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Old 07-18-2014, 08:28 PM   #1
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Financing Scenario: 0% Demand - Possible?

Just a general question to the veterans of this forum, and past Jeep customers...

Just wanting to get a pulse from you all, because I do value your opinions.

Scenario: Purchasing 2015 Jeep Wrangler Unlimited Sport S
Out The Door Price: $31,965.00
Down Payment: $20,000 Cash
Balance: Financed $11,965.00

Question: Would you demand 0% APR from Chrysler Finance regardless of credit rating (mine is fine, just to be clear).

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Old 07-18-2014, 08:32 PM   #2
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If I were getting 0% finance. I'd do with the minimum down. Preferably zero. I doubt that offer exists for such a high demand vehicle. Maybe on the dart.

Put that 20k in a cd or life ins policy. Earn money on your money vs tying it up in the jeep.

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Old 07-18-2014, 08:39 PM   #3
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You can demand what ever you want , but if Chrysler doesnt have zero percent advertised, your chances are slim and none. Based on what you are financing you would probably have a better chance with asking for them to reduce the price by and extra $500, which would be in essence about the same net result. Average new car rate is 1.9%
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Old 07-18-2014, 08:51 PM   #4
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Go to your local Credit Union see what they offer.

They make more if you do finance, so try negotiating.

Demanding rarely works, for anything. If you don't buy it the next guy will.
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Old 07-18-2014, 09:10 PM   #5
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Understood. It was my understanding that at a minimum most dealerships run the finance option to several companies, so 1.9% at a minimum?

Like I said gentlemen, this is not to insult anyone, I am merely asking you what you would do if it was you.
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Old 07-18-2014, 09:12 PM   #6
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You would get the best rate from a local credit union. If you google the credit unions in your area, they will have new car loan rates posted
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Old 07-18-2014, 09:24 PM   #7
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Wonder how the local credit unions treat non clients / non account holders there? Never done that before.
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Old 07-18-2014, 09:26 PM   #8
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In general any business (automobile companies no exception) runs promotional programs to stimulate a market at a time when it's needed (end of model year, down months, unpopular product, etc) finance rates are not typically a "demand" issue. Certainly it is a negotiable aspect of the deal for example, the Finance Manager knows he has 1.9 as a lender option so "if" he gets you to sign for 3.9 there is a profit generated by one of the dealership profit centers (New car sales, used car sales, parts, service and finance are the Five (5) profit centers in most dealerships with the possible sixth being the body shop)
As mentioned, shop the lowest rate available to you and go in with the goal having the F&I beat that.
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Old 07-18-2014, 09:29 PM   #9
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Just a general question to the veterans of this forum, and past Jeep customers... Just wanting to get a pulse from you all, because I do value your opinions. Scenario: Purchasing 2015 Jeep Wrangler Unlimited Sport S Out The Door Price: $31,965.00 Down Payment: $20,000 Cash Balance: Financed $11,965.00 Question: Would you demand 0% APR from Chrysler Finance regardless of credit rating (mine is fine, just to be clear).
Worrying about the wrong thing. I finance vehicles for a living. 2% or less on less than $12K is just change.
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Old 07-18-2014, 09:32 PM   #10
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Worrying about the wrong thing. I finance vehicles for a living. 2% or less on less than $12K is just change.
Understood, thank you.
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Old 07-18-2014, 09:33 PM   #11
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I would join a credit union, show them your cash position, get pre-approved for a 1.9% loan for however many years, and ask the dealer to knock another $1000 or so off the price since you are essentially offering a full cash purchase. $12,000 @ 1.9%, the interest looks like $200 per year or less than $1000 over 5 years.
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Old 07-18-2014, 09:35 PM   #12
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You can demand what ever you want , but if Chrysler doesnt have zero percent advertised, your chances are slim and none. Based on what you are financing you would probably have a better chance with asking for them to reduce the price by and extra $500, which would be in essence about the same net result. Average new car rate is 1.9%
^^This^^ 100% agree!
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Old 07-18-2014, 09:39 PM   #13
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USAA is currently offering 1.99 @ 60 2.25 @72 and 1.39 for 36 if I remember correctly.
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Old 07-18-2014, 10:33 PM   #14
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USAA is currently offering 1.99 @ 60 2.25 @72 and 1.39 for 36 if I remember correctly.
Thanks Jrod, not a member of USAA. I am a veteran, honorable discharge, so not sure if that helps or not. Tried checking to see if non members can get a loan through them.
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Old 07-18-2014, 10:34 PM   #15
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Just FYI. If they offer money or rate ALWAYS take the money.
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Old 07-18-2014, 10:42 PM   #16
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I asked for 0% and they told me Jeep did not offer for the Wrangler. True or not I don't know but I haven't seen it advertise anywhere.

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Old 07-18-2014, 10:42 PM   #17
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most credit unions can be joined for $5 or $10. I was in the same boat a couple weeks ago buying a new car for my wife. I could have paid cash for the car but was able to get a 0.9% loan so I only put about 1/2 down on a $30000 car and financed the rest. I figure at that interest rate I may as well hang onto the cash and just use Honda financials money.
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Old 07-18-2014, 10:46 PM   #18
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I asked for 0% and they told me Jeep did not offer for the Wrangler. True or not I don't know but I haven't seen it advertise anywhere. ☞ Sent from here ☜
Probably true. 0% is an incentivized rate, ie factory subsidized. Wrangler doesn't need it. No help needed to move them. Guarantee you could get it on a Liberty or Commander.
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Old 07-18-2014, 10:48 PM   #19
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With the kind of equity mentioned in this thread. A rate of less than two percent with a mega bank. I.e Chase, Capital One B of A etc. would be the norm.
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Old 07-18-2014, 10:56 PM   #20
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Understood. It was my understanding that at a minimum most dealerships run the finance option to several companies, so 1.9% at a minimum?

Like I said gentlemen, this is not to insult anyone, I am merely asking you what you would do if it was you.

I had similar financials when I purchased my JKWW recently, and I came out with a 2.25% rate from my credit union. Chrysler financial won't drop that low on Wranglers.
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Old 07-18-2014, 11:06 PM   #21
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So let them run financing through a lot of lenders to see who drops the lowest.
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Old 07-18-2014, 11:14 PM   #22
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So let them run financing through a lot of lenders to see who drops the lowest.
They won't need to run through lots of lenders. They know who has the absolute best rates. In a scenario like yours I've seen rates as low as 1.34% from both Chase and Capital One.
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Old 07-18-2014, 11:29 PM   #23
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The finance guy at the dealer knows who offers what. Just tell him/her that you have secured financing at USAA or PenFed for 1.9%. If he's worth anything he'll try to match the rate with one of their lenders and then you won't have to join the credit union. Most dealers will give you up to five days to bring in a check to pay for the vehicle. This is what I did and they matched the rate I saw online at PenFed's website. Like was mentioned before, if you can borrow money at 1.9%, why not put down less and invest the rest? Properly invested you could possibly earn 6,7 maybe 8%. Just my .02. Good luck.
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Old 07-18-2014, 11:32 PM   #24
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The finance guy at the dealer knows who offers what. Just tell him/her that you have secured financing at USAA or PenFed for 1.9%. If he's worth anything he'll try to match the rate with one of their lenders and then you won't have to join the credit union. Most dealers will give you up to five days to bring in a check to pay for the vehicle. This is what I did and they matched the rate I saw online at PenFed's website. Like was mentioned before, if you can borrow money at 1.9%, why not put down less and invest the rest? Properly invested you could possibly earn 6,7 maybe 8%. Just my .02. Good luck.
Thank you for the council. I do invest, just not in the normal financial markets. I make a lot more than 8%. It just all goes back into the expansion of those companies.
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Old 07-19-2014, 12:40 AM   #25
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Wonder how the local credit unions treat non clients / non account holders there? Never done that before.
Not sure about your area, but where I live we have 2 MAJOR Credit Unions and a couple good size ones right behind those two. All the serious dealerships both new and used here offer financing through the local CU, new dealers you can get through corporate but the CU's here pretty much beat any bank hands down. You can join the CU's right at the dealership to get the financing.
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Old 07-19-2014, 01:27 AM   #26
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I went through something similar about 3 months ago. The problem I ran into is that financing rates have been creeping up for a while, and car sales have ticked up so far this year. No financial institution will loan for the same rate they did a year ago. If you consider that dealers are being restricted on inventories of Wranglers, there is zero interest in offering such an incentive as 0% under any circumstances. And your circumstances are working against you. With such a large down payment, you are leaving a relatively small balance to finance. While that may sound counter intuitive, the financing companies, including credit unions, need to get certain minimum profits. If your balance is relatively low, the finance company's bottom line will tend to make the interest rate higher. Conversely for those with good credit, financing a larger amount tends to lower your interest rate, with a sufficient down payment and same duration of the loan.

The current climate is against you. I would think that 1.9% would be good, and 1.49% might be possible. For 36 month financing of $12k:

@ 0% = $333/mo
@1.49% = $341/mo ($288 in interest/36 mo)
@1.9% = $343/mo ($360 in interest/36 mo)
@2.49% = $346/mo ($468 in interest/36 mo)

Not a big difference, but I can understand the principle.

I actually got up and walked off with the dealer's first offer. Before I got off the lot, they miraculously found a lender that offered 1.25% lower interest rate. That was roughly 0.75% less than the best I could find during pre-approval shopping for financing. Still, it was nearly 1% higher than what was available last year.

Good luck, and go get 'em!
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Old 07-19-2014, 02:01 AM   #27
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I got 1.9% 60 month from my CU to buy a used 2012 Rubi with no money down. At the dealership I explained it would take a few days for the paperwork and check to arrive. They wanted to close the deal immediately so they found me 1.8%. I think it shaved pennies off my payment.
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Old 07-19-2014, 02:07 AM   #28
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Probably true. 0% is an incentivized rate, ie factory subsidized. Wrangler doesn't need it. No help needed to move them. Guarantee you could get it on a Liberty or Commander.
X2 - they don't need to offer any incentives on the Wranglers because they move so fast.

It was a hard pill for me to swallow to get a 5 year loan on mine and I did get a low interest deal but I had gone 7 years without a vehicle payment and the last one I had purchased prior to the Wrangler was a Saturn Sport Coupe at 0% interest so I didn't put any money down on that one. My husband got a LOC from the bank and then the loan officer at the dealership gave him a better interest rate so that they would make money on the loan. We ended up financing through Chrysler and a Credit Union in order to get the lowest interest rate possible.
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Old 07-19-2014, 03:36 AM   #29
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Thanks Jrod, not a member of USAA. I am a veteran, honorable discharge, so not sure if that helps or not. Tried checking to see if non members can get a loan through them.
Hey Cross if you're a veteran I believe you should have no problem opening an account with them. Give them a call and see what they can offer. When you do call and become a member find out what insurance will cost you. In my experience they have been very to easy with when dealing with claims, etc.
Good luck and keep me posted how it goes.
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Old 07-19-2014, 03:50 AM   #30
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Just a general question to the veterans of this forum, and past Jeep customers...

Just wanting to get a pulse from you all, because I do value your opinions.

Scenario: Purchasing 2015 Jeep Wrangler Unlimited Sport S
Out The Door Price: $31,965.00
Down Payment: $20,000 Cash
Balance: Financed $11,965.00

Question: Would you demand 0% APR from Chrysler Finance regardless of credit rating (mine is fine, just to be clear).
Even if your credit rating is 800 you can't just demand below market rate interest. What will happen is they will just add the interest to the purchase price of the vehicle. You would just fall into the dealers classic trap of "Just tell us what you want your monthly payment to be ..."

You are buying a vehicle that is demand so you don't have a lot of leverage.

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