0% interest

Discussion in 'General Discussion' started by carmogul, Aug 5, 2012.

Car Parts
  1. carmogul

    carmogul Full Access Member

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    O.K., I'm going to post the answer to the how of 0% interest due to so many pming me I wud be replying all night: Everything in car deal's is negotiable!, remember that, now you tell the dealer to earn your business you will only buy for 0% interest, they will tell you that's impossible, that the bank's make the rule's and set the rate's....however the rate can be bought down at a discount at the front of the loan,

    The reason is the bank get's their money right then instead of over a given term, also most people dont realize that the rate they are paying is not the true "buy rate", they collect 2%, it's called reserve off the loan, that's the legal limit here anyway....now you must have strong credit, 700 beacon or higher but when they start, just say show me the "buy rate" from the lender and say "buy it down"......it work's way more then you can imagine, just very few know.....good luck
     
  2. fastestbrickonearth

    fastestbrickonearth Full Access Member

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    Nice to know thanks
     
  3. SANCHOBA

    SANCHOBA TEXAS A&M DAD Supporting Member

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    Yeah,but Isn't the 0% only for a limited time,then it jumps? Are you saying I can get 0% for the life of the loan? Say 60 months... ( I'm in the market for a used daily driver and my credit score is 723)
     
  4. jman08

    jman08 Full Access Member

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    Wish I knew this 2 months ago lol
     
  5. Midnight Runner

    Midnight Runner New Member Supporting Member

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    Good info man.
     
  6. viperhauler

    viperhauler Well-Known Member Supporting Member

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    ...in a van, down by the river...
    works the same way with housing loans, too from what i understand...
     
  7. carmogul

    carmogul Full Access Member

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    Yes, it is for the life of the loan, you are thinking of credit card offer's for 0% for a limited time to suck you in and hook you, what I am talking about is negotiating the dealer to buy down the interest to 0%, now understand they are not going to want to because the reserve (the diff. between the actual buy rate and what they quote to you) they get to keep, this is where a large portion of profit is made.....think about it, you know many new car's are sold at dealer invoice or below, how could they stay in business?
    The interest, extended warranty's, gap, mait. contract's, credit life, etc. all of these by the way are pure profit to the dealer.
     
  8. carmogul

    carmogul Full Access Member

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    One more thing, 24, 36 mo. loan's are inexpensive to buy down, the rate's go up the longer the term so 60, 72 and 84 you may only get them to buy it down by a couple or a few % point's, howevereven that is a huge saving's over the life of a longer term loan..........also understand that if you get them to buy it down you will probably not get to buy the car at invoice, however paying say $1k over invoice is a lot cheaper then 5.9, 6.9, etc. over 5, 6, 7 year's............just watch the ad's for $1500 rebate or 0% interest, you take the rebate and the rate is 5.9% or more, do the math on 60 or 72 mos. and see how much that $1500 rebate just cost you.

    Most opt for the rebate by the way.
     
  9. BADASS-SRT-

    BADASS-SRT- Full Access Member

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    Interesting.... Would you have an idea of how low could I push a dealer to let go a 2012 jeep grand cherokee v6 4wd with 22,235 miles @ a price of 25,995. Its pretty much the base model with 4X4. Any ideas would help.
     
  10. carmogul

    carmogul Full Access Member

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    yes, give me a bit and ill give u a number
     
  11. carmogul

    carmogul Full Access Member

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    clean loan is $23,850, however it has a mileage deduct of $700 so clean loan is $23,150 ACV so his asking price is just over 110% of clean loan, this is actually a pretty good deal......work him on the interest if your financing and if you plan to buy gap or warranty offer 1/3 of what they quote you for those item's, be willing to go to 50% of what they want on the back end products....good luck
     
  12. RAMDUDE

    RAMDUDE DOGFATHER Supporting Member

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    I am going to try this. Might see about taking the jetta in & trading on a CC.

    I will let you know what they say after I try it. :D
     
  13. carmogul

    carmogul Full Access Member

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    hey, wait just a min, if you want a CC, buy from me
     
  14. RAMDUDE

    RAMDUDE DOGFATHER Supporting Member

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    where are you located ?
     
  15. kyle's srt10

    kyle's srt10 Active Member Supporting Member

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  16. carmogul

    carmogul Full Access Member

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    yeah, what he said
     
  17. 65fastback2+2

    65fastback2+2 Full Access Member

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    just like paying points on a home loan....
     
  18. Trex20165

    Trex20165 Member

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    You can also shop Credit Union loan rates. I refinanced my 05 RC and borrowed enough to paid off my daughter's student loans. The rate is 1.49% for 36 months. Her student loans were 8% so I am saving a bundle! Northwest Federal Credit Union in northern VA is still offering 1.49% for purchase or refinance of vehicle loans.
     
  19. THEDAV

    THEDAV New Member Supporting Member

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    Ha, you just earned yourself a "mini" commission buddy boy! :chain:
     
  20. THEDAV

    THEDAV New Member Supporting Member

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    Exactly, but it is almost ALWAYS better to take a discount or rebate over 0% financing in a car deal as long as your credit is really good. Think about it - if you can pay a few thousand less for the car up front and you pay it off early you have still saved the few thousand. If a better interest rate becomes available you at any time you can always refi it, and it doesn't cost you a dime unlike, refi'ng a home loan. Interest rates are so crazy low right now if your credit is good, it is almost free money!:D
     
    Last edited: Aug 7, 2012