TThe internet has provided a great deal of information to get the best price for any vehicle you want to buy as well as an expected value for any trade in. Auto dealers also provide discounted percentage rates like "0%" when the manufacturers support certain new models and/or provide rebates as down payment assistance. Loan calculators are available through many web sites that allow you to create a monthly payment that's acceptable to your budget using a discretionary rate.
We know what we don't know. When financing is requested by a consumer, auto dealers will present a payment based on the amount financed, term and percentage rate. .Unless the auto dealer is using a published manufacturer rate or you've provided a percentage rate through your bank or a credit union, the only questionable portion of the payment calculation is the percentage rate used to create the monthly payment. The auto dealer will defend this percentage rate as a representation of your credit score that's created by three different credit bureaus that calculate your likelihood to repay your debts. This explanation sounds plausible, but we don't know for sure. The truth behind the real percentage rate for which you qualify is created by a bank or lender formula called "Risk Based Pricing". This formula was developed by lenders at the request of the Consumer Federal Protection Board to eliminate potential discrimination.
Unfortunately, the percentage rate for which you truly qualify will not be the percentage rate you are presented when requesting financing. The auto dealer will add up to two and one half percentage points to the actual rate provided by the lender when submitting your application for credit. These additional percentage points or any portion of will create something called called dealer reserve. Any rate you accept over the percentage rate for which you actually qualify will create additional profits to the auto dealer above and beyond the sale of the vehicle. By example. adding just one additional percentage point to a $30,000 loan at 72 month financing will create another $1,008 in dealer reserve profit paid directly to them by the lender. That seemingly small difference in rate adds an additional $14 to your monthly payment. Put that money back in your pocket by using Rateous and you will have all the information needed to make an informed decision when financing a vehicle.
Negotiating with an auto dealer can be frustrating even when you're armed with as much information that's available. What's becomes more difficult is the method used by auto dealers to give you options called a " menu presentation". This presentation has multiple monthly payments with various yearly terms and down payments. Even the most seasoned negotiator can't be sure they are receiving their best deal with their best rate and best monthly payment. At Rateous, we will work on your behalf directly with a choice of auto dealers to insure you get the best deal you deserve regardless of you credit situation. Unlike many other web-sites, there is no fee for our service which makes your buying experience easy and enjoyable.