"7% interest at NINETY-SIX MONTHS!!!!! I was FLOORED. On my (nearly) perfect credit score?! I am like a few points shy of perfect at all 3 agency's! Can they even do that?"

Yes, they can attempt to do that to line their pockets/gouge the customer/increase profits. That's not even the maximum allowed by law.

But by knowing in advance which credit unions have lowest interest rates (currently 2.74% at CEFCU for example), they can either match it or hook you up with that credit union via the finance office.

 

Well, salesman should be "pushy" to talk you into the product they sale. However dishonesty is another thing. They pay to be pushy but not being dishonest.

Go back to the Honda CRV and look for another dealer/sales

 

Check out and join Boeing Employees Credit Union (open to all WA residents). They're doing some big auto event this weekend, special pricing through dealers, 0.50% off of interest rates and no payments for 90 days (optional).

 

Similarly, Lockheed Federal Credit Union (LFCU) is offering 2.99% financing for up to 60 months (3.49% for 72 months). They're open to everyone as well. That $24k in the Sorrento would translate to about $475/mo for 60 months including tax and license, with $0 OTD. For 72 months financing, monthly would be about $410.

 

Should've shopped around for financing rates first, bring the paper work into the dealer and you'll have more bargaining power. It'll also save you time from stealership BS.

 

A couple of local dealers have been caught by investigative reporters slapping an "acquisition fee" on top of the price, tax, title, and license. Evidently it is a scam to supposedly grease the skids for the loan. Think that's bad? The AF was a little over 10% of the list price of the car!

What floored me was that some people are paying an additional $2K, up to $4.5K over sticker just for the privilege of borrowing money! Banks do charge a small fee to set up a loan - and call it an "acquisition fee", but it is supposed to be absorbed by the dealer. In these cases, the dealer was simply applying an inflated fee to his profit.

http://www.khou.com/home/ITeamhidden...121575049.html

 

Why are you even talking to a dealership's finance department? They are there to make a dollar off you overpaying on financing just like the dealership is there to make a dollar off you overpaying for the car.

 

Echoing everyone else, always get some sort of financing pre-approved at an institution of your choosing. Wouldn't you have access to the USAA since you're in the Army? I think they typically have great financing rates, auto insurance premiums, and I believe they have a car buying service as well that nets out a good price.

2nd, from my experience, (I assume the Kia dealer was in Tacoma) I always thought the dealers in the Tacoma area were more shady, and slimy. Probably just due to most of the clients they deal with are of a lower overall socioeconomic grouping. I think the Kia Sorento is a great overall SUV, as you saw for yourself. If you're really serious about the Kia you may want to try a dealer closer to Seattle. Again, this is just on an assumption that you worked with a dealer close to Tacoma.

 

Disagree with the above. As much as profit, bank and loan/finance company are more likely making more dollar off you. Unless you are refer to third party finace, manufracturer finance are better from my experiences. For new car, they prefer to sell you the car than making dollar from finace. At least that apply to Toyota finance where ther's no finance fees and 3.9% APR rate lower than our bank's 7.9% + finance fee($600~800).

My father finance both his Sienna 3.9% and Corolla 2.9% through Toyota Finanical.

 

^^^
Even if financing through a manufacturer's finance arm, make sure you know what the incentive rates are before you go to the dealership. I had a Cadillac dealer try to tack an extra .5% on a GMAC incentive lease rate as dealer profit. They offered to remove it, but I bought elsewhere.

 

Typically, the finance-department, after you've signed on the bottom-line with the sales-rep for the car itself and tax/tags, tries to sell extended-warranties, service/oil-change packages, rustproofing, undercoating, LoJack, and paint-sealants/protectants. These are often referred to as dealer "packs". Most of them, IMO, are not worth the money, and, in my experience from shopping both for myself and with other car-buyers, you can sometimes avoid the whole process by just asking them to skip it altogether and write up the formal paperwork without it. Occasionally, though, some of the people I've shopped with actually want these things...and are willing to pay extra for them.

 

I had no idea any bank would do a 96 month term on an auto let alone a Kia.

 

Yep. That's one reason why we're seeing the number of repos that we are. While 96 months, as you note, is quite long (and not typical), many car-buyers are asking for longer and longer loan-terms in general to keep the monthly payments down, but, in doing, so, of course, they stretch their debts out longer as well.

Problem is; some poorly-made vehicles, depending on odometer-mileage are effectively worn-out by that time (96 months).

 

hey man. i'm not sure i understand your concerns no really.
did u indicate what kind of a payment you were looking for?
were u planning to put much down on the car or did you have a trade-in better than junk?
if yes and no, then maybe that's all the deal the kia guy could come up with to match your constraints? just saying...

despite great credit score, a longer loan is going to have a higher interest rate.

i mean if you're borrowing over 30k, yeah, that's a HUGE loan!

did you consider the sportage?

i don't think it's sad at all - if that's the only way a customer can get the car they want to buy. frankly if they're that stretched out but MUST have a certain vehicle, maybe they should lease.

i drove a v6 one and it was slow. can't imagine what a 4cyl one is like!

 

No sure about lease, never done it before. I never gave dealer a opportunity for extra.

Here is what we did, went to Toyota & request test drive the Sienna and inform them we also interest in test drive the Odessey in another Honda dealership. They will most likely talk you into the Sienna and there goes your chance for price negotiation. Its especially helpful when you have a Honda Odessey AD showing a better price. <-- 99% of those AD price are fake as they will tell you its SOLD out at that price. But it works in a competitor dealer and they know the game and don't want you to go to Honda. We keep insist to test drive the Odessey and thats when they offer to match the Honda's price. While looking for one in their lots with option package, we played picky and they end up gave us some option for free. We walked out with a $25700 MSRP Sienna for $22500 with 3.9% APR 36 month finance. We played similar for the Corolla and go a great deal as well.

Also, DON'T show your interest to finance while nego on price, just talk about it afterward. I found it harder to nego when you build one with exact requested spec.