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Your bank effectively buys out the loan, right? In that case the first financing institution you borrowed from at the dealership will probably get less than the minimum interest you agreed to when you signed off on the loan, so you'll be subject to a certain flat-rate charge. The question then is whether the 1.24% interest you save over the course of x months is less than that fee. It took my wife's lender about a month and a half to get her new account together and bill her for her first payment. I had an account, balance and everything up within a week because it was through a major lender. 3-4 months to "settle"? If they can bill you, poo poo's settled, and there's no way they're going to miss out on collecting their first payment. As a general rule you should never let a salesman explain financing to you or tell you what you can and cannot do. Remy Marathe fucked around with this message at 01:04 on Apr 26, 2015 |
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Apr 26, 2015 01:02
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Remy Marathe posted:Your bank effectively buys out the loan, right? In that case the first financing institution you borrowed from at the dealership will probably get less than the minimum interest you agreed to when you signed off on the loan, so you'll be subject to a certain flat-rate charge. The question then is whether the 1.24% interest you save over the course of x months is less than that fee. Yeah I hear you, that's why I bounced it off this thread. I figured it had something to do with how much money the dealership would get. I'll read through the fine print tomorrow and see if it says anything about that. Otherwise, there is no pre-payment penalty or anything like that.
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Apr 26, 2015 01:05
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Watch for the section regarding "Minimum Finance Charge" in the gray small print on the back of the loan document. It's not technically an "early repayment fee" or penalty, but it'd be effectively the same.
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Apr 26, 2015 01:21
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Remy Marathe posted:Watch for the section regarding "Minimum Finance Charge" in the gray small print on the back of the loan document. It's not technically an "early repayment fee" or penalty, but it'd be effectively the same. There's no section called minimum finance charge...I read through the whole thing and it all seems pretty legit. Any other terminology I might be missing?
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Apr 26, 2015 01:42
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I haven't seen enough loan documents to know, but I'd be shocked if there's nothing protecting the lender from incurring all this paperwork for practically nothing. On the two documents I've got access to it's not titled "minimum finance charge", it's under "Other Important Agreements" (the gray-print back of the loan document), Finance Charge and Payments sec. d titled "You may prepay.". A pleasant title for a section that details the minimum finance charge.
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Apr 26, 2015 02:42
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Most lenders I've dealt with have no pre-payment penalty of any kind, so no, nothing is stopping you from refi'ing immediately, except the dealer usually loses their kickback from the finance company if you don't stay for 30/60/90 days, or whatever their agreement is.
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Apr 26, 2015 02:56
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Bovril Delight posted:Most lenders I've dealt with have no pre-payment penalty of any kind, so no, nothing is stopping you from refi'ing immediately, except the dealer usually loses their kickback from the finance company if you don't stay for 30/60/90 days, or whatever their agreement is. Yeah but that's nothing for me to care about after the documents been signed right?
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Apr 26, 2015 03:07
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nwin posted:Yeah but that's nothing for me to care about after the documents been signed right? Nope. I did the exact same thing to get a rebate with Ford. I had the financing with my bank ready, once I got the loan docs from Ford I immediately refi'd.
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Apr 26, 2015 03:45
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Remy Marathe posted:I haven't seen enough loan documents to know, but I'd be shocked if there's nothing protecting the lender from incurring all this paperwork for practically nothing. I paid off my loan early and there wasn't any penalty.
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Apr 26, 2015 04:48
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If by early you mean pretty much immediately, then yeah I'm surprised. When they give rebates or low APRs contingent on financing I'd think they would ensure that some baseline interest would come of it. Then again they have nwin at 3.49% and he said he had solid credit, so it's not exactly their best rate. Maybe it's worth the gamble in that case, as most people would hit $75 in finance charges within a few months (and hopefully listen to the salesman when he says to let things settle for a few).
Remy Marathe fucked around with this message at 05:16 on Apr 26, 2015 |
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Apr 26, 2015 05:13
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Remy Marathe posted:If by early you mean pretty much immediately, then yeah I'm surprised. When they give rebates or low APRs contingent on financing I'd think they would ensure that some baseline interest would come of it. Then again they have nwin at 3.49% and he said he had solid credit, so it's not exactly their best rate. Maybe it's worth the gamble in that case, as most people would hit $75 in finance charges within a few months (and hopefully listen to the salesman when he says to let things settle for a few). If you get below inflation aprs, they want you to pay it off early.
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Apr 26, 2015 05:20
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Huh, I hadn't thought of it that way before- on such a loan they're getting a reasonable 1.9% return on a short-term investment, versus a 1.9% return on a 5-year investment which would be suck.
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Apr 26, 2015 05:46
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I financed via a dealer recently, and asked about prepayment penalties. The guy told me to go ahead and refinance if I could find a lower rate, and added that as long as he had been working at dealers for 20 years, he had never seen a loan with prepayment penalties. He went on to joke about where that question was coming from, since it basically would have had to been passed down as word of mouth for at least that long with no real basis.
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Apr 26, 2015 07:27
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nm posted:If you get below inflation aprs, they want you to pay it off early. Sorry to double post (phone posting), but banks do not care about inflation rates. They borrow money at x%, and lend it out at x+y%. The y% is profit, and unless underlying rates jump on them surprisingly, they will gladly service your loan and make money off it.
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Apr 26, 2015 07:46
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AreWeDrunkYet posted:I financed via a dealer recently, and asked about prepayment penalties. The guy told me to go ahead and refinance if I could find a lower rate, and added that as long as he had been working at dealers for 20 years, he had never seen a loan with prepayment penalties. He went on to joke about where that question was coming from, since it basically would have had to been passed down as word of mouth for at least that long with no real basis. To put it in scale, it's minor. I had a 5-year loan of about $12k at 1.9% with an MFC of $75. I just crossed the threshold of $75 in interest about 5 months in. 5 months and $75 is insignificant against the intended life of the loan, and there's no way I'll take 5 years to pay it off, but if I'd gone and refinanced immediately after purchase like nwin is planning on doing or raided my savings to pay it off, I would have been burned for $75 less the interest saved on a lower rate. Remy Marathe fucked around with this message at 08:55 on Apr 26, 2015 |
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Apr 26, 2015 08:52
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Twerk from Home posted:Didn't Ford extend the transmission warranty to 100k on Focuses because of concerns? Also, the Focus DCT is pretty good if you drive everywhere like a nutter with the pedal floored, but I've noticed it rolling back on hills, jerking and slipping in parking lots, and burning itself when you're stuck in traffic. They have a known problem with a poorly designed seal leaking oil onto the clutch pads which causes those kind of symptoms. Needs a new clutch assembly.
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Apr 26, 2015 09:03
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My '07 Mazda6 is mechanically sound but falling apart on the inside. My cousin had the same car and replaced hers recently, so now I'm consumed with jealousy and considering moving on. Proposed Budget: <35k New or Used: New Body Style: 4 door midsize sedan How will you be using the car?: Daily driver. Average city/hwy split. I'm leaning toward some form of hybrid for the sake of fuel economy, as it seems they are usually worth the cost on paper. I have not yet driven any, though. I'm also keen on safety, and active safety features and toys like brake priming, reversing cross-traffic alarms, parallel parking assistance, blueteeth, etc. I would also like to be able to back into a parking space without having to peer through a tiny rear porthole like in my friend's Veloster. From my research so far, the Ford Fusion with relevant options seems to be highly rated, which sort of surprised me since my past impression of Fords was not favorable. But I also haven't done car shopping in most of a decade, so I'm checking in with you fine chaps! PerniciousKnid fucked around with this message at 03:51 on Apr 27, 2015 |
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Apr 27, 2015 01:49
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New Mazda 6. Better car than the fusion in every way unless you particularly like aston martins. They also get the best FE of any non-hybrid. Also, I have heard nothing buy bad things about ford's hybrids from both a reliability standpoint and a driveablity standpoint. Hybrid means buy a toyota or maybe a volt (though the volt is in its last year before a major revision, so don't pay retail). nm fucked around with this message at 02:18 on Apr 27, 2015 |
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Apr 27, 2015 02:16
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nm posted:New Mazda 6. Better car than the fusion in every way unless you particularly like aston martins. I should've specified a mid-size sedan; the Volt is too small. I'm also a little gun-shy about Mazdas, since the passenger compartment of my previous one is basically disintegrating.
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Apr 27, 2015 03:50
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PerniciousKnid posted:I should've specified a mid-size sedan; the Volt is too small. Then you should be more worried about fords, because that gen Mazda 6 was made by ford. Its basically a fusion. Also, you should probably take better care of your interiors, because that isn't really a problem with for them as far as I know. nm fucked around with this message at 05:03 on Apr 27, 2015 |
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Apr 27, 2015 05:01
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nm posted:Then you should be more worried about fords, because that gen Mazda 6 was made by ford. Its basically a fusion. Yeah, that's a good point about Ford. But my cousin had the same problems with her car, so I don't think it was just me. Not sure what I would be doing that would cause the headliner to peel off or the visor screws to fall out, anyway. The perforated leather seats were basically designed to fall apart irreparably. Are the newer Mazdas not made by Ford? Apart from the interior on this one, I enjoy driving this one, and I loved my previous two Mazdas as well.
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Apr 27, 2015 13:35
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Mazda is no longer controlled by ford.
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Apr 27, 2015 16:42
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Edit: Wrong thread.
TKIY fucked around with this message at 21:25 on Apr 27, 2015 |
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Apr 27, 2015 19:44
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PerniciousKnid posted:Yeah, that's a good point about Ford. But my cousin had the same problems with her car, so I don't think it was just me. Not sure what I would be doing that would cause the headliner to peel off or the visor screws to fall out, anyway. The perforated leather seats were basically designed to fall apart irreparably. According to Wikipedia, the 6 was made by a Mazda-Ford joint venture until 2013. (Which was years after Ford sold their stake in Mazda.)
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Apr 27, 2015 19:53
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Do Volkswagens really break down more often/need to be babied more, is that just Internet meme stuff? There's a 2012 golf automatic with a 2.5 in my area that looks interesting... E: truedelta says this particular car is pretty reliable. chocolateTHUNDER fucked around with this message at 03:56 on Apr 28, 2015 |
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Apr 27, 2015 22:57
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nm posted:New Mazda 6. Better car than the fusion in every way unless you particularly like aston martins. I've been pretty happy with my 2011 Lincoln hybrid, and I'm pulling 41 combined MPG (don't drive like an idiot where pedal is GO and brake is STOP). Certainly it is quite a drivable car with a bit more turning radius than I'm used to, but I've only had subcompacts before this car. I will say, the first of the 2010 Ford hybrids kinda sucked, but after that, they've been just fine, according to truedelta. The Dipshit fucked around with this message at 03:20 on Apr 28, 2015 |
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Apr 28, 2015 03:17
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Claverjoe posted:(don't drive like an idiot where pedal is GO and brake is STOP). Well, you sound like fun at parties!
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Apr 28, 2015 05:14
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Opinions on 2011 - 2015 Elantras (mainly in comparison to the Mazda3)?
Gringo Heisenberg fucked around with this message at 06:33 on Apr 28, 2015 |
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Apr 28, 2015 06:21
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My uncle's F150 was totalled last week. He has a rental from the insurance company that expires at the end of April. After paying off his truck loan he was left with a check for $11,000, and ideally wants to pay cash for a new truck or SUV and be free of car payments. He doesn't like being low to the ground in a sedan so that's out of the question unfortunately, but he wants better fuel economy than what his F150 gave him. We've got a good idea of what we want but have reached somewhat of an impasse with pricing and reliability issues So I figured I'd ask Something Awful for input as all input is welcomed right now. Proposed Budget: $10,000 (could stretch to $16,000) New or Used: Used Body Style: Small truck or SUV How will you be using the car?: Suburban cowboy (my uncle's commuter vehicle) What aspects are most important to you? - - Gas Mileage, price, reliability, comfort, safety. 3. we live in Dallas Texas Due to his price range we're probably looking at a 2009-2011 vehicle, which is the same as his old vehicle so it wouldn't be anything new or anything sacrificed as far as the bells and whistles he's accustomed to go. We've been looking at Ford Escapes and the rest of the compact SUV market. Why is the Escape so much cheaper than the Honda CRV, Toyota Rav4, Subaru Forrester, etc? What does AI think of the Chevy entrant in the class? I'd love to go for a Mazda CX5 but they begin at 2013 and seem to be pretty expensive (and how reliable are they at high mileage?) Stepping away from SUVs, is there an heir apparent to the Ford Ranger? A reliable small pickup that gets 25mpg+ would be wonderful as well. Respectfully and graciously signed by a 2003 civic owner who thinks he should just buy a $1500 beater from a mexican lot down the road to fill the gap until he figures out exactly what he wants.
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Apr 28, 2015 16:01
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chocolateTHUNDER posted:Do Volkswagens really break down more often/need to be babied more, is that just Internet meme stuff? There's a 2012 golf automatic with a 2.5 in my area that looks interesting... It's certainly not more reliable than a Honda Civic or Mazda3. The I5 engine is torquey compared to the 4 cyls of the competition but also much less fuel efficient. So what do you see in it exactly? Is it *much* cheaper than a Civic or Mazda? Randandal posted:
Because all those others are much better vehicles than the Escape which is an ancient deathtrap that drives terribly, guzzles gas, and has a bevy of reliability/build quality issues (albeit most are fairly minor). They couldn't give them away without $5k on the hood for years and most of them went to rental companies. GM doesn't really compete in this category. The Equinox/Terrain are somewhat larger vehicles with correspondingly worse fuel economy Randandal posted:
No.
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Apr 28, 2015 17:32
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Randandal posted:Stepping away from SUVs, is there an heir apparent to the Ford Ranger? A reliable small pickup that gets 25mpg+ would be wonderful as well. I averaged ~26mpg in my 2011 4cyl/manual Tacoma, but good luck finding one that won't cost you loving fortune. Resale is incredibly high on used Tacomas. Incredibly high. Ground clearance isn't very good on them in that trim anyways. And I live on one of the flattest coastal plains imaginable. LeeMajors fucked around with this message at 21:28 on Apr 28, 2015 |
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Apr 28, 2015 17:53
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Internet Explorer posted:Well, you sound like fun at parties! Lots of fun. Learned to survive partying with the Russians in grad school. Even the nerds drink like fish.
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Apr 28, 2015 23:46
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Throatwarbler posted:Because all those others are much better vehicles than the Escape which is an ancient deathtrap that drives terribly, guzzles gas, and has a bevy of reliability/build quality issues (albeit most are fairly minor). They couldn't give them away without $5k on the hood for years and most of them went to rental companies. I've heard good things about the 1.6T and 2.0T Escapes, is the platform that bad?
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Apr 29, 2015 01:50
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Twerk from Home posted:I've heard good things about the 1.6T and 2.0T Escapes, is the platform that bad? That's the 2012-present, I meant the previous generation.
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Apr 29, 2015 03:25
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I guess I'll do an inverse question here if that's ok and no one's asked anything in a few days anyway  Should I sell my 2009 Mini Cooper S automatic? It's the first European car I've ever owned and I sort of impulse-bought it after over a dozen years of driving nothing but Hondas/Toyotas/Nissans (when they were more reliable). When I picked it up pre-owned from the Mini dealership it only had 44k miles on it. Coming from a "reliable Japanese cars" mentality I looked at it as a low mileage solid deal "44 thousand miles is NOTHING on a Honda/Toyota! Why would someone trade this in so gently used over 5 years? And it's the color I want with the options I'm looking for! Sold!" Apparently 44k on a BMW can actually be quite a bit, and I later learned about the N14 engine and all the various problems it has. Everything I've read about it seems to point towards some catastrophically expensive issues creeping up within the next 40k miles like. -the timing chain breaking, which depending when it happens will either run a 1-2k timing chain replacement or an 8k+ new engine depending on where and when it occurs (apparently it's happened to some with mileage as low as 20-30 thousand) -power steering failure which would run $500+ -transmission or turbo randomly dying which also cost thousands So far the car's given me no problems other than the occasionally squeaky interior in the 8 months I've had it, it's up to 48k miles now. There are aspects of it I love, (it's size and maneuverability, good gas mileage, zippy acceleration) and things I've come to loathe (the "quirky" speedometer being in the middle instead of in front of the steering wheel, squeaky interior, front seats that can't recline at all, nonexistent backseats, no cargo room). So I'm really torn about it, especially since I've had it less than a year. Am I just being paranoid and letting internet horror stories get to me more than they should and the actual incidence rate of problems with N14 Coopers (or Coopers in general) isn't really as bad as I'm led to believe, or is this thing really a ticking automotive timebomb I should dump pretty soon as long as I don't lose too much money on it before it develops a problem that would cost almost as much to fix as the car is worth?
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May 1, 2015 07:31
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Put it on the market for a decent price and see if there are any bites.
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May 1, 2015 07:39
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You're not supposed to let your timing belt break, you're supposed to get it replaced as part of preventative maintenance. Spend the $1000 and it'll be a good for another 80,000 miles. That seems cheaper than buying a new car because you don't want to deal with it. Btw: anything with a timing belt needs that done, Hondas and Toyotas included.
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May 1, 2015 13:32
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It's cheaper to not buy a shoddily built piece of poo poo with timing chains that break.
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May 1, 2015 13:43
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Uthor posted:You're not supposed to let your timing belt break, you're supposed to get it replaced as part of preventative maintenance. Spend the $1000 and it'll be a good for another 80,000 miles. That seems cheaper than buying a new car because you don't want to deal with it. Timing chains shouldn't need maintenance and cost more to replace than a timing belt.
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May 1, 2015 15:13
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I'm thinking about picking up a new Mazda 6, but I'm not in a huge rush (maybe August or September). When will the 2016 model be released?
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May 5, 2015 21:36
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