Approval process at dealership

[babbles]

Just for my own knowledge, when the dealer runs your credit and sends your application to various banks and comes back with an approval at the best rate for you, how concrete are those payments?  Since you are  signing your paperwork in Finance, I always thought the numbers were pretty concrete since you are signing a contract that shows the lender, interest rate, payments, and due date?     Anyone have any past experience with SunTrust?  Thanks.

[Anonymous]

Once you sign the contract and they fund the loan based on those terms it is as concrete as you can get. What you may have read in these forums is that some people have had luck with refusing the terms and threatening to not sign the deal. Sometimes the dealer has "MYSTERIOUSLY" found better loan terms. A lot of it depends on your credit profile.

If you post some info about your current credit specifications like FICO scores, age of credit and any negative information some of the more experienced posters on here can give you an idea of what interest rates you should qualify for on new and used purchase. Remember that used car interest rates are generally going to be higher than new car rates. And down payment amounts can influence the rate you may be offered also.

[my25reasons]

Just like holding said. The math is concrete. You are signing a contract, both parties are agreeing on.

I have my finance paperwork (the paperwork handed to me IN the dealership the day I bought my car) here and it breaks down the payment schedule like this:

The payment schedule will be ___ installments of $___ ea, monthly begining ___ (Usually the following month).

it also states "NO COOLING OFF PERIOD. State law does not provide for a cooling off or cancellation period for this sale. After you sign this contract, you may only cancel it if the seller agrees of for legal cause. You cannont cancel this contract simply because you change your mind."

Hope that covers your question!

[babbles]

Thanks for the info.  My score was 773 when the dealership pulled it Saturday.  Sent it to Honda, crestone?, BOA, and Suntrust.  BOA was the best that night @ 5.94%.  When I went back Monday morning he had gotten a reply back from Suntrust that said 3.04%.  I went with that and signed the contract for that  percentage rate and the projected payments with the rate also.  It was conditional because they had to speak with me because of my fraud alert.  Also, my DTI is high because of rental properties so It seems like I get the high end of good rates.  USAA gave me the high end of a good rate @ 3.75% but the contract I signed at the dealership with Suntrust stated 3.04%.  Hope this won't change.

[Anonymous]

Also, keep in mind most dealers will tack on additional interest for themselves.  For example, if you are offered a loan at 5% interest, there is a good chance the finance company is getting say 3% while the dealer is taking 2%.  Because of this, you can negotiate interest rates, just like the cost of the car.  That is how dealers "find" better interest rates when you don't like the terms you are offered.  They just lower their cut.

[babbles]

Wow!  Did not know this?  So ironically it dropped to 3.04% because maybe they lowered their cut?  I definitely was not going with 5.9%  Wow!  Thanks for that knowledge!

[Anonymous]

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@babbles wrote:

Wow!  Did not know this?  So ironically it dropped to 3.04% because maybe they lowered their cut?  I definitely was not going with 5.9%  Wow!  Thanks for that knowledge!

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I only just learned this recently here.  Wish I'd have known it in January when we bought our car at 16.5%!  I'm sure I could have got it lowered.  All good though as my CU refinanced me down to 2.49% anyway.

[Anonymous]

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@babbles wrote:

Wow!  Did not know this?  So ironically it dropped to 3.04% because maybe they lowered their cut?  I definitely was not going with 5.9%  Wow!  Thanks for that knowledge!

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Was this for a pre-owned vehicle? I believe honda offers a 1.9% rate for 60 months. Which only requires a 720 Auto enhanced beason (EQ) for new purchases...

[trumpet-205]

OP, have you consider securing a loan from bank/CU rather than at dealership? It would be better 99.99%.

[babbles]

I definitely favor USAA but their rate was 3.49-3.75 on 72 month terms.   Honda's special A.P.R. applied to 60 month terms and I preferred 72 months.  The vehicle is new BTW.