2020 C8 Financing Question

At car dealerships the biggest profit margin is financing. They make more from that than the price of the car. It is the biggest money maker than all their services combined.
 
l guess you are talking about my numbers matching 1970 454 big block 4 speed t roof monster . Seen one like mine go at Barrett Jackson for half a million 3 years ago. Expect in the future some pics of me at DRGMNYs to make my claim legit . l scored that in 1979 for $8000 .
 
kerry4 said:
At car dealerships the biggest profit margin is financing. They make more from that than the price of the car. It is the biggest money maker than all their services combined.
Click to expand...
I beg to differ, having been in the business for 30 years I know different. Reserves are paid by finance sources, yes. They vary depending on many factors including rate, amount financed and the bank. Example, the 0% you see offered by many captive manufacturers source pays zero to the dealer. It is a very competitive market, shop the finance rate just like you would the price of the car. Currently banks are offering 3.99 to 5.99%. if you get the lowest rate (shop around) the dealer will make 1% , 50,000.00 vehicle = 500.00 reserve for the dealer.
 
Dantanman said:
I beg to differ, having been in the business for 30 years I know different. Reserves are paid by finance sources, yes. They vary depending on many factors including rate, amount financed and the bank. Example, the 0% you see offered by many captive manufacturers source pays zero to the dealer. It is a very competitive market, shop the finance rate just like you would the price of the car. Currently banks are offering 3.99 to 5.99%. if you get the lowest rate (shop around) the dealer will make 1% , 50,000.00 vehicle = 500.00 reserve for the dealer.
Click to expand...
When you say currently and mention 3.99 to 5.99... does that apply to GM and the C8 as well? I'm hearing the lowest available is 5.99%. and how can we shop around when it's delivered directly to the dealer?
 
Magneeeto said:
When you say currently and mention 3.99 to 5.99... does that apply to GM and the C8 as well? I'm hearing the lowest available is 5.99%. and how can we shop around when it's delivered directly to the dealer?
Click to expand...
Dealerships have several finance sources available. Rate is somewhat dependent on your credit and your negotiating skills. If you aren't happy with their rate, go to your bank. Make and model of the car is irrelevant to the bank although if you ordered the car without getting a quote on the finance rate they have a bit of a captive customer if you choose to use them for financing.
 
PistolPetesC8 said:
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.
Click to expand...
Doesn't that say interest is calculated daily on the unpaid balance? In that case, the cost of borrowing section would indicate the total cost of borrowing if the payment schedule is followed until the end. Maybe more to it, but that's how I read the above.
 
There are a few scenarios you could do, some mentioned above :

1. Home Equity Line of Credit. Currently, Canada is 2.45% plus 1/2 to 1%. Much better than 5.99% from GM or any other bank

2. Standard car lone,but as just mentioned, 5.99%

3. If you have a business, you could run the car through that and save the HST, and have the vehicle be a 100% taxible benefit to the corporation,
which also means you save on interest charges etc....... capital expense. (keep mileage reports for vehicle allowance reporting to CRA)

Just my thoghts.
 
dssking said:
There are a few scenarios you could do, some mentioned above :

1. Home Equity Line of Credit. Currently, Canada is 2.45% plus 1/2 to 1%. Much better than 5.99% from GM or any other bank

2. Standard car lone,but as just mentioned, 5.99%

3. If you have a business, you could run the car through that and save the HST, and have the vehicle be a 100% taxible benefit to the corporation,
which also means you save on interest charges etc....... capital expense. (keep mileage reports for vehicle allowance reporting to CRA)

Just my thoghts.
Click to expand...
CRA guy driving a Corolla.... What's this C8 deduction for? :)
 

Similar threads

Users who are viewing this thread

Total: 1 (members: 0, guests: 1)
Back
Top