Incentive Pricing

[roniram]

Can a vehicle price be based strictly on the company you are financing through, or is that hogwash car salesmen use? K was pre approved for a loan through Capital One, but the price online I see I was told is only for Ford Credit because it involves rebates. Yet, he ran my credit so far with several lenders. 

I don't like car salesman...... 

[sccredit]

Yes, there are often incentives that require financing through the captive lender, in this case Ford Credit. As far as shotgunning that is pretty common but still shady if the point was to get the financing incentives through the captive. 

[4sallypat]

Before you step into a dealership, you need to figure out which financing method will get you the best deal:

1. Captive lender's preferred rates + incentives 

2. Outside lender using cash back + manufacturer's incentives

Sometimes going with the captive lender gives you the best deal, while other times taking advantage of the manufacturer's cash rebate in lieu of their financing is better.

The common ads that are running now is: 0% for 60/72 months from their captive lender  -OR- $X,000 cash back with your financing....

You have to do the math to figure out which is best for you.