Hey 4D THNDR! Did you ever hang at the old Jenroes or at Giant Square?? If, so we've probably seen each other or each other's vehicles.

 

Undy, been wanting to slip down there one of these Saturdays, just haven't gotten around to it yet. BTW, check out this local board:
http://pub20.ezboard.com/bhamptonroadsracing

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Red '00 Lightning,
Power Surge Performance enhanced,
Sound effects provided by Flowmaster,
375 RWHP,
445 RWTQ,
13.227@103.55
Track Videos

 

FMC offered me 14.9% APR on my 29,000 loan.

I got a bank load at 10.4%. Unfortunately, I couldn't do better as I didn't have a "large enough history of credit".

Daniel

 

One important consideration not discussed here is FMC and GMAC typically use the "rule of 78". What this does is front end load the interest at a much higher rate than simple interest. If you pay the loan off over the full loan period (few people do since they sell it before paid off)there is no difference if interest rate is same. If you pay it off early, the rule of 78 will cost you a lot more money. This is how the lender achieves a greater yield for the "same" rate. The dealer's never volunteer to explain this. It's all a game and knowledge and experience is always on their side, they do it for a living. They also have more respect knowledgable buyers. However, the more you know the better your chances of a more favorable deal.

The only way you can generally get simple interest and best rate from a dealer is by force, i.e. you already have a deal for same with your credit union, your credit histroy shows you can demand it, or sometimes, if you are willing to walk on deal. At list price you also have more room, but maybe not with an L. The dealers get kickbacks (finder fees) for arranging loans. This, warranties, and accessories is how they make more money on a vehicle where you can know what their approximate cost is if you know where to look. Tougher on L's since it is a seller's market on L's. Lack of credit will make it hard to get a decent loan deal, but credit unions are much easier, particularly if credit history is lacking. Although I made a down payment (not required)and got 7-5/8% for four years this past May.

For all the good I did on loan, I still had been screwed with MSRP. Only bright side was area dealers wanted MSRP + $1000; a hollow victory.

I have to agree with other post: A lot of trust and bravery on your and girl friend's part to put truck in her name. A lot of risk for you both.

[This message has been edited by bobcmt (edited 11-28-2000).]

 

When I bought my L, I got it for 26,599 w/ 10,000 down I got 15.5% apr thrpugh ford credit for 60 months. I went to my bank before my first payment was due and got 7% for 48 months. My payments were less for 48 months through my bank than 60 months through ford credit. If I would have paid the full ford credit loan ammount, I would have paid just over $41,000 for the truck. I saved hella money through my bank.

 

Thank's to everybody for the advice.
I feel an update is in order.

The FMC info arrived yesterday. (The L is comming from out of state)
After we looked it over we contacted the FMC helpline. They were really informative and explained the contract. We are not locked into a 60 month deal at all. There is no penelty for early payment. I intend to pay the monthly amount as agreed but also a further amount to be applied to the principle. This pays everything faster hence a saving of about 3000.00 in interest.
This is much better for me as I only wanted a two or three year loan at the outset.

We can't do any better on the 11.99% as both of us have little credit history.

Now a few people mentioned the title being in my girl friend's name, well a little explanation. We have total trust in each other. I guess we should have been married by now. Everybody keeps telling me to get on with it. Just never got around to it after 10 years of dating!!!! You will not find a better partner, gorgeous both inside and out and understands my passion for everything with power. She also re-built a chevy 305 a few years back with her dads help. The only thing if I remember is we had to talk her out of painting the engine hot pink. One other thing, I mentioned the post about the L running at Laguna Seca, The first words from her mouth were we just have to do that next time. Well now I am thinking better marry her before someone else.

[This message has been edited by Hilander (edited 11-30-2000).]