2020 C8 Financing Question

[Magneeeto]

Hey all,

Its been a long wait but it looks like my 2020 C8 is finally arriving!

I don't have nearly enough cash to outright purchase the C8, so I am looking into financing options. I thought i'd ask here on how others have managed financing this year. It seems like dealerships are offering bank rates so 5.99% interest not sure what the terms or max term available is.

Wondering if anyone would advise going elsewhere for the financing or if dealer finaincing at that rate is generally the best available?

And it seems like there are no incentives offered (makes sense). It's a little unfortunate mine is arriving this close to snow/winter time. I'll likely have to finance it just to keep it stored away till March.

 

[gone]

I was offered the higher interest rate you mentioned or a second option of zero percent interest for one year. Assuming you’d have the same choice; perhaps the second option would work for you.

 

[Magneeeto]

I was offered the higher interest rate you mentioned or a second option of zero percent interest for one year. Assuming you’d have the same choice; perhaps the second option would work for you.

That's actually a great offer! Were you able to get anything else in terms of offers/incentives?

 

[PistolPetesC8]

If you have any equity in your home consider a heloc against your home. This is a open loan that you would only pay interest on the balance. I’m theory, the faster you pay it off, the less interest you pay. Unlike financing through the dealership they charge all the interest up front and add it to the bill of sale.

 

[gone]

I was offered the higher interest rate you mentioned or a second option of zero percent interest for one year. Assuming you’d have the same choice; perhaps the second option would work for you.

That's actually a great offer! Were you able to get anything else in terms of offers/incentives?

A $1,900 reduction to the extended warranty, which I was told was the maximum dollar amount GM allowed the dealer to use towards any part of the sale. So a GM incentive and not from the dealer.

 

[drgmny]

I was offered the higher interest rate you mentioned or a second option of zero percent interest for one year. Assuming you’d have the same choice; perhaps the second option would work for you.

What dealership made that offer and what was the service charge for the financing?

 

[Magneeeto]

If you have any equity in your home consider a heloc against your home. This is a open loan that you would only pay interest on the balance. I’m theory, the faster you pay it off, the less interest you pay. Unlike financing through the dealership they charge all the interest up front and add it to the bill of sale.

I won't be able to pull from a heloc for now but I do have LoC available at around that rate. I'll consider dipping into that to reduce the dealer interest. Great insight, thanks!

 

[CamsC8]

Use your line of credit. 6% interest on a car is nuts.

 

[Gilles27]

Use your line of credit. 6% interest on a car is nuts.

Cam it depends if your line of credit is secured, if not you are looking at 5 to 6 %

 

[Magneeeto]

Cam it depends if your line of credit is secured, if not you are looking at 5 to 6 %

But as Petes said I guess it's still favourable to locking in all the interest charges up front with the loan. Instead with the LoC it accrues interest as I carry the balance.

 

[COP8]

If you have any equity in your home consider a heloc against your home. This is a open loan that you would only pay interest on the balance. I’m theory, the faster you pay it off, the less interest you pay. Unlike financing through the dealership they charge all the interest up front and add it to the bill of sale.

Wow up front interest l thought only Tony Soprano could do stuff like that. Go for the home equity loan if you can.

 

[COP8]

Use DRGMNY LOL

 

[gone]

What dealership made that offer and what was the service charge for the financing?

Dealership in Calgary, AB. PM me in the unlikely event you'd consider buying a car from them, given your location in Ontario. They originally wanted me to pay "customer care" and "vehicle inspection/DOC" fees totalling about $1,255 but when I pointed out my original deal was for MSRP only, they waived both of those fees. So I paid no service charge for the 1 year loan, if you consider the proposed documentation fee to be a "service charge". I only did the zero percent loan as a courtesy to the dealer, since they received some sort of "kick-back" for getting a loan. Note: they also included $100 for an A/C fee until I showed them that same $100 was already included in the GM MSRP amount. So watch for that one.

 

[Kanuck]

Couple of options
Secured LOC at Prime + a premium (1/2 or 3/4 % )
Unsecured LOC 5 / 7%
5 Year Mortgage on the house with 25 yrs amortization, interest as low as 1.75 %. Try to pay off the Car in 5yrs.
Varies from Bank to Bank.

 

[Driver_WT]

Unlike financing through the dealership they charge all the interest up front and add it to the bill of sale.

I have never seen this and not sure it is legal in Canada.

 

[PistolPetesC8]

I made a terrible mistake on my last purchase, being mislead by the salesmen thinking it was a open loan. Attached you can see lines 35 and 36 cost of borrowing rolled into the total price. The total finance price was $58k, included the $9k of interest!

Lesson learned, clarify ask upfront. In my case this was with TD bank.

 

[Magneeeto]

I made a terrible mistake on my last purchase, being mislead by the salesmen thinking it was a open loan. Attached you can see lines 35 and 36 cost of borrowing rolled into the total price. The total finance price was $58k, included the $9k of interest!View attachment 45384
Lesson learned, clarify ask upfront. In my case this was with TD bank.

Oh wow, thanks for sharing this Pete. I'll be sure to clarify this when I go through with the dealer financing.

 

[drgmny]

Dealership in Calgary, AB. PM me in the unlikely event you'd consider buying a car from them, given your location in Ontario. They originally wanted me to pay "customer care" and "vehicle inspection/DOC" fees totalling about $1,255 but when I pointed out my original deal was for MSRP only, they waived both of those fees. So I paid no service charge for the 1 year loan, if you consider the proposed documentation fee to be a "service charge". I only did the zero percent loan as a courtesy to the dealer, since they received some sort of "kick-back" for getting a loan. Note: they also included $100 for an A/C fee until I showed them that same $100 was already included in the GM MSRP amount. So watch for that one.

Thanks for the reply netsinah

 

[Dantanman]

Rule 78 of the bank act is what it's called and it doesn't just apply to auto loans. 78% of the interest is paid in the front end of the loan. Has nothing to do with the dealer. Banks set the terms. They lobbied the government for it years ago and naturally it passed.

 

[COP8]

I made a terrible mistake on my last purchase, being mislead by the salesmen thinking it was a open loan. Attached you can see lines 35 and 36 cost of borrowing rolled into the total price. The total finance price was $58k, included the $9k of interest!View attachment 45384
Lesson learned, clarify ask upfront. In my case this was with TD bank.

l worked with TD for 35 years ,Last year l told them to close all my accounts and severed all ties with them.
lt started with TD Insurance and snowballed .l will never have a thing to do with then again