Good info from Mercedes Benz finance. What it doesn't say is what kind of rate are we looking at right now? And what percentage of the MSRP will they finance?
And does the dealer make points on the transaction and will that be rebated to the purchaser, or kept by the dealer as additional profit?
Whether the dealer makes "points" or profits on car loans is really irrelevent. Someone is making a profit on the financing. The real question is "am I getting a good financing deal - is the interest rate and terms equal to, or more competitive than I can get outside the dealer financing?". I'm a mortgage broker and the real issue is the interest rate, terms and service. Believe me, someone is making money on the loan. All things being equal, it really doesn't matter who shows up with the money.
I intend to go through my credit union again (Pentagon Federal - http://www.penfed.org). They offer 4.99% up to 72 months. I applied online last Thursday, got instant approval, and got the black check in the mail on Saturday. It's nice cause you get pre-approved for a specific amount and then you can use the check anywhere for any car up to that amount.
Whether the dealer makes "points" or profits on car loans is really irrelevent. Someone is making a profit on the financing. The real question is "am I getting a good financing deal - is the interest rate and terms equal to, or more competitive than I can get outside the dealer financing?". I'm a mortgage broker and the real issue is the interest rate, terms and service. Believe me, someone is making money on the loan. All things being equal, it really doesn't matter who shows up with the money.
On this purchase I agree with the above. If you're dealing on any other car, they can typically lower your price and take some back with the financing points. I never deal for a car letting them know I'm not financing with them, hopefully will get the discount without having to pay for the usually more expensive dealer arranged loan
Dealer financing can be a trap. Sometimes they offer "$1500 off" or "1.9% financing". Normally you can't get both. You have to negotiate. You need to understand what they're trying to net. For example, you pay a higher price and get 1.9% financing, or a lower price ($1500 lower) and get regular financing at maybe 4.99%. They factor in all of this in to see what their net is. The 4.99% that someone quoted from their credit union is very good. Take a look at the fees associated with the loan - is there an origination fee, credit report fee, underwriting fee, etc. They can give you a lower rate and make it up in the fees. Nothing is standard. Buyer beware.
For those with bad credit, shame on you, then be prepared to pay a lot more.
LMAO!!!! What is wrong with you? That was plain rude! You better drop down your testosterone level a little - its stinking. Some people went through really bad periods in their lives where their credit might have gone off the sidewalk for a bit. You have no sympathy for them? Well "shame on you" for being so judgemental.
Thanks, that's helpful. Ii appears that only the base price is financed, which is a bit limiting. I really prefer the way Scion/Toyota posts their current rates.
You have no sympathy for them? Well "shame on you" for being so judgemental.
I have sympathy for their plight. Just as much as your sympathy for those whom they borrowed money from and failed to repay and then cry because they want to get more credit for a brand new car and it costs too much.
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1976 Rover Mini
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