Losing price protection if financed through chrysler

[Ericg]

Truck was ordered 03/30 delivered to dealer 05/12, finance tells me i can finance through chrysler at 2.9 72 but lose price protection and truck increases $1900. Or local bank at 3.25% 72 at agreed price. Anyone ever experience this? seems fishy.

 

[Sascwatch]

I know with the truck I just ordered it has to be picked up within 7 days of arriving at the dealer or I lose the discounts from April when I ordered it. This is in Canada financed through the dealer using scotia bank.

 

[Ericg]

Seems wierd , incentives are there would be same price if i go through the local bank they recommend however if i go through chryler i lose price protection, as if the build increased 1900 in 6 weeks. BTW same pricing on build site as before no change.

 

[djevox]

this is just a guess, but the dealer probably can’t charge a markup on Crysler Capital loans so they’ll lose money if the manufacturer cost goes up. I don’t understand why they’d offer price protection if you got your own loan though- that part makes no sense.

 

[Ericg]

Thats what i was thinking finance locally same price use Chrysler lose 1900, seems they may get a better commission selling local finance than chrysler.

 

[djevox]

Thats what i was thinking finance locally same price use Chrysler lose 1900, seems they may get a better commission selling local finance than chrysler.

Are you saying “local financing” is the dealer offering you a loan?

 

[eye exaggerate]

What does the .26% do to your price if you go with a bank? What is it compared to the 1900?

 

[User_3336]

Finance can mark up the interest rate to what ever they want to. CCAP (Santander) sends back the dealer an approval with their approval percentage. Dealer can mark it up (within reason). CCAP accepts the loan with the dealer's markup after all the paperwork is submitted. Happens all the time. People just don't realize it.

I know I was approved for 1.9 for 60 months because I submitted a pre-approval online thru CCAP. When dealer stuck me with a 6.77% interest rate, I grinned. I didn't even argue because I knew what he was doing. I paid it off as soon as I got the account number. Dealer doesn't get his kickback period. Dealer also told me that if I didn't float the loan six months, I would lose the rebate amount and it would be added back to the loan. Total B/S.

 

[Ericg]

I received an email said my choices were 3.25 local bank price protected, 2.9 through chrysler but i lose price protection. ( fully approved either way) Makes no sense. I can have the truck at the same price at order if i finance through local bank but if i finance through chrysler i lose 1900 in price protection. The difference is about $700 for the life of the loan at higher interest rate vs $1900 they claim will be added to price as far as that its a no brainer go with local bank, but it sounds like BS, why would chrysler give up $5600 in interest.

 

[Ericg]

What does the .26% do to your price if you go with a bank? What is it compared to the 1900?

700 life of loan vs 1900 its a no brainer, just seems like bs that if i finance local price stays the same vs chrysler price would change

 

[User_3336]

I received an email said my choices were 3.25 local bank price protected, 2.9 through chrysler but i lose price protection. ( fully approved either way) Makes no sense. I can have the truck at the same price at order if i finance through local bank but if i finance through chrysler i lose 1900 in price protection. The difference is about $700 for the life of the loan at higher interest rate vs $1900 they claim will be added to price as far as that its a no brainer go with local bank, but it sounds like BS, why would chrysler give up $5600 in interest.

Most dealers get a bigger "kickback" when they finance with a local bank. Several of the dealers i've did business over the years insisted I go with "THEIR LENDER", versus Ally, CCAP, etc.

 

[User_3336]

700 life of loan vs 1900 its a no brainer, just seems like bs that if i finance local price stays the same vs chrysler price would change

That dealer is playing games with you, and offering you what provides them with a better kickback.

 

[Ericg]

Are you saying “local financing” is the dealer offering you a loan?

Dealer offered both options local bank or chrysler approved for both both ran my credit 850 credit score no debt

 

[Ericg]

That dealer is playing games with you, and offering you what provides them with a better kickback.

Thats what i was thinking, the price protection threw me because i have never ordered before and was curious if anyone ever heard of this that has factory ordered.

 

[Ericg]

this is just a guess, but the dealer probably can’t charge a markup on Crysler Capital loans so they’ll lose money if the manufacturer cost goes up. I don’t understand why they’d offer price protection if you got your own loan though- that part makes no sense.

I applied for finance through the dealer they came back with these two options.

 

[djevox]

I applied for finance through the dealer they came back with these two options.

Ok, that makes sense. F&I has what’s called “buy rate”, which they keep close to the vest. You get a marked up rate that gets them more “back end” profit, while it doesn’t benefit them at all for Chrysler’s promotions.

For example: when Chrysler had 0% promotions, the F&I manager couldn’t mark it up and tell you “you got the extra low rate of 2.29%, aren’t you lucky”. That example is exactly what F&I does to make money. That VSC? It’s probably half of what they quote you. Extended warranty? Probably selling it for somewhere between double and triple. The only thing I’ve seen so far that’s competitive is GAP coverage, which is usually around $400 markup.

 

[eye exaggerate]

700 life of loan vs 1900 its a no brainer, just seems like bs that if i finance local price stays the same vs chrysler price would change

Gotcha - yeah, definitely odd.

 

[User_3336]

Ok, that makes sense. F&I has what’s called “buy rate”, which they keep close to the vest. You get a marked up rate that gets them more “back end” profit, while it doesn’t benefit them at all for Chrysler’s promotions.

Sort of what I said in post #8. Happens all the time!!! I got marked up from 1.9 to almost 6%. Nice try!
Unfortunately, the consumer never knows this is happening.

For example: when Chrysler had 0% promotions, the F&I manager couldn’t mark it up and tell you “you got the extra low rate of 2.29%, aren’t you lucky”. That example is exactly what F&I does to make money. That VSC? It’s probably half of what they quote you. Extended warranty? Probably selling it for somewhere between double and triple. The only thing I’ve seen so far that’s competitive is GAP coverage, which is usually around $400 markup.

Anyone who buys an extended warranty from a finance guy......ummmm, well, they just love getting screw'd! LOL
There are online sellers, such as Zeigler, that can sell 1/3 of that a finance manager wants to charge you!

 

[djevox]

Sort of what I said in post #8. Happens all the time!!!

Anyone who buys an extended warranty from a finance guy......ummmm, well, they just love getting screw'd! LOL

Sorry, missed your post for some reason.

 

[cevans6318]

Truck was ordered 03/30 delivered to dealer 05/12, finance tells me i can finance through chrysler at 2.9 72 but lose price protection and truck increases $1900. Or local bank at 3.25% 72 at agreed price. Anyone ever experience this? seems fishy.

Dealer offered both options local bank or chrysler approved for both both ran my credit 850 credit score no debt

You are just dealing with a POS finance manager, plain and simple. He just wants a bonus on his end, probably feeding you some BS about the price protection going away. Does what you signed about the price protection say anything regarding what they are telling you now?