Cadillac XT4 Financing

Caribsa89 · ‎12-14-2023

I am trying to buy an XT4 and Cadillac has 2.9% financing for 36 months loan. Do I negotiate the price before asking for the financing. I also have 15K to put down. How do I approach purchasing this car? Should I try to negotiate it online first and then ask them if I qualify for the 2.9% rate.

Gladius · ‎12-14-2023

I would first negotiate the price online/over the phone. To qualify for that rate, they are abviously gonna have to pull your credit. I wouldn't mention putting any money down until you get the total price you want.

CreditCuriosity · ‎12-14-2023

Yes definitely negotiate the price. You should be able to get a decent amount off due to end of month/year incentives for dealerships. Definitely don't let the finance manager or sales person think they can hold that financing above you and keep those two separate. A lot of cars are sitting on the lot again and supply chain shortages for most part are the things of past especially on vehicles. Hopefully you credit supports the 2.x rate being Tier 1. If they give you a rate that is stupid or not the 2.x then certainly just get ready to walk as finance people make .5 to several points off financing.

pizzadude · ‎12-14-2023

@Caribsa89 wrote:
I am trying to buy an XT4 and Cadillac has 2.9% financing for 36 months loan. Do I negotiate the price before asking for the financing. I also have 15K to put down. How do I approach purchasing this car? Should I try to negotiate it online first and then ask them if I qualify for the 2.9% rate.

All good advice above. Also read this sticky thread if you haven't already, it has a lot of great information: https://ficoforums.myfico.com/t5/Auto-Loans/How-to-buy-a-car-for-the-first-time-buyer/td-p/1923289

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

CreditCuriosity · ‎12-14-2023

@pizzadude wrote:
@Caribsa89 wrote:
I am trying to buy an XT4 and Cadillac has 2.9% financing for 36 months loan. Do I negotiate the price before asking for the financing. I also have 15K to put down. How do I approach purchasing this car? Should I try to negotiate it online first and then ask them if I qualify for the 2.9% rate.
All good advice above. Also read this sticky thread if you haven't already, it has a lot of great information: https://ficoforums.myfico.com/t5/Auto-Loans/How-to-buy-a-car-for-the-first-time-buyer/td-p/1923289

Good article. Use to work in IT at an extended warranty company and extended warranties have no regulations around the mark up on them it is crazy the amount we charged and what they were being sold for at dealerships basically robbery. Finance people make SOOOO much money I think they are the higest paid person next to the manager partner at the dealership

Caribsa89 · ‎12-14-2023

Thank you for all the advices. I purchased the car. It will be delivered to me next week! I applied for the auto loan with Navy Federal first and their minimum for 36 months was 4.54% but for some reason I received 4.99%. I then negotiated the XT4 Sport to a price I was comfortable with. I then added the floor liners for $395 after the negotiated price and insisted that I should still pay the same price (I was not trying to get over, I really forgot to add them until after the fact). I then told him I saw a special that GM financial advertising a rate of 2.99% for 36 months and I would like to see if I qualified and if I use their financing, we should call the floor liners a wash. He said he had to speak to his finance manager. I did lie and told them I received a rate of 3.99% from Navy for the 36 months. Anyway, I was sent a link to apply for financing. I was asked to unfreeze both Equifax and Transunion. Once done, I texted the salesperson with a copy of my drivers licence. Two hours later the sales person called me to say congratulations, not only was I approved but I also got the 2.99 rate. I should also say that all 3 of my Fico scores are in the 800s so I was confident if it was a true advertisement, I should qualify for it; reason why I was confused that I did not receive Navy's lowest rate.

Also, it seems that the dealership puled my credit report from both Equifax and TransUnion but GM Financials only pulled Equifax; so I had a total of 3 hard pulls from them and 1 from Navy who also pulled TransUnion; so a total of 4 hard pulls for the entire process. Thank you again!

pizzadude · ‎12-15-2023

Congrats, and great job negotiating to get the deal that you wanted

Interesting that NFCU didn't offer their lowest rate -- I think their "internal score" factors more into what they'll offer versus just your credit score. Do you have any prior loan history with Navy, CCs, or checking / savings activity ?

Enjoy the new ride !!

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

Caribsa89 · ‎12-15-2023

Thank you! I am a new customer of Navy. I only opened a saving with them on 12/2 of this year with the intention of applying for an auto loan.

pizzadude · ‎12-15-2023

@Caribsa89 wrote:
Thank you! I am a new customer of Navy. I only opened a saving with them on 12/2 of this year with the intention of applying for an auto loan.

Ah okay that might explain - guess you're too new of a customer with NFCU to qualify for the lowest rates.

But it sounds like you got a pretty good deal out of it anyway

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

dunn2500 · ‎12-18-2023

@Caribsa89 wrote:
Thank you for all the advices. I purchased the car. It will be delivered to me next week! I applied for the auto loan with Navy Federal first and their minimum for 36 months was 4.54% but for some reason I received 4.99%. I then negotiated the XT4 Sport to a price I was comfortable with. I then added the floor liners for $395 after the negotiated price and insisted that I should still pay the same price (I was not trying to get over, I really forgot to add them until after the fact). I then told him I saw a special that GM financial advertising a rate of 2.99% for 36 months and I would like to see if I qualified and if I use their financing, we should call the floor liners a wash. He said he had to speak to his finance manager. I did lie and told them I received a rate of 3.99% from Navy for the 36 months. Anyway, I was sent a link to apply for financing. I was asked to unfreeze both Equifax and Transunion. Once done, I texted the salesperson with a copy of my drivers licence. Two hours later the sales person called me to say congratulations, not only was I approved but I also got the 2.99 rate. I should also say that all 3 of my Fico scores are in the 800s so I was confident if it was a true advertisement, I should qualify for it; reason why I was confused that I did not receive Navy's lowest rate.
Also, it seems that the dealership puled my credit report from both Equifax and TransUnion but GM Financials only pulled Equifax; so I had a total of 3 hard pulls from them and 1 from Navy who also pulled TransUnion; so a total of 4 hard pulls for the entire process. Thank you again!

Ive lied to to finance manager as well to get promo rate, worked like a charm both times and saved a hard pull from Navy.....its all a game, use it your advantage......they would rather make some money on finance than none, plus there is probably a lil chunk for finance guy to get GM to take the loan vs Navy.....also took shorter terms to get lower APR, rather have higher payment and shorter and favorable terms than vice versa........which is why monthly payments arent a good barometer for auto loan stats..