Need advice, dealer requiring I finance with them

[Carbonalpine]

So I finally decided before I throw in the towel I ask you guys what you would do. So far this forum has helped me tons, and I hope you guys can help me on this.

I got a local dealer to give me 7% under invoice and their dealer fee is about $1200 (which is high but they’re local). What throws me off is they require I finance with their banks. I told them I want to use my CU and they said they cannot allow that.

How should I approach this, they actually let me walk today when I showed up with deposit in hand. They won’t budge. Should I be worried about them running my credit and sticking me with a crazy interest or will they give me the interest I qualify for without modifying it? I just don’t know how this works...

Please help guys, I know some of you are younger and more sharp. My old eyes might miss a thing or two

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[Ohwillyb]

If you can end the loan after 3 payments maybe refinance for a better rate I wouldn't worry about it. The problem is that 1200 dealer fee. That's a lot I think mine was 250.

 

[Chocolate Thunder]

If you have good credit and know that you can get the loan from your credit union then take their deal and refinance it right away. How bad is their interest rate?

 

[zachmx]

Same thing. I knew what rate and my score was. Dealer gave me fair trade and price but then wanted to give me a rate about 1% higher than what I should be at. They make money giving you a higher rate from the bank. Usually the bank will say you qualify for as low as ex. 3% the dealer can then get a piece of the profit on whatever higher rate they get you to sign for. Car shopping truly is the worst. Good luck!

 

[old8tora]

their dealer fee is about $1200 (which is high but they’re local).

I'd walk just based on the sky high dealer fee . That takes away a good chunk of your discount . So , if I sell you a pack of gum for $25., that's o.k. because I'm local ?

If you walk , then they will be stuck with a cold weather package in Miami , remember ? They will likely fold with that on their lot horizon . And if they let you walk , you're free , and they'll be stuck with the cold weather package .

 

[Carbonalpine]

If you have good credit and know that you can get the loan from your credit union then take their deal and refinance it right away. How bad is their interest rate?

I have no idea, they don’t tell me who they use. I have over 800 and my CU gives me 2.9, I’m just lost about how this works. Will they try and stick me with 5-6 percent and then I just refinance? What if they have Pre payment penalties or a loan set up a way that I have to pay the whole interest to transfer, I think it was called rule of 78s back in the day

 

[Carbonalpine]

I'd walk just based on the sky high dealer fee . That takes away a good chunk of your discount . So , if I sell you a pack of gum for $25., that's o.k. because I'm local ?

If you walk , then they will be stuck with a cold weather package in Miami , remember ? They will likely fold with that on their lot horizon . And if they let you walk , you're free , and they'll be stuck with the cold weather package .

Yea I hear ya, but any other dealer out of state with 7% under invoice charges $399 so the difference is $800. My transport to bring the car down will surpass those $800.

 

[Carbonalpine]

Same thing. I knew what rate and my score was. Dealer gave me fair trade and price but then wanted to give me a rate about 1% higher than what I should be at. They make money giving you a higher rate from the bank. Usually the bank will say you qualify for as low as ex. 3% the dealer can then get a piece of the profit on whatever higher rate they get you to sign for. Car shopping truly is the worst. Good luck!

The dealer told you the rate before you ordered your car? I don’t think they will lock me into a rate 3 months before my Jeep arrives. Supposedly the salesman told me they don’t hike the rate, they make a point from bank and that’s why they ask you to stay with that bank a few months.

 

[old8tora]

Yea I hear ya, but any other dealer out of state with 7% under invoice charges $399 so the difference is $800. My transport to bring the car down will surpass those $800.

Looks to me like your smartest move would be to keep your JKU . Any reason to leave the JKU ?

 

[Chocolate Thunder]

Don’t sign until they explain everything fully. Tell them that you can’t make a deal if they won’t fully explain every aspect in detail. Be prepared to walk. 7% below invoice is great but the doc fee negates a lot of that. Many are $150-350. There’s always a better deal out there somewhere if you’re patient enough to find it.

 

[old8tora]

Don’t sign until they explain everything fully. Tell them that you can’t make a deal if they won’t fully explain every aspect in detail. Be prepared to walk. 7% below invoice is great but the doc fee negates a lot of that. Many are $150-350. There’s always a better deal out there somewhere if you’re patient enough to find it.

Even better don't sign anything until you are satisfied with your inspected special order . People tell me to sign this or sign that , I don't hear them because I'm deaf .

 

[Carbonalpine]

Looks to me like your smartest move would be to keep your JKU . Any reason to leave the JKU ?

Not leaving the JKU, my wife wanted the JLUR...married for many moons and children, not going to deny her that luxury. Just wish these dealers were more straight forward

 

[Carbonalpine]

Don’t sign until they explain everything fully. Tell them that you can’t make a deal if they won’t fully explain every aspect in detail. Be prepared to walk. 7% below invoice is great but the doc fee negates a lot of that. Many are $150-350. There’s always a better deal out there somewhere if you’re patient enough to find it.

Yea I hear ya, just that shipping will run me over $1,000 either way. The closest dealer to me that offers 7% under and is a straight shooter is in Maryland.

 

[Carbonalpine]

Would I solve this whole issue by telling them I’ll only finance $10k with them. In case their loan won’t let me refinance the total loan is only $10k. I don’t know anymore, I’m about to throw in the towel and wait.

 

[zachmx]

The dealer told you the rate before you ordered your car? I don’t think they will lock me into a rate 3 months before my Jeep arrives. Supposedly the salesman told me they don’t hike the rate, they make a point from bank and that’s why they ask you to stay with that bank a few months.

I havent ordered yet. I have a loaded 2017 TRD OR Tacoma that I don't hate. Just obsessing over a Mojito JLU Rubi, got 5% under invoice from dealer in Phoenix but hestiant to pull the trigger as even my mildly specked one its still alot of money and not sure I'm a Jeep guy 100% yet. Lol. I did inquire about the financing and he didnt say anything. The $500 nonrefundable deposit makes me hesitate otherwise I'd order and just decide come 3 months from now, lol. Good luck.

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