5 Secrets to LOWER Your INTEREST RATE When Buying a Car
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- Опубликовано: 15 авг 2021
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Today Kimberly joins Ray and Zach to provide 5 secrets to help you lower your interest rate when speaking to Finance & Insurance managers! 
Авто/Мото
Can't tell you how much I'm addicted to this channel. Love Pops, Zack and Kimberly. Watching you is like getting a ph.d in car buying.
When the car dealer says you're approved for a 5% loan that means it's 4% and the dealer pockets 1%
Or it could be 3% and the dealership pockets a portion of the extra interest at the 5% rate that the customer is charged. Tom, thanks so much for watching, Ray
A dealership wanted 8%, so it would've meant 3% for dealership and 5% for the bank.
Does large loan discount is it also used at credit unions?
Ray, Zack and Kimberly thank you so much for sharing these information to the public. You guys really educate us and help us to understand the dealership language. I hope all these info works in Canada. more powers to you guys and I'll keep watching your videos.
This is awesome info!!!! Thank you Kimberly, Ray Zach (and Sophie😺🐾)! Love learning new inside secrets, especially F&I tools. Storing this one right in my knowledge bank🧠💡
As always, great content guys and Kimberly !
Thank you for both the knowledge and fun
Thank All 3 of You for All this valuable info. So I don’t walk into a car dealership
Unaware. But with all the good knowledge I need to get the best deal possible.
Great information, is there any documentation consumers can ask for to verify that these things are actually happening? For instance if I ask for a large loan discount and they say that it has already been applied, is there something I can do to verify that?
Awesome video, I always learn something from you.
You all are PHENOMENAL!!!!!!!
Excellent video . Thank you
Great information. Another thing that every buyer should do is to check their bank or credit union before going into the dealership. My credit union today (8/16/21) is offering 1.24% for up to 60 months with nothing down.
Find out what you can get outside of the dealership and tell the dealer that you will finance with them only if they beat your rate.
1.24 percent??? That's amazing!
@@slimjseattle I have a great credit union. My current loan with them is at 1.9% and I thought that was a great rate. Better yet, there were no fees. Not sure what credit score you need to qualify.
Absolutely. NEVER finance at the dealership. My credit union is great and you never have to worry about a car dealer finance manager “shotgunning” your credit so they get the best kickback. Always remember this…..the best salesman at the dealership is NOT the sales manager, it’s the F&I manager.
@@Andrew-zs5tc What credit union is it if I may ask?
Lmfao. I wonder how this aged with inflation? Wonder, what the minimum rate is now? Im sure that old one was for new car.
Superb video, full of excellent information. Really appreciate this!
Great content!
I was today years old when I learned that a finance manager can ask to bump you up, I thought it is what it is. I was also today years old when I learned about large loan discounts, never knew that was even a thing. Love this. What's with the yellow bike? Its cool.
Such great information
Great video ❤ was stress asf getting bank statements and paystub for my car loan until I ended up getting it from a vendor online
Always the best F & I information from the best! - Kimberly Kline!!!
What about lowering the money factor for leases?
Great Looking Yellow Bike.
Wow! Great stuff. Which apply in Canada?
The best team!!
So grateful to you guys. I can keep ppl alive but am so naive on car lot predatory behavior!
Great info, you sound exactly like Wallace Shawn btw!
I hear Kimberly saying that if it takes a 720 credit score to get the 3 % interest rate and your credit score is 701 the finance manager might ask the bank to bump you up to the A+ interest rate category instead of leaving you on the level two approval plan which would mean a 6 % interest rate. That would be a favor that a finance manager could do for a customer.
They didn't do that with me 🫤
@@thefastforte2854 Same here. Finance guy gave me 8%, I told him no you have to lower that, call them up he said he couldn't. Stuck for an hour and nobody budged.
@@ramz1455 8% is pretty high
@@User2djdb Yep it was, rates are too high. Capital one wanted to give me 12 lmao
@@ramz1455 typical banks average APR went up to 6% now, and 2.5-3% from credit unions. 8% means dealer is stealer.
Great secrets thank you !.’’
I wish I’d seen this before Saturday 😆
What about the Manufacturing finance division will they do these bumps
So can I go to your bank first to find out what my approval rate will be before looking for a car? That way if the financial manager tells me a much higher rate than what the bank told me, I know it’s an inflated rate to make money from me.
Hard to tell sometimes. My credit is always hovering around 700. Usually slightly under in the high 690s. Had a 2020 Accord Sport 2.0T. Paid it off and traded it in for an Acura TLX ASpec SH-AWD. Got 0.9 for 60mo.
.9%??
Do these tips only work with a finance manager at a dealeship or could they be used when getting pre-approved by a credit union?
THIS!!!
Do all Warranty policies force you to pay for the tear down to investigate what caused the failure in the motor or other components on the car? Because I have never heard of an original Factory extended warranty charging for this type of service.
Was not aware of the multiple security deposit option to lower the money factor!
I am looking for 0% apr on used car. Tell us more about it please?
Well thankfully my bank a State Credit Union already has great interest rates at a flat rate of 5% for a new "First Time Loan" and after at least a year of consistent auto payments you can pretty much do what you want anyway. But its good to know more in regards to these Tier Bumps.
Loan to value, keeping under 60 month terms and having a great credit score is going to get you pretty much the best rate. Im usually able to get 3% interest on 3 year old cars which is usually pretty good for a used one. Thats in the realm of new car interest rates
So older cars usually have higher interest rates?
@@1Guason3 yes i believe so.
@@1Guason3 I used to be able to get under 3% before all the rate hikes the past year on a used. Now you’ll only get that rate is from taking a new vehicle with the dealers preferred finance.
Damn should of use this stuff well got 4.2% for a 2020 scat 😅
@@FranciscoHernandez-dq7rf cuanto pagaste bro?ando viendo un 2008 srt8 con 80k millas...kieren 23k
Good stuff…
Does large loan discount apply to use cars?
Taking notes
I found your channels a couple of weeks ago and I’m glad I did you are a wealth of knowledge I found this video is very informing and Kimberly was a wealth of information that the dealership don’t want you to known especially because I’m purchasing a new f150 limited in a week and it cost $80,000 and I put down $33,000 so I’m going to use all the things that Kimberly‘s discussed to help me get a better loan I am so thankful for your guidance in getting a better interest rate on my loan my only regret is that I wish I could put Kimberly in my pocket and take her out when it’s time to negotiate interest rates on my loan thank you so much for making this video go to see that you look out for the little guy
Can you tell me if I would be better off going to the bank for the car loan or the Ford dealership who would give me the best rate
@@charlie-qm9gz ruclips.net/p/PLSREiZLYgBSMzss1vQuxVIWTKChqVVuGY
does these tips ally to refinancing a car also?
Hi just bought a 2022 Mitsubishi Outlander SEL, had a trade in 2017, Chevrolet Sonic. I would love for y'all to review my purchase. Started off looking for a new car, but ended up purchasing a 2022 brand new for the same price of a 2023 SEmodel. My trade offer was 4300, but I didn't agree with the numbers so they tried another vehicle but it was too small and was able to take it home. I returned and expressed how it wasn't going to work. So GM was asking if he could put me in the brand new 22, and give me 8300 for my trade and also gave me an additional 1500, discount. Walked out at 35000*72 months
The thing is do these things apply in all states my biggest thing is i don’t know what is and isn’t negociable
I usually go into the dealership with pre arranged financing. With an 840 credit score I like to see what the finance officer can find for me that is better.
You are just flexing your score . Dealer can’t beat what you bring in pre approval
Always providing pertinent information. Knowing my credit score got me an interest rate that was lower than my credit union was providing.
Wait. Are you saying that you went in the dealership with pre-approved CU financing at x%, then you let the finance mgr. run your credit to see if s/he could beat your CU financing? I'm trying to understand how knowing your FICO score helped you.
@@CitizenPerkins that's what I think he's saying. We were going to do that, but our CU gave us such a good rate that there is no point in even letting the F&I guy try. We are buying a late model used and got 2.3%. We can't get lower than that, cause my parents are buying and their score is better than ours and their CU gave them the same interest rate as us.
@@calliew311 -- Nice! I also did that back in '02 when I bought my Acura TL-S. Now it's time to get a new vehicle and let someone else have my 20-yr-old baby. 😁 Too bad the stupid new car prices are outta whack...
How?
What's with the yellow bike?
Go to the bank and get the loan yourself...just don't tell the dealer that you are not financing until the deal is done.
Thanks for exposing these snakes now I have much more knowledge going in this time around than last✓
The finance manager would never tell me these tips!
is putting 50% down smarter or stick with 20%, thanks.
So its cheaper to loan money and instantly pay off the car?? Can I loan 28k buy the car and then pay back my bank??
Hello I really appreciate you both!
Question i have a 2010 ram spot 4x2 that I am considering keeping but it has 180,000+ miles and currently a dent in the driver rear bed fender that requires about $4500 in repairs. I was contacted by my local dealership offering me $10,000 - $11,000. I also owe about $9,000. Should I keep truck and get it fixed or accept it as a trade in and buy a new vehicle. I have the cash to pay my loan and repairs or put that towards a new car.
I wouldn't sounds like you'll be close to upside down 👎 since you still owe $9000 on it...pay it off early✓ that's where your credit score will go up✓
ugh i was just in this position, but dumped $4000 and went with keeping mine… 3 weeks later and i’m totally kicking myself in the ass for not using my car as a trade in and having that $4000 down 🥴🤢🤕
I leased a 2019 RAV4 Limited for 36 months. The lease expires June 1 2022. Will cars be available June 22 or will there still be shortages? I'm looking to move to the Hyundai Tucson Hybrid Limited. Love your channel...
Think about how long it takes for a supply to come back for millions of people. This is going to affect us for at least 3 years.
You talk about asking for buy rate and such all the time but how do we know they are telling you what it really is? Or what if they tell you there is no buy rate and it’s the same rate he’s quoting you? How can you tell? What should your response be?
I don’t ask them to look into it, I give them expectations due diligence first then the car dealership.
Will this work on a new Toyota Supra lol. They give me the excuse of no deals since they sell quick so they say and don’t need to give deals out.
I got 1.99 apr for 36 months for 21 Rav4 xle from credit Union last month. My fico 8s are in range 780-790. Would I be able to get any better rates than this YAA?
What can be better than that?🤦
So basically just pay cash. Or if the dealer wants to give you a hard time then take the loan and pay it off in full on the 1st payment due.
I made a big mistake when I bought my 19 Cruze LS and paid cash.
Is the F&I mgr required to share the Bank Rate (before markup) if asked?
He could lie
If my credit union gives me say 4.0%, should I use this to help close the deal on my target OTD price?
Or, do I not bring up until I am in finance office?
Sorry I failed Deal School 1.0 😉
I don't discuss apr until I get into financial office and see that they offers first. Usually finance managers don't want to cancel a deal so they will try to match or sometimes beat. However, they will then try to lure you into some other programs. Anything they say, try to get the total price of the program instead of monthly payments. That will help you figure out if it is worth or not.
Why don't you guys do a video on a trade in and get some kind of portion cash back on your trade in
What happened to Number 5? :)
WOW 1st class very kool great info.,, AAAAAAAAAAA++++++++++++ again great video I liked it a lot ,keep up the great work.
My wife and I both have credit scores in the mid 840 range and we went to both Credit unions and Banks which both could only do 7.9 and the dealer actually gave us a 6 % for a short term loan . What's up with that ? We put down more than 50% and got it under the MSRP and got them to take off the price of the add ons thanks to you !
Probably the type of car you got
@@Picky13 The Credit union nor the Banks didn't asked what car we were buying . And I have never had any loan institution ask what kind of vehicle I was going to purchase though .
Maybe if it was used, old or had over 100k miles
@@kennygossett8564 Ahh yes , so your that kind of person they say to ignore .
They want 80 grand for a half way decent pickup truck...better find a guy that works on cars out of his garage and keep your old one until the tires fall off and stop the extortion by the auto makers..remember when we bailed them out?....why?
You haven’t bailed out anyone.
@@RB-Q We as in USA, and we bailed them out along with all the banks because they all failed. Remember too big to fail? It’s a great gig keep all your profits and the taxpayers pay for your losses, are you one of those people who think this is capitalism?
@@timechild1261 🐑
Lots of manufctrs have promo rates if your credit is good.....received 3.9 from GM and it was a condition of the sale for me....ive seen even lower....0.9- 2.9 is still out there for some
Can confirm. Dodge approved me for 2.9 at 72 months for new stock and since I watch all these videos I think I might be able to knock off some of the sticker price or get into a higher trim
MSRP Jeep Grand Cherokee L two days ago. Love it, Drove Telluride 5k per trim level over MSRP. Aaaaaaa No
Could have used this video 3 days ago.
This is very odd advice. What about getting your financing from a credit union and/or raising your credit score in the months before purchase?
Heck yeah I can get 2.1% from my credit union. Even Capitol One auto finance might get you into 2.45...
@@Mark-OutWestCapital One is horrific!!
Finance manager tried to give me a 9.3 % rate a few weeks ago on a used vehicle. My wife and I bust out laughing in his face. I already had a rate from my bank and letter for 5.7%.
We're they able to beat it?
5.7% isn't great either if you have good credit.
@@LisaLisa-mx3hq not at all. On today's market that seems like a good rate though. I remember getting my Lexus at .5% in 2016 with a 860 score. Now the best rate Lexus have at 60 months is 7.2% with the same credit score.
@@LisaLisa-mx3hq on used vehicles it’s a higher rate than on new vehicles. . In the past I was able to get much lower and I have great credit.
My bank is giving me 6.15 rate for 60 months
i'm just hoping i qualify for the 0% for 72 chrysler capital offer when my factory ordered car comes in.
Just your local credit buyer here. Can confirm these all work. Good work yall.
LTV is the name of the game at our bank. If the applicant shows up with cash down, i can make things happen.
Thanks so much for the validation, we appreciate it. All the best, Ray
How much down would work ?
@@dazzypeters6793 aim for %20 - %40 of the cars OTD price in cash down to get the best rate (at my bank). $20k OTD price car = between $4k - $8k cash down.
Hey wondering if you could help ,
I’m buying a 2017 BMW m3 competition
My credit is 698 (fico auto score 8)
The car cost roughly $53,000 plus tax & fees
I willing to give down $10k
Im only 19 make about 6 grand a month & that’s why I have short credit history
Plus this is gonna be my first car to finances
Do you think I’m gonna get approved & how much apr would you think I’m gonna get ? If you can please help I’ll really appreciate
@@svvageog870 Alright man. You asked for my opinion but your not gonna like it.
As someone that looks at loan applications all day depending on your job time you might get approved. As for interest rate I have no idea - Depends on far too many factors to accurately guess. If I HAD TO I'd say between 9-15% APR. Your fico means very little with credit as young as yours (at least at the bank I work for).
Assuming $57K OTD you are financing $47K for 6 years at 9% APR that's an $850 payment and $14K in total interest.
Personally bro and its your money so do whatever.... but I think this car is wildly outside of your price range. The sticker price alone is over 90% of your annual income not to mention full coverage insurance as a 19 year old in a high powered sports car. Don't forget maintenance too. Its essentially financial suicide. You didn't ask me for whether you should, but the smart money at your age, income, young credit etc would be a $15K car with 5K down at 36 months. When you make 200k /year and can put 25k down you can afford the M3. Just my opinion - Feel free to ignore it.
TL/DR: yeah, you might get approved by a bank at like 11% APR but you realistically cant afford the car IHMO. Hope this helps. Best
How you can know for sure if a loan doesn't have a penalty for paying it sooner?
Ask the bank
Fix the flat tire on your bike 😎
If I go with a pre approval and stick to financing with that, am I getting buy rate?
Sometimes lower. The buy rate is the dealership’s bank’s interest rate. The credit union rate is completely separate. If you go with a good rate from your credit Union/bank, the dealership might try to beat it so the buy rate their bank gives might be lower so they can get you to do business with them instead
Capital one gives high intereat rates my credit score 790 and they offer me 7.5 APR
If I have a good paying job and money is available to purchase a car, is it better to pay cash or still opt for financing?
Unless you need that cash to purchase other assets why would you even consider financing?
If the interest rate is minimal finance it and put extra money aside in a separate account to pay it off early. That way you have a safety net in case your life circumstances change.
Which finance option is better for people? Do i go find my own bank approval before i go to dealership or do i take and trust what the finance manager can do for me?
Find your own first and then see if finance can beat it. Right now unfortunately most banks and credit unions are starting @ close to 6% interest rates but some dealerships are offering lower rates for those with exceptional credit.
Def never trust the dealership finance manager. Get pre approved somewhere else first. Then they’ll try to beat it
The only time I'd use dealers financing is if it was incredibly low. Do your homework and find your own financing. Nowadays the rates are high.
How do you find the interest rates without running your credit all over the place ? No one can give me a definite number until they run my credit.
Good Morning Guys
Morning, morning!
What should we expect currently with a great credit score?? 2024
1.9%... no higher. It's either a yes or no. I have a 800 credit score. Make it happen.
Question: I was in the market for a new automobile. A local dealer had an advertised price that worked for my budget. One of the discounts on the vehicle was described as "financing that fits" with a discount of $2,000. The advertised car was in stock. I test drove it and I told the dealer I would like to buy the car for the advertised price. The advertisement stated "financing that fits" requires the buyer to use the lender provided at the dealership. I was okay with that. After submitting a credit application, I was told my credit was "too good" to qualify for the "financing that fits." It struck me as odd at the time. Wouldn't a lender prefer a customer with good credit? So I have two questions. (1) is it common for dealerships to advertise discounts that are dependent on borrowers having a poor credit score? and (2) is it possible to trash one's credit very quickly to qualify for this special discount?
"Wouldn't a lender prefer a customer with good credit?" You'd think. However, they package up these loans to sell in the secondary investment market and its the ones with the highest interest rates that attract the buyers. P.S. Don't trash your credit!
Why would you trash your credit to qualify for these loans? Chances are, they will have high APR since they specifically wanted customers with bad credit. And your credit score has implications far beyond buying a car. What about buying a house? Not worth it.
@@edwink1467 You're right I'm sure. I'm just wondering about the options. The $2,000 discount is significant and I had no plans of applying for any other credit. And I would've simply paid off the loan immediately to avoid the high interest. But ultimately I didn't get that specific discount because I kept my good credit.
Odds are people with bad credit are told “oh I’m sorry you need good credit to qualify for this discount.”
That's the stupidest thing I ever heard about trashing your own credit for a Car loan!🤦😂🤦
what if you credit score is 300?
Ride the bus
@@Madridgaming 😂😂😂😂
Save a VERY BIG PAYMENT!
Will car interest rate go down in 2024
Trump 2024
Vehicle Value ? In the Northeast, we have roadsalt. The vehicle value is zero and rightfully so. The car is repossessed for spite.
Always zero interest when you pay cash! No payments for me. I have less than $1000 a month in bills! Hahhahahaha banks suck
hello friends
1x(10/24/22)…1…done thank you. Do 2x
If you aren't talking with your personal bank or credit union before you buy a car and getting pre approved by them then you're already at a disadvantage. The dealerships finance officer is there to make money for the dealership and not to save you money from my personal experience.
Also, if you need to finance something longer than 36 months or can't pay cash for it then you probably don't need to be putting yourself in that situation unless you need (not want) a new vehicle ASAP.
LOL your last paragraph is HYSTERICAL that is would be about %75 of Americans
i need a vehicle....have nothing, work full time....but can't afford these prices so I wont...also recently I was so sick I almost died and couldn't work and couldn't pay my medical bills so my credit score went from almost perfect to low.....so now I could never lease so even more screwed.
@@fortheloveofnoise9298 hmm that's weird that your credit score would drop quickly as most hospitals are 3-6months behind in billing as well as they all have financial aid that you can apply for. I too almost died, Covid Related. Was in ICU. I didn't even see my 1st hospital bill for 5 months and the bills clearly have a link where you can request a financial aid application .. on top of that many medical bills are being worked into exclusions from effecting your credit score.. soo
Is there a tier 0? I just had a ford finance manager tell me my credit is fantastic. But ford would only give me a 9% rate on a 36000 loan 60 month. 2024 ford Maverick lariat tremor. He said my number came back a 0. In a rating of 5-1. My credit score was a 850 before this purchase. Was I screwed? Does it have to do with vehicle model and trim? Please help
39150 purchase price. 27550 trade value. 8.625% sales tax. 27175 trade payoff. 6000 down payment. So total out the door was about 42000-6000 down. 36000 loan for 60 months. Ford only would give me 9%.
Car dealers are responsible for Premium
charges of $20,000 or more. These two
car swindlers have screwed untold number
of people out of their hard earned income.
What on Earth are you talking about?
I always wait for 0 percent financing. Keep your credit score high ppl.
Let me guess my 824 credit score will get me a better rate.
With my 847 score, 1.2% sounds about right.
How the hell do people have 800+ scores. I litterally have never missed any payments, have bought a few cars through loans, have a mortgage, im on my wifes student loans and i have 3 credit cards that i utilize and the balance is paid off monthly and i still have never have gone above 760
@@Hallowsaw pay 2 payment , then 1 on time then pay 2 times again that hack always bumps my credit a lot I do it with cars
@@svvageog870 can you please explain? Thanks
@@rankinh71 bank like when you pay them back fast
2x the monthly payment 8/22
Normal monthly payment 9/22
2x the monthly payment 10/22
Ex : Car payment
I did that & my credit went from 720 to 775 just in those 3 months then keep you cc up to date
I know how to get the best rate possible ……pay cash! Hehehe
Wrong
@@cajunboy6792
Don’t tell them that before the deal is done.
When putting money down on a new or used vehicle where does the money really go? Towards the vehicle or in the pocket of the sales person?
Sales person
Yeah I had some idea that the sales guy keeps the downpayment but found out for sure that's the way it works on my last car deal that's how the sales guy makes 💰 is from downpayments they usually keep $500
When we bought our 2011 Toyota Camry in April, we got a great zero percent deal! 100% down!! Excellent payments! Just one! 😀👍
I don't really understand the thought process in car financing. It's money out of your pocket and you get nothing back for it. If you've got money to invest at a much higher rate, then maybe it's OK, but seems like that isn't normally what people do.
@@ibealion1 I think it's just the easiest way for someone to get a car that they feel others will be impressed with at the stop light. You would definitely be better off to invest versus having a car payment. I just wish I knew that when I was 18 but nobody told me.
@@ibealion1 some folks have the money in investments that are paying well. So rather than cash in the investment they opt for a short loan.
@@lyndahammel9502 I believe that and think it MAY be a good option in RARE cases, but I think MOST people that take out auto loans do not have the money to pay them off of they had to.
The best secret for buying a car and not paying too much interest? Buy it cash. Ramsey isnt wrong when it comes to car loans. Dont pay interest on a depreciating asset!!
Do not buy your next car this year.
In 2022 I put $7500 cash down on a 2020 Camry. I was so STUPID!
why is that stupid ?