Yesterday, I went to purchase my car, preapproval in hand and ready to drop $2.5K on a down payment for 2013 Nissan Altima 2.5s. Found the car I wanted, had three different people look it over and was ready to purchase. Went to sign the papers, when the dealership offers me financing. The dealership finances through Cap1. I didn't expect much of anything from them, but decided what the heck; run my credit.
My bank had already approved me for 5 years @ 3.73%. Dealership comes back with 5 years @ 5.8%. I told them no. The guy tells me to hold on, and comes back with 5 years @ 3.24% no money down, even less if I put money down, and even offers to knock off $500 on the total price (dropping the car down to $13,999). I couldn't believe it.
I hopped all over that deal! In retrospect I probably could have done better interest rate wise but I was totally happy. I walked out with a great rate and ended up keeping $2,500 in my pocket.
I just wanted to share
My bank had already approved me for 5 years @ 3.73%. Dealership comes back with 5 years @ 5.8%. I told them no. The guy tells me to hold on, and comes back with 5 years @ 3.24% no money down, even less if I put money down, and even offers to knock off $500 on the total price (dropping the car down to $13,999). I couldn't believe it.
I hopped all over that deal! In retrospect I probably could have done better interest rate wise but I was totally happy. I walked out with a great rate and ended up keeping $2,500 in my pocket.
I just wanted to share
Congratulations on your deal...sounds like you went in prepared and you were rewarded well!
@SomeGuyOnTheWeb wrote:
Yesterday, I went to purchase my car, preapproval in hand and ready to drop $2.5K on a down payment for 2013 Nissan Altima 2.5s. Found the car I wanted, had three different people look it over and was ready to purchase. Went to sign the papers, when the dealership offers me financing. The dealership finances through Cap1. I didn't expect much of anything from them, but decided what the heck; run my credit.
@Anonymous bank had already approved me for 5 years @ 3.73%. Dealership comes back with 5 years @ 5.8%. I told them no. The guy tells me to hold on, and comes back with 5 years @ 3.24% no money down, even less if I put money down, and even offers to knock off $500 on the total price (dropping the car down to $13,999). I couldn't believe it.
I hopped all over that deal! In retrospect I probably could have done better interest rate wise but I was totally happy. I walked out with a great rate and ended up keeping $2,500 in my pocket.
I just wanted to share
This is exactly why you should always have a pre-approval in hand before going into the dealership. You were able to save .49% on the rate, $500, and got to keep your down payment.
This is also a good example of how dealerships work, so those reading please take note. Dealer offered 5.8% and then comes back with 3.24%, no down, and $500 off?? The question begs, "why didn't you offer me that in the first place?!" Answer - because some consumers dont have a pre-approval in hand and just accept this rate. Dealerships will almost always start high, and then come down to make you feel like you're getting a good deal. Whether it was the best deal, is much harder to determine. This is the same as when they are selling a car.
Dealer: "How does $15000 sound?"
Consumer: "Can you do better?"
Dealer: "Let me talk to my manager."
Dealer: *Runs to back and talks to Joe the janitor about the weather
Dealer: *comes back to you, "I was able to get it down to $14000!"
Lastly, if and when buying used, I always suggest using a CU verus a traditional bank. The reason for this is that most big banks will add to the rate, the older the car is. Versus a CU does not care if the car is brand new or 2013 for example. They do have a max age restriction, but wont penalize for a used car. *this is most CUs in my area at least. The main concern for CU is the LTV has to be in check. Suggestion to OP, check a credit union when/if you are considering to refinance.
