Anyone here a finance manager or personally know one?
I have a few questions on there job and also on how they come up with the rate they give you?
Do they make a cut of the deal if the purchaser decides on financing or leasing? After you cut your deal with the sales guy, you talk to the finance guy and he tries to sell you a million things.

Im asking because it was very wierd how i just purchased a Mazda 3 for my fiance. Got a 9.5% from my bank. And when i told Mazda this they came back to me for 8.7%. Once i struck the deal with the sales manager we crunched numbers and our monthly payment was still too much( its my fiancee paying it but car is in my name). I told him after they already had prepped the car and gassed it up that the deal is off because im not paying more than that monthly. He then told me to sit down he will see what he can do and got me the deal going on at Mazda at the time for good credit customers of 4.5%. The numbers worked perfect after that. My credit score when they ran it was only 626. Does this mean rates can be finagled by the dealer to suit thier profits? I get a 9.5 from my bank go to the dealer and he gets me a 4.5 from mazda financing when i threatenend to walk from the deal.
I did notice the finance manager didnt treat me to good when i signed the documents though, was he maybe mad he lost commision or something?
Just asking cause im glad we got an awesome deal, but i would like to be more informed for when I buy a new car myself in a year or 2.
AKay

 

A couple things happened here. They could have given you the 4.5% from Mazda from the start but they didn't because 1)the dealer would have only been paid a flat fee from the lender, usually somewhere between 100-200 dollars for the contract. 2)dealer probably had the contract purchased by another lender other than Mazda and they probably had about 2-3% gross profit on the rate. In other words they stand to make alot more than the flat fee from Mazda if you had signed on the dotted line. Why did they risk this? Because they knew ahead of time what your best rate was...which was 9.5%. All they had to do was offer you a slightly lower rate than the 9.5% knowing full well you will probably be happy, and if they had to, offer you the Mazda rate as a last resort.

If your own bank is offering you such a high auto rate, than you need to really reorganize your credit profile. You got financed with such a low score, its safe for me to guess that you probably have never missed or been late on any payments but are carrying high balances in your accounts, CC, student loans etc. Your debt to income ratio is probably below 50%.

Next time keep your interest rate to yourself. You do not need to tell the dealer what rate you received. If they ask, just ask them back... what rate can you get for me?

 

yup that makes alot of sense now. My score is that low because of a collection account that isnt mine im trying to get off. Since this purchase which was 3 weeks ago im up to 650 but that damm account is still there even after disputing it through the credit reporting agencies. Im glad i got the 4.5 but im seeing now how much more shadier the damm dealers are.
AKay

 

Also i have perfect credit with Honda finance since 2000 when i purchased my Acura they didnt even run my credit they just called honda finance cause i traded in my 03 accord. which was bought off of a trade in from my 2000 Civic. Im really trying to get a house within a few months so ive been looking at everything to fix my credit score into the 700s.
AKay

 

Tell Governor Schwarzenegger to stand up to shady auto dealers and sign the Car Buyers Bill of Rights, AB 1839, authored by Assemblymember Cindy Montanez. He has until Sept. 30 to sign the bill or veto it.

Auto dealers say they are “vehemently opposed” to AB 1839, and they are fighting tooth and nail to kill it. Some of the dealers opposed to the bill had their licenses suspended by California’s DMV for massive fraud, and their employees were found guilty of fraud and sentenced to prison terms.

AB 1839 is pioneering, first-in-the-nation legislation to end sour auto deals and make car buying fairer and more honest. Polls show that the measure is wildly popular among California car buyers in every part of the state, with more than 80% in strong, unwavering support.



AB 1839 will:

• Establish minimum standards for “certified” used cars. Require that technicians who inspect cars be qualified to do the job, and that dealers must give buyers a copy of the inspection report.

• Curb predatory and discriminatory auto lending, and cap the hidden kickbacks dealers receive on auto loans at 2.5% for loans up to 60 months and 2% for longer loans.

• Establish truth in auto sales by requiring dealers to provide written disclosures of the cost to purchase high-priced add-ons such as theft etching, gap insurance, paint sealant, and extended service contracts.

• Require dealers to disclose to you, in writing, what your credit score is, to make it harder for them to deceive you about your creditworthiness, and easier for you to comparison shop for an auto loan.

• Prohibit the pervasive practice of “loan packing” unwanted, overpriced items into the monthly payment, and misleading buyers about the cost.

According to the Foundation for Taxpayer and Consumer Rights, auto dealers and auto industry special interests have contributed over $981,000 to Gov. Schwarzenegger. Will he stand up for them, or for California’s 22 million car owners?



To send a message to Governor Schwarzenegger,
contact him at Governor's Office:

Governor Arnold Schwarzenegger
State Capitol Building
Sacramento, CA 95814
Phone: 916-445-2841
Fax: 916-445-4633

To send an E-mail please visit:
http://www.govmail.ca.gov


Message: California car buyers deserve to be treated with fairness and honesty. Stop auto scams. Sign AB 1839 (Montanez), the Car Buyers Rights.

Thank you for taking the time to make a difference!