Community Lounge, Introductions and General Discussion Discussion, Loan and GMPP question in General Discussion; Everyone,
I'm in the process of negotiating a used car purchase from a Caddy dealer. We've agreed upon the price ...
I'm in the process of negotiating a used car purchase from a Caddy dealer. We've agreed upon the price of the car but the loan is sticky. They offered 3.79% which I feel is high. Last night the Finance Manager offered to buy down the loan to 1.9% if I picked up GMPP. After some back and forth with the dealer and deciding it would be easier than working through my own financing, I agreed.
Now the dealership is saying they really are not supposed to buy down a loan unless they make a mistake in quoting the interest rate. It's an Internet sale and I am supposed to drive over to see and possibly buy the car tomorrow. Sounds like they are trying to back out of the 1.9% offer.
Any advice from the board?
Some more background: the car is almost new. It's a manufacturer car the dealer bought at auction. It's a 2013 with less than 200 miles on it
Automobile(s): White Diamond '03 DHS (with DTS floor shift)
Re: Loan and GMPP question
The finance manager is no fool. He did not get that job not knowing what he can and cannot do. They offered 1.9%. You accepted 1.9%. If suddenly they realize that they "can't" do this, I'd thank them and walk. I'm betting you'll have a hard time getting out the door. If you do, you'll probably get a call soon thereafter.
That said, I don't know what "buying down the loan" means. I assume there is some smoke and mirrors and money juggling involved.
. You want to buy a car from me and I want you to use my financing. Reason being, my lenders, for conversation sake, tell me that they'll make the loan for 1.9%. I mark that loan up to 2.9-3.9% to skim a little extra off of the deal. But, if you'll purchase a warranty through me, I'll discount the financing. Did I mention the warranty is 100% mark up and if I can get you to use my service dept I get to keep the out of pocket deductible?? I can't say for certain that this is occurring, but I have seen this scenario play out.