Over MSRP Question

[OrangeCruSSh]

I'm pretty seasoned with respect to car purchasing but I have a quick question about folks paying a lot over MSRP. Assuming folks finance a car that is over MSRP how are they getting loans on a car that is over MSRP? Financial institutions will not lend you more than retail price. Are these folks covering the difference above MSRP (bigger down payment) out of pocket? What lending institution will lend over what a car is worth? Especially in this economy??? I'd love to hear your thoughts on this? Peace.

[IsellCamaros]

Alot of finance companies will finance over MSRP. Tax and tags alone will put you over 100% of the value.

[2010SSRS]

Originally Posted by OrangeCruSSh

I'm pretty seasoned with respect to car purchasing but I have a quick question about folks paying a lot over MSRP. Assuming folks finance a car that is over MSRP how are they getting loans on a car that is over MSRP? Financial institutions will not lend you more than retail price. Are these folks covering the difference above MSRP (bigger down payment) out of pocket? What lending institution will lend over what a car is worth? Especially in this economy??? I'd love to hear your thoughts on this? Peace.

i doubt anyone's financing 100% loan values. matter of fact, most finance places wont go over 80% value anymore.

those paying over MSRP are probably putting a lot down or paying cash altogether. anyone financing more than 80% (if you can) should have their head examined.

[OrangeCruSSh]

Originally Posted by IsellCamaros

Alot of finance companies will finance over MSRP. Tax and tags alone will put you over 100% of the value.

10K over?

[GTAHVIT]

That's why dealers want you to get your financing from one of their lenders. Because they will accommodate the Sticker price that the dealer negotiates with you.

This is also the reason why you don't get a good deal why you pay cash. It used to be that cash was a great way to save money on the price of a car. No more. The banks got smart and are offering incentives to dealers for using their loans.

The deck is stacked against us I'm afraid...

[2010SSRS]

Originally Posted by IsellCamaros

Alot of finance companies will finance over MSRP. Tax and tags alone will put you over 100% of the value.

in this credit and economic environment............BS. a select few doing it for 800 on up credit scores........maybe. "ALOT"...........no way.

[GTAHVIT]

Originally Posted by 2010SSRS

in this credit and economic environment............BS. a select few doing it for 800 on up credit scores........maybe. "ALOT"...........no way.

If you use a dealer's lender you might be surprised...

[Chevyrocker]

It's not uncommon for most banks to go up to 110%-115% of book value. Being in the business, I see these loans written almost everyday. Some people just don't like putting money down when purchasing a vehicle, so the banks know that they have to be a little flexible. If you have good credit (680+) and good car history (paid loans without any lates) it's really not that hard to pull off.

[2010SSRS]

Originally Posted by Chevyrocker

It's not uncommon for most banks to go up to 110%-115% of book value. Being in the business, I see these loans written almost everyday. Some people just don't like putting money down when purchasing a vehicle, so the banks know that they have to be a little flexible. If you have good credit (680+) and good car history (paid loans without any lates) it's really not that hard to pull off.

and it's those same people who got us into the credit mess we're in! both the folks with no cash to put down buying stuff they can't afford and the lenders giving them the loan.

if you can't come up with 20% cash down, YOU CAN'T AFFORD IT!

i still don't think it's as common as ya'll think.

[GTAHVIT]

Originally Posted by 2010SSRS

and it's those same people who got us into the credit mess we're in! both the folks with no cash to put down buying stuff they can't afford and the lenders giving them the loan.

if you can't come up with 20% cash down, YOU CAN'T AFFORD IT!

i still don't think it's as common as ya'll think.

I agree 20% should be required.

As far as commonality? I guess we agree to disagree.

[Chevyrocker]

I would go so far as to say 50% of the deals that get written are $0 down. I'm with you on the 20% though. I can't stand when people think they shouldn't put money down on a purcahse as bis as a car.

[Verio]

Originally Posted by 2010SSRS

and it's those same people who got us into the credit mess we're in! both the folks with no cash to put down buying stuff they can't afford and the lenders giving them the loan.

if you can't come up with 20% cash down, YOU CAN'T AFFORD IT!

i still don't think it's as common as ya'll think.

Seriously, enough of your . I'm not putting 20% down, and I doubt many are either. In fact, I'm going to be upside down on my loan. I'm trading a car in, that I owe more than it's worth. Why? Because prices have deflated so quickly in the last 2 years. My car needs MORE work on it than it's worth. It's an easy decision for me.

Don't go spouting stuff on the internet that you know nothing about. Not putting 20% down on a car has nothing to do with your ability to repay.


Edit: Well, I am putting 5K down to offset /some/ of the negative equity in my old car... but it's not 20% down on the base car.

[PsyDoc]

Originally Posted by Verio

Seriously, enough of your . I'm not putting 20% down, and I doubt many are either. In fact, I'm going to be upside down on my loan. I'm trading a car in, that I owe more than it's worth. Why? Because prices have deflated so quickly in the last 2 years. My car needs MORE work on it than it's worth. It's an easy decision for me.

Don't go spouting stuff on the internet that you know nothing about. Not putting 20% down on a car has nothing to do with your ability to repay.


Edit: Well, I am putting 5K down to offset /some/ of the negative equity in my old car... but it's not 20% down on the base car.

2010RSSS is not spouting off . Perhaps if more people did not have the "Gotta Have It NOW!" mentality and put themselves on a budget so they actually afford what it was they were buying, then perhaps the U.S. would not have the economic pains its currently experiencing. The reason financial experts state for putting down 20% is that percentage covers the first year’s depreciation so you are not upside-down on your loan should something happen to the car in the first year of ownership. The Federal Citizen Information Center that is maintained by the federal government suggests a bare minimum of 10%, though suggests you should put down more if you can afford it.

In my case, I want a restored 1st gen Camaro. It's not a necessity...it's a want. I could have easily taken out a loan and bought one. But, because it's a want and not a need, I have been saving money for one. Why? So, when I do buy one, I do not put myself or my family in a bind should an unforeseen expense come up (e.g., central heat/air system dies, etc.).

[sykb47l]

USAA does 120% of the msrp.