Car loans and mortgages, question

[Trogdor]

It's true, some dealers do beef up their APRs and pock the extra cash. It has a name is the car industry, I forget what it is. But even if they do - my point is we get paid when you finance with us. If we don't offer you a lower APR than your bank, than what's your incentive to finance with us?

[Goat Blower]

It's called "back door points".

A couple good credit unions to try are Topline Federal, Wings Financial and Teacher's Federal. WF, BOA and the rest of the big banks absolutely suck. I wouldn't ever give them a dime again. WF used to actually charge me an $8 service fee for depositing cash with my business. The customer definitely gets fucked in the banking world unless you watch them religiously, it didn't used to be that way.

[SLOW_V]

^ One of my wife accounts pays her through WF eft. They will intentionally hold releasing your money on the day it is paid unless you have an account with them. Tcf is a bitch @$28 bucks a day for over draft. A smaller bank, University does the same now and will charge up $35 bucks to decline the over draft and then charges $25 a day after. Min $200 balance daily'or be charge $10 bucks a month. Charges $2 for statements. I guess banks needs to make money.

[SLOW_V]

Todor, no car business truly lose money on a deal... Other wise, they won't let you signed at the dotted line.

[Trogdor]

Todor, no car business truly lose money on a deal... Other wise, they won't let you signed at the dotted line.

Actually, in the last few months, we've lost money on a couple deals where the customer wanted to return a car (we don't have a return policy on new cars) and we've allowed them to do that (and get different cars). This ends up costing us money. But we do it from time to time for customer satisfaction.

But that's splitting hairs. You're, for the most part, right. We're not losing money on 99% of our car deals. But my point is that the profit margin is better if you finance with is. Thus we have a financial incentive to offer you a better rate. I doubt it would sound good if I said, "Well Mr. Customer, one of the benefits of allowing us to find you financing is that we work with multiple lenders who will each pull your credit and give you a higher rate than your bank."

[Halon]

Actually, in the last few months, we've lost money on a couple deals where the customer wanted to return a car (we don't have a return policy on new cars) and we've allowed them to do that (and get different cars). This ends up costing us money. But we do it from time to time for customer satisfaction.



You guys don't have a return policy? Then what's the 30 day policy you referred to in the past?

Ok so, I decided to utilize my 30 day trade in over at WB Mitsubishi. I'm trading in the GTS for a Ralliart and eating the higher monthly payments.

[Trogdor]

You guys don't have a return policy? Then what's the 30 day policy you referred to in the past?

We have a 7 day refund/30 day exchange on most of our used cars (all of them that are not being sold "as is"). But not on new cars. Like I said, once in a while we will allow people to bring them back after a short period of time. Depends on the situation.

[Goat Blower]

When I had my dealership, I lost money on a few cars. Sometimes you just have to cut your losses and hopefully make it up on the next one.

[Trogdor]

BTW, had a 5th instance where we couldn't beat a bank today. In fact, we couldn't even get the kid approved for as much of a loan as his CR would give him.

[Mnementh]

My experience has all been before 2007 so that may be invalid, with today's economy. That said, my experience has been that dealers will give you the best rates for new cars while banks & CUs have always beat dealers for used cars over 2-3 years old.

Also, depending on your circumstances you may want to think of this: when I refinanced my house I took out enough to pay off my car loan, effectively transferring the balance to my house loan. The interest is deductible and the rate was actually a bit cheaper.

Also, in my experience, banks & CUs will not give you a different rate depending on your business. They usually have two rates; one for 0-2 year old cars and a higher one for older cars.