2011 Mustang 5.0 - Daily driver

Discussion in 'Motorized Vehicles' started by CanadianDude, Jul 9, 2010.

Thread Status:
Not open for further replies.
  1. Thaenatos

    Thaenatos Zero Cool

    Reputations:
    1,581
    Messages:
    5,346
    Likes Received:
    126
    Trophy Points:
    231
    All I can say is that PNC bank is getting all the money from our car loans. Maybe Im missing something but thats how it looks on paper.
     
  2. linuxwanabe

    linuxwanabe Notebook Evangelist

    Reputations:
    145
    Messages:
    643
    Likes Received:
    0
    Trophy Points:
    0
    Of course the bank collects your monthly payments. The bank gives the dealership their potential 3% markup upfront, which is a pretty good deal. The customer never knows if the dealer has bumped up the rate by as much as 3%.
     
  3. r0b0t c0rpse

    r0b0t c0rpse Notebook Consultant

    Reputations:
    0
    Messages:
    184
    Likes Received:
    0
    Trophy Points:
    30
    but it's still a ford.
     
  4. r0b0t c0rpse

    r0b0t c0rpse Notebook Consultant

    Reputations:
    0
    Messages:
    184
    Likes Received:
    0
    Trophy Points:
    30
    This is exactly whats happening. You don't see it, because the bank pays it to the dealer up front when they give them the check for the balance to finance. Why would you think you would see it on paper? You'd write a 300$ check to bank xyz and a 10$ check to dealer abc? No...

    I set up the networks and software that runs in car dealers...

    NEVER, EVER, EVER, EVER get financed at the dealer. They will try and push high interest rates on ANY one including those with good credit. Hate to say it, people who walk in and get financed at a dealer have a big SUCKER on the forehead when they walk in and and sales person can spot them a mile away.

    The bank they're hooked up with will have a deal with them that they're allowed to increase the rate by X %, what ever X % they can sell you extra they will get some share of that, usually 60-100% of the extra, as commission on the loan. Obviously, they also get a check for the balance to finance from the bank.

    The trick is, most cars at a dealers are on what's called "floor plan", where for example, the dealer borrows the money from a bank to buy a car, say a 10,000$ car, the dealer only puts 1000$ of their own cash. When they sell the car, for say 15,000 financed, they get the commission on the interest, pay off the 9000 they borrowed and basically made ~6000 for a 1000$ investment.

    1.) Go to your personal bank. (or any bank)
    2.) Have them pre-approve you for a loan. They will need to know what kind of car you are looking to get. New/Used.
    3.) They evaluate the risk, (your credit score, what the car is worth VS what you're paying)
    4.) They will give you their terms (they will be better than going through the dealer as the middle man)
    5.) You accept the terms (or not)
    6.) The cut you a check for the balance to fiance, and you take it to the dealer and buy the car.
    7.) You pay the bank.

    I don't like debt.

    I have an 800+ credit score, but because I borrow intelligently. Instead of buying something I can't afford, I take 0% opportunity's when I have the cash on hand to buy it out right. I let that cash sit in a bank and make my payments. At the end of the term, I've increased my credit score, and that lump of cash earned interest as it sat in an account.

    When that's not possible, I prefer to deal in cash.
     
  5. millermagic

    millermagic Rockin the pinktop

    Reputations:
    330
    Messages:
    1,743
    Likes Received:
    0
    Trophy Points:
    55
    I almost fell for it last night, kinda. I was looking at a $11000 car which is a bit out of my price range for cash. I already have a loan "approved" just waiting to find the right car. Even at that, financing a car ... especially a USED car just doesn't make sense. If I can't cut a check for the car* I can't take it.

    *Unless I'm desperate for a vehicle.
     
Loading...
Similar Threads - 2011 Mustang Daily
  1. Yariko
    Replies:
    14
    Views:
    1,094
  2. hmscott
    Replies:
    3
    Views:
    720
Thread Status:
Not open for further replies.

Share This Page