It is very important to get the lowest interest rate you can.
As you know this is going to be money out of your pocket!
We have some examples for :
If you finance $15000 and your term is 60 months.
At 4.99% you will pay $1979.40 in finance charges.
At 6.99% you will pay $2816.40 in finance charges.
At 12.99% you will pay $5472.60 in finance charges.
You need to shop around for the lowest rate and not settle for what the dealer is giving you. Like we said before, if the dealer gets you approved at their bank for 10.99% and they mark the rate up 2 points to 12.99% and you contract for this, the dealer makes the difference. Using the example above, that would be about $909 in what we call "finance reserve" that the dealer would make right away. This money comes right out of your pocket. IT ALSO MEANS THAT you will pay an additional $900 over the term of the contract.
If you are allowing the dealership to secure the financing for you. Always ask them what the "BUY RATE" is that they were quoted from the bank that approved your loan request. This will keep you from burning up hard earned money in finance reserve payments and additional interest charges over the term of contract.
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