That makes no sense, either. Why are you posting things that are so extremely wrong? You should just stop posting until you have a grasp on the reality of how things really work.While I agree that they won't get the whole check for $25,500 that I was wrong, but there's something else going on here. My gut feeling is that he got 3%, which the interest may account for maybe $500-700, the dealer still gets the $24,800 or so check and lied to him about 11% APR when in fact, it is 3%. Thus, the sale price (and amount that the dealer will get) is much more than $20,000.
I just read this, congrats on the purchase. Buying a car cash is always best, now make the payments back to yourself.... but I wasn't going to get suckered into the interest rate so I decided to pay it all upfront.
So you're saying 750 credit score, 11% APR, $20k new Civic EX is true and honest?That makes no sense, either. Why are you posting things that are so extremely wrong? You should just stop posting until you have a grasp on the reality of how things really work.
In my case, the bank got the whole interest rate, but I walked in and took the bank's pre-approval with stated interest rate and what amount I'm approved up to - the dealer said they couldn't beat the rate.So are y'all saying that the dealer doesn't get a percentage of the interest rate? Because I always assumed that they did...
If you finance through a 3rd party no, it's purely a cash deal for them and they get whatever you pay them and the interest you pay on the loan goes to the bank/credit union you used.So are y'all saying that the dealer doesn't get a percentage of the interest rate? Because I always assumed that they did...
I'm talking about the grayish third-party financing. My dealer, for example, secured my Bank of America loan on my behalf, and bank of America basically refused to do business with me directly (as in, tell me the interest rate) when I inquired about it, they said I need to go through my dealer. I feel like there is a reason they were being hush. I'm not saying it is a certain way or it isn't a certain way, this is just my speculation. Is this what you're referring to as third-party financing, or are you talking about when you shop for yourself, because I know in the case of shopping for yourself obviously the interest is going straight to the bank.If you finance through a 3rd party no, it's purely a cash deal for them and they get whatever you pay them and the interest you pay on the loan goes to the bank/credit union you used.
If you finance through Honda, then honda gets the money from the interest on the loan and the dealer gets some bonus money.
I meant when you shop for yourself.I'm talking about the grayish third-party financing. My dealer, for example, secured my Bank of America loan on my behalf, and bank of America basically refused to do business with me directly (as in, tell me the interest rate) when I inquired about it, they said I need to go through my dealer. I feel like there is a reason they were being hush. I'm not saying it is a certain way or it isn't a certain way, this is just my speculation. Is this what you're referring to as third-party financing, or are you talking about when you shop for yourself, because I know in the case of shopping for yourself obviously the interest is going straight to the bank.
Dealers don't get MUCH of a kickback. Most states its illegal to increase the approval percentage or only allows for a few points.I meant when you shop for yourself.
When the dealer arranges it I believe they get a kickback.
20K OTD is a great deal.Hey all! Thanks for your replies. I have yet to understand what in the heck happened. I will be receiving letters in the mail stating the reason for denial, but I wasn't going to get suckered into the interest rate so I decided to pay it all upfront. Although I preferred to finance the amount, I decided it was best to avoid the headache of a lender given the circumstances. Luckily, even if I planned to finance, I had the amount in cash so I ended up paying it all in full. My final price was $20K OTD as per the agreement.
Not true!Dealers don't get MUCH of a kickback. Most states its illegal to increase the approval percentage or only allows for a few points.
that's completely different than anything I spoke about. I'm talking about actual finance interest rates. Not other bonuses.Not true!
Especially at year end- most if not all manufacturers have their usual year end sales and their respective Financial Arms provide added incentives to dealerships to finance- instead of having customers pay cash in those deals (the knowing buyer can say- I know your getting a kickback of $500 from Honda on this contract for example- lower my deal- another $250.00 over and above our final price if I finance- hell they still make $250.00 on the finance contract) plus any year end volume sales dealerships bonuses.