Financing question

[intense1]

I was looking at rates over the weekend, and found Bank of America to have a really good rate at the moment. My question is how would this work if I'm ordering a 2011. Say I order the car this month, would the credit app go through now and they honor that rate when I get the car, or would I have to get the rate that's being offered at the time of delivery. I have never ordered a car before so my experience has always been right there and then.

[Patriot]

I will be using BoA myself for my 2011 (3.09% for 60 or 72 months), which won't be delivered until end of June or early July. BoA prepares a check for you to pay the dealer, but the whole process could take days (back and forth mailings, signatures). The check is only good for a certain amount of days, so if you get it now, it may expire, so hold off.

I plan to begin the credit app process with them when my vehicle begins the railway journey. The check should be ready by then. You take this check plus what you are paying for the balance and the dealer will release the car after making a phone call to the bank to verify funds, of course .

[BilJ]

I think that when BOA approves an online loan application, the rate approved is only good for the 30 day period following the date of approval. If you do not receive the car within the 30 day period, you will have to re-apply at whatever rate is in effect at that time. On the other hand, if you aleady bank at BOA, or plan to, your local BOA loan officer might cut you some slack and give you a longer rate approval period....might be worth a trip to the bank to give it a try? Given even the slightest of reasons, the banks are bound to raise the rates as soon as they can so anything you can do now to lock in a rate just might be the thing to do.

[intense1]

OK that makes sense, but you guys are going directly through b.o.a where I want to get my b.o.a loan through the dealer I buy the car at. I know not all dealers participate with b.o.a, but the ones I'm looking at do, so would it work the same. I like the idea of just going to b.o.a directly around 20-25 days before the car is expected, but that would almost certainly mean a different rate...

[Patriot]

Just be carefull about having the dealer do the loan for you. They can easily add on a percent or two as pure profit for themselves. This is why you may as well get the the loan yourself through BoA. The dealer has no extral 'pull' for you when you apply through them. The only advantage a dealer has is that is one applications rejects for you, they can look around to get you financed with a higer rate lender.

If you credit is good, get the loan approved BEFORE picking up the car.

[el ess A]

If you bank with BOA, you MAY have luck in extending the rate until the car arrives. No guarantees, but it never hurts to ask. Our credit union knew our car was coming, so although they have a 30 day lock on the rate and a tentative arrival timeframe, the branch manager agreed they could wait an additional 15 days if need be without having to re-apply since we were longtime customers with a good loan record with them.

[intense1]

I don't bank with them, but I can open an account if it helps. I never thought a dealer would do such a thing like add fee's, and interest, but I can see it happening. So if I order a 2011 this week, I'm under the assumption I would take delivery some time in July/Aug., then I probably should apply for the loan at the end of June. Does this sound about right. I'm trying to avoid 2 things 1: the dealer putting multiple credit apps for me, and 2: paying interest above 5%.

[Patriot]

Originally Posted by intense1

... ... ... I'm trying to avoid 2 things 1: the dealer putting multiple credit apps for me, and 2: paying interest above 5%.

Equifax, Experian and Trans Union do not penalize you for multiple credit hits if they are all around the same time (within a month) and they are all for the same purpose (car loan). They have algorythms to calculate this. They know people shop around and end up filling out multiple applicaitons at the different dealers during the car buying process.

As for the delivery date, I expect to be in that first or second week of production, so the last week of June or first week of July is when I expect delivery. Not sure why you think August.

Depending on your amount financed and term, the difference between a few percent may be a non factor in your decision process. Example: for a 60 month loan for $30,000, the payment difference between one percent and another is $13 a month. For a $20K loan, the difference is about $8.

[Mr_Draco]

Originally Posted by Patriot

As for the delivery date, I expect to be in that first or second week of production, so the last week of June or first week of July is when I expect delivery. Not sure why you think August.

Just curious but how are you expecting a 2-3 week delivery when it takes 6-8 weeks?

Even if you are built week 1, the car won't be delivered until week of July 19 at the earliest. That's not taking into account QC that the first cars of a new MY goes though nor the 2 week break GM has scheduled start of July.

[Patriot]

Originally Posted by Mr_Draco

Just curious but how are you expecting a 2-3 week delivery when it takes 6-8 weeks?

Even if you are built week 1, the car won't be delivered until week of July 19 at the earliest. That's not taking into account QC that the first cars of a new MY goes though nor the 2 week break GM has scheduled start of July.

I got the idea form here:

CamaroScotty quote:
Pricing won't be out until late May - the latest I heard - but don't expect much of an increase, If any. Your order, based on what I read is in the "first 2011 allocation" - so it will be built the first week, June 7th... you should have it before the 4th of july.
http://www.camaro5.com/forums/showthread.php?t=80723


But you do bring up a good point about the shutdown. But why would they shut down a plant a few weeks after new MY production begins ?

[Mr_Draco]

Originally Posted by Patriot

But you do bring up a good point about the shutdown. But why would they shut down a plant a few weeks after new MY production begins ?

GM has always given their employees and shipping companies a 2 week break starting the first full week in July.

[USAFJeeper]

I was pre-approved with BoA twice. I had the 3.06 rate at first then the car took past 30 days so I had to reapply and the rates moved up to 3.7 My dealer asked if she could try to beat it and she did by .3 so I let them finance it at 3.4 through the bank that holds my mortgage as well! So, I was financed but they beat teh terms so I let them get the kickback they get for servicing the loan.

All in all, the max extension you can get on a BOA loan is 5 days, after that you reapply.

[Maa107]

Just curious here too (didnt want to make a whole new thread), what if im not approved for a loan and have to re-apply somewhere else? do they hold the car for me or do they list it as "for sale" until i come up with the funds?

also i plan on ordering in early to mid-july for a mid august arival, now what if im in the process of applying and im waiting for the check what happens to my car? (i guess this kinda goes along with the first question lol)

[CamaroScotty]

Originally Posted by Maa107

Just curious here too (didnt want to make a whole new thread), what if im not approved for a loan and have to re-apply somewhere else? do they hold the car for me or do they list it as "for sale" until i come up with the funds?

also i plan on ordering in early to mid-july for a mid august arival, now what if im in the process of applying and im waiting for the check what happens to my car? (i guess this kinda goes along with the first question lol)

Get pre-approved...it only takes a little time

One time is all we need.