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Better than advertised rates?

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Anonymous
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Better than advertised rates?

Hello All,

 

I'm a little more than a month away from a car purchase... Looking at Hyundai and my question (more like a wish) is this:  With a high score, EQ 798, would it be possible to get a better rate then what has been advertised on their website?  They have 2.9% for 60 months which is probably what I would seek, but the way some people talk about high scores it almost makes it sound like I could do better than what's advertised.. 

 

Yeah I know, wishful thinking, but it doesn't hurt to ask..

 

Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: Better than advertised rates?

(Edited to fix a few typos and clarify)

 

Better then 2.90% Not likely unless its a "subvented" rate, offered as an incentive through a manufacturer finance arm with the dealer.

 

The big drivers on interest rate are loan amount, person's score/bureau report, and term of loan. We will assume you are talking 60 months in this reply.

 

Very few Banks/credit unions in the "wild" offer rates lower then 2.9, and none really offer lower then 2.5.

 

Why? Simple, anything lower and they could make more money elsewhere. The risks and carrying costs max out at about the 2.5%-2.9% threshhold- anything less and they are not making enough money for it to be a viable pursuit.

 

Whenever you see a new car loan for lower then 2.6% to 0% it is a subvented (or artificial) rate- as in the finance company is being compensated to offer the lower rate. It is usually seen when a manufacturer runs a 0% rate through their finance arm. In lieu of rebates you the customer give up $XXXX dollars in rebates to secure the 0%. the Money you lose is then paid to compensate the finance company for their costs/profit on the transaction. This is also why companies that do not normally incentivize a lot do not frequently offer 0%.

 

Can someone come in here and correct me that they saw such and such credit union offer 2.49%? Yes but who really knows who ended up actually getting that rate and how long it is going to be offered for. In my experience no one offers below 2.6% as a SOP.


And do not remember some bank have their rate and thats what they are lending at. Because bank XXX is offering 2.69% does not mean you can play them against Chase who are offering 5.9%. There is a little room but the rate they offer is the rate they offer.

 

My Sig other bought a Toyota Avalon, they offered 2.9% or $750 in rebate. There was a little discussion with me and well NFCU could do the 2.9% and we kept the $750.

Message 2 of 6
Anonymous
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Re: Better than advertised rates?

Thanks for the explanation,  yes I know that they only way to get the loan for most of us is for them to make money off of the deal.  But in this era of 0% being promoted all over the place, the temptation to want, hope or whatever for that rate on my loan is only human.  At the end of the day I will see what is offered by the local credit union and the dealership and make the decison on what is presented to me. 

 

I hope you find good work soon USMC58555. 

 

 

Message 3 of 6
Anonymous
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Re: Better than advertised rates?

Thank you.


Please remember when getting giddy over interest rates, do not forget to do your math.  As I have said, in many cases you are giving up a part of or all of your rebate for the subvented interest rate.

 

Take a $20,000 transaction where you get $1,500 in rebates or 0% for up to 60 months. You can get 2.9% from your credit union and you are putting a few thousand down...which makes more sense- taking the rebates and conventional financing, or taking the interest rate and losing the rebate.

Message 4 of 6
Anonymous
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Re: Better than advertised rates?

USMC58555,

 

First off,  you're welcome.. I lost my job once and I know that it takes alot of time, effort and often sacrifice (less pay etc.) to recover. 

 

Now regarding the rates, I hear ya..  I frankly don't have a ton of math skills so I've already plotted out the whole question of whether its better to take the rebate or the rate.  Now currently, Hyundai doesn't have many rebates available on the Sonata (the car is selling very well) and the only rebate I could qualify for requires that I finance through Hyundai (the grad 400 rebate)..  Hyundai's rate for that 60 month deal is 2.9%.  

 

Credit unions in the local area (MA) have 2.9% as a baseline, although I did see one credit union with a lower rate of 2.25% up to 72 months or 2.00% with automated payments.   I don't know where my work will station me just yet, so I'm waiting on that and I'll see what credit unions are available and what rates those CU may have before going to the dealership..  I'm also hoping that a purchase date closer to memorial day which will hopefully see hyundai offer other rebates.  I have not strong opinion for or against finance through Hyundai Finance so I'm trying to keep an open mind at this point.

 

 

Message 5 of 6
Anonymous
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Re: Better than advertised rates?


@Anonymous wrote:

USMC58555,

 

First off,  you're welcome.. I lost my job once and I know that it takes alot of time, effort and often sacrifice (less pay etc.) to recover. 

 

Now regarding the rates, I hear ya..  I frankly don't have a ton of math skills so I've already plotted out the whole question of whether its better to take the rebate or the rate.  Now currently, Hyundai doesn't have many rebates available on the Sonata (the car is selling very well) and the only rebate I could qualify for requires that I finance through Hyundai (the grad 400 rebate)..  Hyundai's rate for that 60 month deal is 2.9%.  Wow, Hyundai must have needed a revenue stream.

 

Credit unions in the local area (MA) have 2.9% as a baseline, although I did see one credit union with a lower rate of 2.25% up to 72 months or 2.00% with automated payments.   I don't know where my work will station me just yet, so I'm waiting on that and I'll see what credit unions are available and what rates those CU may have before going to the dealership..  I'm also hoping that a purchase date closer to memorial day which will hopefully see hyundai offer other rebates.  I have not strong opinion for or against finance through Hyundai Finance so I'm trying to keep an open mind at this point. I would really like to see who actually qualifies for that rate and how many loans they issue at it. My guess, teaser rate that Bill Gates or Warren Buffet would get- and most people would be bumped to a rate closer to 2.9%..

It does not matter who you get the loan through as long as the rate and the service is what you want/need.

 

 


 Good luck!!! Come back and let us know about the experience.

Message 6 of 6
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