@@danmarinelli2451 last car I bought was in 2019 and it's paid for and only has 45k miles on it. But my wife had to buy one because someone hit her and totaled her car. She got 7.25% with an 800 credit score. No matter where we went it was high. So we didn't have a choice.
The problem is most companies like dealerships because it benefits them. 1. They don't spend resources hiring people and can focus on making the car. 2. If a dealerships has a bad reputation the manufacturer can distance themselves. Or flat out refuse to sell their cars there.
I just bought my first car a couple months back with a little over a year of credit history at 730 credit score with perfect payment history and With a co signer the lowest I could get was 8.96%
The interest rate of my 2021 RAV4 is 13%. Mainly because I was a first time car buyer, but hopefully after a few car payments I can refinance through my bank for a lower rate.
@@BigBossIvan Market did 16.5% for a 2 year return. The 30 year return is closer to 10%. If your interest rate on a car loan increased from 3% to 7.5% over 2 years. It means the market is outperforming the interest rate increase you received. Mathematically 6.5%>4.5%. That being said there are far more indicators of an economy than just market returns and interest rates. But interest rates rising is just one part, especially when they are still below historical norms in most sectors. Pointing to a period of high inflation, with rising interest rates to compensate doesn't point toward an understanding of economic health. It just points to a period of inflationary spending. The U.S. outperformed economic recover of every nation in the world post covid. Interest rate is just 1 factor in the grand picture.
@@P2B_JCjust go to Carvana or Car Max if you want to get ripped off quickly. Customers b!tch because they have to spend hours negotiating thousand percent markup addons and fees and other disingenuous crap to not lose their entire butt on the deal.
Just to be clear, I’ve done this twice. The first time, the finance manager went back magically found a bank who would give me a lower interest rate then what I was pre approved at. The second time, they couldn’t beat the rate, but he said “if you use our bank, I’ll knock another $1500 off”.
You know I was thinking, on your skits where you're the customer, it's kinda hard to tell that you're the customer. What if you wear a baseball hat or something to show that?
i agree with this, since he sits the same way when he is either the dealer or customer haha. you can tell in a couple seconds from the context but like a drastic appearance difference or something to make it exactly clear would make the situation understandable right away
if you have any common sense at all you can see by the way he is talking he is the customer. he is literally stating “i am already approved” who do you think he is??
I came in with my loan pre approval and ready to go, when I told the salesman that I got the same looks as if I told him I pissed in his Cheerios that morning.
BE warned. I went through a bank that a dealer i trusted in the past pushed really hard and learned that they were doing heavy kickbacks to the dealer. Turns out the bank has bad history, terrible communication and relation with customers and often would have autopay not work as intended leaving customers with overdo payments. All and all bad experience and dealers will push aweful banks on you so they can cash in more.
I think all dealer financing involves a kickback. As the consumer you just want to make sure the interest rate (and finance charges) you’re paying through the dealer are equal or less than what a bank would tell you. That’s the lesson of this video.
Not all dealers use kickbacks in financing this is usually for chain dealers and big new car lots. I’m working at a used car lot we do not do kickbacks or markups on interest rates what the bank gives us what we give
I remember when I went to the bank when I was buying my first car and asked them if they could beat the Toyotathon 0% APY for 60 months and they laughed me out of the building. 😁
So what? Multiple similar inquiries within a short window (a week or two) are condensed into one inquiry. May take a month or two to happen, but it's nbd
@@pilotoblackbird433probably not worth it but if you only authorized one inquiry and they did 8 you can actually sue for fair credit reporting act. Depends on what you signed, how much you're willing to spend and how you can prove it affected you to see what "damages" you're able to recover.
@@pilotoblackbird433It has nothing to do with the state you're in. The inquiries will show but the point deduction falls off after 6 months. If they haven't contact the Experian, TransUnion, and Equifax and have them removed. Also when financing a car or house the inquiries are supposed to count as one regardless of how many institutions they are submitted to. Credit cards and personal loans are not the same however.
I had a pre-approval from my credit union. The Hyundai dealership refused to sell me a car unless I financed through them. I bought a chevy truck that afternoon.
The correct response to that nonsense. You have ALL the power when buying a car - you don't need to buy a car from them, but they need to sell cars in order to eat.
Yea that never happened lol… more likely was that they couldn’t give you a specific factory rebate unless you used their financing and so you stormed out pretending they were playing tricks on you and you acted like a child and bought your second favorite car out of spite… and spited yourself…
Car dealerships make more money on selling you those shitty interest rates. Yes, they make some scratch on cars, but if you dont have a clue about your credit, you may qualify for 5%, and they'll give you 7.9 and smile in your face like they did you a favor. They get kickbacks from the banks for every deal like that. The more points they sell you, the more money they make. That's why finance people always make the big dollars. Thats evey cars salesmans dream...to be the "finance" guy
if you want a genuine good deal, find the car salesman that just started. Lots of managers and the car salesmen themselves will be willing to give good deals to help get them started and have a beginning happy customer pool.
I always say "out the door" when I'm negotiating the price. I walked out of a deal over the $199 dock fee. The salesman called me an hour later and I told him I was already sitting in the office of their competitor working on a deal for a similar car and I would let him know how it went. His sales manager called me back right after that and gave me $500 off without the doc fee if I would come back 😂😂
Interest rates are ridiculous now days. Although be careful of the advertised 1-2% interest rates out there as well. Some places literally tack on like 5-10k+ in markups then try to sell you on the “special interest rate” that literally is the same as no markup and 8-10%+ interest at normal msrp price And the problem is any vehicle that is in popular demand will always have a buyer, if you refuse to pay the markup or w/e they just sell it to the next guy. Can be some exceptions tho if you’re buying a vehicle that has a high stock count and isn’t selling well.
The reason dealerships show a stock interest percentage is because they can not technically tell you what yours will be without a credit application. The best thing to do is agree on a price and trade and let the finance manager do the credit process and walk out with a lower payment. I always disclaimed the stock interest on the pencils when I would present numbers
Didn’t get pre approved last week. I just looked up the best rates on used cars in my state and told them that is where I wanted to go. Yes, it happened to be my CU but that was just a bonus. You just have to know your score and income
@@7.3PSDA2 Since you’re buying ancient pieces of junk that pass for vehicles, you’re not buying used cars for 30k. So why complain? Also, trucks are ugly
Recently bought a used car for my wife, got pre-approved for a loan at 6.5%. I know this is high but others in the area that I've talked to are anywhere from 7 to 14%. I bought the car for 10k, put 4k down and my monthly payment is only 165 a month. I do however pay quite a bit extra, at the rate I pay I'll have it paid off well before the estimated date.
Saves time and money. The dealership financing will work better for you if you have problem credit or low credit. But if you have decent or good credit just go to your bank and get a loan from them. It saves you a lot of money.
When I got my car back at the beginning of the pandemic in 2020 it was absurd that I got my car at 2.5%, and at that point we could’ve gotten it for 0.9% since my dad was considered an essential worker and Autonation offered 0.9% for essential workers. My parents just recently got a new Mercedes at 7%, and they just kept their mouth shut and signed it even though they knew the Apr was absurd
Be smart. Negotiate MRSP, take the highest interest rate they'll throw at you, take a new loan with your bank to pay it off as soon as you know the loan number
@@EdgarPerez-s2lNope, thats what dealerships want you to think. They get a chargeback if the loan is paid off within 30 or 90 days. As soon as you have an account number with whatever bank they set up the loan with, you can pay it off, refinance, whatever you want to do.
I do this every car I’ve ever bought. But don’t tell them until after you’ve negotiated to price with them. Best thing I’ve ever had done was my first car. The bank gave me a blank check that was “for an amount not to exceed $16,000” (what I was approved for) It was SO MUCH easier. I negotiated the price I wanted for the car I wanted- and as soon as they pulled out the credit applications I said “no thinks, I’ll write a check. Who do I make it out to?” And whipped that bad boy out. They were stun locked.
They weren't stun locked you're likely to buy less than 10 cars in your life time they sell 200 cars a year. They know far more than you. They are professionals you are not.
Dealerships are credit based inventory, they don’t own the vehicles, they’re owned by the car company themselves, dealerships are just paying the car company for the cars at a dirt cheap rate, whatever the dealerships make, what ever those dealerships take keep, as well as more volume = they get more cars on their lots
Seeing all these videos, I'm glad I didn't pull the trigger on a new/used car in 2019. They had me convinced I was getting a good deal at 21%, even though I think that was the state limit. I didn't know anything about credit or banking, I just had a decent job and thought I had money to burn.
This is exactly what I did. Got approved 1st @ a bank online/loan with a hecka low int rate. Dealership wouldn't match that int rate with their financing. I still got the car but I just went with the bank & financed thru them.
A certain president got into power and used executive powers to do certain things and insurance and loan institutions got a nice fat piece of meat thrown at them.
My mom got pre-approved through the bank she uses, a monthly car payment would've been $319 a month and that's with an excellent credit score... All they had to do with download the application. They didn't even want to do that, saying there was no other good option
Man I feel bad for the people who think car dealerships are their friends, or wanna help the dealership out. They make plenty of money on the car even if they sell it at MSRP, or even slightly below that. They are rarely gonna lose money.
I took the offer because I needed a car from the dealer went and refinanced a month later just an fyi if you don't have the ability to wait you just need it to go through the state. Went from 10% to 6.5%
@@MrBrodman98yeah but if you’re smart you pay for like 90% of it upfront then make very small payments with basically no interest for the remaining of the loan
Remeber friends the 20/3/8: 20%down. Financing no more than 3 years. Do not exceed 8% of monthly gross income. It's safe to say special circumstances aside if you can't do the above. You can not afford the car and will quickly be buried in the debt.
Dealerships have tricked the masses into believing they can afford a denali when they're just over leveraging themselves. If people only bought the cars they could afford maybe we wouldn't be in this mess.
@BPR-IronCurtain terrible advice? Let's take a look at an example. And no you can't have brand new car or w/e you think you should have: With a gross annual income of 40k, which is about $19.50/hr. Now I know some may say this is high, but you can make this with fast food, warehouse, and certain retails. The 20/3/8 rule gets applied, and you can afford a car just under 10k, and this is with a 14% interest for you people who don't understand or use credit stupidly. Down: 1950 Loan amount: 7802 Interest Rate 14% Loan Term: 3Years Don't call something stupid because of your lack of understanding of personal finances. And the hard truth is people manage money so poorly that no most can't do the above without discipline...which is sad in its own right.
@@Drifters_Productions who tf is paying 14% interest? Also 36 month loan is not common. 60 or 72 are the norm. Generally with decent credit today you should be under 9% with a healthy down payment.
@mickym.6711 people who are just starting out looking for a first time vehicle will get that interest rate. That's who this kinda aimed at, people with bad credit or first time buyers. Lmao yes a 6 year loan is the standard, and that is sad af. You know what's also a standard...being poor, credit card, auto, student debt.. And it's because of people with that exact mentality. Strive to do better than the norm. Don't compare yourself to the worst.
@@kevs2good133 because 8% is bullshit. it’s just a waste of money and stupid to pay more than 5%. Especially when your buying trucks and there already marked up extremely highly over msrp.
When I bought a new car a couple years ago, every place approved me, except the bank I used for everything else. Yet had no issues offering me multiple CCs with limits over the cost of the car.
Wow, how things have changed? First used car 18 yrs ago was 7 1/2%. I thought that was high and refinanced a year later at 5%. Since then, I’ve purchased three cars every car has been under 5%. Different times😂
@@aster22380Because people have the most money they ever had, that drives up inflation and the fed rose rates to slow it down. Banks aren't going to take a risk on a 5% loan when they can get it risk free by loaning it to the government.
I remember going with a pre approved offer from my credit union with a 6% rate no money down. And this guy really tried hard to tell me why his finance was better with a rate of 9.99%.
100% of the time I get the customer a better rate than there pre approval. Literally such a waist of time now days. The credit unions are scheming their most loyal folks. Not everyone’s out to get you. Some people just wanna HELP you get into a car. At the end of the day it’s still your decision.
Local credit unions want so much information today. They are not playing around anymore. Some banks have car buying coaches that will tell you to walk away.
Just go through cap one or if you have access to it Navy fed credit union. The other credit unions here are giving very bad rates currently at least for me.
This is why I stick to older cars. I just always keep an eye out for a decent deal on an older car in decent shape. There’s a lot of bad cars out there, but you can find a good one every once in a great while if you look relentlessly..
nothing pisses a dealership off more than knowing what you are doing.....let them work their whole deal then before signing anything you switch the deal up last minuet other wise you will not get the best deal.
I’ll keep my Tesla, direct to consumer was a wonderful experience. I paid the same price as every other person that day and didn’t have to wonder how many ways the dealer screwed me.
2021 TD Auto Financing through the dealer was 1.69% interest. Toyota Financial Services was at 1.80% interest. This was with 35% down payment and over 750 FICO.
Most people that get sold didn’t ever mean to take home a car that day. They were just starting to look or something they saw or heard brought them in. We have special deals each month on like four cars where if they meet the requirement they normally are saving around 4 to 5 thousand dollars total. We are taking a lose on the cars but make up a little when they finance with us but not at 15.00 percent. We can also go to corporate and by down the rate for customers which is expensive and sometimes makes us so underwater it makes no sense to sell the car to that customer. It’s finance not you give me a car a d you suffer a bug loss…
Would it make sense to ask them to lower the sale price of the car if you finance through them for the 7 and a half percent since they will already be making more money off the financing?
Omg this just happen to me last week .... My husband and I walked out we did not sign the paperwork they text me the next day went in got the rate that I wanted it took the car home!!!!
The problem with telling them this is that they may send you to enough banks that your credit takes a hit for the number of hard inquiries. Limit them to 1 or 2 max.
I did this every time, after you get the loan go back to your bank and have them pay it off and take over the loan for a lower rate again and have billing all on one platform.
Currently for the best rates. The manufacuters are giving out killer incentive rates but are removing dealer cash and Incentives. So while ur gonna get the best rate available, there will be no deep discoujts from the dealer. So yeah maybe u can knock off 1 or 2k from msrp but thats really it
I just bought a car and I think they ripped me off on payments or I just don’t know how to figure out payments. The remaining balance was $26,125 after my $2500 down took care of fees and taxes but my monthly payments are $415 How is that possible? Should it be below $400? My rate is 4.49% on 72.
I went into a dealership with a loan, told them do not run my credit cause they could not match me, they ran my credit anyway and the salesman said, "yeah you were right, we can't give you anything better than the loan you have."
I have not financed a car in a long time... I remember feeling ripped off at paying 4%... now 10% is normal. This is why I only self finance... aka save up and buy it cash.
Pre Approvals dont mean shit, you're still subject to actual approval by the bank. Pre-approvals dont require a hard inquiry, virtually everyone can get pre approved.
If you want to outsmart the dealership, buy a car you can afford in cash. Then save the $699 a month to upgrade later. I've heard way too many stories of people owing the dealership or bank more than the car's value.
Ima tell you from experience cause i used to sell cars. The worst thing you can do is tell them what rate your looking for. Once they know they will “fix” your rate to make the dealership money. BE smart and get a pre-approval for a set amount from your bank. Then find a car WITHIN that budget.
So fun thing is about this customer is it’s a pre approval he’s not approved. Because some banks require what’s called stipulations and you don’t know his true income so if he actually had a 7.5% rate approved he would have a check in his hand regardless at this point put him in the box and let F&I work him. Sales price is good… done deal.
7.5% is still absurd and ridiculous😂 damn I remember the days of 1.99% and 2.99% being the norm
Welcome to 2024
@@aster22380 yep, which is why I'm not planning on buying and vehicles anytime soon. Mine work just fine and they're paid off.
10% ☹️
You haven't bought a car in a while have you
@@danmarinelli2451 last car I bought was in 2019 and it's paid for and only has 45k miles on it. But my wife had to buy one because someone hit her and totaled her car. She got 7.25% with an 800 credit score. No matter where we went it was high. So we didn't have a choice.
i thought i was ripped off when i got 4.4% for my $13k car in 2020 and now you're normalizing 7.5% for 30k. It's insane
Yeah, it's kind of wild. I got 4.5% in 2022 at a VW dealership with very little credit history. Can't imagine trying to get that same car now...
iterest rates are set by the fed to combat inflation
Fed funds rate was 0% in 2020 but is currently 7%+
um you need to realize that interest rates change depending on the economy...
How did you get that. Most cars in my area in 2020 were 0 interest because they thought they weren't going to be able to sell them.
Dealerships need to be outlawed. We should be allowed to buy directly from the manufacturer and use private mechanics to fix them.
Yes, dealerships have protections that they have abused and offer next to no value now
Laws have made that illegal... Manufacturers aren't legally allowed to sell to public. Only Tesla has a bit of a workaround.
Private mechanics are everywhere so not sure what your saying in that last part
@@chadpflanz8745Certain vehicles/dealers require you to bring the car to the dealer or warranty is void.
The problem is most companies like dealerships because it benefits them.
1. They don't spend resources hiring people and can focus on making the car.
2. If a dealerships has a bad reputation the manufacturer can distance themselves. Or flat out refuse to sell their cars there.
I remember a few years ago 4% felt like a ripoff, 2-3% was normal. Now saying 7.5% is a good deal makes me sick
But the media says the economy has “never been better!” so it must be true…
I just bought my first car a couple months back with a little over a year of credit history at 730 credit score with perfect payment history and With a co signer the lowest I could get was 8.96%
The interest rate of my 2021 RAV4 is 13%. Mainly because I was a first time car buyer, but hopefully after a few car payments I can refinance through my bank for a lower rate.
@@BigBossIvan Market did 16.5% for a 2 year return. The 30 year return is closer to 10%. If your interest rate on a car loan increased from 3% to 7.5% over 2 years. It means the market is outperforming the interest rate increase you received. Mathematically 6.5%>4.5%. That being said there are far more indicators of an economy than just market returns and interest rates. But interest rates rising is just one part, especially when they are still below historical norms in most sectors. Pointing to a period of high inflation, with rising interest rates to compensate doesn't point toward an understanding of economic health. It just points to a period of inflationary spending. The U.S. outperformed economic recover of every nation in the world post covid. Interest rate is just 1 factor in the grand picture.
@@BigBossIvanThe economy is fine. Interest rates ≠ economy.
Hot tip, don’t tell then your already pre approved until after they’ve worked the deal down. Then drop it on then 3 hours later and watch then sweat.
And that's why customers are always b!tching "Buying a car takes sooooo long."
@@P2B_JCjust go to Carvana or Car Max if you want to get ripped off quickly. Customers b!tch because they have to spend hours negotiating thousand percent markup addons and fees and other disingenuous crap to not lose their entire butt on the deal.
They'll just back out of the deal.
@@Journey_of_Abundance they can’t back of a deal due to funding source.
Just to be clear, I’ve done this twice.
The first time, the finance manager went back magically found a bank who would give me a lower interest rate then what I was pre approved at.
The second time, they couldn’t beat the rate, but he said “if you use our bank, I’ll knock another $1500 off”.
You know I was thinking, on your skits where you're the customer, it's kinda hard to tell that you're the customer. What if you wear a baseball hat or something to show that?
i agree with this, since he sits the same way when he is either the dealer or customer haha. you can tell in a couple seconds from the context but like a drastic appearance difference or something to make it exactly clear would make the situation understandable right away
if you have any common sense at all you can see by the way he is talking he is the customer. he is literally stating “i am already approved” who do you think he is??
Or a giant fake mustache
@@alvinkada317I guess you’re a bonafide genius but the others right
Or learn what POV means. This is one of the few channels that uses it right.
I came in with my loan pre approval and ready to go, when I told the salesman that I got the same looks as if I told him I pissed in his Cheerios that morning.
BE warned. I went through a bank that a dealer i trusted in the past pushed really hard and learned that they were doing heavy kickbacks to the dealer. Turns out the bank has bad history, terrible communication and relation with customers and often would have autopay not work as intended leaving customers with overdo payments. All and all bad experience and dealers will push aweful banks on you so they can cash in more.
I think all dealer financing involves a kickback. As the consumer you just want to make sure the interest rate (and finance charges) you’re paying through the dealer are equal or less than what a bank would tell you. That’s the lesson of this video.
Not all dealers use kickbacks in financing this is usually for chain dealers and big new car lots. I’m working at a used car lot we do not do kickbacks or markups on interest rates what the bank gives us what we give
We are allowed to mark up the rate a max of 2% (sometimes 1% depends on lender)
Sounds like Santander
Sounds like SunTrust
Best advice for a car dealership: always be willing to leave your dream car if its not a good price
I remember when I went to the bank when I was buying my first car and asked them if they could beat the Toyotathon 0% APY for 60 months and they laughed me out of the building. 😁
Working at a bank I have seen sometimes the dealer would use us and get a better rate than if you came into the bank first… we are fighting ourselves
A lot more people probably go to your bank for loans than the dealerships probably, otherwise it would be reversed.
It's allll just bullshit n vibes at the end of the day, even if you have numbers.
And just like that, your credit gets shotgun to 17 different Financial institutions
So what? Multiple similar inquiries within a short window (a week or two) are condensed into one inquiry. May take a month or two to happen, but it's nbd
@@nashdashflashnot in Texas. I got hit with 8 hard inquiries from 2022 that still show.
@@pilotoblackbird433probably not worth it but if you only authorized one inquiry and they did 8 you can actually sue for fair credit reporting act. Depends on what you signed, how much you're willing to spend and how you can prove it affected you to see what "damages" you're able to recover.
@@pilotoblackbird433It has nothing to do with the state you're in. The inquiries will show but the point deduction falls off after 6 months. If they haven't contact the Experian, TransUnion, and Equifax and have them removed. Also when financing a car or house the inquiries are supposed to count as one regardless of how many institutions they are submitted to. Credit cards and personal loans are not the same however.
@@pilotoblackbird433Texas law can't do that lmao. So either it was too spaced or you got scammed and need to make a call
Past car salesman… if you have a preapproval, its probably better than anything the dealer can get you
Yup
Good thing you were just a car salesman and not a manager. You're not cut from the right cloth with that dumb comment.
Unless the dealer already works with your bank…
In my experience, about 50% of the time the dealership was able to get me a slightly lower rate. It helps to be a super-prime borrower.
He’s teaching me everything my dad didn’t and it’s healing my inner 16-year-old first time driver
I had a pre-approval from my credit union. The Hyundai dealership refused to sell me a car unless I financed through them. I bought a chevy truck that afternoon.
The correct response to that nonsense. You have ALL the power when buying a car - you don't need to buy a car from them, but they need to sell cars in order to eat.
Yea that never happened lol… more likely was that they couldn’t give you a specific factory rebate unless you used their financing and so you stormed out pretending they were playing tricks on you and you acted like a child and bought your second favorite car out of spite… and spited yourself…
And I’m rooting for you! May the best bank win the financing.
I constantly thank the lord that I got a brand new car in 2022 for 2.5% interest
Bro how
@@Aaron-fb6mbco signer , and I bank with a really small credit union. But the rates there are terrible now
Car dealerships make more money on selling you those shitty interest rates. Yes, they make some scratch on cars, but if you dont have a clue about your credit, you may qualify for 5%, and they'll give you 7.9 and smile in your face like they did you a favor. They get kickbacks from the banks for every deal like that. The more points they sell you, the more money they make. That's why finance people always make the big dollars. Thats evey cars salesmans dream...to be the "finance" guy
if you want a genuine good deal, find the car salesman that just started. Lots of managers and the car salesmen themselves will be willing to give good deals to help get them started and have a beginning happy customer pool.
Going from 5% to 7.5% huh? Tell me you don't know the car business without telling me you don't know the car business.
You can leverage that kickback to get a better price on the car, then refinance with your own bank after. BTDT.
U forgot to ask the breakdown of the fees. Some dealerships have tons of add ons
I always say "out the door" when I'm negotiating the price. I walked out of a deal over the $199 dock fee. The salesman called me an hour later and I told him I was already sitting in the office of their competitor working on a deal for a similar car and I would let him know how it went. His sales manager called me back right after that and gave me $500 off without the doc fee if I would come back 😂😂
Damn makes me feel good that i got my car for 1.9% interest rates back in 2018 using the dealership for financing.
Dude's monthly payment is 700 bucks... He's screwed either way. LMAO!!!
That because the rate is at 15%, so if he gets a lower rate the price of your monthly payments will go down by 100 to 150 a month.
I had this conversation and it happened to be that my credit union was one of their lenders so we both ended up happy.
Interest rates are ridiculous now days. Although be careful of the advertised 1-2% interest rates out there as well. Some places literally tack on like 5-10k+ in markups then try to sell you on the “special interest rate” that literally is the same as no markup and 8-10%+ interest at normal msrp price
And the problem is any vehicle that is in popular demand will always have a buyer, if you refuse to pay the markup or w/e they just sell it to the next guy.
Can be some exceptions tho if you’re buying a vehicle that has a high stock count and isn’t selling well.
The reason dealerships show a stock interest percentage is because they can not technically tell you what yours will be without a credit application. The best thing to do is agree on a price and trade and let the finance manager do the credit process and walk out with a lower payment. I always disclaimed the stock interest on the pencils when I would present numbers
Didn’t get pre approved last week. I just looked up the best rates on used cars in my state and told them that is where I wanted to go. Yes, it happened to be my CU but that was just a bonus.
You just have to know your score and income
Dudes being happy with 7.5% makes me really happy i got 2.9% as a first time new car buyer on a 50k buy.
im still stuck on the used car for 29,995 thats what a new one should cost. these prices are rediculous
Just buy an older vehicle
@@ezekielanderson9055 my newest truck is a 1996 f350 and my oldest is a 1955 f100... how much older do you want me to buy? haha
@@7.3PSDA2 Since you’re buying ancient pieces of junk that pass for vehicles, you’re not buying used cars for 30k. So why complain?
Also, trucks are ugly
@@ezekielanderson9055 my 1955 f100 has a 1986 2.3 turbo svo engine and sits low. plus i haul alot so i gotta have trucks.
I did this in ‘21. Save me a shit ton.
Recently bought a used car for my wife, got pre-approved for a loan at 6.5%. I know this is high but others in the area that I've talked to are anywhere from 7 to 14%. I bought the car for 10k, put 4k down and my monthly payment is only 165 a month. I do however pay quite a bit extra, at the rate I pay I'll have it paid off well before the estimated date.
This is EXACTLY how you do it 😎
Saves time and money. The dealership financing will work better for you if you have problem credit or low credit. But if you have decent or good credit just go to your bank and get a loan from them. It saves you a lot of money.
When I got my car back at the beginning of the pandemic in 2020 it was absurd that I got my car at 2.5%, and at that point we could’ve gotten it for 0.9% since my dad was considered an essential worker and Autonation offered 0.9% for essential workers. My parents just recently got a new Mercedes at 7%, and they just kept their mouth shut and signed it even though they knew the Apr was absurd
Looks like autonation is making up for that lost revenue. I wouldn't take a car from them for free!
Be smart. Negotiate MRSP, take the highest interest rate they'll throw at you, take a new loan with your bank to pay it off as soon as you know the loan number
Smart
I think you have to wait quite a bit for you to refinance with a different bank
@@EdgarPerez-s2lNope, thats what dealerships want you to think. They get a chargeback if the loan is paid off within 30 or 90 days. As soon as you have an account number with whatever bank they set up the loan with, you can pay it off, refinance, whatever you want to do.
@@EdgarPerez-s2l at minimum 6 months
@@EdgarPerez-s2lnot refinance. Just take out another loan but with your bank that has history with you and is comfortable with lower interests
I do this every car I’ve ever bought. But don’t tell them until after you’ve negotiated to price with them.
Best thing I’ve ever had done was my first car. The bank gave me a blank check that was “for an amount not to exceed $16,000” (what I was approved for)
It was SO MUCH easier. I negotiated the price I wanted for the car I wanted- and as soon as they pulled out the credit applications I said “no thinks, I’ll write a check. Who do I make it out to?” And whipped that bad boy out.
They were stun locked.
They weren't stun locked you're likely to buy less than 10 cars in your life time they sell 200 cars a year. They know far more than you. They are professionals you are not.
@@MrBrodman98 Found the dealership employee
@renere9638 great job detective.
You felt so smart didn’t you buddy 🤭?
Dunno what you talking Bout so many people working at a dealership arent proffsonals and dont know much they learn on the fly. @@MrBrodman98
This is what my wife and I did this for our first new car purchase yesterday. Always going through the bank unless theres a killer deal.
So glad I bought my GTI brand new during Covid and got 0% interest. That’s a once in a lifetime opportunity.
Dealerships are credit based inventory, they don’t own the vehicles, they’re owned by the car company themselves, dealerships are just paying the car company for the cars at a dirt cheap rate, whatever the dealerships make, what ever those dealerships take keep, as well as more volume = they get more cars on their lots
They own the used cars.
6.99% in 2023 lol. Cried a little bit at that one but oh well.
Seeing all these videos, I'm glad I didn't pull the trigger on a new/used car in 2019. They had me convinced I was getting a good deal at 21%, even though I think that was the state limit. I didn't know anything about credit or banking, I just had a decent job and thought I had money to burn.
I got 0.9% and 0% through Nissan. Back in 2017 and 2016
Interest rates have risen. Seems like 3.99% is the new "0% financing".
@@dougpatterson7494 unfortunately I agree
This is exactly what I did. Got approved 1st @ a bank online/loan with a hecka low int rate. Dealership wouldn't match that int rate with their financing. I still got the car but I just went with the bank & financed thru them.
Im almost done paying off my 4% used car loan from 3 yrs ago. Wtf happened. Im never buying another car
A certain president got into power and used executive powers to do certain things and insurance and loan institutions got a nice fat piece of meat thrown at them.
Joe Biden happened.
Funny I've said the EXACT same thing to two dealerships.
My mom got pre-approved through the bank she uses, a monthly car payment would've been $319 a month and that's with an excellent credit score... All they had to do with download the application. They didn't even want to do that, saying there was no other good option
$319?!? What was her income?
Man I feel bad for the people who think car dealerships are their friends, or wanna help the dealership out. They make plenty of money on the car even if they sell it at MSRP, or even slightly below that. They are rarely gonna lose money.
I took the offer because I needed a car from the dealer went and refinanced a month later just an fyi if you don't have the ability to wait you just need it to go through the state. Went from 10% to 6.5%
Pre-approved Navy Federal! 😂😂😂😂😂
lol fr 😂😂😂😂
Smart customers pay cash
You may end up paying a higher MSRP for the car. But it is nice to not have to deal with payments.
smart customers finance and then pay off their loan immediately with no interest for a credit boost
@@wilsi473money is money. They’ll give you a car for the same price. I’m a car salesman
@@MasonBitBytepaying off a loan immediately decreases your credit score.
@@MrBrodman98yeah but if you’re smart you pay for like 90% of it upfront then make very small payments with basically no interest for the remaining of the loan
Thats how I bought a car. Works perfectly every time
Remeber friends the 20/3/8:
20%down.
Financing no more than 3 years.
Do not exceed 8% of monthly gross income.
It's safe to say special circumstances aside if you can't do the above. You can not afford the car and will quickly be buried in the debt.
If people followed this rule almost nobody could afford a car lol. It's terrible advice tbh.
Dealerships have tricked the masses into believing they can afford a denali when they're just over leveraging themselves. If people only bought the cars they could afford maybe we wouldn't be in this mess.
@BPR-IronCurtain terrible advice? Let's take a look at an example. And no you can't have brand new car or w/e you think you should have:
With a gross annual income of 40k, which is about $19.50/hr. Now I know some may say this is high, but you can make this with fast food, warehouse, and certain retails.
The 20/3/8 rule gets applied, and you can afford a car just under 10k, and this is with a 14% interest for you people who don't understand or use credit stupidly.
Down: 1950
Loan amount: 7802
Interest Rate 14%
Loan Term: 3Years
Don't call something stupid because of your lack of understanding of personal finances. And the hard truth is people manage money so poorly that no most can't do the above without discipline...which is sad in its own right.
@@Drifters_Productions who tf is paying 14% interest? Also 36 month loan is not common. 60 or 72 are the norm. Generally with decent credit today you should be under 9% with a healthy down payment.
@mickym.6711 people who are just starting out looking for a first time vehicle will get that interest rate. That's who this kinda aimed at, people with bad credit or first time buyers. Lmao yes a 6 year loan is the standard, and that is sad af. You know what's also a standard...being poor, credit card, auto, student debt.. And it's because of people with that exact mentality.
Strive to do better than the norm. Don't compare yourself to the worst.
I want to see the guy who is the mystery voice he's always talking to
7.5%!? 😂 never in my life
I got my car for around 7% like 3 years ago.
Dude, in Mexico 13% is a "Very low" rate today. Unless you give like 50% downpay, then you can get lower.
The federal interest rate is 5.5%. you're not finding any better than that in the US. 7.5% isn't terrible in context.
@@CGoody564Navy Federal is doing 4.49% for 36 months on any new car. It's right on their website.
Fr here I am at 5.9 in 2023 when I bought my Tacoma
Did the same thing except I had to leave and they called me the next day. Still used my bank though. They couldn’t match the rate.
Yeah I wouldn’t pay more than 5% interest
Why?
If the market average is 8% why wouldn’t you pay 5%? Stupidity.
@@kevs2good133 because 8% is bullshit. it’s just a waste of money and stupid to pay more than 5%. Especially when your buying trucks and there already marked up extremely highly over msrp.
you obviously have never gotten a loan…
When I bought a new car a couple years ago, every place approved me, except the bank I used for everything else. Yet had no issues offering me multiple CCs with limits over the cost of the car.
Wow, how things have changed? First used car 18 yrs ago was 7 1/2%. I thought that was high and refinanced a year later at 5%.
Since then, I’ve purchased three cars every car has been under 5%.
Different times😂
Fun iest part the most money people have ever had us now so I'm not sure why lenders are so stingy
@@aster22380Because people have the most money they ever had, that drives up inflation and the fed rose rates to slow it down. Banks aren't going to take a risk on a 5% loan when they can get it risk free by loaning it to the government.
Just bought a 2022 lariat f150, I make 6 figures a year and I have a 730 score and my rate was 10%. Going to refi with my personal bank
All these people complaining about rates…
Have you seen the economy?
I am paying 274 a month for my pick up with a 10% (I am 18 and this is my first car) these monthly payments seem absurd to me wtf
I remember going with a pre approved offer from my credit union with a 6% rate no money down. And this guy really tried hard to tell me why his finance was better with a rate of 9.99%.
True salesman
Do pre approvals work for leases too or just purchasing a vehicle?
In 2016 I got 4% APR, paid 10% down and had payments of $450 a month, and I complained too high. Today, most people would kill for that.
Do not finance with the dealership. it wont be a fixed interest rate, they'll jump it up within a year. whereas a bank would be fixed.
Get pre approval from your credit union. Easy Peasy ! Doing so prevents dealership financial rape.
I was PRE-APPROVED to get a social security number BEFORE i was even BORN !!!
(And OWN my share of the treasury National debt...)
This is what I did. Pre approved through my bank went and signed a couple papers and in and out in 45 min.
100% of the time I get the customer a better rate than there pre approval. Literally such a waist of time now days. The credit unions are scheming their most loyal folks. Not everyone’s out to get you. Some people just wanna HELP you get into a car. At the end of the day it’s still your decision.
Local credit unions want so much information today. They are not playing around anymore. Some banks have car buying coaches that will tell you to walk away.
Just go through cap one or if you have access to it Navy fed credit union. The other credit unions here are giving very bad rates currently at least for me.
Always get a pre approval from your bank, then you have the check and you wont get swindled by a dealer
This is why I stick to older cars. I just always keep an eye out for a decent deal on an older car in decent shape. There’s a lot of bad cars out there, but you can find a good one every once in a great while if you look relentlessly..
screw matching, they need to beat that rate.
Period! 💯
nothing pisses a dealership off more than knowing what you are doing.....let them work their whole deal then before signing anything you switch the deal up last minuet other wise you will not get the best deal.
7.99% is the only reason I haven’t bought a new car. Bought one in 2019 at 2.99% and I’m Just gonna keep it for the long run 😂😂😂
I’ll keep my Tesla, direct to consumer was a wonderful experience. I paid the same price as every other person that day and didn’t have to wonder how many ways the dealer screwed me.
Once when I told them I was approved with my credit union they wouldn’t even sell me the vehicle anymore. They legit just stopped talking to me.
I always do this. About half the time the dealership has been able to get a lower rate than my bank. Don't TELL them what you are pre-approved for.
2021 TD Auto Financing through the dealer was 1.69% interest. Toyota Financial Services was at 1.80% interest. This was with 35% down payment and over 750 FICO.
Most people that get sold didn’t ever mean to take home a car that day. They were just starting to look or something they saw or heard brought them in. We have special deals each month on like four cars where if they meet the requirement they normally are saving around 4 to 5 thousand dollars total. We are taking a lose on the cars but make up a little when they finance with us but not at 15.00 percent. We can also go to corporate and by down the rate for customers which is expensive and sometimes makes us so underwater it makes no sense to sell the car to that customer. It’s finance not you give me a car a d you suffer a bug loss…
Would it make sense to ask them to lower the sale price of the car if you finance through them for the 7 and a half percent since they will already be making more money off the financing?
Omg this just happen to me last week .... My husband and I walked out we did not sign the paperwork they text me the next day went in got the rate that I wanted it took the car home!!!!
The problem with telling them this is that they may send you to enough banks that your credit takes a hit for the number of hard inquiries. Limit them to 1 or 2 max.
I did this every time, after you get the loan go back to your bank and have them pay it off and take over the loan for a lower rate again and have billing all on one platform.
Currently for the best rates. The manufacuters are giving out killer incentive rates but are removing dealer cash and Incentives. So while ur gonna get the best rate available, there will be no deep discoujts from the dealer. So yeah maybe u can knock off 1 or 2k from msrp but thats really it
That's like winning a rap battle but with math.
My dad be like 😮💨💯
I don't understand why we have to go through this every time we go to buy a car. This just takes ANY enjoyment out of getting a new car...
Go for a 36 month term and the rate is better 🎉
I just bought a car and I think they ripped me off on payments or I just don’t know how to figure out payments. The remaining balance was $26,125 after my $2500 down took care of fees and taxes but my monthly payments are $415 How is that possible? Should it be below $400? My rate is 4.49% on 72.
The average car payment is $500 a month now apparently
I went into a dealership with a loan, told them do not run my credit cause they could not match me, they ran my credit anyway and the salesman said, "yeah you were right, we can't give you anything better than the loan you have."
I would've cussed his SSA clean out! And then I would've walked out! 😡
I have not financed a car in a long time... I remember feeling ripped off at paying 4%... now 10% is normal. This is why I only self finance... aka save up and buy it cash.
The smart customer pays with cash
I did this and still went with my “local” bank because the interest rate was still way better than what the dealership could get me
Dude, I paid attention to nothing that was said because I was too focused on the short dude in the background recording this on his phone.
What would you do if you wound up upside-down for what youre trading in
Pre Approvals dont mean shit, you're still subject to actual approval by the bank. Pre-approvals dont require a hard inquiry, virtually everyone can get pre approved.
We found the car dealer in the comments 😂😂😂😂
@@Machoman50ta ex-sales lol. That shit sucks.
If you want to outsmart the dealership, buy a car you can afford in cash. Then save the $699 a month to upgrade later. I've heard way too many stories of people owing the dealership or bank more than the car's value.
I did that with my FCU.... Manager basically told me sto leave the dealership. Lol.
Oh well. 🤣
Ima tell you from experience cause i used to sell cars. The worst thing you can do is tell them what rate your looking for. Once they know they will “fix” your rate to make the dealership money. BE smart and get a pre-approval for a set amount from your bank. Then find a car WITHIN that budget.
I got 3.9% on a 4yr loan with 10k down on a 2024 H-rv. I'm hoping to have it paid off in a little less than 3. Then I can get my own project car.
So fun thing is about this customer is it’s a pre approval he’s not approved. Because some banks require what’s called stipulations and you don’t know his true income so if he actually had a 7.5% rate approved he would have a check in his hand regardless at this point put him in the box and let F&I work him. Sales price is good… done deal.