Lowest interest rate on s2k by HMC
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From: Brooklyn/LI, NY
Originally Posted by Guth,Oct 17 2006, 10:52 PM
I've heard that a dealer might lower the price of the car in order to jack up the interest rate -thereby making the customer think he's getting a deal before he figures in the cost of financing. If that's the case you can have the credit union option standing by to pay off the dealer loan on the first payment, getting the lowest price for the car and a low intrest rate.
This assumes no early pay off penalty.
This assumes no early pay off penalty.
Joined: Nov 2005
Posts: 866
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From: DC Metro Area
Car Buying 101
1. Never shop by payments. Why? Because we LOVE payment shoppers. Want an S2000 for $450 with no down payment? Sure... Let me write it up. You will have $450/mo, but you'll be paying that until one of your feet is in the grave. Always shop for price, because even if you got offered a high rate on your loan, you always have the option to refinance or payoff early to save on interest charges.
2. "Buy Rates." Buy Rates are the interest rates dealerships get offered by banks, including AHFC (American Honda Finance Corp.). Now, we can "pad" as much as 3% on top of the buy rate. All the additional "paddings" go to the dealership as "financial reserves", and your salesperson gets a piece of that, too. So yes, we love our customers to finance with us. Even if we do the loan at our "buy rate", AHFC still kicks the minium reserve back to us. More money to my paycheck at the end of the month.
3. "My Beacon is 840, my rate should be lower than the other person with 715." WRONG! At least in the case with AHFC. AHFC rates everyone who has a Beacon score over 710 in their "Super Preferred" tier. That's how I managed to get the special money factor on my lease at 0.00059. And anyone with 710 or above can qualify for special APR from AHFC when they are offering it. If your dealer says no, and you know your Beacon is over 710, walk away from that dealership.
4. "Trust me, there's no such thing as a dealer not making money. They will make money 1 way or another..." True and false. I've sold cars that are "losers." Losers meaning we are under "net." What is "net"? That's the price after dealer hold-back. We rarely, if seldomly, do this kind of deal. Usually you'll have to know the dealership's principals to get this kind of deals, and usually it's only couple tens of bucks to round off a number. The dealership makes most of its money through service and parts. New car sales doesn't generate the bulk of their profits.
1. Never shop by payments. Why? Because we LOVE payment shoppers. Want an S2000 for $450 with no down payment? Sure... Let me write it up. You will have $450/mo, but you'll be paying that until one of your feet is in the grave. Always shop for price, because even if you got offered a high rate on your loan, you always have the option to refinance or payoff early to save on interest charges.
2. "Buy Rates." Buy Rates are the interest rates dealerships get offered by banks, including AHFC (American Honda Finance Corp.). Now, we can "pad" as much as 3% on top of the buy rate. All the additional "paddings" go to the dealership as "financial reserves", and your salesperson gets a piece of that, too. So yes, we love our customers to finance with us. Even if we do the loan at our "buy rate", AHFC still kicks the minium reserve back to us. More money to my paycheck at the end of the month.
3. "My Beacon is 840, my rate should be lower than the other person with 715." WRONG! At least in the case with AHFC. AHFC rates everyone who has a Beacon score over 710 in their "Super Preferred" tier. That's how I managed to get the special money factor on my lease at 0.00059. And anyone with 710 or above can qualify for special APR from AHFC when they are offering it. If your dealer says no, and you know your Beacon is over 710, walk away from that dealership.
4. "Trust me, there's no such thing as a dealer not making money. They will make money 1 way or another..." True and false. I've sold cars that are "losers." Losers meaning we are under "net." What is "net"? That's the price after dealer hold-back. We rarely, if seldomly, do this kind of deal. Usually you'll have to know the dealership's principals to get this kind of deals, and usually it's only couple tens of bucks to round off a number. The dealership makes most of its money through service and parts. New car sales doesn't generate the bulk of their profits.
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Joined: Dec 2003
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From: Irvine, SoCal
Originally Posted by FrostyWinters,Oct 21 2006, 07:56 PM
... The dealership makes most of its money through service and parts. New car sales doesn't generate the bulk of their profits.
Best rates are almost alway from Credit Unions.
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Joined: Dec 2003
Posts: 1,774
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From: Irvine, SoCal
Originally Posted by FrostyWinters,Oct 21 2006, 07:56 PM
Car Buying 101
1. Never shop by payments. Why? Because we LOVE payment shoppers. Want an S2000 for $450 with no down payment? Sure... Let me write it up. You will have $450/mo, but you'll be paying that until one of your feet is in the grave. Always shop for price, because even if you got offered a high rate on your loan, you always have the option to refinance or payoff early to save on interest charges.
2. "Buy Rates." Buy Rates are the interest rates dealerships get offered by banks, including AHFC (American Honda Finance Corp.). Now, we can "pad" as much as 3% on top of the buy rate. All the additional "paddings" go to the dealership as "financial reserves", and your salesperson gets a piece of that, too. So yes, we love our customers to finance with us. Even if we do the loan at our "buy rate", AHFC still kicks the minium reserve back to us. More money to my paycheck at the end of the month.
3. "My Beacon is 840, my rate should be lower than the other person with 715." WRONG! At least in the case with AHFC. AHFC rates everyone who has a Beacon score over 710 in their "Super Preferred" tier. That's how I managed to get the special money factor on my lease at 0.00059. And anyone with 710 or above can qualify for special APR from AHFC when they are offering it. If your dealer says no, and you know your Beacon is over 710, walk away from that dealership.
4. "Trust me, there's no such thing as a dealer not making money. They will make money 1 way or another..." True and false. I've sold cars that are "losers." Losers meaning we are under "net." What is "net"? That's the price after dealer hold-back. We rarely, if seldomly, do this kind of deal. Usually you'll have to know the dealership's principals to get this kind of deals, and usually it's only couple tens of bucks to round off a number. The dealership makes most of its money through service and parts. New car sales doesn't generate the bulk of their profits.
1. Never shop by payments. Why? Because we LOVE payment shoppers. Want an S2000 for $450 with no down payment? Sure... Let me write it up. You will have $450/mo, but you'll be paying that until one of your feet is in the grave. Always shop for price, because even if you got offered a high rate on your loan, you always have the option to refinance or payoff early to save on interest charges.
2. "Buy Rates." Buy Rates are the interest rates dealerships get offered by banks, including AHFC (American Honda Finance Corp.). Now, we can "pad" as much as 3% on top of the buy rate. All the additional "paddings" go to the dealership as "financial reserves", and your salesperson gets a piece of that, too. So yes, we love our customers to finance with us. Even if we do the loan at our "buy rate", AHFC still kicks the minium reserve back to us. More money to my paycheck at the end of the month.
3. "My Beacon is 840, my rate should be lower than the other person with 715." WRONG! At least in the case with AHFC. AHFC rates everyone who has a Beacon score over 710 in their "Super Preferred" tier. That's how I managed to get the special money factor on my lease at 0.00059. And anyone with 710 or above can qualify for special APR from AHFC when they are offering it. If your dealer says no, and you know your Beacon is over 710, walk away from that dealership.
4. "Trust me, there's no such thing as a dealer not making money. They will make money 1 way or another..." True and false. I've sold cars that are "losers." Losers meaning we are under "net." What is "net"? That's the price after dealer hold-back. We rarely, if seldomly, do this kind of deal. Usually you'll have to know the dealership's principals to get this kind of deals, and usually it's only couple tens of bucks to round off a number. The dealership makes most of its money through service and parts. New car sales doesn't generate the bulk of their profits.
Best rates are almost alway from Credit Unions.
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Originally Posted by tbonesteak,Oct 21 2006, 04:24 PM
what is ur credit score if you dont mind me asking turnerg1?
I read through a website called carbuyingtips.com before I thought of buying. Very helpful to understand the whole process.
I also got the quote from my dealer through carsdirect.com. back in 04 the going price was about 30-31K and I bought at 28K.
Lots of tools out there to get your price you want to pay.
And I agree, never agree on a payment but a price.
T
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Okay, so there are 3 credit unions. Equifax, Experian, and Transunion. I noticed that my TransUnion is 720 but the others are like 702 and 691. Which one is the one that the dealers will be using to qualify me for a loan?? Thanks in advance.
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