Want to save thousands on you JL purchase? Watch this...

porcusRex

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i dont understand 'you need to make at least 6 payments...
so is this in the loan stipulation/contract?
i always just write a check for the entire price of the car at purchase time. so whats to stop me in this instance from going through this process and then paying off the loan before the first installment?

all normal loans/mortgages enable early payoff of principal without penalties. is there something about this loan that prevents that?





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Sorbs

Sorbs

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20' Gladiator LE, 18' JLR 6-spd 2DR, 15' Hellcat Challenger
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i dont understand 'you need to make at least 6 payments...
so is this in the loan stipulation/contract?
i always just write a check for the entire price of the car at purchase time. so whats to stop me in this instance from going through this process and then paying off the loan before the first installment?

all normal loans/mortgages enable early payoff of principal without penalties. is there something about this loan that prevents that?
Instead of making a profit on the vehicle they've shifted to making a profit on loan origination between themselves and the bank.

Example, paid $54k (-$9k off MSRP) for Gladiator Launch Edition
First payment to Capital One = $49k
5 remaining payments for 5 mo. = $1k
Loan paid in 6 mo. = saving $9k on purchase @ MSRP

If you want to write a check for the Jeep, going through Petersons, instead of saving $9k, they discount up to $6k off MSRP since you'll bypass the loan initiation value to the dealer of $3k. If you payoff before 6 months you basically screw them out of their loan initiation fees.
 

H_ORNELAS

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Here's the process:
  1. You spec the order with Kent ([email protected])
  2. Kent sends you back a deal sheet with your options spec'd
  3. Discount is listed + dealer fee + docs ($300-ish)
  4. $1k deposit that also is your downpayment
  5. Finance is where they make their money, they source the loan. You need to make at least 6 payments before refinancing or paying off. Interest rates are market based on your credit score.
  6. You make a big first payment, like a downpayment big, and then continue to pay or refi after your 6th payment.
  7. If you don't want to drive/fly he will help setup up 3rd party delivery

The hardest part of this is waiting for your JL/JT to show up. If you do go this route tell Kent we sent ya!

Thanks for all of the great info and upfront knowledge of their financing requirements. I do have one question/concern. Roughly what interest rates are people seeing with their financing options (assuming top tier credit)? I understand that this can vary depending on credit. But if the interest rates are significantly higher than comparable loans, this could heavily eat into the savings compared to a local deal. especially if you're buying out of state. Thanks again!
 
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Sorbs

Sorbs

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20' Gladiator LE, 18' JLR 6-spd 2DR, 15' Hellcat Challenger
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Thanks for all of the great info and upfront knowledge of their financing requirements. I do have one question/concern. Roughly what interest rates are people seeing with their financing options (assuming top tier credit)? I understand that this can vary depending on credit. But if the interest rates are significantly higher than comparable loans, this could heavily eat into the savings compared to a local deal. especially if you're buying out of state. Thanks again!
Buying out of state really doesn't matter since you pay your local taxes at point of sale and they transfer your transaction to your local DMV.

The loan is based on your credit worthiness and low downpayment, i.e. they use your $1k deposit as your downpayment so interest rates are higher, between 4-5% APR, but if you payoff 90% in your first payment it is used more as a fee in order to save $$$.
 

porcusRex

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subaru
Instead of making a profit on the vehicle they've shifted to making a profit on loan origination between themselves and the bank.

Example, paid $54k (-$9k off MSRP) for Gladiator Launch Edition
First payment to Capital One = $49k
5 remaining payments for 5 mo. = $1k
Loan paid in 6 mo. = saving $9k on purchase @ MSRP

If you want to write a check for the Jeep, going through Petersons, instead of saving $9k, they discount up to $6k off MSRP since you'll bypass the loan initiation value to the dealer of $3k. If you payoff before 6 months you basically screw them out of their loan initiation fees.
my question was about the loan agreement contract. does the contract require you to pay for 6 months (or there is some sort of penalty for early payoff) or is this simply a gentleman's agreement to make payments for 6 months? BTW, 3k 'origination' fee or whatever you call it is six percent of a 50k loan. its hard to believe the bank makes 6 percent up front on a loan like that. the normal origination fee on an auto loan is 1 to 2 percent.

my opinion is almost everyone who takes this deal with take the normal amount of time to pay off the loan and its that and the interest on the loan paid off that way, not some 'origination fee' that is the basis for this deal.
 
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Sorbs

Sorbs

Well-Known Member
First Name
Brian & Sunny
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Messages
527
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959
Location
Colorado Springs
Vehicle(s)
20' Gladiator LE, 18' JLR 6-spd 2DR, 15' Hellcat Challenger
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my question was about the loan agreement contract. does the contract require you to pay for 6 months (or there is some sort of penalty for early payoff) or is this simply a gentleman's agreement to make payments for 6 months? BTW, 3k 'origination' fee or whatever you call it is six percent of a 50k loan. its hard to believe the bank makes 6 percent up front on a loan like that. the normal origination fee on an auto loan is 1 to 2 percent.

my opinion is almost everyone who takes this deal with take the normal amount of time to pay off the loan and its that and the interest on the loan paid off that way, not some 'origination fee' that is the basis for this deal.
It is a standard loan with no pre-pay penalty and also a gentleman's agreement to pay for at least 6-mo.
 

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