What kind of shit is this. You get rewarded to the tune of $1500 if you have a credit score under 650. So I pay my bills on time and I get punished. Complete bull crap.

Well you could always screw up your credit to get that rebate LOL

It's better for people who demonstrate their inability to pay their bills to be rewarded with an easy path to $60,000 trucks.

Two things:

My guess is that the interest rate on the loan will be pretty high (over 18%). I'm sure that the dealer will give you the same rebate if you want to pay the same interest rate as the subprime client.

Sub prime clients often pay the posted price whereas those with better credit discuss/request/demand a discount from the sticker price. My guess, if you have good credit you'll probably be asking for more than a $1,500 reduction.

Generally speaking, low score/crappy credit people will buy what ever they can. The extra rebate will make it a bit easier to qualify for the loan. The low hanging fruit thing

Step 1. Buy truck.
Step 2. Don't pay for truck.
Step 3. Ask for your $1500.

Problem solved.

Who wants a Fiat truck?

quote:

Originally posted by BigSwede:
Generally speaking, low score/crappy credit people will buy what ever they can. The extra rebate will make it a bit easier to qualify for the loan. The low hanging fruit thing

Folks seem to only look at the monthly payment. They don't even seem to care if it's a 48 or 60 month loan. Some take 60 month loans and if they try to sell the vehicle in a couple years they are shocked that the value may be less than what they owe on the car. Well duh, almost all your payment is interest and you've barely touched the principal.

Financial literacy is pretty low for much of the US population.

quote:

What kind of shit is this. You get rewarded to the tune of $1500 if you have a credit score under 650.

Many people do not know that dealer's get kickbacks from the financing company or bank. 650 will get a certain interest rate & the kickback is anything over the rate the bank gives the dealer. Get him signed for 72 months @ 18% & the dealer gets a huge monthly kickback. Let a dealer think you are financing with him & have a prearranged loan with a credit union.

quote:

Financial literacy is pretty low for much of the US population.

This is so very, very true. I had clients (former life) that had $300,000+ family income, no retirement savings, credit card debt, two new BMWs with car payments, and a home loan that ate 25-30% of their income. It boggles the mind.

How can one be smart enough to earn that kind of income and still be too stupid to know how to pay bills on time and save?

quote:

Originally posted by kz1000:
Who wants a Fiat truck?

Can Tony fix a truck?

Trust me the $1500 rebate is built back into the cost of the truck several times over through higher interest rates, lower discounts etc etc.

It's just the kind of deal that corrupt car dealers use in order to lure stupid people into paying too much for their vehicles. They use a numbers game to make people think they are getting a deal they really aren't.

Any store that offers "Free" or lower % financing is putting the cost of the financing back into the purchase price. You'd be amazed at how much lower the price goes for true cash buyers. For vehicles get pre approved at your local bank. Don't let the finance guy raise your payment by hundreds by adding in overpriced extended warranties, Credit life etc etc etc.

I'm not a genius but if your credit is suspect, shouldn't you go for something used/cheap/practical?

quote:

Originally posted by Edmond:
I'm not a genius but if your credit is suspect, shouldn't you go for something used/cheap/practical?

Have you driven around a Walmart parking lot recently, and taken a good look at the people loading up their vehicles?

The rebate you get for having strong credit is a lower interest rate. I bet this $1,500 off comes with like a 9% interest rate or something equally nuts.

quote:

Originally posted by MikeNH:
The rebate you get for having strong credit is a lower interest rate. I bet this $1,500 off comes with like a 9% interest rate or something equally nuts.

For subprime loans, probably more like 18% or even higher. And they'll take it, because the want the new vehicle and don't care what it costs them. Until time to make the monthly payment, that is.

quote:

Originally posted by SR:

quote:

Originally posted by BigSwede:
Generally speaking, low score/crappy credit people will buy what ever they can. The extra rebate will make it a bit easier to qualify for the loan. The low hanging fruit thing

Folks seem to only look at the monthly payment. They don't even seem to care if it's a 48 or 60 month loan. Some take 60 month loans and if they try to sell the vehicle in a couple years they are shocked that the value may be less than what they owe on the car. Well duh, almost all your payment is interest and you've barely touched the principal.

Financial literacy is pretty low for much of the US population.

Try 84 and 96 months, pretty common and stupid

Yes, the Brits have an expression for long term, low payment loans. They call it, or used to, the "never-never." Cause you never never get it paid off.

The math in car advertisements is generally wonkie. The folks with the low credit score will pay considerably more for the vehicle than someone who pays their bills.

I always find it funny when I drive around in a used BMW that I paid $30k for a get looked at like a snob by some asshole in a $70k pickup truck that is pristine and has never seen a tool in the bed.