wallstplyr

I'm one step closer to getting a 2007 TSX w/Navi (about time)!

The dealership said they'd honor $27k flat + Destination Fee, IF I financed through the dealership (Honda financial services) for 4.9% / 60 months. Which beats my credit union auto loan rate of 5.8%.

But, I hear some caution about financing through dealerships and that the safe bet is to go with the credit union even though it might be .9% higher.

Any bad experience or problems financing through the Acura dealership? Anything for me to watch out such as b.s. fees related to financing or whatnot?

I plan to buy in the next 5 days (NLT Wed of next week)!

nj2pa2nc

i have financed thru the dealer on numerous occasions. They will try to sell you all kinds of stuff-extended warranty, paint protection, pre-paid service, etc. If you do not want those things- JUST SAY NO! I have an 06 tsx financed thru Honda Financial Services- had no problems and the interest rate was the lowest I could get at the time.

legend74

i have a 5% interest rate through my credit union but i also get some of the interest back at the end of the year which actually brings the rate down even lower. so ask your credit union if they do anything similar as mine.

JB_TSX

I was in the same boat as you 3 years ago when I bought my car. I have a pre-approved credit from my credit union with about 5% rate. The dealer offered me 3.9% from American Honda Financing so I took it. I never had any problems or issues with AHF and no b.s. fees. Pretty much a straightforward transaction.

jwhite4

Definitely no problems with dealer financing. At closing, as mentioned they'll offer some extra packages, just say now. I got 2.9% for 3yrs, no one else could touch that.

Jeff

1Louder

I used to sell Acuras WAY back when - the issue here is not dealer vs. credit union. I've financed through both Honda financial and my credit union and both are solid. Here is what you need to look out for: understand FULLY what you monthly payments should be based on 4.9% and 60 months.Here's why. You'll agree on a price and loan amount. Dealers will then add hidden money to the principle and then show you a payment. You won't see any data other than say the $500 a month they're showing you. What you don't know is they added $1500 to the principle - your payment should be $475 a month. But now they've shown you $500, you've nodded, and you're off to finance where (wonder of wonders) they're able to sell you an extended warranty for only $5 more a month! Who wouldn't, right? So to you it's a 500 vs. 505 payment, when it's really a 475 vs. 505 payment. And if you decline, all of a sudden there's some kind of error in the numbers and you're back to $475.

For the last 6 cars I've bought, I've always had a financial calculator with me that can compute payments on the spot. If not, you can work up a spreadsheet or internet research and understand what a range of payments should be based on how much you may think you'll borrow.

Don Hoagie

You heard incorrectly wallstplyr. A dealership can usually beat whatever rate you've gotten from an outside bank, and when HFS is running a special, fuggedaboutit. When it comes to financing, the whole point of doing your research is to end up paying less money... so why you'd go with a rate that's a point higher, I can't understand.

1Louder had it right as far as describing what the actual concern is... if you don't know what a $27,670 loan @ 4.9 over 60 months will pan out to in monthly payments, then you really don't know what you're paying for. Any bank website- and any automotive consumer site- provides loan calculators. You'll need to know the monthly payment number before stepping into F&I at the dealership. When they ask you to sign, get confirmation on what the payment is, and if it's any different from what's been calculated, balk at the deal.

With 4.9 available, I would advise you roll everything in... taxes, fees, etc. Then buy gap insurance (negotiate it... there's a profit margin there). You can sign and drive without spending a single dollar and your payment will not be significantly higher.

Financing just the vehicle alone, according to your specs:
$27,670 @ 4.9% / 60 mos = $521 per month

If you tack on taxes, fees, and gap insurance (I'll have to make some assumptions here):
Tax (let's say 6%)= $1,660
Dealer Fees = $400
Gap = $300
Total to be financed = $30,030
$30,030 @ 4.9% / 60 mos = $565 per month
So with these example numbers, you'd paying $280 more over the life of the loan ((565 - 521 x 60) - (1,660 + 400 + 300)) for the convenience of not shelling out a single dollar at signing. Well worth it if you ask me. Plus, if you really want to get anal about it, you could put the money that was to be your down payment into a high yield savings account or CD, and make back most or all of that $280 in interest.

Tex929rr

[QUOTE=1Louder] You'll agree on a price and loan amount. Dealers will then add hidden money to the principle and then show you a payment. You won't see any data other than say the $500 a month they're showing you. What you don't know is they added $1500 to the principle - your payment should be $475 a month. [QUOTE]

Why wouldn't this be fraud if you've already agreed to a price?

I understand how they can do it when people come in just talking about payment - the biggest mistake people make when shopping cars, IMHO. But if you've agreed to a price and then the financial paperwork shows a different price, that seems like an opportunity to break out the lawyers.

nj2pa2nc

before the dealer tries to sell you gap insurance check with the place you get your auto insurance-they are usually cheaper

1Louder

It's not fraud only because they can't finish the deal with the "pad" in there unless you actually buy the warranty. The padded payment is only there to put in a wedge of money to raise the payment they show you. It's done purely to set your expectation at a higher payment than what it should be. If you decline the warranty - which happens - they'll make up some story about incorrect numbers, better financing, etc. and you'll be back to the negotiated value of the car. In short, they "undo" the pad. Most people won't blink if they get a lower payment than what they were shown originally.

wallstplyr

Thanks for the GREAT information! I was able to nail a sweet deal for a TSX 2007 w/Navi for only $27,500 (yes destination and any applicable fees are included in the quote)+ sales tax + tags without the need to finance through Honda Financing if that was the decision I ended up with.

itsme27

I guess i must be a horrible negotiator. congratulations on your purchase.

Renae

I was preapproved with my credit union before I walked in the door. But they had financing through Fifth Third Bank which was a better deal for me, so I chose that instead.

Congrats on your new TSX, I would love to get a new '07 with navi. Great negotiating skills!

Zoopa

Of the three new cars I have bought, financing all through the dealer, Acura was the least painful. I was lucky enough that my car arrived during the Acura 20th Anniversary when they were promoting 2.9% financing for 36/months. I asked what the total interest would be if I put 0 down or $5k. It was like ~$1250. I put nothing down, they prepared the paper work, and I was done quick. Only after I signed all the papers, the financing guy asked if I wanted the factory extended warranty. I passed, then later realized he was asking about $1k more than you can get online. I still passed on the warranty. To sum it up, it was painless.

alucardx

i have no problems with honda financing. i got in on the Acura 4.9%/60mo promotion at the end of last year.