What the dealer said... - Page 4 - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

LaffChevy · 03-19-2008, 04:59 PM

Quote:

Originally Posted by rolnslo

See, this is why I don't do anything at the dealership besides talk final price - no trade in, no financing/monthly payment numbers, no overpriced add-ons. Give me an amount to write on the check and I'll tell you where to send the paperwork for the title. End of game.

I was screwed only one time on financing before I learned what really happens, only it wasn't +2% for the dealer, it was 4.5% extra.

Off my soapbox now...

some states have laws in place telling dealerships how much over the buy rate they are allowed,like in PA we are allowed buy law to only make 2 extra points on financing,i dont know about other states however 4.5 seem's high you could check with your attoreny genral's office and if you are still paying on the car if the offending dealer broke the law mabey you could get a small ammount back

rolnslo · 03-19-2008, 05:11 PM

Quote:

Originally Posted by LaffChevy

some states have laws in place telling dealerships how much over the buy rate they are allowed,like in PA we are allowed buy law to only make 2 extra points on financing,i dont know about other states however 4.5 seem's high you could check with your attoreny genral's office and if you are still paying on the car if the offending dealer broke the law mabey you could get a small ammount back

This was in WA in 1999. I refinanced the loan through another lender before the 2nd payment was made after reading an article in the Seattle Times that it was common practice for local dealerships to mark up the approved loan interest rates by up to 5%. The re-fi dropped my payments from $424 to $303 over the same time period. At least I know better now.

*TAG UR IT* · 03-20-2008, 12:34 AM

^WOAH. That's a HUGE amount. So....let me see if I have this straight.

I call up my bank and they say they can offer me a 6.5% finance rate for a 5 year 60 month loan. Is there a better "buy rate" from them?

And...when I go to the dealer and say, "My bank told me they will give me 6.5%...what will you do to beat that?" And they say, "4.4%." Are you telling me that the dealer can actually go below that since my "buy rate" would be lower than 4.4%?

See, the reason I ask is that I actually did this. USAA offered 6.5 and the dealer says, "They can't touch my rate....4.4%" I was floored that he went that low. I actually called USAA back and asked if they could beat it. They said they would match it, but that was it. I went with USAA which pissed off the dealer, but still....going with USAA still saved me more money than going with the dealer since payments are direct out of my account.

I just want to make sure I understand this correctly...

If the dealer said 4.4% and i asked to see a "buy rate," could it have been lower? And, if it was lower...say 3.3%, what would be a good finance rate (agreeable to both parties) for me? 3.9? I mean, the dealer would still make money. But, how much? Do you give the dealer 1% over buy rate?...2%???

Sterling · 03-20-2008, 12:56 AM

Most people walking into a Dealership don't do the extra footwork of getting the rates that their banks are offering. Or if they do, it's just the posted rates for people with perfect credit, which probably isn't accurate for their situation. My guess is that in your case, the dealerships Finance guy probably gave you the lowest possible rate that they could, very close to the buy rate. They wouldn't have let you finance somewhere else if they could go lower and still make something on the deal. It sounds like you got a pretty fair deal offered to you, but you were still better off with USAA.

stovt001 · 03-20-2008, 01:11 AM

So does this mean when I'm offered 0% financing I'm actually approved for negative rates? Cool!

Sterling · 03-20-2008, 01:15 AM

That is a special promotion directly through GM. The dealership will get a flat fee from the manufacturer for those deals, and not everyone will qualify. They are also short term loans which will make your monthly payment higher than you may want it.

stovt001 · 03-20-2008, 01:41 AM

Ah gotta love the serious answers to joke questions.

I'm just playing man.

Sterling · 03-20-2008, 02:24 AM

If you do happen across a negative rate... let me know. That would be a great reason to start a HUGE Camaro collection!

stovt001 · 03-20-2008, 02:40 AM

Ha, well actually according to finance principles, a 0% interest rate is really a negative rate, because you have to subtract inflation to get the real rate.

Sterling · 03-20-2008, 02:42 AM

Quote:

Originally Posted by stovt001

Ah gotta love the serious answers to joke questions.

I'm just playing man.

*TAG UR IT* · 03-20-2008, 03:20 AM

Quote:

Originally Posted by sterlingnotes

Most people walking into a Dealership don't do the extra footwork of getting the rates that their banks are offering. Or if they do, it's just the posted rates for people with perfect credit, which probably isn't accurate for their situation. My guess is that in your case, the dealerships Finance guy probably gave you the lowest possible rate that they could, very close to the buy rate. They wouldn't have let you finance somewhere else if they could go lower and still make something on the deal. It sounds like you got a pretty fair deal offered to you, but you were still better off with USAA.

I ask, because after being offered 4.4 from the dealer, USAA matched. And, when USAA matched (and I agreed to go with them), the deale said, "3.9!!! 3.9!!!!" After verifying that USAA woudn't go any lower than the initial offer of 4.4, I went with it. Should I still have gone w/ the dealer for 3.9? Because we are getting really low here and I am basically REALLY curious to what the buy rate could have been.

GothamCamaro · 03-20-2008, 09:36 AM

Quote:

Originally Posted by TAG UR IT

I ask, because after being offered 4.4 from the dealer, USAA matched. And, when USAA matched (and I agreed to go with them), the deale said, "3.9!!! 3.9!!!!" After verifying that USAA woudn't go any lower than the initial offer of 4.4, I went with it. Should I still have gone w/ the dealer for 3.9? Because we are getting really low here and I am basically REALLY curious to what the buy rate could have been.

In the end going with the Bank is the best bet even with the 3.9%, it seemed he probably was at the buy rate minimum with throwing 3.9 at you. I guess he really wanted the sale? I'm wondering if we ask the dealers what their "buy rate" is if they would lie, they would legally have to tell us, right??

I learned alot from this forum, great questions and answers!

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03-20-2008, 12:34 AM	#45
TAG UR IT www.Camaro5store.com Drives: 2014 ZL1 #705 Join Date: Jul 2006 Location: SA, Texas Posts: 26,558 View My Garage	^WOAH. That's a HUGE amount. So....let me see if I have this straight. I call up my bank and they say they can offer me a 6.5% finance rate for a 5 year 60 month loan. Is there a better "buy rate" from them? And...when I go to the dealer and say, "My bank told me they will give me 6.5%...what will you do to beat that?" And they say, "4.4%." Are you telling me that the dealer can actually go below that since my "buy rate" would be lower than 4.4%? See, the reason I ask is that I actually did this. USAA offered 6.5 and the dealer says, "They can't touch my rate....4.4%" I was floored that he went that low. I actually called USAA back and asked if they could beat it. They said they would match it, but that was it. I went with USAA which pissed off the dealer, but still....going with USAA still saved me more money than going with the dealer since payments are direct out of my account. I just want to make sure I understand this correctly... If the dealer said 4.4% and i asked to see a "buy rate," could it have been lower? And, if it was lower...say 3.3%, what would be a good finance rate (agreeable to both parties) for me? 3.9? I mean, the dealer would still make money. But, how much? Do you give the dealer 1% over buy rate?...2%???

03-20-2008, 12:56 AM	#46
Sterling Drives: 2010 Camaro 1LT/RS M6 Join Date: Nov 2007 Location: Fairhaven, MA Posts: 5,885 View My Garage	Most people walking into a Dealership don't do the extra footwork of getting the rates that their banks are offering. Or if they do, it's just the posted rates for people with perfect credit, which probably isn't accurate for their situation. My guess is that in your case, the dealerships Finance guy probably gave you the lowest possible rate that they could, very close to the buy rate. They wouldn't have let you finance somewhere else if they could go lower and still make something on the deal. It sounds like you got a pretty fair deal offered to you, but you were still better off with USAA.

03-20-2008, 01:11 AM	#47
stovt001 Drives: 2006 Cobalt, 2004 Taurus wagon Join Date: Oct 2007 Location: California Posts: 3,812	So does this mean when I'm offered 0% financing I'm actually approved for negative rates? Cool!

03-20-2008, 01:15 AM	#48
Sterling Drives: 2010 Camaro 1LT/RS M6 Join Date: Nov 2007 Location: Fairhaven, MA Posts: 5,885 View My Garage	That is a special promotion directly through GM. The dealership will get a flat fee from the manufacturer for those deals, and not everyone will qualify. They are also short term loans which will make your monthly payment higher than you may want it.

03-20-2008, 01:41 AM	#49
stovt001 Drives: 2006 Cobalt, 2004 Taurus wagon Join Date: Oct 2007 Location: California Posts: 3,812	Ah gotta love the serious answers to joke questions. I'm just playing man.

03-20-2008, 02:24 AM	#50
Sterling Drives: 2010 Camaro 1LT/RS M6 Join Date: Nov 2007 Location: Fairhaven, MA Posts: 5,885 View My Garage	If you do happen across a negative rate... let me know. That would be a great reason to start a HUGE Camaro collection!

03-20-2008, 02:40 AM	#51
stovt001 Drives: 2006 Cobalt, 2004 Taurus wagon Join Date: Oct 2007 Location: California Posts: 3,812	Ha, well actually according to finance principles, a 0% interest rate is really a negative rate, because you have to subtract inflation to get the real rate.