Dealer trying to screw me on Financing

Front Runner · December 30, 2015

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%.

True in some cases, not for all.

As stated in my previous posts, I've had 0% loans before and have friends who just purchased with 0%. We all got 0% and the rebates or either negotiated the price to get the equivalent of the rebates.

There was no need to secure financing because the money was had to pay the vehicle outright. I simply don't like to take that kind of money out of any account of mine to purchase a quickly depreciating asset. Simply, personal preference.

Silverado Steve · December 30, 2015

True in some cases, not for all.As stated in my previous posts, I've had 0% loans before and have friends who just purchased with 0%. We all got 0% and the rebates or either negotiated the price to get the equivalent of the rebates.There was no need to secure financing because the money was had to pay the vehicle outright. I simply don't like to take that kind of money out of any account of mine to purchase a quickly depreciating asset. Simply, personal preference.

Do the math and it might surprise you. Take the Silverado for example, you forfeit anywhere between 2500-4K taking the GM low interest loan. With the zero% you forfeit that rebate meaning overall lower purchase price vs the rebate and 2% interest. On 2%, you won't pay $4K in interest, so in the end it can cost you more to take the zero % loan.

Front Runner · December 30, 2015

True in some cases, not for all.

As stated in my previous posts, I've had 0% loans before and have friends who just purchased with 0%. We all got 0% and the rebates or either negotiated the price to get the equivalent of the rebates.

There was no need to secure financing because the money was had to pay the vehicle outright. I simply don't like to take that kind of money out of any account of mine to purchase a quickly depreciating asset. Simply, personal preference.

Do the math and it might surprise you. Take the Silverado for example, you forfeit anywhere between 2500-4K taking the GM low interest loan. With the zero% you forfeit that rebate meaning overall lower purchase price vs the rebate and 2% interest. On 2%, you won't pay $4K in interest, so in the end it can cost you more to take the zero % loan.

Maybe you missed where I mentioned above:

"We all got 0% and the rebates or either negotiated the price to get the equivalent of the rebates."

So, your point is mute.

Silverado Steve · December 30, 2015

Maybe you missed where I mentioned above:"We all got 0% and the rebates or either negotiated the price to get the equivalent of the rebates."So, your point is mute.

That's cause you negotiated a price without applying rebates, but took the interest. You could of negotiated said price but asked for the rebate, and got more off but to your own admission you didn't go that route, so I can't accept you got the same deal. As much as I would like to agree with you, your example is the outlier and not the norm. End of the day, a zero % loan is very rare and not offered on popular high availability models and I would challenge you to prove otherwise than with Ive had friends example.

Silverado Steve · December 30, 2015

So looking on the Chevy site, no special financing is being offered in the Silverado, only APR is 3.9% on the 2016 LT All Star in my region, but $4500 cash back, I'll take the rebate in that scenario. Now they are offering 0% on the 2015 LTZ Tahoe or $1K rebate, but based on the Chevy site, there are only 12 that qualify in a 50 mile radius. I wouldn't classify that as highly available, especially when most are red with Tan interior.

Front Runner · December 30, 2015

That's cause you negotiated a price without applying rebates, but took the interest. You could of negotiated said price but asked for the rebate, and got more off but to your own admission you didn't go that route, so I can't accept you got the same deal. As much as I would like to agree with you, your example is the outlier and not the norm. End of the day, a zero % loan is very rare and not offered on popular high availability models and I would challenge you to prove otherwise than with Ive had friends example.

I find it laughable that you're trying to tell me what kind of deals I've negotiated in the past. Let me make this perfectly clear so there's no misunderstanding, I've received 0% and got the rebates or negotiated the price to the rebate equivalent in addition to 0% financing.

I mentioned my friends because two just purchased new Tahoes with in the last two weeks and did the exact same thing and used me a resource before making their purchases. It's not my concern that you can't accept that.

Yes, it may be the outlier, but can be done, and has been done.

Silverado Steve · December 30, 2015

I think we're discussing the norm, what the average joe can get when he goes to the dealer, not in the perfect world. Also we are discussing buying the Silverado and the benefits of securing financing before hand and in some circumstances paying cash vs financing. If the OP were inquiring about buying a Tahoe, cool, your advice makes sense, but in the topic of conversation your input has little to no value as I pointed out since there are no offers for our trucks at zero% and are rare. Using your example, sure I could of won the lottery, bought a bunch of FB stock on IPO instead of paying cash and I can also be a Rockefeller or Walton. I thought we were discussing realistic real world possibilities not hypotheticals?

I find it laughable that you're trying to tell me what kind of deals I've negotiated in the past. Let me make this perfectly clear so there's no misunderstanding, I've received 0% and got the rebates or negotiated the price to the rebate equivalent in addition to 0% financing.I mentioned my friends because two just purchased new Tahoes with in the last two weeks and did the exact same thing and used me a resource before making their purchases. It's not my concern that you can't accept that.Yes, it may be the outlier, but can be done, and has been done.

stevencox93 · December 30, 2015

Long story short, when I bought my truck, the dealer told me I had 5 business days to secure my own financing or else they'd book it with GM Financial. My FICO is at 760, so I expected at least a competitive rate from them. They insisted that the only offer they could make was to go through GM at 4.29%. They presented absolutely no other bank options (due to it being 11 pm they stated). Absolutely insane on a new vehicle with my FICO. Either way, they mentioned that this was called "option financing" or something similar. Again, I reiterated: I sign the papers today, go get financing tomorrow through my bank, fax you the approval letter, and you take care of ensuring I'm not paying a ludicrous rate? "Yes. Absolutely."

Now they're saying "oh, the loan funded and we can't do anything about it."

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?

Definitely getting screwed there. I had no credit due to lack of financing things and I got 3.9%