Anyone on here in car sales or auto finance?

[Yoshi]

Having some challenges with getting a new car. I dont believe what they are telling me.
Any help?

[liz417]

No, sorry. What are they telling you?

[Yoshi]

The dealer is screwing around with us. I just want to ask someone some questions about financing.
My understanding is rates on a new car are usually lower than rates on a used car. We were approved on a used with a few stipulations. Since we are upside down on our trade we dont meet those stipulations. Since I know the original deal was at 18% we decided to pursue a new model. The dealer is telling us its still 18.5% which I dont believe. He also said we need to have 9300 down. If I had 9k i would just pay off the negative equity and sell her used car out right.

[optimistic1]

Dealers are crooks, that is for sure.

They are able to add lots of extra interest on top of what the bank originally will approve you for. This is how they make so much profit, they also will add on all kinds of other fees into the sales contract.

I would shop around and try another one, or just take the 18.5%, and then refinance with Capital One after paying for 6 months, thats what I did, went from 18% to 10%.

What is your credit like for the dealer to want 9300 down? Most dealers or banks will have a cap on how much can be financed for X car, if you are seriously upside down, you have to make it up.

[dscurlock]

Dealers are crooks, that is for sure.

They are able to add lots of extra interest on top of what the bank originally will approve you for. This is how they make so much profit, they also will add on all kinds of other fees into the sales contract.

I would shop around and try another one, or just take the 18.5%, and then refinance with Capital One after paying for 6 months, thats what I did, went from 18% to 10%.

What is your credit like for the dealer to want 9300 down? Most dealers or banks will have a cap on how much can be financed for X car, if you are seriously upside down, you have to make it up.

and how much of a down payment did you have to give the bank..?
they are not going to give you 10% without wanting something upfront
for the re-finance...I tried this a year ago or so, and they wanted
like $3,000 down payment...its probably worse now with this credit crunch going on...

[optimistic1]

and how much of a down payment did you have to give the bank..?
they are not going to give you 10% without wanting something upfront
for the re-finance...I tried this a year ago or so, and they wanted
like $3,000 down payment...its probably worse now with this credit crunch going on...

for the refi I did not spend one penny. Your'e right it might be different now, I did it in 2006, back when credit flowed like water.