0% for 84 months Financing on 2019 Mustangs (not including GT350)

[vanquishvzla]

to 7 different people, obviously. Each buyer makes N payments, goes 60day late and the car is immobilized remotely. It beacons its GPS coordinates so the repo guy knows exactly where it is. 90 seconds on the ground and the car is gone and returned to the seller. They clean up the paperwork with the DMV and courts if needed, and slap a SALE sticker on it and a couple weeks later it's in buyer #2's hands. Rinse, lather, repeat.

kind off, but not like this... 60 days? not necessarily... it depended on how helpful was the customer, you always work with the customer, if they were hiding o avoiding you... fuck it, sent the repo truck to get that shit right away... legally you have to wait 10 days in order to do anything with the car. After those 10 days, legally (and i say everything "legally" because if you fuck up on paper or procedure it will be a total pain for you as a dealership) you can do whatever you want with the car... usually is full detail, any repair it may need, etc. You put it for sale, get another customer, another down payment and the process start all over again...

basic math:

$1500 down each customer, $350/mo, you get 3 to 8 payments on a bad customer, 12 on a decent one before you had to snatch the car... do that 7 times on the same car... that civic was a huge profit maker. i sold the car myself 2 or 3 times, that car was at that dealership before me lol... that's how buy here pay here make their money... is not the money upfront... is the money flow coming in every month... 400 accounts at 280-350 a month... cash flow was never an issue... on a regular dealership, aka non bhph, the money comes differently, besides the obvious volume, you want profit upfront, some money from a pool or back end and no recourse with the bank. But you go for as much money you can get up front because after that, you don't receive any payment from the customer...

bhph is something only to consider if your credit is beyond terrible and you need a car no matter what... they will sell you a $5k car for 10K at the max APR rate and will take it from you as soon as they can...

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[vanquishvzla]

Surprised that happened 7 different times then on a Honda... but hey...

the car NEVER broke down... it was more like:

insurance cancelled for whatever reason = repo
late on payments = repo
i need brakes, dealer need to fix it because i'm making payments, no repair, no payment = no we wont! that's regular maintenance, repo!

etc etc lol... when the car was impounded, i think the customer was arrested on a DUI...

tax season is feb - apr... repo season is sep - oct hahahaha

 

[Mustang5ohMan]

usually you can make up to 2 points on the interest... lets say your interest rate is 5.99 but I'm allow to go up to 2 extra point, if i close you at that 7.99%, i keep 65% of that extra interest, the bank keep the other 35%

same with the GAP or the extended warranty.... whenever you see those GAP coverage for $799, $899... just remember this... gaps cost between $130 to $180 for the dealership lol... but as an advice from me... ALWAYS get gap... $399 is a decent price.

No wonder they want to mark up the rate.
Sucks if you do a REFI then. My last dealership marked up the finance rate to the 5s... guess he got paid but the bank. I then went and did a REFI w/the credit union lol... so that bank lost... dealer still made some coin though.

 

[Excelerater]

84 months is too long of a loan for me,at zero percent I would def pay it down quicker..
For you young guys who were not around back in the day a typical loan was 4 or 5 years,vehicles have skyrocketed so much in price
they had to make the loans longer...Thats how much overpriced todays car really is.

 

[Shifting_Gears]

your credit rate is based on your credit... shitty credit, shitty apr... why? because you have a history of bad payments so you are high risk...

with my credit, i don't take anything over 2.9% but i close people every day at 20, 24.95 and even at 27%... but hey, they need/want a car, they have horrible credit, and the banks that are willing to take the risk, want to destroy your ass as much as they can because they know you are a possible contract default and they know you are not gonna pay your contract in full...

27% interest on a car?

AND people fall for that?!

What the flock...

 

[Mustang5ohMan]

84 months is too long of a loan for me,at zero percent I would def pay it down quicker..
For you young guys who were not around back in the day a typical loan was 4 or 5 years,vehicles have skyrocketed so much in price
they had to make the loans longer...Thats how much overpriced todays car really is.

Yeah everything has went up that good ole inflation. When salary’s go up so does the cost of the parts/labor.

Guess that’s how you can gauge if you can afford something. 84 months was too long, 72 months is almost too long but I pay more every month to bring the price down quicker plus 2.49% is livable...

 

[vanquishvzla]

84 months is too long of a loan for me,at zero percent I would def pay it down quicker..
For you young guys who were not around back in the day a typical loan was 4 or 5 years,vehicles have skyrocketed so much in price
they had to make the loans longer...Thats how much overpriced todays car really is.

lol, if I'm at 0% apr i'll take my sweet time to pay... because there is no actual benefit of paying the loan sooner... so, i'll take as long as the loan allow me...

completely different case when you have a high interest rate... because the sooner you pay, the less interest you pay... you can save a lot of money by paying the loan earlier. (you pay interest for every month you use... if you pay your 72 mo. loan in 24 mo, you only pay interest of the 24 mo. everything else gets wiped because you pay interest on the principal you owe.)

 

[vanquishvzla]

27% interest on a car?

AND people fall for that?!

What the flock...

yeah, the 27% is rare, but i've seen it... usually is 24.95%... the only thing that affect your interest rate is your credit... shitty credit = shitty apr... good credit = good apr.

age of the car affect a little bit because you may have caps, like current year no more than 17%, 1 year older no more than 18%, etc... and if the car is over X years old, the less you can get is like 5.3% and shit like that... but there is no magic way to have a good interest rate if you don't have good credit.

 

[Shifting_Gears]

yeah, the 27% is rare, but i've seen it... usually is 24.95%... the only thing that affect your interest rate is your credit... shitty credit = shitty apr... good credit = good apr.

age of the car affect a little bit because you may have caps, like current year no more than 17%, 1 year older no more than 18%, etc... and if the car is over X years old, the less you can get is like 5.3% and shit like that... but there is no magic way to have a good interest rate if you don't have good credit.

Yeah people truly under value credit. When you under value credit, chances are your priorities are screwed up and you make decisions that will only lead you further into the rabbit hole.

Thinking about anything over 5-6% interest on a car is absurd to me. My credit is good, but not top tier. I’m still “young” in my credit history and still paying off past mistakes. However, I always pay and still have a good bit of disposable credit. I got 2.9% on my GT, which was a point better than what I had on my ST.

 

[Sigma6]

84 months is too long of a loan for me,at zero percent I would def pay it down quicker..
For you young guys who were not around back in the day a typical loan was 4 or 5 years,vehicles have skyrocketed so much in price
they had to make the loans longer...Thats how much overpriced todays car really is.

At 0% for 84mo why would you pay it off quicker? You’re using house money. Even getting on the low end using that money you’d pay off the loan quicker you can get bare minimum 1% ROI on about anything putting your cash anywhere ... so you’re coming out ahead.
Someones gotta keep the retirement funds and union perks up; pass onward to the consumer. Cannot speak to the foreign car manufacturers just the big 3.
And really 60 month loan was super long. I might be dating myself but you did much more than 4 and it was durp a) due front end loaded loans which got the interest in the first few years more so than paying down your principal b) most often your car was tapped out in about 6ish years too if you’re putting in the miles.

 

[Mustang5ohMan]

Yeah people truly under value credit. When you under value credit, chances are your priorities are screwed up and you make decisions that will only lead you further into the rabbit hole.

Thinking about anything over 5-6% interest on a car is absurd to me. My credit is good, but not top tier. I’m still “young” in my credit history and still paying off past mistakes. However, I always pay and still have a good bit of disposable credit. I got 2.9% on my GT, which was a point better than what I had on my ST.

did the dealer offer you 2.9?

 

[Shifting_Gears]

did the dealer offer you 2.9?

Yes, but not initially.

I bought my GT at two years old (2016 bought in 2018). The dealer had too many people involved in the deal and ended up offering a sales price they later refused to honor because of the three people trying to sell me the car, none of them apparently discussed what was going on with the other.

I was about to walk from the deal and their solution was to drop the interest rate another percent which saved around $1,000 give or take over the life of the loan. It started at 3.9% for a CPO car. So that clearly tells me they have the authority to take less than “the best available” regardless of your credit if they’re going to move a vehicle.

 

[Mustang5ohMan]

Yes, but not initially.

I bought my GT at two years old (2016 bought in 2018). The dealer had too many people involved in the deal and ended up offering a sales price they later refused to honor because of the three people trying to sell me the car, none of them apparently discussed what was going on with the other.

I was about to walk from the deal and their solution was to drop the interest rate another percent which saved around $1,000 give or take over the life of the loan. It started at 3.9% for a CPO car. So that clearly tells me they have the authority to take less than “the best available” regardless of your credit if they’re going to move a vehicle.

Yeah in this thread I think they can only mark it up 2 points... guess they get a cut if the interest in the deal up front too so it doesn’t matter if you reFi

 

[vanquishvzla]

Yeah in this thread I think they can only mark it up 2 points... guess they get a cut if the interest in the deal up front too so it doesn’t matter if you reFi

you can also buy apr, is you can't close the customer on a deal, you can give up some of your upfront money for less APR... that's not something you usually want, but if you really wanna make the sale happen, you can... or probably they had the standar 2.9 and they gave up that extra point... sometimes, you just need that extra car to hit a flat from the bank or just to reach a specific number for a bonus, etc... sales people make money on the front, finance make money on both sides... so you give up that extra point, but that sale put you on a nice bonus for the month.

 

[Mustang5ohMan]

you can also buy apr, is you can't close the customer on a deal, you can give up some of your upfront money for less APR... that's not something you usually want, but if you really wanna make the sale happen, you can... or probably they had the standar 2.9 and they gave up that extra point... sometimes, you just need that extra car to hit a flat from the bank or just to reach a specific number for a bonus, etc... sales people make money on the front, finance make money on both sides... so you give up that extra point, but that sale put you on a nice bonus for the month.

what do you mean? by cutting the interest rate you can take more money off the car on the front end?

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