Financing and Interest

[Mama Tried]

Did any of you do the financing over the phone? I assume there's no issue with that, I figured I'd want to get it all sorted so when I get there I can just take the keys and drive off.

Yes- I filled out the dealerships application online and got a phone call within a couple of hours with my rate. I'll sign everything on Saturday when I pick up the truck. Was pretty simple.

 

[Sundroop3]

Did any of you do the financing over the phone? I assume there's no issue with that, I figured I'd want to get it all sorted so when I get there I can just take the keys and drive off.

Please update if you’re able to do so, I’d want to do the same thing. You should have no problem doing so once your truck is delivered to Granger.

 

[Yeti]

I sent my payoff and load documentation to Granger, directly. it was probably the easiest major purchase I've made.

Also, if you're a member of Navy Federal, they also have 1.79% for new cars.

 

[Bannerman]

It's insured with gap, and in the US trucks barely depreciate. Need to drive a vehicle anyways. My $65k is going to go much further in the market, my retirement account, and my business vs the sub 3% rate that'll be a few grand at most over a 6 year term.

If you pay it in full and someone else totals it, even not at your fault, you'll get what the insurance tells you, which even in this market will be less than what you paid in full. So you're exposed for the first 2-3 years doing that. Meanwhile if you put minimum down, it's the insurance and the lenders problem to settle.

There's many more reasons not to pay a vehicle in full if you have good credit and a use for your funds otherwise, rather than to pay it in full (only reason here imo would be bad credit, no other use for your funds that beats 2% yearly returns which almost a money market account beats lol, or a significant cash discount which is nonexistent in this market). My 2 cents.

I understand the math, I just can't stomach payments on anything anymore.

 

[Cranbery]

I was a Finance Manager at BMW and a Mercedes Benz in the past. With a 800 credit score and what you are showing, you should not have a problem getting the best rates available. All the banks will look at your credit score, credit history and income coming in vs. what's going out. Not having credit history with them only matters if your credit is somewhat suspect but I did come across once instance where it did help.

True story. I had a guy with really bad credit. Like a 588 score. At BMW we would not even look at that App cause score was below the threshold. At Mercedes Benz we were able to submit it. I was thinking there is no way he's getting Approved just based on the score. We looked at his credit report. It wasn't the greatest. Late payments everywhere, didn't pay things off but for whatever reason he always paid Mercedes Benz Bank on time for the past 8 years on like 2 different leases. Go figure. After speaking to the bank people at Mercedes they said we are going to Approve him just based on that. We don't care he doesn't pay anybody else but he does pay us LOL. I can say for this case, the payment history was a factor.

The rates are based on current market. That can change monthly. You usually can't beat the manufacturer's own bank rates when they offer special financing like 0% for up to 72 months obviously but when those aren't available, you just have to settle whatever is market. If the manufacture has their own bank like I think Ford does, they can be really competitive and hard to beat.

Dealerships usually send out your credit app to different banks and usually go with whoever gives them the best rate or who will pick up the contract terms. Dealerships get a buy rate or wholesale rate and they usually mark up anywhere from .5-3.0% depending. They may offer that buy rate in rare instances but that usually means they sold your a bunch of other stuff like warranties etc. or just a volume seller and don't care too much about making money on the Financing.

You also have the option of just going straight to your own bank or credit union. I use PenFed. They have pretty good rates. At the time of my purchase I went with the 72 months and I believe it was 2.39% at the end of September 2021. That was the best I could find at that time. If the Dealership is able to beat the rate I found, as a courtesy, I will use the bank of their choosing. I also have great credit.

It's best to check with your bank or credit union and find the best Rates available. Just have the dealership try and beat that. Again this is all based on current market. 2.39% in September in Hawaii might be good then but today there could be a better or worse rate.

You could also just sign up with their Financing and just refinance with another bank with a better rate later on but just make sure that bank allows it and you are able to qualify for the better rate. Sometimes the banks require you to not buy out contract for like the first year. Sorry this was long. Hope this helps. Just my 2 cents.

Is it true that multiple credit pulls within a matter of days counts one pull because the credit agency knows you're shopping rates?

Having an issue with the lender I got who is trying to up my rate now on a stupid technicality and if Granger can't sort them out I am going to shop it to my banks. Curious how it'll affect my score and hard pulls

 

[ORTTremor89]

That's true. I've had to do just that when Ford was trying to give me a stupid rate like 7% on a prior purchase (my fact pattern is very similar to yours). It's like a 14 day window where the impact is minimal or treated as a single inquiry.

 

[Tremors]

I would go through DCU.ORG or Digital Credit Union. They are out of the north east, but I'm in Utah and I just joined. Rates at 1.49% for up to 65 months. To join, you can just contribute $10 to a school fund (or many other options) and then you are eligible to become a member.

If you do an EV they will give you another .5% off the rates.

 

[steamboatdevil]

My last purchase the finance manager told me I could not use my own financing because he needed the kickback from the bank to make his money. He then told me to help him out and refinance with my own bank after a month's time (the dealer offered financing rate was like 6.5% with perfect credit)
I picked up the keys and tossed them back at him, tore up the contract and walked out.
The owner of the dealership called me on my way home and asked me what happened.. he told me to come back and they would have me in and out in 15 mins with a 1.5% rate and he took off $1000. He also said this would be the finance manager's last day (not sure if that was true but he was terrified I was going to call the manufacturer).

 

[colotaco]

1.89 for 63 months USAA

 

[ChsTremor]

m back at him, tore up the contract and walked out.

I would go through DCU.ORG or Digital Credit Union. They are out of the north east, but I'm in Utah and I just joined. Rates at 1.49% for up to 65 months. To join, you can just contribute $10 to a school fund (or many other options) and then you are eligible to become a member.

If you do an EV they will give you another .5% off the rates.

Thats a great rate. I shopped for a while and the best I could find was 2.25% on a 60Mo with 24K down.

 

[Escape Hatch]

Half down and the other half paid off in 2023 so doesn't matter to me too much.

 

[Bannerman]

Half down and the other half paid off in 2023 so doesn't matter to me too much.

BuT yOu CaN mAkE mOrE mOnEy InVeStEd

 

[Yeti]

Half down and the other half paid off in 2023 so doesn't matter to me too much.

My plan was to pay it off in a year but that extra $5k/month is currently making more than the 1.89%/year is costing me. We'll, for now.

 

[Bannerman]

My plan was to pay it off in a year but that extra $5k/month is currently making more than the 1.89%/year is costing me. We'll, for now.

Drives better when nobody can take it away from you though.

 

[FaKtor34]

Did any of you do the financing over the phone? I assume there's no issue with that, I figured I'd want to get it all sorted so when I get there I can just take the keys and drive off.

Hey @Cranbery I don't know if they still are offering it but they were giving $500 cash off for financing through Ford, make 3 payments then switch after that to get a lower percentage rate. That's what I do, I use a local bank that I bank through but you have to make 3 payments before you swap or you lose the $500 off if they still offer it

 

[Escape Hatch]

My plan was to pay it off in a year but that extra $5k/month is currently making more than the 1.89%/year is costing me. We'll, for now.

This is fair and perhaps I should re-examine my financial strategy, I just cannot stand having any debt.

 

[Cheif2Slo]

If you can pay it off is it really debt or is it sound financial planning?

 

[Escape Hatch]

If you can pay it off is it really debt or is it sound financial planning?

Fair question. I paid off student loans this year, will pay off wifes Aviator in November and will only carry the Tremor and my mortgage there after. Want to start investing in real estate properties in 2023/2024 and would like to minimize my obligations before doing so.

You know what Dave Ramsey would say.

 

[Escape Hatch]

Still debt, money you owe. Miss a couple payments and you’ll find out who really owns it. For me anyway, it’s not just dollars and cents. We worked our butts off for two years to get debt-free. Not about to go back in debt for something as dumb as a truck. Cash is king.

Congrats man!

 

[Bannerman]

Congrats man!

Same to you Sir, most of our debt was also Student Loans.