Holy Incentives! 0% on ALL 2005 Evos!
Be VERY careful when you go to a dealer and buy an EVO at 0% financing. I've heard of several cases where they call up later and say the 0% financing was not approved and you're slotted into an interest-charging loan. I personally am going through this right now as of yesterday. I've "owned" the car since this previous Monday and was told "no problem" your credit scores are great and I had the 0% financing. A week later, they're trying to lock me in at a 1.9% rate. I was initially told my scores were borderline but they'd call in a favor. By borderline I mean high 600's, low 700's. I was "told" 690 which going by the messages here, is Tier 2. Now apparently it's 675 and Tier III. I know of at least one other forum member this happened to here and one on another board. Yet another I ran into around town. They give you the car for a week and roll the dice that you won't want to give it back, making you swallow a higher rate. Apparently the "banks" won't budge on the EVO even though it's a MMNA program.
I'm going to do a couple of things....first, I'm going to ask for the MMNA Tier ratings in writing. I'll ask to see my score in writing (machine print) from a credit bureau and compare the two. If I'm not Tier II, I'm not Tier II. Thing is, if I had known I wasn't eligible for the 0% financing, I never would have driven the car off the lot and the wife probably wouldn't have let me! Which brings me to what I'll do next...file a complaint with the state attorney general's office for fraudulent practices AND one with the credit fraud division.
My advice, get IN WRITING from the finance manageer that you're eligible and have received the rate you think you're getting BEFORE leaving with the car. Finance managers get a cut or points by sliding you into a higher rate. They will LIE LIE LIE in the hopes you want the car so bad you'll bite on the higher rate. Buyer beware!
As for me, yeah, I like the car. The interest rate isn't bad but it's the principle (no pun intended for you finance guys!). I may just drive over there on Monday and leave them the keys. It's just about broken in (and correctly) but the next buyer will see the 600+ miles on the odometer and probably be able to get it below cost. I've applied for a title but I don't think it's been sent in yet by the dealer. Very sneaky.
I'm going to do a couple of things....first, I'm going to ask for the MMNA Tier ratings in writing. I'll ask to see my score in writing (machine print) from a credit bureau and compare the two. If I'm not Tier II, I'm not Tier II. Thing is, if I had known I wasn't eligible for the 0% financing, I never would have driven the car off the lot and the wife probably wouldn't have let me! Which brings me to what I'll do next...file a complaint with the state attorney general's office for fraudulent practices AND one with the credit fraud division.
My advice, get IN WRITING from the finance manageer that you're eligible and have received the rate you think you're getting BEFORE leaving with the car. Finance managers get a cut or points by sliding you into a higher rate. They will LIE LIE LIE in the hopes you want the car so bad you'll bite on the higher rate. Buyer beware!
As for me, yeah, I like the car. The interest rate isn't bad but it's the principle (no pun intended for you finance guys!). I may just drive over there on Monday and leave them the keys. It's just about broken in (and correctly) but the next buyer will see the 600+ miles on the odometer and probably be able to get it below cost. I've applied for a title but I don't think it's been sent in yet by the dealer. Very sneaky.
Last edited by Mr. Stock; Aug 21, 2005 at 05:22 AM.
You missed his point. Sure, Capital One will refinance your used car for you.
But the rate will be much higher than for a new car. This is true everywhere,
including at my credit union. 10% for a used car (vs. 6% for a new car) sounds
like market rates to me. Hell, my home-equitity line of credit is up to 6% now,
and that's secured by my home! The reason interest rates are higher for a
used car are probably because (a) it's harder to predict the resale value of
the car; (b) it's harder to sell a car that already has two owners. It's all about
them computing their chances of you defaulting, and what that will cost them.
But the rate will be much higher than for a new car. This is true everywhere,
including at my credit union. 10% for a used car (vs. 6% for a new car) sounds
like market rates to me. Hell, my home-equitity line of credit is up to 6% now,
and that's secured by my home! The reason interest rates are higher for a
used car are probably because (a) it's harder to predict the resale value of
the car; (b) it's harder to sell a car that already has two owners. It's all about
them computing their chances of you defaulting, and what that will cost them.
Originally Posted by Kinetic
Capital One and every other car finance company out there refinances used vehicles all the time. Thats probably a large portion of their auto loan business. Do you think people who buy out the residual on their leases always finance the remainder with the company they bought the car from? I think not.
And no finance company or bank has a set refinancing rate. Its all dependent on your scoring. They might have something posted on their website for all the suckers out there, but if you don't have horrid credit, you can get better quite easily.
And no finance company or bank has a set refinancing rate. Its all dependent on your scoring. They might have something posted on their website for all the suckers out there, but if you don't have horrid credit, you can get better quite easily.
I you are under 25, and male (which I'd guess you are), your insurance
is going to cost you at least $2500 per year. Your payments will cost $4560
per year, leaving almost $2000 for maintainence, which is more than enough
unless you need clutch ($1000), tires ($600 used) and brakes in the first year
(which some people do, if they race the car). But don't forget to budget for
snow tires as well, if you live in the north.
My only concern is why you are keeping enough money in your savings account
to make payments for a year. Hopefully this is just because you want to maintain
a comfortable cushion of cash for a rainy day, not because your job doesn't
pay enough to make the payments. I.e. be sure you income can cover this new
expense of ($380 pmt + $200 insurance + $100 maintainence) after the first
year.
is going to cost you at least $2500 per year. Your payments will cost $4560
per year, leaving almost $2000 for maintainence, which is more than enough
unless you need clutch ($1000), tires ($600 used) and brakes in the first year
(which some people do, if they race the car). But don't forget to budget for
snow tires as well, if you live in the north.
My only concern is why you are keeping enough money in your savings account
to make payments for a year. Hopefully this is just because you want to maintain
a comfortable cushion of cash for a rainy day, not because your job doesn't
pay enough to make the payments. I.e. be sure you income can cover this new
expense of ($380 pmt + $200 insurance + $100 maintainence) after the first
year.
Originally Posted by Travis10
wow, this is an awsome deal, if i have 16k to my name, and i am still working a lot, i could but down 7k, and my monthly payment would be around 380$, that leaves me with 9k left over, enough to pay for 1 years car payment, plus insurence and maintenance, without my savings dipping below 4500$, does this sound right? or will this incrase in evo sales make the used ones go down in price? i can only hope, 
Evolved Member
Joined: Mar 2002
Posts: 4,312
Likes: 3
From: Birmingham, AL
You either get the special rate or you don't. Beacon score has a lot to do with it, and that's what determines the tiers - but there are other factors, like debt to income - but many others. Sometimes they make exceptions. Special rates are not makred up.
Last edited by GPTourer; Aug 21, 2005 at 07:16 AM.
I got my new MR yesterday. You can also take the extra $1000 cash back if you dont take the 0% financing. There is also a $1000 dealer incentive if you dont take the special financing. You can get almost $2000 under invoice and the dealer still make $500 profit (not counting the holdback). They are happy and you are happy to.
Brian
Brian
Originally Posted by Mr. Stock
Be VERY careful when you go to a dealer and buy an EVO at 0% financing. I've heard of several cases where they call up later and say the 0% financing was not approved and you're slotted into an interest-charging loan. I personally am going through this right now as of yesterday. I've "owned" the car since this previous Monday and was told "no problem" your credit scores are great and I had the 0% financing. A week later, they're trying to lock me in at a 1.9% rate. I was initially told my scores were borderline but they'd call in a favor. By borderline I mean high 600's, low 700's. I was "told" 690 which going by the messages here, is Tier 2. Now apparently it's 675 and Tier III. I know of at least one other forum member this happened to here and one on another board. Yet another I ran into around town. They give you the car for a week and roll the dice that you won't want to give it back, making you swallow a higher rate. Apparently the "banks" won't budge on the EVO even though it's a MMNA program.
I'm going to do a couple of things....first, I'm going to ask for the MMNA Tier ratings in writing. I'll ask to see my score in writing (machine print) from a credit bureau and compare the two. If I'm not Tier II, I'm not Tier II. Thing is, if I had known I wasn't eligible for the 0% financing, I never would have driven the car off the lot and the wife probably wouldn't have let me! Which brings me to what I'll do next...file a complaint with the state attorney general's office for fraudulent practices AND one with the credit fraud division.
My advice, get IN WRITING from the finance manageer that you're eligible and have received the rate you think you're getting BEFORE leaving with the car. Finance managers get a cut or points by sliding you into a higher rate. They will LIE LIE LIE in the hopes you want the car so bad you'll bite on the higher rate. Buyer beware!
As for me, yeah, I like the car. The interest rate isn't bad but it's the principle (no pun intended for you finance guys!). I may just drive over there on Monday and leave them the keys. It's just about broken in (and correctly) but the next buyer will see the 600+ miles on the odometer and probably be able to get it below cost. I've applied for a title but I don't think it's been sent in yet by the dealer. Very sneaky.
I'm going to do a couple of things....first, I'm going to ask for the MMNA Tier ratings in writing. I'll ask to see my score in writing (machine print) from a credit bureau and compare the two. If I'm not Tier II, I'm not Tier II. Thing is, if I had known I wasn't eligible for the 0% financing, I never would have driven the car off the lot and the wife probably wouldn't have let me! Which brings me to what I'll do next...file a complaint with the state attorney general's office for fraudulent practices AND one with the credit fraud division.
My advice, get IN WRITING from the finance manageer that you're eligible and have received the rate you think you're getting BEFORE leaving with the car. Finance managers get a cut or points by sliding you into a higher rate. They will LIE LIE LIE in the hopes you want the car so bad you'll bite on the higher rate. Buyer beware!
As for me, yeah, I like the car. The interest rate isn't bad but it's the principle (no pun intended for you finance guys!). I may just drive over there on Monday and leave them the keys. It's just about broken in (and correctly) but the next buyer will see the 600+ miles on the odometer and probably be able to get it below cost. I've applied for a title but I don't think it's been sent in yet by the dealer. Very sneaky.
1.9% is a great rate. Good luck getting that rate privately. I would say take the car and count your lucky stars that you got 1.9% given your credit score.
I disagree with you and here's why; I made it very clear I would not take the car without the 0% financing. It wasn't even an option. I had THREE seperate individuals, including the finance manager, tell me it was a done deal and I would get 0% financing. They waited a WEEK to tell me otherwise. They make money off of charging the customer an interest rate. It's a bank kick-back and it's perfectly legal and a common practice at any dealer. They want you in that car. They will tell you what you want to hear in the hopes that you'll be ok with a slight variation of plan. And again, had I known, I never would have driven the car off the lot and they knew it.
Originally Posted by nj1266
I do not think that the dealer is doing this on purpose. They simply want to make the sale and they take a risk on you in the hope that they can get you financed. Your credit score is borderline and unfortunately the bank that the dealer deals with refused to finance you at 0%. There is no big conspiracy here. The dealer rolled the dice on you and tried to squeeze you in in the 0% financing category and they failed. They have pressure on them to get rid of the cars ASAP and they are trying hard to do so.
1.9% is a great rate. Good luck getting that rate privately. I would say take the car and count your lucky stars that you got 1.9% given your credit score.
1.9% is a great rate. Good luck getting that rate privately. I would say take the car and count your lucky stars that you got 1.9% given your credit score.
Originally Posted by Mr. Stock
I disagree with you and here's why; I made it very clear I would not take the car without the 0% financing. It wasn't even an option. I had THREE seperate individuals, including the finance manager, tell me it was a done deal and I would get 0% financing. They waited a WEEK to tell me otherwise. They make money off of charging the customer an interest rate. It's a bank kick-back and it's perfectly legal and a common practice at any dealer. They want you in that car. They will tell you what you want to hear in the hopes that you'll be ok with a slight variation of plan. And again, had I known, I never would have driven the car off the lot and they knew it.
As I see it you have two options: 1. Keep the car and accept the very very low 1.9% financing; a rate that you will NOT get anywhere else 2. Return the car and file your complaint against the dealer. I really doubt that your complaint will be met with any measure of success.
I jumped in on this and had my dealer do a credit check before hand for free. They guaranteed my credit was good enough and when I took delivery, had all the paperwork to verify the 0%.
Evolved Member
Joined: Mar 2002
Posts: 4,312
Likes: 3
From: Birmingham, AL
Originally Posted by nj1266
As I see it you have two options: 1. Keep the car and accept the very very low 1.9% financing; a rate that you will NOT get anywhere else 2. Return the car and file your complaint against the dealer. I really doubt that your complaint will be met with any measure of success.
Newbie
Joined: Aug 2005
Posts: 54
Likes: 0
From: ca
Originally Posted by point&shoot
I you are under 25, and male (which I'd guess you are), your insurance
is going to cost you at least $2500 per year. Your payments will cost $4560
per year, leaving almost $2000 for maintainence, which is more than enough
unless you need clutch ($1000), tires ($600 used) and brakes in the first year
(which some people do, if they race the car). But don't forget to budget for
snow tires as well, if you live in the north.
My only concern is why you are keeping enough money in your savings account
to make payments for a year. Hopefully this is just because you want to maintain
a comfortable cushion of cash for a rainy day, not because your job doesn't
pay enough to make the payments. I.e. be sure you income can cover this new
expense of ($380 pmt + $200 insurance + $100 maintainence) after the first
year.
is going to cost you at least $2500 per year. Your payments will cost $4560
per year, leaving almost $2000 for maintainence, which is more than enough
unless you need clutch ($1000), tires ($600 used) and brakes in the first year
(which some people do, if they race the car). But don't forget to budget for
snow tires as well, if you live in the north.
My only concern is why you are keeping enough money in your savings account
to make payments for a year. Hopefully this is just because you want to maintain
a comfortable cushion of cash for a rainy day, not because your job doesn't
pay enough to make the payments. I.e. be sure you income can cover this new
expense of ($380 pmt + $200 insurance + $100 maintainence) after the first
year.
the reason i would be keeping so much as a cushon would be to help pay the payments, my parents have already said its a no go though..., i thought it sounded good too..., if anyone is interested, hayword mitsubishi says they are getting 6 new evo's in today,
What bank are you talking about? Mitsubishi Motors has its own credit company,
so why would they get a third party involved? They are big enough to finance
their own loans. This makes it seem even more likely that it was a scam. There
is no third-party bank involved that would deny the financing. (When I had my
Eclipse, I maded the payments to Mitsubishi Motors Credit Corporation, or
something like that.) Remember, this offer has nothing to do with the dealer --
its Mitsubishi Motors giving the discounted loan.
And even if there were another bank involved, it's obvious that they wouldn't
be accepting anyone for a 0% loan (no profit in it), thus Mitsubishi would have
to pay them to take the loan. And if Mitsubishi paid them the right amount,
they would take the 0% loan for almost anyone. Thus it's still up to Mitsubishi
to decide whether or not you get the 0% rate, not some bank.
Try to think these things through . . .
so why would they get a third party involved? They are big enough to finance
their own loans. This makes it seem even more likely that it was a scam. There
is no third-party bank involved that would deny the financing. (When I had my
Eclipse, I maded the payments to Mitsubishi Motors Credit Corporation, or
something like that.) Remember, this offer has nothing to do with the dealer --
its Mitsubishi Motors giving the discounted loan.
And even if there were another bank involved, it's obvious that they wouldn't
be accepting anyone for a 0% loan (no profit in it), thus Mitsubishi would have
to pay them to take the loan. And if Mitsubishi paid them the right amount,
they would take the 0% loan for almost anyone. Thus it's still up to Mitsubishi
to decide whether or not you get the 0% rate, not some bank.
Try to think these things through . . .
Originally Posted by nj1266
I do not think that the dealer is doing this on purpose. They simply want to make the sale and they take a risk on you in the hope that they can get you financed. Your credit score is borderline and unfortunately the bank that the dealer deals with refused to finance you at 0%. There is no big conspiracy here. The dealer rolled the dice on you and tried to squeeze you in in the 0% financing category and they failed. They have pressure on them to get rid of the cars ASAP and they are trying hard to do so.
1.9% is a great rate. Good luck getting that rate privately. I would say take the car and count your lucky stars that you got 1.9% given your credit score.
1.9% is a great rate. Good luck getting that rate privately. I would say take the car and count your lucky stars that you got 1.9% given your credit score.