A big company doesn't care if they get your money in one lump sum or over the course of a few years. They would rather get your money over a year or a few years rather than their competitors getting your money. Jesus, tone it down with the LMAO's.... It's a bad look when you're wrong.
Geez, it has nothing to do with competitors. Yeah, they still get their money, but where they MAKE their money is with the people who don't pay the interest free loan off in time and pay the huge interest when it kicks in.
Ask any person who works in the credit card business....their worst customers are the ones that pay their bills on time and don't carry over balances. They LOVE the people who pay their bills on time and carry a balance.
Let me try once more:
I bought a car on the Ford A plan. There is ZERO negotiation. The price is the price NO MATTER WHAT. And it's a better price than sportsfan could ever negotiate and I know that for a fact. Ford actually reimburses dealers for the difference between what the buyer pays and what the dealer could have gotten from some schmuck off the street (see SportsFan). It's an incentive to keep people driving Ford products (people who are related to Ford employees). Don't even pretend you know more about this than I do.
So I could have written a check for $28K and driven it off the lot or paid that $28K back over 6 years with NO INTEREST.
You go ahead and write the check. I'll do the smart thing.
A big company doesn't care if they get your money in one lump sum or over the course of a few years. They would rather get your money over a year or a few years rather than their competitors getting your money. Jesus, tone it down with the LMAO's.... It's a bad look when you're wrong.
Geez, it has nothing to do with competitors. Yeah, they still get their money, but where they MAKE their money is with the people who don't pay the interest free loan off in time and pay the huge interest when it kicks in.
Ask any person who works in the credit card business....their worst customers are the ones that pay their bills on time and don't carry over balances. They LOVE the people who pay their bills on time and carry a balance.
Let me try once more:
I bought a car on the Ford A plan. There is ZERO negotiation. The price is the price NO MATTER WHAT. And it's a better price than sportsfan could ever negotiate and I know that for a fact. Ford actually reimburses dealers for the difference between what the buyer pays and what the dealer could have gotten from some schmuck off the street (see SportsFan). It's an incentive to keep people driving Ford products (people who are related to Ford employees). Don't even pretend you know more about this than I do.
So I could have written a check for $28K and driven it off the lot or paid that $28K back over 6 years with NO INTEREST.
You go ahead and write the check. I'll do the smart thing.
They're making money on the front end and forfeiting the money on the back end. I'll translate that for you... If Best Buy is into a TV for 400 and they sell it to you for 1000 but they give you a year to pay it off at zero percent interest... They still made 600 dollars. They want people to pay. They're not in the collection business, they're in the retail business. Boy would their advertising executives get a kick out of this thread.
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Let me translate this for you.
You pay them $1,000 when you buy the TV. They get that money to do what whatever they want to for an ENTIRE YEAR. Invest it. Whatever.
I pay them $1,000 after a year with no interest.
You're telling me they would rather do business with me as opposed to you and wait for their money for a year?
You are preposterous.
Companies LOVE people who pay cash. They HATE people who do the no interest thing and then pay if off before the interest kicks in.
Maybe you just don't understand no interest credit.
They're making money on the front end and forfeiting the money on the back end. I'll translate that for you... If Best Buy is into a TV for 400 and they sell it to you for 1000 but they give you a year to pay it off at zero percent interest... They still made 600 dollars. They want people to pay. They're not in the collection business, they're in the retail business. Boy would their advertising executives get a kick out of this thread.
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Let me translate this for you.
You pay them $1,000 when you buy the TV. They get that money to do what whatever they want to for an ENTIRE YEAR. Invest it. Whatever.
I pay them $1,000 after a year with no interest.
You're telling me they would rather do business with me as opposed to you and wait for their money for a year?
You are preposterous.
Companies LOVE people who pay cash. They HATE people who do the no interest thing and then pay if off before the interest kicks in.
Maybe you just don't understand no interest credit.
You overpaid for your lasik. Should have been $500-$1,000.
You probably overpay for other stuff as well.
Do you know my eye situation? Go ahead and presume what you had done or what you've heard in advertisements applies to me. I'll do what works for me and you can do what works for you.
So now it goes from talking about zero interest loans to someone criticizing me for overpaying for something I've already paid for.
Not only that, he accuses me of overpaying for other things. Typical change of the subject from someone who has nothing to offer.
You overpaid for your lasik. Should have been $500-$1,000.
You probably overpay for other stuff as well.
Do you know my eye situation? Go ahead and presume what you had done or what you've heard in advertisements applies to me. I'll do what works for me and you can do what works for you.
So now it goes from talking about zero interest loans to someone criticizing me for overpaying for something I've already paid for.
Not only that, he accuses me of overpaying for other things. Typical change of the subject from someone who has nothing to offer.
Let's say you're looking at buying a house: You found one for $200K. You just inherited $200K from your grandma.
You have 2 choices:
1. You can pay for the house in cash and own it outright. You have a $200K asset that will probably increase in value over 30 years.
2. The seller offers you a no interest loan....no interest as long as you pay it off before the 30 year mark. You do not have to pay the seller a DIME before for 29 years, 364 days. As long as you pay them the entire balance before 30 years hits, you pay NO interest.
In other words, the seller could have to wait for 29 years, 364 days to get their money and still make NO interest.
Can you see the difference here?
Big companies can afford to let people pay them a year down the road because the REAL people they are after are the ones who won't pay them in time.
I really wish you could grasp this because it's free money. Then again, it's people like you who are scared to take advantage who allow companies to continue to offer such deals to us.
Let's say you're looking at buying a house: You found one for $200K. You just inherited $200K from your grandma.
You have 2 choices:
1. You can pay for the house in cash and own it outright. You have a $200K asset that will probably increase in value over 30 years.
2. The seller offers you a no interest loan....no interest as long as you pay it off before the 30 year mark. You do not have to pay the seller a DIME before for 29 years, 364 days. As long as you pay them the entire balance before 30 years hits, you pay NO interest.
In other words, the seller could have to wait for 29 years, 364 days to get their money and still make NO interest.
Can you see the difference here?
Big companies can afford to let people pay them a year down the road because the REAL people they are after are the ones who won't pay them in time.
I really wish you could grasp this because it's free money. Then again, it's people like you who are scared to take advantage who allow companies to continue to offer such deals to us.
Back in da good days when GE Capital and MBNA gave me a free cash advance (those days seem gone) with 12 month free interest I would write myself a check, deposit it, get about $300 free money for the year, and write them a check monthly to repay them. There's a minimum so you can write the minimum but since it will not pay off your balance in 12 months I instead divided up by 11 and paid it like that so it gets paid off in 11 months.
In other words, they don't let you pay a full lump sum on the 12th month. It doesn't work that way and which I noticed you changed your wording in post 25 to reflect that.
They can get you one of two ways even before they hit you with the 'full' 12 month interest rate- 1. late payment 2. too many late payments (usually 2 in a row) go to regular interest rate probably hoping you don't have the money to fully pay it off at that time
Back in da good days when GE Capital and MBNA gave me a free cash advance (those days seem gone) with 12 month free interest I would write myself a check, deposit it, get about $300 free money for the year, and write them a check monthly to repay them. There's a minimum so you can write the minimum but since it will not pay off your balance in 12 months I instead divided up by 11 and paid it like that so it gets paid off in 11 months.
In other words, they don't let you pay a full lump sum on the 12th month. It doesn't work that way and which I noticed you changed your wording in post 25 to reflect that.
They can get you one of two ways even before they hit you with the 'full' 12 month interest rate- 1. late payment 2. too many late payments (usually 2 in a row) go to regular interest rate probably hoping you don't have the money to fully pay it off at that time
"I will give you $3,000 credit for 6 months at no cost. I know you have the money to pay me now and I know you're going to pay me at the last minute and I'll get zero additional money in interest, but this is a good deal for me. I prefer not to get my cash up front from people who don't understand what a zero interest loan means for a responsible individual."
"I will give you $3,000 credit for 6 months at no cost. I know you have the money to pay me now and I know you're going to pay me at the last minute and I'll get zero additional money in interest, but this is a good deal for me. I prefer not to get my cash up front from people who don't understand what a zero interest loan means for a responsible individual."
It applies to cards, cash advances, best buy/car care one/ etc cards. They all work basically by the same rules.
I used to sell Car Care One and I also was a customer that took the zero deal so I know how it works both ways.
Unless a company does in house financing which is probably rare they have a card company do their financing and the zero interest is paid by the company offering the zero financing. The seller makes profit but lower margin since they have to pay the card company a percentage for the zero interest deal, the card company makes money from the 'discount fee' they charge the seller, and the buyer has an incentive to buy since they don't have to pay all up front or they don't have the money to pay it all upfront.
It applies to cards, cash advances, best buy/car care one/ etc cards. They all work basically by the same rules.
I used to sell Car Care One and I also was a customer that took the zero deal so I know how it works both ways.
Unless a company does in house financing which is probably rare they have a card company do their financing and the zero interest is paid by the company offering the zero financing. The seller makes profit but lower margin since they have to pay the card company a percentage for the zero interest deal, the card company makes money from the 'discount fee' they charge the seller, and the buyer has an incentive to buy since they don't have to pay all up front or they don't have the money to pay it all upfront.
They can get you one of two ways even before they hit you with the 'full' 12 month interest rate- 1. late payment 2. too many late payments (usually 2 in a row) go to regular interest rate probably hoping you don't have the money to fully pay it off at that time
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And that is where they make their money. The people who pay their zero interest loans off before the deadline COST them money.
They can get you one of two ways even before they hit you with the 'full' 12 month interest rate- 1. late payment 2. too many late payments (usually 2 in a row) go to regular interest rate probably hoping you don't have the money to fully pay it off at that time
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And that is where they make their money. The people who pay their zero interest loans off before the deadline COST them money.
They can get you one of two ways even before they hit you with the 'full' 12 month interest rate- 1. late payment 2. too many late payments (usually 2 in a row) go to regular interest rate probably hoping you don't have the money to fully pay it off at that time
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And that is where they make their money. The people who pay their zero interest loans off before the deadline COST them money.
Yes in a perfect world but we are not in a perfect world.
They can get you one of two ways even before they hit you with the 'full' 12 month interest rate- 1. late payment 2. too many late payments (usually 2 in a row) go to regular interest rate probably hoping you don't have the money to fully pay it off at that time
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And that is where they make their money. The people who pay their zero interest loans off before the deadline COST them money.
Yes in a perfect world but we are not in a perfect world.
Depending on which credit bureau they use that is how they will rate your credit score. Sometimes they get it from all 3 and average it out.
Either way it doesn't matter much. 10-15 points not gonna matter much if at all.
I'll let you in on one thing I notice about dealers- they will sometimes give you a worse rate than your credit score deserves.
Dealers like to play with numbers that many people overlook or don't understand. It starts at the deal sheet.
10-15 point difference does matter. It could mean the difference in an automatic approval or a deal that has to be submitted and approved by an underwriter.
The reason dealers give you a worse rate than expected is because they are allowed to make money based on the rate the sell you. Example,if the bank says they will buy your car loan at 2.99%, the dealer can sell you the car at 3.99% and make 4% reserve on your loan. Most dealers make their money on the "back end" instead of the "front end" of the deal. There are so many tricks that go into a sale that it will make your head spin.
Depending on which credit bureau they use that is how they will rate your credit score. Sometimes they get it from all 3 and average it out.
Either way it doesn't matter much. 10-15 points not gonna matter much if at all.
I'll let you in on one thing I notice about dealers- they will sometimes give you a worse rate than your credit score deserves.
Dealers like to play with numbers that many people overlook or don't understand. It starts at the deal sheet.
10-15 point difference does matter. It could mean the difference in an automatic approval or a deal that has to be submitted and approved by an underwriter.
The reason dealers give you a worse rate than expected is because they are allowed to make money based on the rate the sell you. Example,if the bank says they will buy your car loan at 2.99%, the dealer can sell you the car at 3.99% and make 4% reserve on your loan. Most dealers make their money on the "back end" instead of the "front end" of the deal. There are so many tricks that go into a sale that it will make your head spin.
And don't get me wrong, if people want to pay cash, great. But to argue that it's always the way to go when you have a no interest loan option is crazy.
I only do no interest loans if I know I can pay it off at a moment's notice. Different when you are 25-30 v. me who is in his early 40's.
And don't get me wrong, if people want to pay cash, great. But to argue that it's always the way to go when you have a no interest loan option is crazy.
I only do no interest loans if I know I can pay it off at a moment's notice. Different when you are 25-30 v. me who is in his early 40's.
10-15 point difference does matter. It could mean the difference in an automatic approval or a deal that has to be submitted and approved by an underwriter.
The reason dealers give you a worse rate than expected is because they are allowed to make money based on the rate the sell you. Example,if the bank says they will buy your car loan at 2.99%, the dealer can sell you the car at 3.99% and make 4% reserve on your loan. Most dealers make their money on the "back end" instead of the "front end" of the deal. There are so many tricks that go into a sale that it will make your head spin.
Yes I know that's why I mentioned it. even though I didn't care to explain which you did a fine job of.
Reason why I mentioned it is because many people take the
'rate' the dealer says they qualify for as the lowest and best they can do. They probably rarely question it.
Maybe if you are sitting on borderline like 685 it might matter but in most cases doesn't matter. People get too technical about credit scores. And this is coming from a guy that doesn't check his credit or cares who does inquiries and I am still in the 800 range.
10-15 point difference does matter. It could mean the difference in an automatic approval or a deal that has to be submitted and approved by an underwriter.
The reason dealers give you a worse rate than expected is because they are allowed to make money based on the rate the sell you. Example,if the bank says they will buy your car loan at 2.99%, the dealer can sell you the car at 3.99% and make 4% reserve on your loan. Most dealers make their money on the "back end" instead of the "front end" of the deal. There are so many tricks that go into a sale that it will make your head spin.
Yes I know that's why I mentioned it. even though I didn't care to explain which you did a fine job of.
Reason why I mentioned it is because many people take the
'rate' the dealer says they qualify for as the lowest and best they can do. They probably rarely question it.
Maybe if you are sitting on borderline like 685 it might matter but in most cases doesn't matter. People get too technical about credit scores. And this is coming from a guy that doesn't check his credit or cares who does inquiries and I am still in the 800 range.
Hey guys, I am wondering if I should apply a car loan through my bank to get a lower interest rate versus through the car dealership at which the interest rate will be higher? TIA
Hey guys, I am wondering if I should apply a car loan through my bank to get a lower interest rate versus through the car dealership at which the interest rate will be higher? TIA
Hey guys, I am wondering if I should apply a car loan through my bank to get a lower interest rate versus through the car dealership at which the interest rate will be higher? TIA
Hutch- go bank lower interest- what don't you understand?
Detox- they gonna make money off you the back end regardless
Hey guys, I am wondering if I should apply a car loan through my bank to get a lower interest rate versus through the car dealership at which the interest rate will be higher? TIA
Hutch- go bank lower interest- what don't you understand?
Detox- they gonna make money off you the back end regardless
They're not making money in the back end if you pay cash, get your own financing, pay zero percent and don't buy any warranties or anything else extra. You don't make any sense. The confused emoticon should be your avatar.
They're not making money in the back end if you pay cash, get your own financing, pay zero percent and don't buy any warranties or anything else extra. You don't make any sense. The confused emoticon should be your avatar.
Hey guys, I am wondering if I should apply a car loan through my bank to get a lower interest rate versus through the car dealership at which the interest rate will be higher? TIA
I know this is jokingly asked, but it illustrates a point. You live near the edge financially and no interest loans can be dangerous....trick you into thinking you have more money than you do. You do the no interest thing and suddenly your house needs a roof and you can't. Afford it all.
But if you are in a spot financially where some bad luck isn't going to bankrupt you and you can pay off the balance whenever you want, no interest is the way to go.
Hey guys, I am wondering if I should apply a car loan through my bank to get a lower interest rate versus through the car dealership at which the interest rate will be higher? TIA
I know this is jokingly asked, but it illustrates a point. You live near the edge financially and no interest loans can be dangerous....trick you into thinking you have more money than you do. You do the no interest thing and suddenly your house needs a roof and you can't. Afford it all.
But if you are in a spot financially where some bad luck isn't going to bankrupt you and you can pay off the balance whenever you want, no interest is the way to go.
Well, I got approved today for a 30k car loan from JPM Chase. The interest rate is 5.2%. Do you think the interest rate I got is decent? My credit score is 660.
Well, I got approved today for a 30k car loan from JPM Chase. The interest rate is 5.2%. Do you think the interest rate I got is decent? My credit score is 660.
Well, I got approved today for a 30k car loan from JPM Chase. The interest rate is 5.2%. Do you think the interest rate I got is decent? My credit score is 660.
You did way better than 0 percent. That I can tell you.
Well, I got approved today for a 30k car loan from JPM Chase. The interest rate is 5.2%. Do you think the interest rate I got is decent? My credit score is 660.
You did way better than 0 percent. That I can tell you.
Hutch, if a bank gave you zero percent and said go whatever you want it would obviously be a good deal. The problem with your deals is the product you're forced to buy with the 0 percent isn't desirable or they're making too much on the front end and suckering you into it with the zero percent. Car companies that are struggling (shitty product) offer 0 percent. The car companies that are booming (good product) don't offer 0 percent. Your 0 percent example on a home loan isn't a realistic example. Your vision is clouded by the 0 percent. You're forgetting to take into account the product that you're buying and the selling price of that product.
5.2 is fine. If that's the rate the dealer got you tell the finance manager you can get 4.5 at your credit union but if he can get you 4.5 you'd rather go through him. Just bluff, if he can't just take the 5.2. That's what I'd do.
Hutch, if a bank gave you zero percent and said go whatever you want it would obviously be a good deal. The problem with your deals is the product you're forced to buy with the 0 percent isn't desirable or they're making too much on the front end and suckering you into it with the zero percent. Car companies that are struggling (shitty product) offer 0 percent. The car companies that are booming (good product) don't offer 0 percent. Your 0 percent example on a home loan isn't a realistic example. Your vision is clouded by the 0 percent. You're forgetting to take into account the product that you're buying and the selling price of that product.
5.2 is fine. If that's the rate the dealer got you tell the finance manager you can get 4.5 at your credit union but if he can get you 4.5 you'd rather go through him. Just bluff, if he can't just take the 5.2. That's what I'd do.
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