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Discussion Starter #1
One of the dealerships I'm looking at has this on their 2007 Tundra sales page:

$2,000 off MSRP
AND
3.9% APR for 36 months


[FONT=arial, helvetica, sans-serif]$29.48 per $1000 financed. All discounts from dealer, Excludes Crew Max. 5 to choose from. In-stock units only. Offer ends 4/30/07. [/FONT]


So, this means that you finance the whole $40K, it's about $1180 more to finance at this low rate. Is this pure profit for the dealership? If the rate is coming from Toyota, why should I play the dealership to finance? If I threaten to simply write a check in full instead of financing would they potentially eliminate this fee to get me to finance anyway?
 

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$29.48 per $1000 financed. All discounts from dealer, Excludes Crew Max. 5 to choose from. In-stock units only. Offer ends 4/30/07.


So you're saying they charge you this in addition to the 3.9%? If so, that sucks.... kinda defeats the whole point of the cheaper interest rate.

Jim
 

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A $40k loan at 3.9% for 36 months runs about 1180.00 a month. You would pay about $2340 in interest over the live of the loan.
 

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That just helps you figure your payment. $29.48 per $1000. so 40 x 29.48=.............. You can also get 5.9% for 63 months here in the southeast.
 

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Discussion Starter #5
I guess this might be a way of expressing the amount of interest that would be paid over the life of the loan per $1000 since, in auto loans, don't you end up paying divided-up interest on the entire loan, not just on the balance that you owe towards the end?
 

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StatCode;
Toyota and Honda always do the same thing; they advertise low interest, in this case 3.9%, but only on short term financing which makes the payment too high for most folks. I went for the 5.9% they were also offering for 60 mos., which was the same as what I could get from my credit union.
 

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This is just a way of helping you calculate what your payment might be depending on how much you financed. There is no hidden charge. I did the 3.9 for 36 (after a trade and good downpayment) and this calculation works out about right for my payment.
 
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