0% interest

[carmogul]

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

 

[fastestbrickonearth]

Nice to know thanks

 

[SANCHOBA]

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)

 

[jman08]

Wish I knew this 2 months ago lol

 

[Midnight Runner]

Good info man.

 

[viperhauler]

works the same way with housing loans, too from what i understand...

 

[carmogul]

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)

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.

 

[carmogul]

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.

 

[BADASS-SRT-]

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.

 

[carmogul]

yes, give me a bit and ill give u a number

 

[carmogul]

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.

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

 

[RAMDUDE]

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.

 

[carmogul]

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

 

[RAMDUDE]

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

where are you located ?

 

[kyle's srt10]

where are you located ?

North Little Rock,AR

 

[carmogul]

yeah, what he said

 

[65fastback2+2]

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

 

[Trex20165]

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.

 

[THEDAV]

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

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

 

[THEDAV]

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

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!