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Chevrolet Silverado Prices Paid and Buying Experience

675 messages,  Last post on Oct 26, 2009 at 10:25 PM

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What is this discussion about? Chevrolet Silverado 1500, Chevrolet Silverado 1500HD, Chevrolet Silverado 2500HD, Chevrolet Silverado 1500 SS, Chevrolet Silverado 2500, Chevrolet Silverado 3500, Truck

#31 of 675 Re: GMAC financing rules [adscurry] by jerrymcshane1 Sep 02, 2004 (10:54 am)
Replying to: adscurry (Sep 02, 2004 6:25 am) I too have been told that the rate was 7.99%. But that I could PAY OFF THE LOAN AT ANY TIME. My brother who's a CPA/LAWYER will look over the contract for me before I make any moves here. My dealer told me that there is NO premature payment penalty. Replies to this message: adscurry (Sep 02, 2004 11:24 am) jerrymcshane1 (Sep 03, 2004 10:18 am)
#32 of 675 Re: GMAC financing rules [jerrymcshane1] by adscurry Sep 02, 2004 (11:24 am)
Replying to: jerrymcshane1 (Sep 02, 2004 10:54 am) The note probably will not call it a prepayment penalty. It is a method of payment application where all of your early payments (I calculate first 10 months if rule of 78 is used) goes to interest. Under Rule of 78 all interest on the note is paid back in the first year. Effective interest rate if paid off after month one is 40% and 20% if paid off at the end of the first year. If kept longer rate reduces gradually to the 7.99 at the end of the 60 months. I would be interested in your feedback from the CPA/Attorney on what the note itself says and what can be enforced from a legal standpoint. Local dealers are saying you cannot pay off until after the 3rd payment. (They get part of the interest too I believe) Note may not say this. Replies to this message: jerrymcshane1 (Sep 03, 2004 10:18 am)
#33 of 675 My Crew Cab cost by rheiling Sep 03, 2004 (9:54 am)
I purchased last Friday a new 2004 Chevrolet Silverado Crew Cab LS for $16,415 + TT&L (sticker price before TX/OK/LA truck discount was $31,590).   A dealer here in Houston was advertising the 2004 Silverado Crew Cabs (4 only) for $19,977. The total GM to dealer rebate to get to that price was $6,000 which required me to finance through GMAC.   I had additional rebates/discounts of: $1,562 in GM credit card earnings. GM also gave me $1,000 in credit card bonus earnings for purchase & delivery between Aug 18 & Sept 30. I also had a $1,000 24 test drive certificate.   My total additional rebates = $3,562, so my total cost was $16,415.00 + TT&L. There were no dealer ad ons to the price.   I also got stuck with the 7.99% interest rate from GMAC (my current GMAC rate is 6.25%). The finance guy told me there was no prepayment penalty - but when I told him then that I intended to refinance the note if that was the best rate I could get, he got agitated and said I had to make 3 payments or GMAC would tack the $1,500 to the payoff amount. He also asked why I would want to cheat GM on the note. Huh? Said GM uses my interest to help others including those upside down on their loans. I couldn't believe he was arguing with me. My guess is they lose something if I refinance. He also could not give me anything in writing in regards to the 3 payments required to refinance (see lower paragraph).   My note does say at the top "Motor Vehicle Retail Installment Sale Contract - Simple Finance Charge", so no Rule of 78 in my case.   I just called GMAC and asked about having to pay back any of the $1,500 rebate if I refinance and the person I talked to said no, there would be no rebate to repay. Maybe someone else can also call and see what they say. My bank will finance 60 mo 5.9%, so in my case that makes a $14/mo savings or over $800 over the life of the loan. Sorry, finance guy.   This truck will replace my 2002 Chev Silverado LS Ext Cab that I've been very happy with. Hopefully my 2004 will be similar. Replies to this message: adscurry (Sep 06, 2004 1:47 pm) rheiling (Sep 06, 2004 5:33 pm) adscurry (Sep 07, 2004 4:35 pm) bottomdump (May 17, 2007 1:11 pm) 04cad (Jul 15, 2007 8:02 am)
#34 of 675 Re: GMAC financing rules [adscurry] by jerrymcshane1 Sep 03, 2004 (10:18 am)
Replying to: adscurry (Sep 02, 2004 11:24 am) I will pass along any info I have gotten regarding this $1500 financing plan this weekend. For my brother lives on the other side of the country and they just had twins Wednesday. I tried to contact GMAC but they would NOT give me a DEFINITIVE yes/no answer to my premature payoff question. The dealer keeps telling me (but will not put it in writing) that one can pay off the loan prematurely. I think the SLEAZINESS of this whole plan is enough to TURN OFF a a lot of potential buyers. But GM and Ford are STUCK with an inordinate amount of 04's still so maybe just maybe we consumers here will "win out" here for once.
#35 of 675 Re: Chevrolet Rebates [harold1] by silverado1 Sep 04, 2004 (7:22 pm)
Replying to: harold1 (Aug 10, 2004 1:43 pm) the 1000 dollars is a coupon that is mailed to you if you have a GM credit card. the incentive is paid if you buy a vehicle at this time.
#36 of 675 improving gas mileage on 2500HD by silverado1 Sep 04, 2004 (7:35 pm)
I owned a 02 silverado 1500 w/5.3 liter. mileage on that was about 13 around town but improved to 20 on road. it had a 3.73 rear that read 2000 rpm at 70 mph. i traded it on an 04 2500HD and the mileage is about 11.7. i noticed that the rpm's are significantly higher, (about a 1000), at 60mph and higher. the reason, i believe, besides, the obvious (6 liter eng. & increased truck weight) is the 4.10 rear. Is it possible to swap out the 4.10 gears for the 3.73 gears to improve the gas mileage. i am willing to have it done if possible. any thoughts anyone? thanks. Replies to this message: 96ck150 (Sep 15, 2004 9:57 am)
#37 of 675 Re: My Crew Cab cost [rheiling] by adscurry Sep 06, 2004 (1:47 pm)
Replying to: rheiling (Sep 03, 2004 9:54 am) The most open dealer I have dealt with told me to forget the $1,500 GMAC rebate and go to the Credit Union for a loan. He said the rate is 7.99% and not simple interest. Beware of differences in terms -- "simple finance charge" may not mean simple interest amortization rules. My research found that Federal Law precludes use of the rule of 78's on loans OVER 60 months long. How long is your loan? Three payments at the price of these vehicles will give GMAC their $1,500 back in the up-front collection of interest. Even one payment will recover a large part of the $1,500 rebate if applied to interest. GMAC may be establishing negative amortization with the amount you owe actually increasing in the early months over what you borrowed even thought you are making monthly payments. That may be the reason the dealer said GMAC claims back part of the rebate. You try to pay it back and owe more than you borrowed. Consumers should ask for a loan amortization schedule similar to what lenders give for mortgages. I bet they will not give you one. Please share your pay-off experiences. Replies to this message: rheiling (Sep 06, 2004 5:33 pm) adscurry (Sep 07, 2004 4:35 pm)
#38 of 675 Re: My Crew Cab cost [adscurry] by rheiling Sep 06, 2004 (5:33 pm)
Replying to: adscurry (Sep 06, 2004 1:47 pm) I don't believe that "negative amortization" will occur under any case if payments are made timely. That only happens when a payment is missed and the lender adds the missing interest that should have been paid to the principal balance. That would be negative amortization.   The total interest paid under simple interest or Rule of 78's is the same. Rule of 78's simply calculates more of the interest in the front part of the loan so that if you pay the loan off early the payoff is higher then if using simple interest. It does not create negative amortization. If a person ends up making all of the loan payments it doesn't matter how the interest is calculated.   Nothing I signed indicated an interest calculation other then simple interest and it says "You may prepay all or part of the unpaid part of the Amount Financed at any time without penalty." The GMAC person I spoke to also stated the same.   I plan to make my first payment to GMAC and have my bank refinance the note at that time. If the result is anything other then what I expect I will raise my voice loudly. After all, there are Truth In Lending laws. And what I signed says simple interest and no prepayment penalty. I will let this group know of the outcome. Replies to this message: adscurry (Sep 07, 2004 4:35 pm)
#39 of 675 Re: My Crew Cab cost [rheiling] by adscurry Sep 07, 2004 (4:35 pm)
Replying to: rheiling (Sep 06, 2004 5:33 pm) I agree. I did a google.com search for Rule of 78's and found some excellent explanations with formulas and amortization tables. There is extra interest in the early payments so the effective rate is well over 7.99% if you pay off early--just not as bad as I had originally thought--no negative amortization. My web search also said that these loans will generally not state "Rule of 78's" but may refer to a "rebate of interest if paid off early." Rebate only in the concept that somehow they charge you less than the full interest the note would have accrued in its entire life to maturity. How misleading is it to call this a rebate of interest which sounds like a good thing? Also, many states have consumer laws that prevent use of the rule of 78's so there may be different variations of the notes depending on the state in which the loan is made. One of the Rule of 78's sites shows states that preclude use of this rule. When you get a payoff you can plug the numbers in an amortization table to confirm if this rule was used and is allowed in your state.
#40 of 675 24 hr test drive $1000 Incentive? Also, GM Gold Card or GM Blue Card? by workingman Sep 08, 2004 (4:56 am)
Hi,   I am interested in a new truck, possibly a Silverado. Did you get the $1000 24 hour test drive incentive because you did the Test Drive and did NOT buy at that time or did you just happen to get it in the mail?   Also, regarding the $1000 GM credit card incentive - do you have the GM Gold Card or the GM Blue card or what? What card is providing the $1000 incentive?   Thanks, Fritz Replies to this message: rheiling (Sep 08, 2004 12:25 pm)

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