Financing --> Lower the rate?
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Joined: Aug 2003
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From: Coquitlam
Car Info: 1985 Corolla AE82 FWD
Financing --> Lower the rate?
Got a question regarding financing.
Is it possible for the dealer to lower the financing rate if you can bargain with him (or her) to do so?
I guess its quite difficult to bargain down the financing rate AND the price, huh? Or is it possible?
And can dealerships finance used cars too?
Is it possible for the dealer to lower the financing rate if you can bargain with him (or her) to do so?
I guess its quite difficult to bargain down the financing rate AND the price, huh? Or is it possible?
And can dealerships finance used cars too?
Last edited by dugrant153; Oct 16, 2003 at 10:47 PM.
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I've had the experience. I was approved for a car and drove it off the lot. A week later the finance manager called and said the rate was higher than originally agreed on. I came back to drop the car off becasue I don't play games like that. When I came back the sales manager that I had dealt with had no idea what was going on, he said they could buy the rate down, kind of like adding points to a mortgage, to get the rate back down to the original rate.
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From: Reno, NV
Car Info: 1993/2000/2001 GF4 mostly red
The rate you agree to at the lot is set by the sales manager- it's then his resonsibility to get a bank to agree to that rate. If you don't get him to lower it, it will be easy for him. Basically, you really only need to negotiate 2 things to get a good deal- down payment and monthly payment. Keep an eye on everything else, (rate, purchase price, dealer add-ons, etc.) but no matter what he wants to try and charge you for each particular item, it all comes down to the bottom line. If you want to email me and give me a few personal details I can give you some pretty good ballpark figures for the cars you are interested in as I used to be a car salesman.
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Joined: Aug 2003
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From: Coquitlam
Car Info: 1985 Corolla AE82 FWD
So I should try to bargain down on the MSRP instead and just go with whatever financing rate?
I talked to a salesman and he said he could match rates with other competitors. Is this true? Or does it have to be with similar dealerships?
I talked to a salesman and he said he could match rates with other competitors. Is this true? Or does it have to be with similar dealerships?
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Do NOT bargain down from MSRP! Bargain UP from invoice in small increments ($25 or so). Don't up your offer until they give you a number first, and whatever you do, don't pay more than 3% above invoice either. (invoice x 1.03 = max)
The financing rate is negotiable. This is where the dealership makes most of it's money. A lot of people don't know that. If you're buying new, I wouldn't go any higher than 3.9%. And remember, if they won't come down from that it's a sure bet that another dealership will. I can tell you that from personal experience. (saved about $600 overall with the lower rate!)
The financing rate is negotiable. This is where the dealership makes most of it's money. A lot of people don't know that. If you're buying new, I wouldn't go any higher than 3.9%. And remember, if they won't come down from that it's a sure bet that another dealership will. I can tell you that from personal experience. (saved about $600 overall with the lower rate!)
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this thread has been really helpful! do any of you know what kind of variables could affect getting a low rate of 3.9%? i'm looking to get a 04 wrx and im not too sure how i could check my credit rating to get a good financing rate. im pretty sure i don't have bad credit but you never know... 
i don't want to go into the dealership to negotiate without any ammo lol any help would strongly be appreciated 
i don't want to go into the dealership to negotiate without any ammo lol any help would strongly be appreciated
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Joined: Oct 2003
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From: College Park, MD
Car Info: 05 Black w/ Gold STi
Check http://www.edmunds.com/advice/financ...6/article.html for info on your credit report and links to the 3 major credit bureaus where you can order copies of your credit report. You can also get it for free/cheap from those freecreditreport.com places, but you'll have to remember to cancel the monthly subscription thingy they sign you up for in the small print. personally i'd rather pay the bureaus a couple of dollars for the report than deal with some fly by night .coms.
The more money you put down the more likely they will give you a better rate since you're borrowing less money, thus you're less of a risk.
http://www.edmunds.com also has a bunch of other good stuff on your credit info and financing that might be helpful to you.
If you or someone in your family works for any kind of state or local government you can probably join in with a state credit union and get really good rates too. (Many companies have worked out deals with state credit unions too, google for your state credit union's page to find out more). I work for the state and with $10 in a savings account there I can get all of their low rates. They have 2.9% right now, my worst case scenario is the 5.75% recent college grad rate, which is still a lot better than my other bank's rate is and a hell of a lot better than what the Suby dealership i went to was trying to give me... they tried to get me to sign up for 8.9% for 72 months. I laughed and walked out. I didn't want a Silver/Silver STi anyways...
Still waiting to try again elsewhere to get a black/gold Sti once I save up just a bit more...
The more money you put down the more likely they will give you a better rate since you're borrowing less money, thus you're less of a risk.
http://www.edmunds.com also has a bunch of other good stuff on your credit info and financing that might be helpful to you.
If you or someone in your family works for any kind of state or local government you can probably join in with a state credit union and get really good rates too. (Many companies have worked out deals with state credit unions too, google for your state credit union's page to find out more). I work for the state and with $10 in a savings account there I can get all of their low rates. They have 2.9% right now, my worst case scenario is the 5.75% recent college grad rate, which is still a lot better than my other bank's rate is and a hell of a lot better than what the Suby dealership i went to was trying to give me... they tried to get me to sign up for 8.9% for 72 months. I laughed and walked out. I didn't want a Silver/Silver STi anyways...
Still waiting to try again elsewhere to get a black/gold Sti once I save up just a bit more...
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