Good Morning All,

I'll be purchasing my 2007 Enthusiast Black Automatic Z on Tuesday...

Background Info:

1) When I went in to the dealership to crunch numbers with the dealer, I decided to put about $15k down and spread the rest over 5 years/60 months...

2) The dealer ran my credit score which was rather high, so that was good in my favor...

3) He came back stating that the "worst case scenerio" on my interest rate would be about 7.89% for 5 years/60months...

Now, I've "shopped around" and that is an OK rate for the banks around here...

But a buddy of mine used to work in a dealership... He told me that when the finance department calls around to banks to finance, the bank will give them an interest rate and then the dealership will add 2-3% on top for themselves....

Is this true???

My friend stated that I should be able to get a rate around 6.5-7% AND THEN tell the dealer to split the difference of what they added on for themselves...

So a rate in the low to mid 6's should be doable...

Can someone enlighten me on if this is actually true or if my friend has just smoked too many drugs lately...

Thank you!!!

 

always go find your own financing before you go to the dealer.

If your credit is good that sounds a bit high. It wont affect your credit to do some shopping around .. even try state farm insurance. They bug me every time I call in to change my insurance to get a loan with them.

Worst case you get the same or worse quote from someone else.

 

8% is too high. If your credit score is better than average you should get way better than the high 7% rate they are trying to rape you with!

 

If it helps, they stated my credit score was 780 out of a possible 800...

 

If that is the case and with a 15K dp, you should be looking at 4.5-6%.

 

Talk to local banks & credit unions. You seldom get the best rate from a dealer.

 

My credit uninion approved me for their lowest possible interest rate, 5%! I can get lower if I pay it off in 3 or 4 yrs!

Used rate is 5.5%.

 

I went to alot of banks asking about rates and they flat out told me. We give great rates to the dealerships so go through them which sucks cause your forced into their little game.

I went to my credit union and got approved for 5.75% for 60 months just last week. Credit Union is good way to go.

 

It looks like my credit union is stating "as low as 6.49%", which is almost 1.5% lower than my "worst case scenerio" right now...

Guess I should give them a call tomorrow and see what is up...

Does anybody have any insight on the whole "dealer adding on to the interest rate" thing I stated earlier?

Is it true?

 

Yes the dealer thing is true. My dad works at a dealership and I was talking about what rates they would get me and he said they get a rate from the bank and tack 1% so I was looking at 6.52% from them. I ended up getting the 5.75% from the Credit Union.

It's just funny that you go to the actual bank and they tell you 6.9%. Then the same bank will give 5.52% to the dealership and let them tack on 1% and it's still better than what they will give you. To think that so many people don't realize this is going on is scary.

I can understand the situation but if I independently went to the bank and wanted the same rate the dealership would quote me they wouldn't do it even though they could make all the money on the rate and not give any to the dealer. It must be a pretty lucrative relationship is all i gotta say.

 

I did financing through Lexus where I got my Z (was a trade-in) and I was able to get 7.2% at 20 years old with a used car and 720 fico score. I definitely think you can do way better with your score!

 

Appreciate the insight...

My buddy, who used to work at a dealership as well, stated that I should have the finance guy do his best to find me the best rate possible.

Then, once he finds it, ask him to see the paperwork that he received from the bank, that way I can put him in a corner and see what rate he got and what his mark-up is... Then ask him to split it down the middle.

Does that sound like a good gameplan???

Just as a footnote, I called my Credit Union today and they wouldn't even give me an interest rate, they just said "work through the dealer", we give them better rates than we would give to you...

 

did you try state farm insurance?

 

NissanUSA sets their interest rates, not the dealer. Does NissanUSA check around periodically. Sure just like every lender.

 

with that credit score u should be able to get around 5%-6%.. the dealer added about 2-3% on what the banks gave... tell them u want 5% or you'll walk. and it starts the whole neg. process again... untill u get close to 5%... dont take it... or go through your credit union. i worked as a finance manager for nissan dealer...

 

At this point, I'm ready to walk anyways...

At first, I was supposed to have the car late last week, as they were going to get the Z from a dealership a couple hours away...

Then it turned into they couldn't find one, then they did, it'd be here by tomorrow...

Now I'm being told that I won't see it until sometime between this coming Friday and NEXT Friday...

I'm incredibly frustrated and almost wanna just tell them to shove the car up their *** and I want my deposit back...

Part of me wants to do the best I can on this interest rate, but now part of me just wants to get the whole process over so I don't have to deal with it anymore and I can just enjoy my Z...

Ugh....

 

LOL. Sounds like the dealer took the deposit, but doesn't have the faintest idea where in hell to find the car.

 

I am an exotic car broker and A+ borrowers are getting around 6.5%.

 

you can do 6.5 i got that 1 month ago