September 3, 201313 yr New stats out from Experian Automotive: Avg new car loan amount: $26,500 Avg new car loan term: 65 months Avg new car loan credit score: 749 Avg used car loan amount: $17,900 Avg use car loan term: 61 months Avg used car loan credit score: 660 Leasing is at its highest since 2006.
September 3, 201313 yr I actually had a dealer this weekend, when looking at a new truck, stop talking to me after I told them I would be paying cash for it and didnt need financing.....I wasnt going to buy that day anyways so no big deal to me, just thought it was funny. Either that or the fact that the 60K sticker on the truck we were talking about and had the price down to 38k wasnt getting them anything more than 38K, lol.
September 3, 201313 yr Former Co-Worker told me that from his time as a salesman at a major dealership you should never finance through the dealer. They may lower your price but will make it up on the backside on financing at a higher rate that the buyer qualifies for. There are few things I hate worse that buying a car. I only do it during rain now, if salesperson can't come out and talk to me in the rain then I won't buy a car from them.
September 3, 201313 yr Author Seems like more and more people are purchasing with no down payments. I spend a lot of time with car dealers. Down payments are not very big if there is one at all. If they're trading in a car that they're upside down in (ie owe more to the bank than the car is worth) they often need to come up with down money in order to get the bank to take the loan.
September 3, 201313 yr Author I actually had a dealer this weekend, when looking at a new truck, stop talking to me after I told them I would be paying cash for it and didnt need financing.....I wasnt going to buy that day anyways so no big deal to me, just thought it was funny. Either that or the fact that the 60K sticker on the truck we were talking about and had the price down to 38k wasnt getting them anything more than 38K, lol. Must have been something else. No way a dealer walks away from moving an expensive piece of inventory. They do not making any income on the loan but they're still getting a large asset off the books.
September 3, 201313 yr Author Former Co-Worker told me that from his time as a salesman at a major dealership you should never finance through the dealer. They may lower your price but will make it up on the backside on financing at a higher rate that the buyer qualifies for. There are few things I hate worse that buying a car. I only do it during rain now, if salesperson can't come out and talk to me in the rain then I won't buy a car from them. Your former co-worker is making a gross generalization. Can you get a better rate at your bank vs through the dealership? Often times, yes. However, the dealers work with many lenders. I was at a store last week where a person with a 560 credit score got a new car loan approved through Toyota Motor Credit even though they had filed bankruptcy. The guy's bank wasn't offering him a loan. Yes, dealers do make a profit on providing the loan service. Why shouldn't they?
September 3, 201313 yr Your former co-worker is making a gross generalization. Can you get a better rate at your bank vs through the dealership? Often times, yes. However, the dealers work with many lenders. I was at a store last week where a person with a 560 credit score got a new car loan approved through Toyota Motor Credit even though they had filed bankruptcy. The guy's bank wasn't offering him a loan. Yes, dealers do make a profit on providing the loan service. Why shouldn't they? His point was that the dealer that he worked for (Toyota) would stick it to their customers on financing because they would make more from the bank the higher the interest rate they could get the customer to accept. Many people are not well versed in applying and receiving loans and a great deal do not have bank checking or savings accounts. Most do not realize that the dealer isn't working in their best interest when getting loans approved for them.
September 3, 201313 yr New stats out from Experian Automotive: Avg new car loan amount: $26,500 Avg new car loan term: 65 months Avg new car loan credit score: 749 Avg used car loan amount: $17,900 Avg use car loan term: 61 months Avg used car loan credit score: 660 Leasing is at its highest since 2006. That's pretty alarming.
September 3, 201313 yr Author His point was that the dealer that he worked for (Toyota) would stick it to their customers on financing because they would make more from the bank the higher the interest rate they could get the customer to accept. Many people are not well versed in applying and receiving loans and a great deal do not have bank checking or savings accounts. Most do not realize that the dealer isn't working in their best interest when getting loans approved for them. The dealers are now limited on how much they can mark up the rates. In the old days there were some people that got slammed by stores.
September 3, 201313 yr I'm 5 months from being car payment free....my truck has 260K on it and has been payed off forever, but I only drive it about 50 miles a week now. My Wifes Envoy...well Just hoping it makes it the last 5 months...LOL Unfortunately I don't think I'll make it all the way to payment free, probably trade one of them in by the end of the year.
September 3, 201313 yr Author That's pretty alarming. Part of the issue is they finance for 66 months but want to trade out at 35 or 36 months. So they have to carry the deficit amount (trade payoff less the trade value) on their new loan which means they need to extend it out further in order to get a payment they can afford, thus, you see 72 , 75, or 84 month loans. It's why more people should lease.
September 3, 201313 yr Haven't had a car payment since George W. Bush's first term in the White House.
September 3, 201313 yr Author Haven't had a car payment since George W. Bush's first term in the White House. What's the average price of the car you purchase?
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