Posted: 10/4/2014 10:00:53 PM EDT
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Looking to purchase a new car... In the past I got financed through ford credit at the dealership, however this time I got pre approved with the Capital One Blank Check (not the one they randomly send in the mail). The interest rate is really good and it covers the whole cost of the vehicle I am looking at.
Plan to have the dealership try to beat the rate, but think it will be hard to do. Anybody use one of these before? |
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Looking to purchase a new car... In the past I got financed through ford credit at the dealership, however this time I got pre approved with the Capital One Blank Check (not the one they randomly send in the mail). The interest rate is really good and it covers the whole cost of the vehicle I am looking at. Plan to have the dealership try to beat the rate, but think it will be hard to do. Anybody use one of these before? My dealership gave me four or five different rates from Chrysler and a few banks and credit unions. I went with Compass Bank. |
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Rates are available below 2.0% depending on credit and advance by a long list of lenders. Make the deal on the car first, then talk rate. Does the Cap1 require you to go to a specific dealer?
ETA: Borrowing from the captive often leads to additional incentives on future purchases of the same company via loyalty incentives...just food for thought |
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Quoted: Looking to purchase a new car... In the past I got financed through ford credit at the dealership, however this time I got pre approved with the Capital One Blank Check (not the one they randomly send in the mail). The interest rate is really good and it covers the whole cost of the vehicle I am looking at. Plan to have the dealership try to beat the rate, but think it will be hard to do. Anybody use one of these before? |
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Tell me that your not gonna finance 100% of the car ?  the answer to this question is predicated on the loan interest rate AND the return you can get on an investment. example: 0% financing? YES, the entire thing financed, please -- now, right now, let's go. 1.9% financing and 5 year CD's are paying 5% APR? YES, the entire thing financed, please. 6.9% financing and 5 year CD's are paying 1% APR? No, here's the cash. ar-jedi |
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If you don't use Ford credit you may lose a rebate, so do the math both ways to see which way is cheaper.
Got my wife a new car last weekend, financed through Ford Credit to get the rebates. Once the title clears we'll refinance through our credit union. If we had financed through our credit union right off we would have lost $1500 in Ford rebates, so it was cheaper to pay the extra half point and go through Ford. We'll refinance in a couple of months to get the cheaper rate. |
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Everyone here pays cash for everything.  
but not if i can get free stuff for holding a one month car loan... http://www.ar15.com/forums/t_1_5/1576153__ARCHIVED_THREAD____Can_you_really_get_a_better_deal_on_a_new_car_when_paying_cash_.html&page=1#i44859243 ar-jedi |
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Got my wife a new car last weekend, financed through Ford Credit to get the rebates. Once the title clears we'll refinance through our credit union. If we had financed through our credit union right off we would have lost $1500 in Ford rebates, so it was cheaper to pay the extra half point and go through Ford. We'll refinance in a couple of months to get the cheaper rate. ^^^ hero status. work smart, work hard. ar-jedi |
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the answer to this question is predicated on the loan interest rate AND the return you can get on an investment. example: 0% financing? YES, the entire thing financed, please -- now, right now, let's go. 1.9% financing and 5 year CD's are paying 5% APR? YES, the entire thing financed, please. 6.9% financing and 5 year CD's are paying 1% APR? No, here's the cash. ar-jedi Quoted:
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Tell me that your not gonna finance 100% of the car ? the answer to this question is predicated on the loan interest rate AND the return you can get on an investment. example: 0% financing? YES, the entire thing financed, please -- now, right now, let's go. 1.9% financing and 5 year CD's are paying 5% APR? YES, the entire thing financed, please. 6.9% financing and 5 year CD's are paying 1% APR? No, here's the cash. ar-jedi 5 yr cd,,, 1% in real time. |
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Quoted: the answer to this question is predicated on the loan interest rate AND the return you can get on an investment. example: 0% financing? YES, the entire thing financed, please -- now, right now, let's go. 1.9% financing and 5 year CD's are paying 5% APR? YES, the entire thing financed, please. 6.9% financing and 5 year CD's are paying 1% APR? No, here's the cash. ar-jedi Quoted: Quoted: Tell me that your not gonna finance 100% of the car ? the answer to this question is predicated on the loan interest rate AND the return you can get on an investment. example: 0% financing? YES, the entire thing financed, please -- now, right now, let's go. 1.9% financing and 5 year CD's are paying 5% APR? YES, the entire thing financed, please. 6.9% financing and 5 year CD's are paying 1% APR? No, here's the cash. ar-jedi |
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Shut up. All debt is the equivalent to inviting the Taliban to stay in your parent's guest bedroom. You know, that room you had before you moved to the basement. Quoted:
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Tell me that your not gonna finance 100% of the car ? the answer to this question is predicated on the loan interest rate AND the return you can get on an investment. example: 0% financing? YES, the entire thing financed, please -- now, right now, let's go. 1.9% financing and 5 year CD's are paying 5% APR? YES, the entire thing financed, please. 6.9% financing and 5 year CD's are paying 1% APR? No, here's the cash. ar-jedi LoL i have no idea why people make blanket statements like "debt is the devil". ar-jedi |
| When you pay cash you don't get a lot of the rebates. What my wife and I do is finance through the dealership, say Ford, and take advantage of their rebates for going through them. Then once we get the rebate we refinance through our credit union with their low interest no fee option. |
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This past go around I gathered up all my quotes and pre approvals when I narrowed down a particular vehicle. I showed the finance guy what I had and he was able to beat them all. Sometimes they can beat the rates just to get the financing credit/kickbacks. They might get $100 profit for the new car but much more for you financing through them. All about total numbers And yes I buy new cars.
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The car will be used so no special incentives. No, I wont be financing the whole purchase price. Work gives me a car allowance of 500 a month gonna keep payments at or around 350 month Why not lease a used? If your employer is giving you $500 per month, buy extra miles and/or an captive provided extended warranty that extends beyond the lease by a few years and drive the residual down and the payment up. This gives you a nice car, within your budget, and at the end of the lease, you can buy it out for below market value, or simply walks away if you want. Either way, you have a choice. ETA CPOV lease rates are usually very strong, nearing 0% in some cases. |
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I thought about leasing, but I drive a lot. The company made all my payments for my other vehicle plus I pocketed 150 a month and still drive the vehicle free and clear now. Just not sure about leasing. If they pay you the $500 in full regardless of payment then I understand. Some companies will only pay the payment in which my example above works well. Just remember its a depreciating asset. The more miles you drive, the less the value regardless of whether is lease or buy. Leasing allows you options to escape a depreciating asset. If you were to lease, just make sure they quote you a lease that includes more than enough miles for your normal driving expectations. |
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Quoted: Looking to purchase a new car... In the past I got financed through ford credit at the dealership, however this time I got pre approved with the Capital One Blank Check (not the one they randomly send in the mail). The interest rate is really good and it covers the whole cost of the vehicle I am looking at. Plan to have the dealership try to beat the rate, but think it will be hard to do. Anybody use one of these before? I did in 03. . Paid it off, got title in the mail. Did not really have to deal with them, payments were early, paid off early |
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If you don't use Ford credit you may lose a rebate, so do the math both ways to see which way is cheaper. Got my wife a new car last weekend, financed through Ford Credit to get the rebates. Once the title clears we'll refinance through our credit union. If we had financed through our credit union right off we would have lost $1500 in Ford rebates, so it was cheaper to pay the extra half point and go through Ford. We'll refinance in a couple of months to get the cheaper rate. General Motors doesn't pull that kind of stupid shit... just sayin' |
| In on 1st page as one of the afrcommers that has paid cash for last 2 vehicles and will from here on out. Obviously sometimes you have no other choice but to borrow, but paying interest on an asset that depreciates as fast as a car does is not a sound financial undertaking. |
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This past go around I gathered up all my quotes and pre approvals when I narrowed down a particular vehicle. I showed the finance guy what I had and he was able to beat them all. Sometimes they can beat the rates just to get the financing credit/kickbacks. They might get $100 profit for the new car but much more for you financing through them. All about total numbers And yes I buy new cars. The F&I guy doesn't want to get hit with a chargeback when you refi within 90 days. |
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The F&I guy doesn't want to get hit with a chargeback when you refi within 90 days. Quoted:
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This past go around I gathered up all my quotes and pre approvals when I narrowed down a particular vehicle. I showed the finance guy what I had and he was able to beat them all. Sometimes they can beat the rates just to get the financing credit/kickbacks. They might get $100 profit for the new car but much more for you financing through them. All about total numbers And yes I buy new cars. The F&I guy doesn't want to get hit with a chargeback when you refi within 90 days. Depends on lender. Typically its 3 payments, could be 90 days. But if the finance manager is not holding any rate, then it would have been a flat anyways. |
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I paid cash for our car because the stock market was near all time highs, and I believed it was a good time to pull some profits off the table. I financed my truck because the rate was low and the market was down. At that time I preferred to focus money on investments rather than a depreciating asset. Both were purchased used.
If I had to buy a car today, I would probably pay cash, despite the recent correction in the market. I did pull some money out of the market this summer to pay off my mortgage. I am not a Dave Ramsey "credit is the devil" type, and will no doubt finance a vehicle in the future if it makes sense to do so, but It does feel nice to be debt free. My truck has been paid off for a couple of years now. The best financial advice I can give to any Arfcommer is to read "The Millionaire Next Door," work hard, live below your means, play good defense, and avoid the no. 1 destroyer of wealth: divorce. When selecting your partner in life, you should be looking for someone level headed enough that you would be willing to go into business with them. Do not select your spouse based on tit size or the quality of their sammich making, or because they were the first female unwise enough to venture into your basement lair. |