- #2140 of 2253
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Re: This may be a dumb question... [mb789]
by joel0622
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Aug 17, 2007 (7:31 am)
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Replying to: mb789 (Aug 16, 2007 9:55 pm)
This may be an even dumber question. . . How do you know your loan is a rule of 78s loan? Does it say on the paperwork, or is there some way to tell based on the money figures on the sales contract?
Most simple interest contracts state it across the top of the contract. If it does not say it then ask if it is a Simple interest loan.
BTW there are some Simple Interest Loans that do have a penalty for early pay off. Usually 1-3% of the balance when you pay it off. So ask to have that pointed out to you in the contract also. There are times when it is still cheaper to have the early pay off penalty then not depending on how much lower the rate is and how long you plan to keep the car before paying it off
I do not know of any banks that still use 78 loans on auto purchases. I am not even sure if they are still legal.
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- #2141 of 2253
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Re: Chrysler Financial [mb789]
by joel0622
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Aug 17, 2007 (7:36 am)
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Replying to: mb789 (Aug 16, 2007 10:32 pm)
When you apply for financing directly with Chrysler Financial, do they disclose with you first the interest rate you will receive, or do they just forward your information to a dealer? I want to know I'm getting a true best interest rate and not a markup rate.
They do not disclose the buy rate, they tell the dealer cost of funds and then it is up to the dealer what they do from there.
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- #2142 of 2253
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Re: Chrysler Financial [joel0622]
by lrguy44
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Aug 17, 2007 (8:24 am)
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Replying to: joel0622 (Aug 17, 2007 7:36 am)
I have always thought that if the dealer can give the customer a lower rate than the customer can obtain, who cares how much the dealer makes?
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- #2143 of 2253
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Re: Chrysler Financial [lrguy44]
by kyfdx HOST
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Aug 17, 2007 (9:32 am)
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Replying to: lrguy44 (Aug 17, 2007 8:24 am)
Well.... If you beat my rate by 1/2%, but you could beat it by 1%, then I left 1/2% on the table...
I don't care how much the dealer makes necessarily, but I do want the lowest cost possible..
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- #2144 of 2253
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Re: This may be a dumb question... [joel0622]
by tidester HOST
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Aug 17, 2007 (11:16 am)
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Replying to: joel0622 (Aug 17, 2007 7:31 am)
I do not know of any banks that still use 78 loans on auto purchases. I am not even sure if they are still legal.
They are still legal only for loans of 60 or fewer months.
tidester, host
SUVs and Smart Shopper
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- #2145 of 2253
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Re: This may be a dumb question... [tidester]
by lrguy44
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Aug 17, 2007 (11:41 am)
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Replying to: tidester (Aug 17, 2007 11:16 am)
All car loans in Colorado are Simple Interest by law
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- #2146 of 2253
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Re: Can the dealership make me resign? [hmeadows]
by av_8ting
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Aug 22, 2007 (2:51 pm)
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Replying to: hmeadows (Aug 12, 2007 4:37 pm)
Most states have a "Right To Recision" or cooling off period. The dealer will try to hold you to the contract. Maybe they couldn't get the match, maybe they are playing bait & switch. Your options are to 1) Hold them to their contract if they did not have you sign a form subject to finance approval. 2)Take them a bank check for the Net Purchase Price. 3) If it is within the "cooling off period", take it back & get your trade-in abck.
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- #2147 of 2253
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Re: Can the dealership make me resign? [av_8ting]
by kirstie_h HOST
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Aug 22, 2007 (3:04 pm)
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Replying to: av_8ting (Aug 22, 2007 2:51 pm)
In my experience, most states do NOT have a cooling off period for any item over $100. This was meant to prevent door-to-door sales of products where the person purchased under extreme pressure.
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- #2148 of 2253
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Re: Can the dealership make me resign? [kirstie_h]
by joel0622
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Aug 22, 2007 (3:06 pm)
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Replying to: kirstie_h (Aug 22, 2007 3:04 pm)
Same here, as a matter of fact one of my contracts has you sign a spot stating there is no cooling off period, once you take delivery of the vehicle it is yours.
Buyers remorse laws apply to when someone comes to your house and sells you something, not at a car lot where you come and ask us to sell you something.
With that being said, this particular situation has nothing what so ever to do with buyers remorse laws. This has to do with the customer getting the deal he was promised and weather or not a subject to form was signed.
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- #2149 of 2253
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Re: Can the dealership make me resign? [kirstie_h]
by lrguy44
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Aug 22, 2007 (3:22 pm)
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Replying to: kirstie_h (Aug 22, 2007 3:04 pm)
Here in Colorado, there is a 3 day waiting period on things like home equity loans. On cars, when you are over the curb it is a done deal unless the car and paperwork are done somewhere else than the dealership or off site sale.
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