Quantcast
School me on interest rates - Beyond.ca - Car Forums
Page 1 of 2 1 2 LastLast
Results 1 to 20 of 21

Thread: School me on interest rates

  1. #1
    Join Date
    Apr 2009
    Location
    Lethbridge
    Posts
    222
    Rep Power
    0

    Default School me on interest rates

    Hi there Beyond, as I posted in another thread I am in the market for a SUV.
    My wife got a call from Honda since she owns a civic, and they are offering .49% interest rate on a 2016 CRV for 72 months and .99 for 84.

    At first I did no think much of this but as I started looking at other vehicles I found that hard to match. The way I am looking at it is that the total Finance charge for 84 months is around $1300, compared to around 4ks at 2.99% which is still a pretty good rate.

    So I guess my question is, how can dealerships offer such low interest rates? Am I being cheap by looking at the total finance charge after the whole term? and is there other dealerships with good rates at the moment? I am not in love with the CRV but that price is hard to beat.

    I was also looking at used vehicles but those rates are usually around 5%, but I do know that Mercedes usually offers good rates on their Certified preowned vehicles. Is there other dealers that offer good rates for used inventory?

    Thanks in advance.

  2. #2
    Join Date
    Feb 2005
    Location
    calgary.ab.ca
    My Ride
    E90M3 510 Wagon
    Posts
    7,313
    Rep Power
    23

    Default

    They're subsidized by the dealers... that's why you usually see a cheaper cash price during low interest events

    If you're willing to go used, even with a higher rate chances are that's going to give you the lowest cost of ownership... if you have the equity a HELOC is going to be hard to beat, and also the most flexible payment schedule

  3. #3
    Join Date
    Sep 2004
    Location
    calgary
    My Ride
    08 Porsche CTT
    Posts
    1,442
    Rep Power
    17

    Default

    I had been looking at some used GLKs earlier at Lone Star earlier this year and they could offer 0.9% on their used stuff. Pretty good rate for used. Lots of other used is in the 3.9-4.9% at the lowest.
    _____ASP______

    current ski quiver:
    park, all mtn 181 ON3P Kartel 98
    park,all mtn: 181 Armada AR7
    big mtn, pow: 185 Armada JJ

  4. #4
    Join Date
    Jul 2004
    Location
    Calgary
    My Ride
    FB6
    Posts
    683
    Rep Power
    16

    Default

    They're tricky with those rates because there's usually a cash incentive if you pay cash.

    You have to actually consider the effective interest rate, which is the cost of financing + the cash incentive you could have gotten.

    I believe some manufacturer websites show the effective rate.

  5. #5
    Join Date
    Apr 2009
    Location
    Lethbridge
    Posts
    222
    Rep Power
    0

    Default

    Originally posted by asp integra
    I had been looking at some used GLKs earlier at Lone Star earlier this year and they could offer 0.9% on their used stuff. Pretty good rate for used. Lots of other used is in the 3.9-4.9% at the lowest.
    Ya exactly, I wonder if there is any other brands or dealerships that offer such low rate on their used vehicles

  6. #6
    Join Date
    May 2002
    Location
    Calgary
    Posts
    1,090
    Rep Power
    19

    Default

    Originally posted by 3drian
    Ya exactly, I wonder if there is any other brands or dealerships that offer such low rate on their used vehicles
    BMW often has 0.9 or 1.9% on CPO as well.
    Originally posted by max_boost
    Hey baller, any problem money can solve is no problem at all. Don't sweat it.

  7. #7
    Join Date
    Jan 2004
    Location
    Calgary, Alberta
    My Ride
    2016 MB C450
    Posts
    8,127
    Rep Power
    25

    Default

    Originally posted by 3drian


    Ya exactly, I wonder if there is any other brands or dealerships that offer such low rate on their used vehicles
    Supply and demand, the more desperate the dealer/manufacturer to get it off the lot, the lower the rate goes.

    When Toyota tried to purge last model year of Corolla, they were doing 0% lease which is great for new driver with a new job. $200/mth for 60 months for basic transportation and $0 down.

  8. #8
    Join Date
    Jun 2015
    Location
    Edmonton
    My Ride
    LNF
    Posts
    372
    Rep Power
    0

    Default

    Originally posted by 3drian


    Ya exactly, I wonder if there is any other brands or dealerships that offer such low rate on their used vehicles
    VW had CPO for 0% last year.. It'll probably come up again.

  9. #9
    Join Date
    Jul 2013
    Location
    Calgary
    My Ride
    W222 S550 LWB
    Posts
    67
    Rep Power
    0

    Default

    T&T Honda has 1.99% for CPO other makes is 5.99

  10. #10
    Join Date
    Jun 2002
    Location
    ___________________________
    My Ride
    400whp MR2 - An Italian and a couple of Germans
    Posts
    11,139
    Rep Power
    29

    Default

    Low rates come out of manufacturer advertising dollars, not from the dealers. If there is a surplus of inventory they take advertising dollars to buy down the rate on the respective vehicle.

    Cars with higher rates are either pre-owned or more rare and in higher demand.

    As mentioned above VW has really good rates on certified used models.
    Looking for a new VW? How about a used vehicle? We are Central Albertas #1 source for pre-owned vehicles
    I will beat any deal on a new VW for beyonders

    Gary Moe Volkswagen/Gary Moe Used Car Superstore!

    Red Deer, AB

  11. #11
    Join Date
    Sep 2002
    Location
    Zimbabwe
    My Ride
    F355 Challenge/URS4/FD3S/968 Turbo/NSX/Esprit V8
    Posts
    1,303
    Rep Power
    19

    Default

    When I was looking for a new truck I phoned a Dodge dealer asking about what they had on the lot. We came to an agreed price of $65K. Then when I asked about the 0% financing they offered I was told "that isn't the 0% financing price" and if I wanted the 0% financing the price would be over $70k. So I asked how, if the real price for the vehicle is $65k, is paying over $70k for it really considered 0%? Seems more like they are getting their interest up front instead. End of the story, all this 0% stuff is marketing fluff and at the end of the day you pay one way or another - either up front or in installments. I suspect the same is true with the special interest rates.
    Last edited by soloracer; 11-30-2016 at 05:23 PM.

  12. #12
    Join Date
    Oct 2005
    Location
    Red Deer, Alberta
    My Ride
    1995 WRX STi
    Posts
    1,556
    Rep Power
    0

    Default

    Servus will do 3.99% on new vehicles right now. So unless you HELOC, that's probably as good as it gets.

    So the thing to do would be to compare their best "cash" price, versus best "dealer financed" price. Make your decision from there as to whether you are getting a good deal or not.

    Always negotiate cash first, never mention financing (never mention how you'll be paying at all, if asked, say cash). Then at the end, bring it up (but only once you have an all in price).

  13. #13
    Join Date
    Jul 2013
    Location
    Calgary
    My Ride
    W222 S550 LWB
    Posts
    67
    Rep Power
    0

    Default

    Originally posted by soloracer
    I asked about the 0% financing they offered I was told "that isn't the 0% financing price" and if I wanted the 0% financing the price would be over $70k. So I asked how
    Some dealers offer 0% interest based from their manufacture eg. Kia, Toyota

    However it is possible to get 0% interest all you have to do is ask the sales manager to calculate how much is the interest borrowed and factor it into the sales cost.

    Example: say you want a 2017 Civic Touring Sedan. Listing price is $29,500 + GST/Fees. Your all in price is $31,997.96 but interest rate is 2.99% over 84 months. 2.99% over 84 months is $2,996.54 add that to the listing price then negotiate from there, you'll get 0% interest and a higher all in price.

  14. #14
    Join Date
    Apr 2009
    Location
    Lethbridge
    Posts
    222
    Rep Power
    0

    Default

    Thanks to everyone for all the comments, I understand it a bit better now. I am going to keep looking hopefully some good deals come up this month.

  15. #15
    Join Date
    Sep 2002
    Location
    Zimbabwe
    My Ride
    F355 Challenge/URS4/FD3S/968 Turbo/NSX/Esprit V8
    Posts
    1,303
    Rep Power
    19

    Default

    Originally posted by automotivat3d

    Some dealers offer 0% interest based from their manufacture eg. Kia, Toyota

    However it is possible to get 0% interest all you have to do is ask the sales manager to calculate how much is the interest borrowed and factor it into the sales cost.

    Example: say you want a 2017 Civic Touring Sedan. Listing price is $29,500 + GST/Fees. Your all in price is $31,997.96 but interest rate is 2.99% over 84 months. 2.99% over 84 months is $2,996.54 add that to the listing price then negotiate from there, you'll get 0% interest and a higher all in price.
    Exactly what I said. They jack the price up on the vehicle to make up for the lost interest. So how is that 0% again? It's just a marketing tool because at the end of the day you still pay the same price for the vehicle or possibly even more.

    What everyone assumes 0% means is that you get their best price and then pay no interest when making payments on it. What the 0% actually means is we screw you on the price of the vehicle and then make you feel better by saying we will charge you 0% on the loan - even though technically they already have the interest factored in. Pretty shady/dishonest practice and the people that fall for it are suckers
    Last edited by soloracer; 12-01-2016 at 10:27 AM.

  16. #16
    Join Date
    Nov 2003
    Location
    Moo Town
    My Ride
    (0^oo^0)~
    Posts
    579
    Rep Power
    17

    Default

    I don't get people that focus on only one aspect when buying a vehicle.

    IMO I focus on the OTD vehicle price, the interest rate, and the type of loan. I am guessing that some loans incur penalties when you want to pay it off earlier?

    Ideal situation would be a low OTD price, low interest, and a loan that lets you pay it off whenever you want without any fees.

  17. #17
    Join Date
    Feb 2005
    Location
    calgary.ab.ca
    My Ride
    E90M3 510 Wagon
    Posts
    7,313
    Rep Power
    23

    Default

    I focus on total cost of ownership...

    Rubicon: paid $32k, drove it for two years... hard, traded it in for $28k, full warranty so no maintenance costs beyond oil

    F-150: paid $26k, put on 50k kms, needed $500 worth of repairs beyond oil changes... traded it in for ~$22k 2.5 years later

    Etc, etc... biggest bath was $6k for 3 years of mustang ownership, most of my other cars were old enough for break even after ownership with the odd one making me money

    The Lexus is probably going to be pretty bad... it's not sold yet, but if I get around ask it will be the second most expensive to own car I've had... but I have also put over 60k kms on it so not terrible for the mileage

    Hoping the e90 is near the bottom of the curve so only time will tell on that one. But probably better value than the other cars I was cross shopping considering how much e46 M's still fetch

    Ps:have never been offered a closed term contract on a vehicle... I think they tend to shy away from those to promote quicker trade ins which means more sales per customer

  18. #18
    Join Date
    Jun 2003
    Location
    Calgary
    My Ride
    '18 Tesla Model 3; '13 B8.5 Audi S4 (For Sale!)
    Posts
    965
    Rep Power
    17

    Default

    I bought my current CPO'd S4 this time last year and received 0.4% financing for 5 years. I know Audi typically has a promo for certified used this time of year; again in April/May as they clear out old models of new cars.


    For Sale: 2013 Audi S4 (Stage 2; KW V3 coilovers; AWE Touring exhaust; Ext. warranty; etc.)
    https://forums.beyond.ca/threads/408...-6MT-Stg2-more!)

  19. #19
    Join Date
    Sep 2002
    Location
    Zimbabwe
    My Ride
    F355 Challenge/URS4/FD3S/968 Turbo/NSX/Esprit V8
    Posts
    1,303
    Rep Power
    19

    Default

    Originally posted by mo_money2supe
    I bought my current CPO'd S4 this time last year and received 0.4% financing for 5 years. I know Audi typically has a promo for certified used this time of year; again in April/May as they clear out old models of new cars.
    Was the cash price the same as the financed price? Probably not.

  20. #20
    Join Date
    Jun 2002
    Location
    ___________________________
    My Ride
    400whp MR2 - An Italian and a couple of Germans
    Posts
    11,139
    Rep Power
    29

    Default

    Ive been doing this a long time and I can tell you one thing with a certainty. Don't buy a car because of an interest rate, buy a car with slow depreciation. I would rather pay 4.9% on my loan and finance a car that holds its value extremely well than pay 0% and lose 30% of my value the second I drive the car off the lot. With that being said thats my opinion and quite often the cars that only marginally depreciate aren't for everyone.
    Looking for a new VW? How about a used vehicle? We are Central Albertas #1 source for pre-owned vehicles
    I will beat any deal on a new VW for beyonders

    Gary Moe Volkswagen/Gary Moe Used Car Superstore!

    Red Deer, AB

Page 1 of 2 1 2 LastLast

Similar Threads

  1. Will Bank of Canada 0.25% Interest rate affect mortgage Rates?

    By cidley69 in forum Real Estate / Finance
    Replies: 18
    Latest Threads: 04-22-2009, 01:31 PM
  2. Car Loan Interest Rates?

    By SJW in forum General
    Replies: 19
    Latest Threads: 07-15-2008, 11:11 AM
  3. Interested in interest Rates haha

    By snowboard in forum General
    Replies: 3
    Latest Threads: 04-25-2006, 04:51 PM
  4. credit card interest rates

    By RX-7_TWINTURBO in forum General
    Replies: 13
    Latest Threads: 08-25-2005, 10:34 AM
  5. Homes - Interest Rates

    By Speed_RaSiR in forum General
    Replies: 56
    Latest Threads: 06-26-2003, 11:41 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •