Interest rate increase

[Jeepsmashin]

Just refinance right away with a credit union. That's what I did.

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[Hennessey17]

You should always shop for your own financing as it's a separate financial product. Only take the dealer's financing if they can beat an independent bank/CU's rates.

My credit was 802 when I was signing the paperwork... I did look for independent financing, but the dealer still got me better rates than I could get on my own.

Most dealers have a handful of banks that they work with and said banks will give the dealer better rates than a customer on his own because of repeat business.

But it is a good idea to do due diligence and shop on your own and compare what the dealer can get.

 

[omega145]

No they shouldn't! Regardless of the economy or current bank rates, the dealership should always honor the initial interest rate discussed! (a lot of sarcasm in my text)

 

[OllieChristopher]

It's an easy fix. Figure out the interest rate increase dollar amount over the life of the loan. Then simply have the finance officer discount the vehicles price by that dollar amount. It will not be a problem at all. As an added bonus you will be financing less so your vehicle will be discounted even more.

It's a win win for both you and the dealership. Dealer makes a sell and has a happy customer.

 

[JSFoster75]

I've got 1.99@72 or 1.79@60, I chose the 1.99 as it will cost me $135 more over 60 months and that's worth it to be obligated to a lower payment.

I got 2.79% for 84 months through my credit union. But we pay extra and pay bi-weekly, should have it paid of in under 60 months.

 

[Gaurav_verma]

Update: my dealer told me its 3.99 now and it wont make much difference in payments.
I told him its 1050$ i am paying more in interest. Get me 3.49% or deal cancel.
The next day he got me approved for 3.53%

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