Boyfriend did it through Cap1 at an Autonation Ford dealership. Of course he knew the interest rate before we went which was 3.6%, but the manager came out and told him it was actually much higher, I belive he said around a 7%. So after we kept reiterating that we wanted the contract dry, we went to go in to sign the papers. Well low and behold we knew why it was so high. They had added all kinds of crap to the paperwork, like Gap, insurance and all kinds of stuff. They even tried to justify it by changing the contract from a 60 months to 72 months. Which he did not want. They really wanted him to use that entire $40,000.
Thank goodness I jumped in and read it all. Made them take ALL that stuff off, and the finance guy said, "Oh your in luck, I was able to get you a better interest rate." Really, no it is because you took all that stuff off. Don't forget that when they add items to the original deal you agreed on, the interest rate goes up. You don't NEED to use the entire amount Cap1 finances you.
He even put $8,000 down on a 2016 Frod Fusion Titanium for only $28,000, so out the door the financing covered the rest. Always put money down. It will help you not be so upside down in the car loan. Read your contract with Cap1 also about making extra payments too. He has been paying way over the amount he need to each month, and they kept rolling it over to the next months payment instead of it going to the principle payment amount. Lots of phone calls there.
Just be careful when you go, it's better to negotate over the phone, and READ everything. The dealer is still trying to make a profit, and negotiate first, and do not tell them that you are pre-approved for anything until you get the price right on any car you want. Let them negotiate for a better rate through their financing after you lock down the price on the car. Out the door price by the way including all the fees and stuff.
