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Another finance scam brought to you from your dealer. Number .........(lost track)!

jmrtsus

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#1
This one is being "offered" by several of the dealers we recently shopped. They will offer an additional $750 "rebate" if you take a higher interest rate loan. You are told to take it and after you buy the car refinance at a lower rate and you "make" $750 more on your down payment. The thing they DON'T tell you is you will never get that lower rate because you will be financing a USED car! Used car rates are higher and you may have to put more money down. Don't fall for it......they are giving you $750 more off the car but you will pay thousands more in interest in some cases. PASS on the "DEAL"!
 

Dpro

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#2
This one is being "offered" by several of the dealers we recently shopped. They will offer an additional $750 "rebate" if you take a higher interest rate loan. You are told to take it and after you buy the car refinance at a lower rate and you "make" $750 more on your down payment. The thing they DON'T tell you is you will never get that lower rate because you will be financing a USED car! Used car rates are higher and you may have to put more money down. Don't fall for it......they are giving you $750 more off the car but you will pay thousands more in interest in some cases. PASS on the "DEAL"!
This is not new, they do this on new cars and I have even pointed it out. Advertise the car for a stupid low price, honor that with the condition you finance through them at a higher than average interest rate usually tied into you cannot refi the loan and possibly not slam it either.

When I was still in the process of procuring my car a couple of members in San Diego were crowing about getting a base Black FiST for 15k before tax and lic.

That was exactly what was going as the member said his friend was headed to his credit union right after buying the car to try and refi it.
We never heard a peep out of those guys after that as I pointed out they probably would not be able too.

The proof was they never spoke up after that which means the guy got stuck with a high interest loan. He was embarassed and they were no longer going to talk about it because of it.
Dealer made their money off the car after all and snookered the public.
There was a dealer in Puente Hills doing the same thing. Had a Magnetic advertised for around 16k had to take their loan with higher rates and restrictions. My friend tried to get that one. He walked.
 
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#3
Hey guys,

I work as a Finance Manager for another brand and it is quite common now that the manufacturers lender will offer an extra rebate to finance through them, as a consumer you just have to watch 2 important things, one is to make sure the contract has no early payoff penalties, this can be found in the truth in lending section on the contract (if it does have a payoff penalty take the nike express out of there) and second verify with your lender beforehand whether it be a credit union or an outside bank what the rate would be if the car is used (you can actually apply for the loan through them in advance to make sure what you have available), some credit unions and banks have a late model used car rate where as long as the vehicle is a 17/18/19 they will still extend the new car rate to you, just have to do a little research up front before you sign up with the manufacturers lender. Hope this helps anyone else who runs into this.
 

Dpro

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#4
Hey guys,

I work as a Finance Manager for another brand and it is quite common now that the manufacturers lender will offer an extra rebate to finance through them, as a consumer you just have to watch 2 important things, one is to make sure the contract has no early payoff penalties, this can be found in the truth in lending section on the contract (if it does have a payoff penalty take the nike express out of there) and second verify with your lender beforehand whether it be a credit union or an outside bank what the rate would be if the car is used (you can actually apply for the loan through them in advance to make sure what you have available), some credit unions and banks have a late model used car rate where as long as the vehicle is a 17/18/19 they will still extend the new car rate to you, just have to do a little research up front before you sign up with the manufacturers lender. Hope this helps anyone else who runs into this.
Good info, ya when I bought mine my Fleet Manager flat out told that since I was buying with so many discounts and rebates get my financing outside of Ford as besidesthe O% they were offering in liu of rebates was the only good rate they had.
I went through Cap One and got pre approved going in. So I had my rate plus they allow early pay off. I am about to be paid offf on my 18 picked up last July first payment was last August. I will have given them about $450 in interest but I managed to get $5400 in discounts and rebates and private cash.
So I am still winding up way ahead of the game.
 
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#5
Good info, ya when I bought mine my Fleet Manager flat out told that since I was buying with so many discounts and rebates get my financing outside of Ford as besidesthe O% they were offering in liu of rebates was the only good rate they had.
I went through Cap One and got pre approved going in. So I had my rate plus they allow early pay off. I am about to be paid offf on my 18 picked up last July first payment was last August. I will have given them about $450 in interest but I managed to get $5400 in discounts and rebates and private cash.
So I am still winding up way ahead of the game.
Thats exactly it! Just have to do a little legwork ahead of time.
 
OP
jmrtsus

jmrtsus

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Thread Starter #6
Hey guys,

I work as a Finance Manager for another brand and it is quite common now that the manufacturers lender will offer an extra rebate to finance through them, as a consumer you just have to watch 2 important things, one is to make sure the contract has no early payoff penalties, this can be found in the truth in lending section on the contract (if it does have a payoff penalty take the nike express out of there) and second verify with your lender beforehand whether it be a credit union or an outside bank what the rate would be if the car is used (you can actually apply for the loan through them in advance to make sure what you have available), some credit unions and banks have a late model used car rate where as long as the vehicle is a 17/18/19 they will still extend the new car rate to you, just have to do a little research up front before you sign up with the manufacturers lender. Hope this helps anyone else who runs into this.
Thanks for your input. Could you supply us with the banks and credit unions that do finance a '17 or '18 as a new car? Our three banks and Credit Union does not and don't know of any here locally that does that. They all said any refinance would be at a higher rate than new car rates. (Wells Fargo, Suntrust and the CWA Credit Union) It would be a big help to members to be able to get that special financing. Thanks!
 
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#7
Thanks for your input. Could you supply us with the banks and credit unions that do finance a '17 or '18 as a new car? Our three banks and Credit Union does not and don't know of any here locally that does that. They all said any refinance would be at a higher rate than new car rates. (Wells Fargo, Suntrust and the CWA Credit Union) It would be a big help to members to be able to get that special financing. Thanks!
Best thing to do is look online for any banks or credit unions in your area, they all post rates/terms on their websites. For instance it looks like your in TN and there is The Tennessee Credit Union in your area and they are posting rates based off model year only and don't consider whether it is a new or used vehicle. Once you have a few options call them directly to verify everything. Giving a list is a little difficult because of some restrictions certain lenders have, for instance there is a credit union in the county up this way that only allows members ship if you work or live in this county.
 

Ford ST

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#8
You have a bank account with Wells Fargo? you're officially not allowed to give anymore financial advice if you do any business with that criminal Enterprise that they call a bank. Like the person above mentioned credit unions post there rates very openly on the website. Rates sure have gone up in the last few years.

Sorry I'm a little obsessed with finances.

Sent from my LG-LS997 using Tapatalk
 
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jmrtsus

jmrtsus

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Thread Starter #10
Best thing to do is look online for any banks or credit unions in your area, they all post rates/terms on their websites. For instance it looks like your in TN and there is The Tennessee Credit Union in your area and they are posting rates based off model year only and don't consider whether it is a new or used vehicle. Once you have a few options call them directly to verify everything. Giving a list is a little difficult because of some restrictions certain lenders have, for instance there is a credit union in the county up this way that only allows members ship if you work or live in this county.
Thanks again.....TN CU has the usual "retail" value limits like ours so as long as you are not upside down you may qualify. But if like many your loan includes extra high taxes (7% here), Gap, extended service or other additions like covering an under water trade you my need to put money down to refinance. Like you said research before signing, I have a good friend that got shafted with a 7% loan for years on the "additional cash down" but could not come up with the $$ to refinance due to his upside down trade. I have my financing done and check in hand before even walking into the dealership the first and only time and have not traded a car or financed through a dealer since 1979.
 

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