Did I Get A Bad Deal From The Dealership?
 

Went to my dealer to buy my first car not knowing what's going to happen..
Wanted a White stock FRS, but they had only a White TRD FRS, so I said fuck it and walk out the door paying $31k with a 7% APR for 5 years :cry:

(Included TRD springs, swaybar, and exhaust.)

It's been a good 2 years crying, but I think I'm over it now. :lol:

Anyone else think they got a bad deal from their dealership?!

Wasn't a great deal but wasn't horrible for 2 years ago either.


You did get raped on the interest though.


http://37.media.tumblr.com/18901f251...b6cio1_500.gif

I'm doing 6 years open loan on 5.99% you could've argued like I did. They wanted to give me 7.99, I told them to eat a ****. They got me a down to 5.99


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That's kinda high. Did you do $0 down? I got 3.49 on 7 years, and I thought even that was high

Look into refinancing the loan. If your credi is halfway decent you should be able to get a rate for half what you have now. Maybe less. Check with credit unions in your area.

Did I Get A Bad Deal From The Dealership?
 

That's pretty good! Was it new? I did 0 down but I'm paying it off before that ATM. Mine is 6 years actually. My credit is pretty good too.

To op, do look into refinancing it. You might be able to save a couple of bucks


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7% APR is little high....might consider refinance it, it might saves you hundred or even thousand buck for after market part :)
Mine was 2.99 APR

Yeah it was new. I also traded it my old Mini, which wasn't even driveable due to a blown engine for 1200 and put another 1000 on top, so total of 2200 down. I also got them to lower the price by 500. I still felt like I was getting ripped off. I don't know, I hate being in dealerships and going through a deal. I just have this feeling like something's terribly wrong, like I'm being scammed lol.

Some of these interest rates you people are quoting are insane. I'm paying 1.49% on my 2014. It was a four year note, but that interest rate was good for up to a six year loan. It'll be paid off in January.

I didn't finance through a dealership. I financed through a credit union I wasn't even a member of, and I had my financing in place before I even walked into the dealership to talk about buying. You save a lot of money by shopping around for rates and getting pre-approved for financing first.

You also get a better deal on the car itself if you don't finance at the dealership. You take away one of the salesman's best tactics for getting you to pay a higher price for the car.

I actually discussed this with my financial advisor, and I'm not sure if this just pertains to Canada, but he said in general the lowest rate you'll get is at the dealer. He told me if they try to charge you above a certain rate, come back and see me.

I got 60 months 1.79% interest. Got my first credit card 6 months before my purchase. Should have been 1.99%, but recent graduate program dropped it by 0.2% and $1k discount. Dealerships are by far the cheaper option for financing here.

I got a rate of 0.9%- zero-point-nine- last year when I bought my 2016. Hell that's practically free money.

I was prepared to pay cash for the whole thing but at that rate, I was way ahead financing a chunk and investing the remaining cash.

Some people are broke and have no credit. 7% might be a good deal in their position.

People who are broke and have no credit shouldn't be financing 30K. They should be focused on fixing their problem.

This is why so many people are living paycheck to paycheck with less than a thousand dollars in their checking account- misplaced priorities.

I could never do a 7% because I know how much shit my family would have given me for accepting that kind of deal.

Though I am fortunate to have good credit at 29 y.o. If this isn't the case for you, then that makes sense. Although I would have argued against a new FR-S. Especially given the depreciation.

I got 2.59% for 66 months. That is something like $1,200 in total interest. Compare that to 3,400 at 7%. Not a minor difference. David Ramsey would have something to say about this, for sure.

I might have gotten a bad deal because I started negotiations with "I want to pay this a month," which I recognize is bad. Probably would have gotten more money off the car by negotiating the sale price :(

Had I not been impulsive with the purchase, I might taken my time and done my research, negotiated, then went to my bank and asked whether they could get me a lower rate. I would have saved about $300 off the loan with a 1.9% rate.

2017 Purchase
 

Sanford Mastro Subaru

MSRP 25,495
Dealer MSRP 26,495

Got sale price of car brought down to 23,900
Out the door price including 72m/6y loan
With 100k extended warranty and gap
$29,491 Keys in hand Otd price
2.49%
72/m
442/m

Yep he gets it ^!


My wife does the financing at a RV dealership and has to use about 5 banks to manage to get as many people approved as possible. Depending on their overall credit and the price of the unit the rates can range from "like getting free money" to "holy shit, you are actually willing to pay that much interest for a trailer" with almost every possible rate in between. She frequently has to shop around between all the banks for one that will take a risk on people with bad or no credit and you can bet that the bank is going to charge extra to take that risk. If you are paying a higher rate it is because you are a greater risk it is as simple as that.
Oh, and can't speak for the US but in Canada the dealer can actually make LESS money on the higher risk and higher interest rate deals so contrary to popular belief they have no incentive to charge you a higher rate. They truly want to get you the lowest rate possible because they end up making more from it.

There are no good deals from dealerships. If anyone thinks they got a good deal, they just haven't figured out how the dealership got to them.

My "deal" buying my FR-S new, at a dealership, was 0 down, 0% APR for 0 months.

;)


humfrz

Agreed but they are also usually the ones that really don't see it as a "problem". The wife get's somebody fresh off bankruptcy coming in and trying to buy $70K trailers about once a week. They get really indignant when nobody will approve them at any interest rate!

Not everybody has that option.

+1 on refinance, I was in a similar position of shit credit (zero credit history, thanks mom for teaching me credit cards are evil) but had a cosigner to get a good interest rate. After a few years of paying the car off hopefully your credit has improved and you can drop that interest rate <3%, it'll only save you a few hundred bucks at the end of the day, but a penny saved is a penny earned and it'll probably be a valuable experience in finance bureaucracy.

When I was buying my BRZ, they offered me 0% on a brand new one but could only get me 3.99% on the 1 year old used BRZ that I was looking at. Total difference including interest, I am saving around $4000 over buying new so for having a 1 year newer car, I just couldn't justify it.

I assume you meant 100% down.

From an investment perspective, that's a bad deal assuming you can generate a rate of return greater than you payment interest rate.

Good catch! There is only one way he could have got his as he said.


http://3.bp.blogspot.com/_eyv1TBhPpC...carthief_3.jpg

......and four years ago ....... that was the case ........:(


humfrz

I reckon that depends on how you define it ....... :iono:


down pay·ment
ˈˌdoun ˈˌpāmənt/
noun
noun: down payment; plural noun: down payments; noun: downpayment; plural noun: downpayments
an initial payment made when something is bought on credit.



Quit picken on me ....... I've had a rough morning ...... had to run the two older granddaughters down to cheerleading camp, then take the baby for a long stroller ride ...... now it's time to pick up the cheerleaders .......:wub:


humfrz

When I bought mine in January 2015 I had every intention of paying cash, but then they said 0.9% interest. I thought "free money". Then after about a year or so I got sick of writing the check each month (yes, I still write checks) so I went down and paid it off.

I had really good credit in 2012, and ordered my car in the color and trim I wanted from Scion at the time. I got 2.9% on 5Y, then got a letter in the mail from Toyota telling me it was actually going to be 2.4%. I did not complain. She's all mine now!

That is definitely not the case in the US. Occasionally an auto manufacturer will need to clear out inventory and will run a good financing deal for a short time, but the general rule is that the dealership will not give you the best rate.

Furthermore, even if you get a good rate, most people will end up paying more anyway. If all you have to negotiate is the price of the car, you'll usually get a better price. If you have the price of the car, the financing terms and your trade value all on the table, the salesman will use those items as a shell game to redirect your attention whenever he proposes something you don't like.

You say the price is too high? But it's only $300 per month, and you can afford that. Interest rate too high? Let's set that aside for a moment and talk about your trade. Maybe you really hammer him down on the price, but you'll end up paying 7% and getting half what your trade is worth. Maybe you hammer the rate down to 2%, but you end up paying $1500 more than you would have on the price of the car.

Get your financing in order before you go in and sell your old car on the used car market. You'll get a better deal overall if you take away the dealer's extra shells.

Those people more than anyone should be shopping around for the best deal before they set foot in the dealership instead of just saying, "Oh well, my credit sucks, I'll just have to take this 7% even though I still might be able to do better elsewhere."

No doubt it would be something stupid. Dave Ramsey is an idiot.

A few posts ago I was saying how doing a deal at a dealership always gives me the feeling of being scammed, and that's the reason right there haha.

Paid 17k OTD for my 10 Series FRS wih 55k miles with 100k miles extended warranty. I felt like I overpaid until I backed into a stop sign with the dealer's loaner, and they told me not to worry about it 😰

If a salesman ever gets out a sheet of paper with four squares on it (it's actually called a "four square"), immediately laugh, get up and start walking away. The four square is a misdirection scheme intended to get the most money out of you while making you think the salesman is "moving some numbers" to "get you the best deal." You don't want any part of that, and you should refuse to do any business with him until he puts it away. If he tries to tell you that's the worksheet they have to use, walk away. Don't even give in to the temptation to listen to what he says. Treat it as if he just plopped a dead skunk onto the table.

A really slick salesman can do the four square in his head while talking you into paying more than you should. Getting your financing in place ahead of time makes it a one square, with nowhere to go for misdirection.

and tht's why people live paycheck to paycheck. Buy a used 15-year-old corolla and build up some savings and credit history first. I was driving the same car that I got from college (99 accord) for 16 years and a 93 corolla as a daily driver before i bought any "nice" cars

i bought a brand new odyssey last year with 1.9% APR and I was bitching cos they were advertising 0.9%... the fine print was that the odyssey was not included in tht offer... :mad0259:

truth.

I'm not exactly comfortable telling this story but I think it's a valuable financial lesson.

I was gonna pay cash for my BRZ but Subaru was offering 0.9% for 36 months. essentially free money if you have the right credit.

Same thing with my wife's car. intended to pay cash except then Subaru was offering 0.09% on new Oubacks. Less than a 1/10 of a percent. unreal. They ran my credit and offered me the same rate for 48 months. I couldn't believe it. sure I'll give them an extra 12 months of interest at that rate.

I financed both for the entire amount and left my cash in actual investments. So sure, I have a huge monthly payment on the two cars, but in an emergency I still have the original money available to pay them off and it's has grown significantly since then.

It's not because I'm rich... It's because my wife and I drove crummy vehicles for years to be able to start making smart financial decisions.

wow this is insane.. I literally picked up a '17 86 yesterday (in canada) for 0% interest/apr for 60 months. I pay for the car and that is it! I feel lucky..

The intrest seems really high.
I recieved 0.9%APR for 60 months on a 24k loan with a low credit score, so I guess it depends on the dealer.

Enjoy the free money party while it lasts!

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7% is pretty high to me, but, until recently, I didn't know that people were getting much higher APRs from subprime loans... http://jalopnik.com/how-subprime-car...ing-1796893288

I got a 2017 BRZ in Santa Fe NM with a 2.49% interest rate for 72 month loan through Capital One. I did have a 10K down payment and excellent credit score. I got The BRZ Limited, AT, with STI wheels, Home Link, and windshield shade for $30k even, which was $2,300 below sticker. I think I did okay. I ordered the car to get it the way I wanted, but it took two months to get it. Not sure that helps much compared to what and when you bought.


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