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Buh-buh-butttttt....banks are EVIL. They take advantage of people who can't be expected to read the fine print. Personal responsibility is not required of someone to get a car loan. At least that's what Obama told me...
And....I am sure that he is telling the truth, the whole truth and nothing but the truth!
That's actually not quite right, the legal limit the finance company can charge is 24.99%, 27% must be if you include what a dealer might add on (they can legally add up to 3%)
And yes, we see people finance at that rate every single day, some people simply do not have any other choice.
Personally I think it should be illegal to charge anything over 10%, but that's just my opinion.
It depends on state, they vary as to their cap. To be exact, I think Texas is at 26.5%.
Well, if everyone paid their bills on time, that might be viable (10%), but we both know that isn't the case and many people are just incredibly irresponsible, even when they have the money to pay. I have heard stories of guys pulling in 16k a month, having to take a high risk loan and they STILL pay late and are problems for the collectors.
As it is now, sure... it is high in some states, but at least irresponsible people still have a chance to get a loan, even if it is expensive. They cap it at 10% and nobody would loan to the high risk people anymore as it would be a lose/lose business. These people cost businesses a lot of money and if they can't charge penalty fees and high interest for them, well... it isn't worth the time.
Personally, I think government should stay out of it. As long as a person isn't "forced" to a deal, it should be up to them as to how much they are willing to pay.
My guess would be that she has either no credit or a very low credit score. She is an adult, she signed the loan, it is not the lenders problem, no one forced her to sign the agreement.
If she had a doubt, she should have talked to someone who has more financial sense than she does.
Agreed, but to be fair some of these dealers are down right criminal. No, I am not saying devious, manipulative, etc... but absolutely criminal (they break the law). So, while I agree that in most cases, it is just an issue of the signer not paying attention or letting someone rush them, or they just plain don't care at the time, there are some cases where people are directly lied to.
No disrespect but how long did it take for her to be shown the deal and then sign the contract.? I suspect it was only several seconds or maybe minutes... I think this is what happened..Is it?
Hi everyone today i would like to ask something relating to your topic which is that i want to buy a new car but i don't know proper information about car purchasing if anyone guide me here than i will thankful to him??
I think the first thing you need to do is take a look at your finances.
See what price range you can afford and which means you will need to make a decision on whether to finance or buy the car with cash. If you need to finance, check sites like bankrate and see what the typical going interest rate is. Take a look at your credit and goto your bank and see what kind of a loan you will be able to get. If financing, i would take a look at the manufacturer's website to see what kind of special financing and incentive programs are being offered.
Now, it's time to select the car you want. Test drive as many cars as you need and narrow down your choices. No need to go out of your way and just visit some of your local dealerships. If you plan on servicing your car at you local dealer, sometimes it's beneficial to buy there as well as they have loan car programs and what not for their own customers only.
Once your car has been selected, again, go to the manufacturer's website and look at all the dealers in your area and email all of them for quotes and make sure to get out the door price which will exclude tax, title and registration. Research online to see what others are paying for that particular year and model. Compare the quotes you have received with your research. Hopefully, one of those dealer quotes will beat the price you have researched. Now take that best dealer quote and go to your local dealer and have them beat it or at worst, match it.
Once price is agreed and if financing, it's time to meet with the finance manager at the dealership. From your previous research, you already know what interest rate you qualify for. Have the finance manager either match or beat the interest rate. At the worst, you will finance with the bank of your choice.
The finance manager will now hit you with offers of tire warranty, service contracts, paint protection and blah blah blah. All BS in my opinion other than service contracts. Extended warranty and service contracts is your choice but do know that price is negotiable. If you go with extended warranty, make sure it is offered by that manufacturer or a reputable company.
When it's time to pick up the car, go over every detail with a fine comb. During transport and while its time at that dealer lot, a lot can happen to that car. Scratches, swirl marks, dents, you name it... it can happen. Just because its a new car, doesn't mean that it is damage free.
Personally... when I pick up a new car... I get the exterior detailed immediately.
Hi everyone today i would like to ask something relating to your topic which is that i want to buy a new car but i don't know proper information about car purchasing if anyone guide me here than i will thankful to him??
I can't get over the bit that involves twenty three percent interest rate.
Yeah. I can't get over the fact that we live in an age with all the information in the world at our fingertips. From how to bake a casserole to how to hang & finish drywall to how to negotiate a car...and most people use these tools to look a photos of cats stuck in strange places.
Personally I think it should be illegal to charge anything over 10%, but that's just my opinion.
lol, at what point exactly does it become usury?
Quote:
Originally Posted by TheViking85
Yes, but at many traditional dealerships, the sales person is paid a commission based off the sale of a finance solution, not all financing companies yield the same commission, most sales people, when faced with uninformed customers will therefor select the finance approval where they get the best commission, not the one that necessarily best suits the customer.
Definitely. My examples were very simplistic and there is much more variability then that. Different banks will have different comissions, etc. I personally expect the dealer to pick what works best for them.
Interestingly enough, Forbes did a study a couple years back when they looked at interest rates on loans negotiated through a dealer vs. loans people negotiated themselves through a bank or credit union. They excluded manufacturer incentive offers and found that, on average, dealers actually get their customers slightly better rates then the customer can get themselves.
Quote:
Originally Posted by duster1979
Not really. The dealership is paid a one-time lump-sum commission where the lender collects interest based on the daily (or weekly or monthly, depending how it's calculated) loan balance. So while subtracting the dealer's commission and considering it separately would lower the effective rate of the loan, the calculation isn't nearly as simple as subtracting the dealer's cut from the bank's interest rate.
You are very correct, I was trying to keep it simple for the purpose of keeping it simple, lol.
Quote:
Originally Posted by Abner0
Hi everyone today i would like to ask something relating to your topic which is that i want to buy a new car but i don't know proper information about car purchasing if anyone guide me here than i will thankful to him??
Find a guy on Craigslist that has several postings for cars that are at least 500 miles away from you. These should be the best deals you can find and even better, they will usually ship the car to you. All you have to do is wire them the money...
Yeah. I can't get over the fact that we live in an age with all the information in the world at our fingertips. From how to bake a casserole to how to hang & finish drywall to how to negotiate a car...and most people use these tools to look a photos of cats stuck in strange places.
...but they're soooooo cute....
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