Okay, I was a bit apprehensive about posting this 'cause I've always felt like I knew what I was doing when negotiating a car deal, but now I feel betrayed and I'm really beating myself up over something I just found out. I need to vent, so feel free to chime in if you think I'm overreacting?
Here's the low-down...
I bought my Tacoma (details in my sig) earlier this month for $100 over invoice. I traded in my '05 Tundra 2wd TRD OFF RD, LSD, TOW pkg etc. They wanted to give me $16,600, but I got 'em up to $17,600. I flip cars often and never put money down 'cause they're just a means of transportation for me so I budget for a monthly payment.
Anyway, I've been on the bureau for 12+ years (I'm 30) and have established excellent credit (FICO 800+).
Now here's my dilemma, I totally realize that dealers make money one of three ways (New Vehicle, Trade, and/or Financing). Hell, I worked in the car biz for awhile, not long, but long enough to understand how things operate.
I was fine with the new vehicle price, okay with the trade value, but when they talked to me about financing, they quoted me a rate that was neealry 2% points higer than what I was expecting. I'm was not a member of a credit union, but I was always able to get good rates through big lenders like Wells and CapOne. When I walked into the dealership, I planned on leasing to bury my negative equity (about $4k), but then they gave me an option for an 84mo. purchase. I knew they existed, but I'd never researched rates longer than 72 mo. I really like the Taco and planned on keeping it for awhile so I decided to take the deal knowing that I could just double my payments, but at the same time, have that option to pay the base mo. payment if money became tight one month.
When they came out and showed me the rate, I told him politely that with my credit, that rate was ludicrous (8.5%/84mo.) He claimed that he was at rock bottom and that was his buy rate? I was okay with where the payment fell, but I deserved the published rate @ 6.5%/84mo. (stupid me didn't ask to see it).
Last night I'm in the finance department monitoring a deal for my father, and the finance manager writes up an option contract for him, since he has his own financing. Just out of curiosty, I questioned the rate, and it was 6% for 60 mo. and 6.5% for 72mo and even 84mo. My eyebrows raised as I heard the 84 mo. rate since I had purchased my truck earlier this month and did an 84mo term, but received 7.95%!!! They lowered it from 8.5% 'cause they made a mistake on the original contract with my trade value and claimed they'd make it up by lowering my rate...wow!...7.95%, they still had 1.5% to give as I soon found out.
After we completed my dad's deal, I chatted with the finance guy and he told me that I should refinance. I'd never gone 84 mo. before and since 72mo. rates were in the 6's, I got lazy and just assumed that 1% or so higher was okay for 84 mo. Stupid me!!!
Anyway, this guy said that with my credit being 800+, they should have never tried to hit me for that rate. You know why I got lazy and became trustful?? Because I was working with a guy who I've known for awhile and thought he'd never screw me. I research and do my homework when making deals for others, but I guess I let my guard down as I put my faith in someone else. Oh, I'm kicking myself!!!
So today, I became a member of another CU and got approved for my refinance @ 6.49% and will probably get another .25% off tht for the automatic payment option.. The thing that pisses me off is that the Toyota dealership claimed that there was only one bank that would take my deal @ 84 mo., and it just happened to be a CU, so again I assumed that 84 mo. financing was not popular and that 7.95% was truly the best rate. Now I come to find out that tons of CU's go 84 mo. and the rates are anywhere from 1-1.75% lower. In fact, the CU my loan is currently through published their rate @ 6.49% too!!!
Again, I'm not against somebdy making some profit, but they made $100 + holdback on the front end, I saw they retailed my truck for nearly $22k, so say they split the difference and make $2000 on the next owner, plus now I find out that I'm damn near 2% points high on the rate!!! Besides that, if the publishe rate was 6.49%, doesn't the dealer still have a lower buy rate???
When I called for a payoff today, the CU asked why I wanted to pay it off, and I told them how they jacked me on the rate. The lady was speechless when I told her my FICO and what my current rate was through them!!!
I don't know who to be mad at, the CU or my "suppossed" friend who told me originally that 7.95% was as low as he could go 'cause they were at their "buy rate???" Should I be mad at myself 'cause I was unfamiliar with 84mo. financing rates??
Because I once worked in the business and realize how important those CSI scores are, I told them that I'd give them 100%, but now I really feel like I got screwed and as much as I'm not an eye-for-an-eye kinda' person, should I ding 'em on the survey, or maybe just not even fill it out? I even wrote a letter to the GM to give "my friend" and some other sales people kudos (before I found out about the rate hike, of course), but now I feel like a complete idiot and feel like my credibility for making smart car deals for anyone else is shot.
Thanks for listening all, I just needed to get it out!!!
I'd love some feedback.
Here's the low-down...
I bought my Tacoma (details in my sig) earlier this month for $100 over invoice. I traded in my '05 Tundra 2wd TRD OFF RD, LSD, TOW pkg etc. They wanted to give me $16,600, but I got 'em up to $17,600. I flip cars often and never put money down 'cause they're just a means of transportation for me so I budget for a monthly payment.
Anyway, I've been on the bureau for 12+ years (I'm 30) and have established excellent credit (FICO 800+).
Now here's my dilemma, I totally realize that dealers make money one of three ways (New Vehicle, Trade, and/or Financing). Hell, I worked in the car biz for awhile, not long, but long enough to understand how things operate.
I was fine with the new vehicle price, okay with the trade value, but when they talked to me about financing, they quoted me a rate that was neealry 2% points higer than what I was expecting. I'm was not a member of a credit union, but I was always able to get good rates through big lenders like Wells and CapOne. When I walked into the dealership, I planned on leasing to bury my negative equity (about $4k), but then they gave me an option for an 84mo. purchase. I knew they existed, but I'd never researched rates longer than 72 mo. I really like the Taco and planned on keeping it for awhile so I decided to take the deal knowing that I could just double my payments, but at the same time, have that option to pay the base mo. payment if money became tight one month.
When they came out and showed me the rate, I told him politely that with my credit, that rate was ludicrous (8.5%/84mo.) He claimed that he was at rock bottom and that was his buy rate? I was okay with where the payment fell, but I deserved the published rate @ 6.5%/84mo. (stupid me didn't ask to see it).
Last night I'm in the finance department monitoring a deal for my father, and the finance manager writes up an option contract for him, since he has his own financing. Just out of curiosty, I questioned the rate, and it was 6% for 60 mo. and 6.5% for 72mo and even 84mo. My eyebrows raised as I heard the 84 mo. rate since I had purchased my truck earlier this month and did an 84mo term, but received 7.95%!!! They lowered it from 8.5% 'cause they made a mistake on the original contract with my trade value and claimed they'd make it up by lowering my rate...wow!...7.95%, they still had 1.5% to give as I soon found out.
After we completed my dad's deal, I chatted with the finance guy and he told me that I should refinance. I'd never gone 84 mo. before and since 72mo. rates were in the 6's, I got lazy and just assumed that 1% or so higher was okay for 84 mo. Stupid me!!!
Anyway, this guy said that with my credit being 800+, they should have never tried to hit me for that rate. You know why I got lazy and became trustful?? Because I was working with a guy who I've known for awhile and thought he'd never screw me. I research and do my homework when making deals for others, but I guess I let my guard down as I put my faith in someone else. Oh, I'm kicking myself!!!
So today, I became a member of another CU and got approved for my refinance @ 6.49% and will probably get another .25% off tht for the automatic payment option.. The thing that pisses me off is that the Toyota dealership claimed that there was only one bank that would take my deal @ 84 mo., and it just happened to be a CU, so again I assumed that 84 mo. financing was not popular and that 7.95% was truly the best rate. Now I come to find out that tons of CU's go 84 mo. and the rates are anywhere from 1-1.75% lower. In fact, the CU my loan is currently through published their rate @ 6.49% too!!!
Again, I'm not against somebdy making some profit, but they made $100 + holdback on the front end, I saw they retailed my truck for nearly $22k, so say they split the difference and make $2000 on the next owner, plus now I find out that I'm damn near 2% points high on the rate!!! Besides that, if the publishe rate was 6.49%, doesn't the dealer still have a lower buy rate???
When I called for a payoff today, the CU asked why I wanted to pay it off, and I told them how they jacked me on the rate. The lady was speechless when I told her my FICO and what my current rate was through them!!!
I don't know who to be mad at, the CU or my "suppossed" friend who told me originally that 7.95% was as low as he could go 'cause they were at their "buy rate???" Should I be mad at myself 'cause I was unfamiliar with 84mo. financing rates??
Because I once worked in the business and realize how important those CSI scores are, I told them that I'd give them 100%, but now I really feel like I got screwed and as much as I'm not an eye-for-an-eye kinda' person, should I ding 'em on the survey, or maybe just not even fill it out? I even wrote a letter to the GM to give "my friend" and some other sales people kudos (before I found out about the rate hike, of course), but now I feel like a complete idiot and feel like my credibility for making smart car deals for anyone else is shot.
Thanks for listening all, I just needed to get it out!!!
I'd love some feedback.