Finance Rates

[Enemies]

Has there been a thread started in the Canadian section for this yet?

Americans are thinking they'll be able to maybe get this car for 1.9%. Any Canadians under the impression they will be able to?

How much wiggle room is there when it comes to negotiating on financing? Is there even any? For instance if Subaru goes and throws a 3.9% up on their website is that the best you'll be able to do without looking elsewhere? Or can you maybe haggle your way into a 2.9% or something?

I think the price is reasonable. But it is going to get unreasonable pretty quickly if things like doc fees and higher interest rates get tacked on at the end.

Anybody been quoted any numbers yet from their dealers?

[Marloon]

my game plan is to down as much as I can afford and then from there, accelerate the terms as fast as I can.

I'll down 5-10K, and from there, just pay 1200 per month until its over.

[Enemies]

Yeah, the problem for me is that I can't do that. My accountant is going to have it worked out so even though the car will be in my name, my company will lease it from me for the full term.

So making extra payments will just throw a wrench into things.

I don't know, maybe it won't throw a wrench into things. I just assumed it would be more clean if the company was reimbursing me the exact payment amount every month.

[Jehuty77]

1.9%? through who?

MY bank offers 5.5% and the scion i was at had rates posted for all cars but FR-S and they were around the 5% mark also.

[7thgear]

1.9 for americans

our current monetary policy calls for moderate interest rates,

i can get a loan from RBC for prime + a points or so due to an asset backed line of credit, with non-compounding interest.

but good luck to anyone finding a loan for less than prime, which is currently at around 3%



i was sorta hoping for a zero financing option like what VW had not too long ago kekekeke

[Saibot]

we'll know the finance rates on saturday. our dealership said he received the numbers for this car.

btw, you can haggle a finance rate??

[mankarn86]

I would look at Scion finance rates now to get a good idea. I believe they range from 2.9% to 4.9% depending on the term.

[7thgear]

Originally Posted by Saibot

we'll know the finance rates on saturday. our dealership said he received the numbers for this car.

btw, you can haggle a finance rate??

i believe you can always haggle finance rates with any institution because anything more than 0 is favorable for the person lending you money.

[TheJuggernaut]

Originally Posted by 7thgear

i believe you can always haggle finance rates with any institution because anything more than 0 is favorable for the person lending you money.

You're assuming that they're lending you cash from a vault but no bank is stupid enough to do that. Paper money that sits on its own devalues to zero long term. All of their cash (minus whatever they're required by law to keep on hand) is tied up in higher yield investments than anything you'd ever pay, except maybe your credit card. What they loan you is what they borrow from the government. So as long as the difference in what they charge you is enough to cover the interest they pay the government (which I think is 1% right now), any of their overhead costs plus whatever income they wish to net, that's what you can hope for. Anytime you hear 0% or 0.9% financing, someone is pulling your prick. A lot of times, they'll offer "cash" discounts or 0.9% financing. All that really means it's that they're taking off the interest revenue they added to the price of the car, which they would have otherwise earned by financing at a normal rate (so they are actually still charging you the same rate).

[7thgear]

Originally Posted by TheJuggernaut

You're assuming that they're lending you cash from a vault but no bank is stupid enough to do that. Paper money that sits on its own devalues to zero long term. All of their cash (minus whatever they're required by law to keep on hand) is tied up in higher yield investments than anything you'd ever pay, except maybe your credit card. What they loan you is what they borrow from the government. So as long as the difference in what they charge you is enough to cover the interest they pay the government (which I think is 1% right now), any of their overhead costs plus whatever income they wish to net, that's what you can hope for. Anytime you hear 0% or 0.9% financing, someone is pulling your prick. A lot of times, they'll offer "cash" discounts or 0.9% financing. All that really means it's that they're taking off the interest revenue they added to the price of the car, which they would have otherwise earned by financing at a normal rate (so they are actually still charging you the same rate).

of course, no one is simply going to give you a low rate or favorable

but i'm speaking strictly conceptually, interest is an entirely arbitrary cost.


if a car dealership is willing you actually give you a car NOW and collect money LATER, they COULD theoretically do that, and charge you a lower interest rate.

it's highly unlikely, but possible.

[rawbz]

I personally don't think you can haggle rates. Dealerships will always say their hands are tied by HO in that they dictate cash rebate promotions and they dictate rates.

You can move on the cost of the car + accessories (where dealerships make their money) but not much in financing I don't think. I imagine we'll have a quite high financing rate since they don't need any promotion to move this car. That's why I told my dealer I'd pay cash if the rates are too high since I plan to take out a loan and pay it off quickly.

[TheJuggernaut]

Originally Posted by 7thgear

of course, no one is simply going to give you a low rate or favorable

but i'm speaking strictly conceptually, interest is an entirely arbitrary cost.


if a car dealership is willing you actually give you a car NOW and collect money LATER, they COULD theoretically do that, and charge you a lower interest rate.

it's highly unlikely, but possible.

What I'm saying is that interest isn't actually an arbitrary cost. Some portion of it may be but it's never zero. Anyone to whom the cost of lending out cash is zero has no idea how to manage money, and it's rare for that to be the case for those who have it. So since in most cases this isn't true, there is a cost associated with not taking the full price upfront and you at the very least have to cover that. The dealership doesn't just give you the car and wait 4+ years to get their money back (or worse in the case of a lease). They've bought the car from the factory... that's not much of business model. They get paid by the financing company and that's who you deal with.

So while I agree that in some cases, you can negotiate a rate if the person you're speaking with actually has the access to do that, like a broker, it's still only within a fairly small margin. The bottom line is still there, that being whatever it costs for them to lend the money plus whatever the underwriter says your risk value is. The profit on top of that is what you can play with.

[Shimmyshake]

I would think if you don't have any assests listed under your name at the bank that they're unlikely to lower the rate even though you pay off everybill on time,.....

[TheJuggernaut]

Originally Posted by rawbz

I imagine we'll have a quite high financing rate since they don't need any promotion to move this car.

My imagination agrees with yours. The lower rates are only for the high volume stuff.