Didn't qualify for loan.

nurvcom

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Mine was 21k financed and I have bankruptcy last year and shitty 590 score
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Boz

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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.
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.
 

JYR

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... but I wasn't going to get suckered into the interest rate so I decided to pay it all upfront.
I just read this, congrats on the purchase. Buying a car cash is always best, now make the payments back to yourself.

Also, if your credit history is what you say that it is but you got denied a loan from Honda and your local bank, I would begin an identity theft service. Something doesn't seem right.
 

corbygray528

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It's possible the finance guy entered some of your info wrong when sending out the requests, because with your credit score and you said you had no debts then there should be no problem getting one. My wife and I got one for 4% when we bought her car and we had absolutely no credit background at all and relatively low incomes.
 

too

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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.
So you're saying 750 credit score, 11% APR, $20k new Civic EX is true and honest?

If I'm so wrong, would you enlighten?

I inferred that the sales guy may say $20k price, but he would effectively walk out the door spending $25.5k due to some shady practice. The bank pockets the interest rate - that's a given. So the dealer gets the rest. The interest rate, if 3% at 60, you're probably looking at less than a grand.
 
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Furious85

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Maybe some has said this already but definitely get your free annual credit report from the 3 bureau's from annual credit report. From what your describing, it sounds like a sleezy sales man trying to con you. Check with your credit union/bank if you haven't already.
 

Jermany

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So are y'all saying that the dealer doesn't get a percentage of the interest rate? Because I always assumed that they did...
 

too

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So are y'all saying that the dealer doesn't get a percentage of the interest rate? Because I always assumed that they did...
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.

Jermany - It wouldn't surprise me if that's the case if the deal were dealer's financing (in the end, where is the line? Honda's financing at a Honda dealer). That's what I was inferring, but apparently, don't take my words for it.
 

totopo

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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.

If you finance through Honda, then honda gets the money from the interest on the loan and the dealer gets some bonus money.
 

Jermany

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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'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.
 


totopo

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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.
I meant when you shop for yourself.

When the dealer arranges it I believe they get a kickback.
 

mvance30

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I meant when you shop for yourself.

When the dealer arranges it I believe they get a kickback.
Dealers don't get MUCH of a kickback. Most states its illegal to increase the approval percentage or only allows for a few points.
 

StevenK

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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.
20K OTD is a great deal.
 

KenBT

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Dealers don't get MUCH of a kickback. Most states its illegal to increase the approval percentage or only allows for a few points.
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.
 

mvance30

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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.
that's completely different than anything I spoke about. I'm talking about actual finance interest rates. Not other bonuses.
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