Am I crazy or is this the worst time ever to buy a vehicle?

[you&me]

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Per the article “APA’s position is if they are going to do that they need to make you whole because you are paying interest on that loan whether you like it or not for at least three months and in many cases six months.”

But I agree with you, what exactly could the dealership do if you financed and paid the entire loan off the next day? Unless there's some early repayment penalty in the fine print

Recently went through this exact situation.

Ordered a new car for my wife 6 months ago... To be fair, the dealer was upfront then about mandatory finance for 6 months, but I thought "we'll see in a few months" (when the car was supposed to arrive)...

When the car arrived, I spoke to the NCM and finance manager and they maintained the financing was mandatory, but quickly offered an upfront rebate for the interest for the 6 months. For the aggravation, I also managed to squeeze a little extra out on the trade and drove away with a new car and a cheque... And yes, I marth'd my way through the finance calcs to make sure I wasn't leaving any money on the table.

[ercchry]

Are inducements legal in unsecured financing? Or auto lending? I guess it’s usually secured on the vehicle?

[RX_EVOLV]

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Recently went through this exact situation.

Ordered a new car for my wife 6 months ago... To be fair, the dealer was upfront then about mandatory finance for 6 months, but I thought "we'll see in a few months" (when the car was supposed to arrive)...

When the car arrived, I spoke to the NCM and finance manager and they maintained the financing was mandatory, but quickly offered an upfront rebate for the interest for the 6 months. For the aggravation, I also managed to squeeze a little extra out on the trade and drove away with a new car and a cheque... And yes, I marth'd my way through the finance calcs to make sure I wasn't leaving any money on the table.

oh interesting.. so does this mean you get the upfront discount equivalent to the 6 month interests costs, and technically also able to pay off the loan in full at the bank the next day?

[jutes]

It’s been a while since I financed, but isn’t the total loan amount including interest?
Example you finance the remaining $40,000 at X.X%, the next day you owe $40k+interest. So you’d essentially be paying the bank more than the $40k.

[rage2]

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It’s been a while since I financed, but isn’t the total loan amount including interest?
Example you finance the remaining $40,000 at X.X%, the next day you owe $40k+interest. So you’d essentially be paying the bank more than the $40k.

Nope. They payout doesn't include interest. It's always lower than the sum of the remaining payments. In my experience anyways.

[Twin_Cam_Turbo]

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It’s been a while since I financed, but isn’t the total loan amount including interest?
Example you finance the remaining $40,000 at X.X%, the next day you owe $40k+interest. So you’d essentially be paying the bank more than the $40k.

Auto loans are generally simple math interest loans with a daily per diem.

[Rocket1k78]

The Auto show is cancelled due to lack of supply

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I think you are vastly overestimating the ability of most people to pay off their loans, even with other forms of credit.

This 100%. Everyone here pays cash but the average car buyer wont be, theyll be going for the 7+ years with the cost of cars now and i also wouldnt be surprised to start seeing the cash back "deal" advertised all over. Saw some sign at Universal ford in 2014 that said cash back up to $15k so i thought it was a major rebate. Wanted a new truck so i thought it was perfect timing. Went in and looked at an f150 platinum($62k msrp back then) and thought i would be getting a nice chunk off or cash back. Turns out the cash back is not a rebate but what they offered was for you to add on up to $15k on top of the purchase price and you could use the $15k for whatever.

[ThePenIsMightier]

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... Saw some sign at Universal ford in 2014 that said cash back up to $15k so i thought it was a major rebate. Wanted a new truck so i thought it was perfect timing. Went in and looked at an f150 platinum($62k msrp back then) and thought i would be getting a nice chunk off or cash back. Turns out the cash back is not a rebate but what they offered was for you to add on up to $15k on top of the purchase price and you could use the $15k for whatever.

So, stop holding out on us! How much did you win from the lottery tickets you bought with that sweet $15k??!

[Rocket1k78]

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So, stop holding out on us! How much did you win from the lottery tickets you bought with that sweet $15k??!

Lotto is for suckers. Got my mom, dad and brother in law to co sign for me and walked out with 20k cash. Dropped the truck off at a truck parts place and got it lifted, 35's on 28's and some other things, had to put a couple grand on my friends CC because 20k wasnt enough lol

[ThePenIsMightier]

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Lotto is for suckers. Got my mom, dad and brother in law to co sign for me and walked out with 20k cash. Dropped the truck off at a truck parts place and got it lifted, 35's on 28's and some other things, had to put a couple grand on my friends CC because 20k wasnt enough lol

Can you help me move this sweet leather chair I just bought?

[you&me]

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oh interesting.. so does this mean you get the upfront discount equivalent to the 6 month interests costs, and technically also able to pay off the loan in full at the bank the next day?

To be clear, it wasn't a discount on the contract, but a separate cheque from the dealership to me. Technically not accounted for anywhere in the contract, or any other agreement.

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Nope. They payout doesn't include interest. It's always lower than the sum of the remaining payments. In my experience anyways.

This is (or should be) the correct way - If the car is paid off early, that amount will be less than the sum of the remaining payments, because there's interest accounted for in the remaining / future payments that isn't actually incurred.

[Rocket1k78]

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Can you help me move this sweet leather chair I just bought?

I totally would but it got repo'd within 6 months

[shakalaka]

Someone I know did just that yesterday. Purchased a new Ram 1500 msrp 67'ish for like 53k (apparently they are running 15%-20% off on msrp on Classic Ram's), and the dealer tacked on 20k on top of the loan and gave him a cheque back. He apparently wants to pay off his credit card debt which is at a much higher interest rate of course. Pretty silly to let your situation get there, but if you are there, not a bad way to go around and consolidate your debt.

[Tik-Tok]

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SPretty silly to let your situation get there, but if you are there, not a bad way to go around and consolidate your debt.

Until they rack up their credit card debt again, because now it's a zero balance.

[shakalaka]

Absolutely, if that doesn't teach you your lesson, then nothing will.

[94boosted]

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Someone I know did just that yesterday. Purchased a new Ram 1500 msrp 67'ish for like 53k (apparently they are running 15%-20% off on msrp on Classic Ram's), and the dealer tacked on 20k on top of the loan and gave him a cheque back. He apparently wants to pay off his credit card debt which is at a much higher interest rate of course. Pretty silly to let your situation get there, but if you are there, not a bad way to go around and consolidate your debt.

Ford and GM can't even get you a truck but Dodge has so many sitting on lots they're offering $14K off

[shakalaka]

Yea apparently only the classic Ram's though, I imagine they weren't impacted by the commodity shortage on those base models and ended up ordering a shit ton and now they are trying to move them however they can.

[riander5]

I wonder if RAM is going to keep those Classics going for a while. They seem to sell well enough and must be dirt cheap to produce at this point

[Rocket1k78]

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Someone I know did just that yesterday. Purchased a new Ram 1500 msrp 67'ish for like 53k (apparently they are running 15%-20% off on msrp on Classic Ram's), and the dealer tacked on 20k on top of the loan and gave him a cheque back. He apparently wants to pay off his credit card debt which is at a much higher interest rate of course. Pretty silly to let your situation get there, but if you are there, not a bad way to go around and consolidate your debt.

Thats wild but yeah if you can manage your finances better this go around it might not be a bad route.

[ThePenIsMightier]

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I wonder if RAM is going to keep those Classics going for a while. They seem to sell well enough and must be dirt cheap to produce at this point

TIL riander5 needs a giant fucking loan. Wolves are at the door.