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Strange Financing through Captive with bad credit.


cryix47
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The last post in this topic was posted 837 days ago. 

 

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I applied for a loan for a 2017 Mazda6 with 17k miles at a Mazda dealership. The F&I manager said I was approved through the captive Mazda Cap/TMC with a 6500 down payment and payments of $320/72mo. I'm on the edge about the deal because the bank is far better to deal with than Credit Acceptance or Exeter, but the down payment is very large and payments are high. The total amount financed would be 12k. I received a text last night asking if I could put more down. It was 5000 initially, then I was asked to do 6000 then 6500 now 6550 What game are they playing? Did F&I call Mazda for a finance favor?

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I don't know if they are playing a game, but $320/month for 72 months with $12k financed means you are paying almost 25% interest on that loan.  If you have $5,000 down you should be looking for a car that you can buy for cash to serve as reliable transportation.  They may have only been estimating or they hadn't gotten final approval which is why the down payment requirement is moving (Marv can probably answer that part better).

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I don't know if they are playing a game, but $320/month for 72 months with $12k financed means you are paying almost 25% interest on that loan.  If you have $5,000 down you should be looking for a car that you can buy for cash to serve as reliable transportation.  They may have only been estimating or they hadn't gotten final approval which is why the down payment requirement is moving (Marv can probably answer that part better).
This.

Run from that deal...fast!

Sent from my GM1915 using Tapatalk

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They are packing the amount financed by adding backend product and wanting you to put the additional money down to help pay for the loan restrictions imposed by the approving lender.   It is quite common, for a captive to approve the loan but stipulate a max payment.

 

I'm just making a guess by stating the above.  And in my opinion, you are doing this the wrong way.  Is most of this done via phone or non-personal contact?

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That deal makes absolutely no sense whatsoever...

 

For a loan on a vehicle under $20K, just go your local bank if you HAVE to have THAT car.  No subprime crap is warranted here...

 

Oh, and just for point of discussion...NEW Mazda6 offerings are available starting at $24K.  There is ZERO need to overpay for a three-year old model even if it were equipped with a manual (in which case, you use that to haggle down since it will sit for a while if they don't sell to you). 

Edited by centex
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My opinion (have no facts to base this on, just gut feel based on OPs post) is that the dealership figures they have a desperate buyer here, bad credit and will do anything in order to be approved, including agreeing to loan terms bordering on usury and profitable add-ons like warranties, etc.  It is a way that shady dealers prey on those most vulnerable, and the kicker is try to make you feel grateful for doing so.

 

I am certainly not saying that every dealer does this, nor that this particular one is doing so, but it happens and it is certainly something to be wary off.  If it either sounds too good to be true, or sounds fishy, it probably is.

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Most of the negotiation for the vehicle was done over the phone.  I told the general manager that I wouldn't take the car because of overall expens of the vehicle. 

 

 

The next day they told me to call back for great news.  They apparently had a long discussion with the lender lol.  The payments would not be $296 due to a lower interest rate achieved by the so called discussion. The internet price of the vehicle is 16,248 but somehow the OTD price is 18k. It sounds shady. 

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Most of the negotiation for the vehicle was done over the phone. That tells me you are not serious, you are just fishing. I told the general manager that I wouldn't take the car because of overall expens of the vehicle. 

 

 

The next day they told me to call back for great news.  They apparently had a long discussion with the lender lol.  The payments would not be $296 due to a lower interest rate achieved by the so called discussion. The internet price of the vehicle is 16,248 but somehow the OTD price is 18k. Might be a lil something called sales tax, tag, title fees.It sounds shady. 

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The last post in this topic was posted 837 days ago. 

 

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