dealer know what you are going to do and see if they can't get you a competitive rate. My first truck dealing with my current dealer I told them up front that I'd be refinancing; he said what if I can get you a better rate? Just FYI most credit unions in my area are somewhere around 1.69-1.99% for up to 66 months.

[tnchevy]

The old days of "cash is king" are long over.

 

I saved and could have paid cash for my truck, but with a 1.74% loan rate for 60 months why would I? I can invest that $50k and make a hell of a lot more than I would pay in interest.

I have heard this argument many times but in the end you are better off paying cash, always. Unless you have a crystal ball and are an investing genius you will rarely come out ahead. If you could make a "hell of a lot more" investing then why not take out more loans at that rate and invest that money as well?

[Silverado Steve]

True, and many people neglect the tax rate on short term Capital gains 20-35% and on regular long term capital gains 15%-20%. Last if you have to liquidate, you take an even bigger hit with broker commissions and penalties should your financial situation change. Only invest money you don't plan to touch for 7+ years is the rule of many investors. Money market accounts CDs and bonds pay less than the interest rate charged by banks for auto loans. The only way this makes sense is to take the money you would pay off in the car and put it towards your higher interest loans or an amortized loan such as a home mortgage.

 

I have heard this argument many times but in the end you are better off paying cash, always. Unless you have a crystal ball and are an investing genius you will rarely come out ahead. If you could make a "hell of a lot more" investing then why not take out more loans at that rate and invest that money as well?

 

[Front Runner]

I have heard this argument many times but in the end you are better off paying cash, always.

Not necessarily. The absolute best scenario is to have the money to pay the vehicle off at purchase, then get 0% financing which is free money. The overall amount paid will be the same had the vehicle being paid off at purchase but the owner will have the payoff amount available at anytime if the need/desire to payoff arises. With that kind of money (30-50K)even in a basic credit union money market account will make near 1K over the life of the 0% loan just sitting in the account earning interest. The owner can simply do what he/she wants to with it to include paying the vehicle off at any time. As stated earlier, investing is always an option but technically that money is no longer sitting in an account that can be used in many different ways.

[Silverado Steve]

Zero % loans sure, but they are normally on offered by manufacturers on hard to sell cars or end of year models that are hard to find. If you can get them great, but realistically a zero% loan is mostly a paper thing.

 

Not necessarily. The absolute best scenario is to have the money to pay the vehicle off at purchase, then get 0% financing which is free money. The overall amount paid will be the same had the vehicle being paid off at purchase but the owner will have the payoff amount available at anytime if the need arises. With that kind of money (30-50K)even in a basic credit union money market account will make over 1K just sitting in the account earning interest. The owner can simply do what he/she wants to with it to include paying the vehicle off at any time. As stated earlier, investing is always an option but technically that money is no longer sitting in an account, slowly growing, and can be used in many different ways.Not necessarily. The absolute best scenario is to have the money to pay the vehicle off at purchase, then get 0% financing which is free money. The overall amount paid will be the same had the vehicle being paid off at purchase but the owner will have the payoff amount available at anytime if the need arises. With that kind of money (30-50K)even in a basic credit union money market account will make over 1K just sitting in the account earning interest. The owner can simply do what he/she wants to with it to include paying the vehicle off at any time. As stated earlier, investing is always an option but technically that money is no longer sitting in an account, slowly growing, and can be used in many different ways.

[Silverado Steve]

Last thing I'll mention is normally when you take a low interest loan such as zero% mentioned by the previous poster, you forfeit huge cash rebates from the dealer and manufacturer. At the end of the day, you are going to give money back to the dealer if financing through GM or any other manufacturer. Take the rebate, pay cash or secure your own financing before walking in the door. Either way no bank or credit union is giving you a 60 mon+ auto loan at zero%.

[Front Runner]

Zero % loans sure, but they are normally on offered by manufacturers on hard to sell cars or end of year models that are hard to find. If you can get them great, but realistically a zero% loan is mostly a paper thing.

Yes, offered by manufacturers but oh no, they're not just a paper thing. Personally, I've had several 0% loans and I've got friends who just purchased vehicles, some high dollar Tahoes, with 0% loans. They're out there to be had.

 

To your point, they don't represent the vast majority of loans but aren't just simply a paper thing.