Is this the norm at dealerships?

[MustangCamaro]

Went to a dealer to see what they would give me for my 2019 Mustang GT Premium and see what apr they would offer me for a used ZL1. My credit score is a 750 and my mustang has less than 11K miles (auto, 401a, non-pp, B&O, non active exhaust).

The dealer offered me 6.99 apr and 30K for my mustang. Are car dealerships always this shitty? Or am I wrong here?

After my rebuttal, they lowered it to 3.99 and 32K...

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[Mustang50Man]

Went to a dealer to see what they would give me for my 2019 Mustang GT Premium and see what apr they would offer me for a used ZL1. My credit score is a 750 and my mustang has less than 11K miles (auto, 401a, non-pp, B&O, non active exhaust).

The dealer offered me 6.99 apr and 30K for my mustang. Are car dealerships always this shitty? Or am I wrong here?

After my rebuttal, they lowered it to 3.99 and 32K...

The dealer is out to make as much as they can selling a car.
Try broom or Carvana might come out a bit ahead. What state/area are you in?

 

[tom_sprecher]

What is the term of the loan? When I bought my car new the rate was 0% for 60 months. Used car rates are definitely higher.

 

[MustangCamaro]

The dealer is out to make as much as they can selling a car.
Try broom or Carvana might come out a bit ahead. What state/area are you in?

Unfortunately, last time I used the appraisal tool on Carvana, they offered me like 25K for my mustang... I am in Texas btw.

 

[MustangCamaro]

What is the term of the loan? When I bought my car new the rate was 0% for 60 months. Used car rates are definitely higher.

It was for 72 months. I think it’s super shady how they offered 6.99 initially then instantly dropped to 3.99 after some rebuttal. I’m now left wondering how much lower are they able to go? I didn’t feel like haggling so I left.
I am also paying 0% on my mustang right now so it’s kind of hard to settle on a higher apr

 

[george g]

You're not going to get 0% on a used car.

 

[MustangCamaro]

You're not going to get 0% on a used car.

Yes I know 0% are usually manufacturer offers for new cars. Is it possible to get in the 1-2% ranges for used cars?

 

[m3incorp]

I don't know, but think 3% rate is about as low as you are most likely to get on used cars.

Yes I know 0% are usually manufacturer offers for new cars. Is it possible to get in the 1-2% ranges for used cars?

 

[B Dot]

Yes I know 0% are usually manufacturer offers for new cars. Is it possible to get in the 1-2% ranges for used cars?

there was actually 0% on ford CPO last month up to 36months. You wont see 1-2% on used unless its a CPO special rate. But mid to high 2% is possible depending on credit amount financed etc. The reason they started you at 6.99 is because alot of people have bad credit. So they use an average credit score to quote you before they see if your credit is good. Not here to defend the process but plenty of people lie or are misinformed of their credit history. Go with outside financing if you want to skip the hassle.

 

[BimmerDriver]

I don't know how old that ZL1 one is, but I find that often a new car is not a heck of a lot more (if you can keep yourself out of the options gift bag) than a one or two year-old used car, especially if there are some tasty incentives and rate specials.

And yes, dealers are s***y. As others mentioned, they are out to maximize their profit. Beat them up a bit more and you may find another thousand or so laying around somewhere. Especially if you are looking for a new one, as we are in the last month of the quarter, and they do have incentives to meet targets. If you get toward the end of September and they need to move some metal, you can score a deal. Of course, we as consumers never know what these incentives are and how desperate they can be.

I have had a few times where they knocked off tremendous money when I was walking out the door. Usually though by that point they have pissed me off so badly that I won't buy anything from them.

 

[wazslow]

Yes I know 0% are usually manufacturer offers for new cars. Is it possible to get in the 1-2% ranges for used cars?

I doubt you'll get 1-2% on a 72 month loan on a used car. 3.99% may actually be a decent rate for a used car for 72 months. At 60 months, you can get under 3%.

 

[Vicr]

I've bought and sold over 20 cars and trucks over the years and there is one formula that works: sell your vehicle private party, go to a bank or credit union and get a loan for the difference you want to spend, buy private party or go to a dealer and if they don't deal on the first negotiation walk. And what ever you do don't tell them you're a cash buyer. Hold your cards tight.

 

[Interceptor]

I just refinance to 2.49% 72 months on 2019

 

[Bluelightning]

It was for 72 months. I think it’s super shady how they offered 6.99 initially then instantly dropped to 3.99 after some rebuttal. I’m now left wondering how much lower are they able to go? I didn’t feel like haggling so I left.
I am also paying 0% on my mustang right now so it’s kind of hard to settle on a higher apr

What can you get through your bank, or a credit union? Compare that to what the dealership offers, and if they won't match the interest rate, just use the lowest one.

 

[Robert3487]

As a former car salesman yes they are all trying to rip you off. When they were "training" us they said we can get people we know to come in the dealership and maximize our profit from them since they think they know someone on the inside that's going to give them a deal lol. They have a lot of money in those used cars, depending on the type of car and how popular it is they may not budge too much. They are basically giving you the least amount of money they can for your car then will put it on the lot and try to get the most they can from it. My sales manager made us all start the same way "well the bank likes to see about 25% down, so thats going to be about $7000, how would you like to pay that today? Cash? Card?" I hated trying to keep a straight face during that little spiel.

Side note: I was able to get 2.9% from a credit union for a used car a few years ago.

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