Money Factor with not great credit

I make them an offer and they say yes or no.

If they come back at 10% higher than the offer i made, they didn’t agree to my offer and i move on. The reason for the difference is irrelevant.

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Good to know.

I think that’s where my difference in calculation may be from. I was thinking perhaps they were applying my credit as tier 2.

Thats not a difference in calculation. That is a totally different deal. Theyre simply giving you less discount than you thought you were getting.

I get your point, not saying it’s wrong.

We just approach the deal differently.
In your example, I wouldn’t move on right away. I’d recommend to see if the dealer is willing to adjust xxxx (MSRP, MF, one-pay, less fees), etc. for example, if you are only $10/month away for 36 month, why not ask for them to remove the $360 tint charge add-on? Dealer will remove that $20 cost tint to get you the monthly payment.

Perhaps dealer would’ve move it themselves to get to your original number without asking… From my experience, the salesperson may not have thought about it or may not know the special promotions without the nudge.

For example, Hyundai has a $1000 “aged” inventory incentive. I’m going to guess a new guy won’t know that exists

EDIT: Trust but verify. Especially, if we are close or worth it. :slight_smile:

No, but you would have included it in your target deal when you made the offer because you would have targeted aged inventory when selecting the vin you made an offer on.

The “aw shucks, we forgot a rebate” is a sales tactic. They’re in the business of selling cars every day.

edit: i had a 20+year grizzled salesman tell me to my face that he didn’t know anything about credit scores. yeah, ok buddy

Yea I did, but did the dealer do it would be my question. :slight_smile:

Thats the point… if they hit your offer, youre good to go. If they didnt, there’s no need to try to sort through their bs as to why not. They either do or they dont.

Yes sir! That’s exactly what I’m looking for.
We all know the tactics and that’s fine.

It goes along with “we are losing money in this deal.”

At the end of day… if they are willing to move to the payment zone I’m happy with, they can come back with any lines…

I don’t ask for discount at Target, but I think some car deals are worth one more push if their first offer is not in my value zone.

Your time is probably more valuable than mine. Me, I’d spend days trying to save $50 in a $1500 DSLR.

I’m the “guess how much?” Guy. :slightly_smiling_face:

EDIT: Feel like dealer and/or the customer usually expect a counteroffer. I don’t like it, but that’s the norm. :+1:

MF should be okay on 650 credit score, but it won’t be decent like you just expect

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What is this “their offer” thing that you speak of?

Offer could be anything. Monthly payment, one-pay, amount off MSRP, tickets to a WNBA game, etc.

Are you in the business by chance? All I’m trying to do is move the commission from left pocket to right pocket. If the money factor is being marked up, I may ask them if they could lower that to base but add the wear and tear package. I’m hoping the commission evens out on their side because it would be a big win on my side ($1000 finance charge saved but $1000 protection purchased. Same $200 commission to my sales guy). :slight_smile:

You’re missing my whole point.

If you establish your own target deal and then make them an offer, it doesn’t matter if they mark up the mf. You don’t need to convince them to do anything with how they structure commision, add ons, etc.

You only have to worry about it if you have lost control of the negotiations because you are fielding offers from them and trying to make it all make sense.

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Off topic, but only briefly…

I ask for discounts at Target. :slight_smile: Their website sometimes has the same item at a cheaper price, and Target will price match… themselves.

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I’ve met almost no one who really understands how credit scoring works (or the credit system in general), and that includes people who work at banks, credit unions, car dealers, mortgage companies… and especially real estate agents.

At least this guy was being honest.

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Pay everything upfront to lower the money factor.

And since you are paying all up front, less weight is put on score.

I do not think this is correct.

Score is ‘supposed’ to tell them how credit worthy you are. One Pay means they have more money from you upfront so less interest rate.

So Score gets you in the door, One Pay doesn’t help ‘lessen’ your score impact.

your paying entire lease up front

what credit are you needing?

You are still borrowing the Residual Value of the car.