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Discussion Starter #1
Just wondering if you already secured financing for the car. When do the dealers make you secure financing? What if you don't qualify for good rates when the car comes in or if someone hijacked your credit?
 

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nxm,
I ordered my car Wed at Lotus of Atlanta, Chris basically asked if I was financing or paying cash. He indicated, they'd set up an arrangement for their dealership with Chase. So financing is no problem at least at LOA.

I also might suggest peoplefirst.com Went through the steps to finance a motorcycle through them, hour to process and had the cashiers check two days later. Rates are very competitive.
Chris
 

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I intend to take a home equity loan out, pay cash at the dealer, and deduct the interest from my taxes over 5 years. I'm going to roll in a couple of other debts, and by paying them off, reduce the effective net cash outflow each month. Plus you can get home equity loans at like 5+%, which I doubt any bank would do for me on a car loan.
 

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Discussion Starter #5
Canyon Carver said:
I'll be financing mine but since I'm so far back on the list I'm not wasting my time looking for any financing yet.
Derek, please keep us informed of any financing Lotus is going to offer. Just wondering, do you still intend to honor MSRP? I don't have a deposit with you but am just wondering.
 

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Surferjer said:
I intend to take a home equity loan out, pay cash at the dealer, and deduct the interest from my taxes over 5 years. I'm going to roll in a couple of other debts, and by paying them off, reduce the effective net cash outflow each month. Plus you can get home equity loans at like 5+%, which I doubt any bank would do for me on a car loan.
I have a home equity line of credit, so that's my plan also. It makes good sense, because this interest is deductible, unlike car loan interest, and as noted the equity line carries a lower interest rate (because it's a secured loan).

However, the equity loan let's you get away with a lower monthly payment (typically you can just pay the interest), so make sure to pay a comparable amount to a normal car payment or it will take forever to pay off the loan.
 

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nxm150 said:
Derek, please keep us informed of any financing Lotus is going to offer. Just wondering, do you still intend to honor MSRP? I don't have a deposit with you but am just wondering.
1) Gosh..I've been selling Lotus' for five years and have not once financed a single one:) Ferrari and Maserati both use Chase to finance and Bentley uses VW credit, I don't know who Lotus may have thought to back any financing/leasing issues for the Elise.

2) YES!!! We will honor ALL depositors for the Elise at MSRP and will continue to sell them that way. You have my word on it!
 

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Discussion Starter #9
Canyon Carver said:
2) YES!!! We will honor ALL depositors for the Elise at MSRP and will continue to sell them that way. You have my word on it! [/B]
NICE! Finally, a good citizen disguised as a salesman.
 

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nxm150 said:
NICE! Finally, a good citizen disguised as a salesman.
I completely agree! I have my deposit with Derek and he has been a pleasure to work with. If you're not already on a list somewhere, I recommend calling Ferrari of Denver and talk to Derek.

David
 

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Derek, Don't underestimate the power of Honesty. You have made a lot of friends here.
Happy New Year All!
 

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I've used peoplefirst.com for a car and a Harley. They have great rates. Currently, a 60 month term on a new car is 4.49%. They have changed names and are at capitaloneautofinance.com as well. As posted earlier, you apply online and can get your check in a couple of days.
 

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When I bought my current car, the dealership refused to let me use an online financing institution. They said that they had a few of their checks bouncing, and they wouldn't want to take that risk anymore.

I don't know how common this is, but you might want to verify with your dealership that they will accept the check before you apply for financing.
 

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If you live in California and belong to AAA, they are advertising new loans as low as 3.75% if you apply on line (www.aaa-calif.com/loan). However, the fine print indicates that you must have "excellent and substantial credit" and maximum loan length is 36 months, which would result in a pretty high monthly payment!

With an equity loan and the resulting tax savings in our bracket, the effective loan rate will be even lower, so I still plan to go that route. Now I just have to remember where I put those pesky checks to access the account.
 

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ConeFusion said:
When I bought my current car, the dealership refused to let me use an online financing institution. They said that they had a few of their checks bouncing, and they wouldn't want to take that risk anymore.

I used an online financing for our Odessey. The dealer took it but bitched about it. The online financing company was real helpful and said that they would wire the dealer the funds. I believe the dealers get a kickback from the bank when they run the financing through themselves.
 

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Yea, any dealer that says they won't accept online financing is flat out lying to you. They definitely get a kick back if you use their financing, mostly a half point. That's the only reason they would tell you they wouldn't accept the check. That's the biggest line of bull I've heard in a long time! I have a friend who works for Honda of america as a regional sales rep and my uncle works for chrysler as a regional sales rep and they tell me all the gimicks. No wonder auto salemen have the second worst reputation time and time again in surveys. (I forget who the worst is.)

Try Costco if you are a member. They have financing that is 1/4 point lower than peoplefirst.com (now capital one auto finance.com) Their current rate on a 60 month loan is 4.23%, 3.73% on a 36 month. It would be worth the $50 membership fee just for the financing alone.
 

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Discussion Starter #18
smura said:
I have a friend who works for Honda of america as a regional sales rep and my uncle works for chrysler as a regional sales rep and they tell me all the gimicks. No wonder auto salemen have the second worst reputation time and time again in surveys. (I forget who the worst is.)

So, share with us what the gimmicks are. Most of us probably know most of them but dealerships are always coming up with new stuff.
 

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I used an online financing for our Odessey. The dealer took it but bitched about it. The online financing company was real helpful and said that they would wire the dealer the funds. I believe the dealers get a kickback from the bank when they run the financing through themselves.
I work for a bank (I will not get into needless self-advertising) that does a lot of on-line auto-financing. The reasons that dealers dont want to deal with the bank drafts is because it is extra work for them, and they dont make any profit from it.
Sometimes there are also requirements that the dealer must meet when selling the car such as making sure that it has under a certaint amount of miles, isnt a salvage title, that the loan to value ratio is good, etc. Once the bank verifies this with the dealer they are given an authoriation number to enter on the back of the checks. Some dealers just try to cash the checks without verifying the information and that is why they are rejected. Banks dont want to give $30,000 loans on cars that are only worth $20,000 or have salvage titles, and it is in the consumers best interest if banks let them know that they are being overcharged for cars, since a lot of people are clueless as to what the value of a used car is. We also wire funds if the dealer complains. Usually if you just tell the dealer that another dealer down the street accepts online financing they will quickly change their mind since they dont want to lose the sale.

Personally, I am going to use a home equity loan since the interest is tax deductible, and I have a variable rate of 1% under prime that I got from a credit union that I belong to.

I recommend using LendingTree.com since they select from a bunch of differant lenders and also recommend using Bankrate.com to search for the best interest rates. Sites like kbb.com and nada.com give the average retail and trade in values of cars. However, some dealers play games and use other guides that give lower values if you are trying to trade in your car so be careful.

CarMax only wanted to give a friend of mine $9000 for a trade when the nada trade in value was about $11,000. In most cases you are better off selling the car yourself instead of trading it in.
 

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Discussion Starter #20
I have 2 brothers that are car salesman. My one brother told me about when salesman ask you what kind of monthly payments you are looking for. You reply '400'. Salesman replies '400, up to ?' and you reply 'up to 450'. You have unknowingly added 50 dollars to your monthly payments for 5 years.
 
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