Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Also, I believe most of the 0% offers are with in-house financing. i.e. Honda uses American Honda Finance Corp. GM uses GMAC, VW uses Volkswagen Credit Financial Services, etc. If the finance guy sent requests to "other banks", this would not have been in-house financing and none of those banks will offer 0%. For instance, on my last Honda, AHFC lowest rate was 4.something. I ended up going with a different bank on my own and got 2.49%.
Again, I was there with him. We asked his score cause he knew it was good but haven't check for a while. I was there when he filled out the application so all the numbers are 100% correct.
I don't think they were scamming him cause he went into the finance room stating they need to give him a good rate cause he has a standing offer from his bank for 1% (Eventhough he really didn't cause he never tried to find financing somewhere else). So they wouldn't have risking his business to scam him would they?
You would be shocked. Different stores have different models of how they make money. And for plenty of them a lie is perfectly in their wheelhouse. Some stores negotiate down real quick on price and their goal is to get you in the car and make as much as they can in the finance office, especially if they work on volume.
Quote:
Originally Posted by kcatheart
Actually, there was a manufacture cash rebate but the finance guy said that has nothing to do with it. Again, I was there and he said the cash rebate on vehicle has nothing to do with the finance cause the banks they get rates for has no knowledge of any rebates. They just know the numbers.
That means he didn't submit it to Toyota Financial. Who in their right mind would loan money at 0% interest? No one in the money lending business, that's for sure. So, it comes from the manufacturers finance arm, which is a bank that serves only to facilitate the sale of Toyota vehicles. From TFS, customers chose to take the rebate or subvented interest rate.
In my experience at a Toyota dealership, anyone with a score of 720 qualified unless there were really exigent circumstances. The finance office doesn't like it because TFS would only reimburse them a small amount for those deals.
You're Brother got a fair deal buying the car. He was lied to in the finance office. I don't know what his interest rate is, but if it was 3%, and he financed every penny at 60 months, then he only comes out losing roughly $300 taking the rebate and regular bank loan assuming he doesn't pay it off early.
What he should do is go to his local CU, refinance the car at 1.9% or better, and he breaks even on the deal. Even better, if he does it quick, the finance office won't get paid on the loan they wrote, which is wise so maybe they learn not to pull this again.
Maybe he got some other incentive in lieu of the 0%?
I think it was likely either 0% financing OR $1500 (or whatever the amount was) cash back. I've purchased 8 Toyotas over the last 14 years and have never had the finance people try to pull a fast one on me. If they are offering 0% interest, I get it. If they are offering cash back, I get it. If they aren't offering any incentives, then I generally get a decent rate because they match my credit union's rate. My credit score is 827.
Damn! We should have done that. But he's a one shop kind of guy. They gave him 2.9% and when he balked at it! they did go away but still came back and said that's the best they can do. We should have walked away.
Anytime you go car shopping...expect to have to walk out.
The last two times I went car shopping I had to walk out, only to get stopped and finally offered what I had originally wanted or been promised. It felt pretty much scripted at that point in terms of how the dealers negotiate. Why I hate car shopping.
...He went to purchase a new toyota for $22k and they were advertising 0% interest and he didn't even get it.
If he didn't get it, I wonder if anyone would?
I purchased a new Toyota at the end of last September and they offered me the 0% financing gig. This was through Toyota Finance. Knowing that I would be paying off the balance when I retire this upcoming March, and to help keep the monthly payment down a few bucks, I opted for the 0.09% financing. My FICO score is pretty close to your brother's, and my income is in the low six-figures. However, I do carry some revolving debt, but I guess that didn't affect their decision. The pricing was set through the Costco Auto Purchase program, so the price was discounted from M.S.R.P. and 'set in stone'. The only options I added were all-weather rubber floor mats and body side molding. Those were not discounted, but fairly low-cost items, so I wouldn't have saved much in any case.
Last edited by volosong; 04-26-2016 at 01:30 PM..
Reason: add'l info
Location: In a little house on the prairie - literally
10,202 posts, read 7,922,771 times
Reputation: 4561
Quote:
Originally Posted by kcatheart
I've always wondered this.
My brother who has a 810 credit score, stable job of 30 years making around $80 k a year, has no debt except for his mortgage that's around $1000/ month, and a few cc with no running balance cause he pays them off every month.
I know these figure a 100% correct. I know because I was there with him when he purchased the vehicle, filled out the application for finance, heard when the finance guy said his score was 810, etc etc.
He went to purchase a new toyota for $22k and they were advertising 0% interest and he didn't even get it.
If he didn't get it, I wonder if anyone would?
It depends on the offer. 0% may not be available on all models, or for all terms. He may have extended the term to get a lower payment, thus cancelling the 0% offer. Do you really know all the details of the deal? Does your friend understand all the details?
I got the .9% on my GLI when I purchased in 2011 new. It was the promotional rate so 0% was not available. I laughed when I went to sign for the car upon delivery, business/finance manager tried to pull one over by telling me I didn't get the .9% and I was about to stand up and walk out. He then tries to say that it was because my score was not that great. I opened my folder, pulled out a few sheets from my latest score check and made sure he knew that I knew my credit was excellent and over 800. At that point he apologized and said he would honor the .9%.
Needless to say I was out of that office with my car in about 10 minutes and no extra sales attempts were made after that little spat.
Dealers are sleaze and I avoid them at all costs, they are just a way for me to test drive a vehicle then I do my business via email.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
