Hi had a deal for a F-Type SVR with a cost of around $933 a month if you factored in the initial due at signing amount. They wouldn’t budge on the down payment of $20,000. How come some dealers/salespeople refuse to close a deal unless you do a large down payment? Are they trying to disincentivize us from accepting the deal?
is your credit terrible? can’t think of a reason otherwise lol, 20k down is a friggin tragedy. You’re getting into REALLY high end supercars for that kind of down payment to even be imagined.
No I have a spectacular score and history.
Only thing I can think of is that they pay out to the dealer was structured much better for them with a particular bank (but given that it was a lease, probably the captive), but for whatever reason, that bank was capping the amount they would loan to you. I don’t know if it was DTI based, doesn’t seem like it was LTV based.
Has nothing to do with the dealer or the salesperson. It’s the lessor’s requirement.
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Wow I actually also had Chase Financial Services, and the same thing happened to me. First time leasing a car that expensive. I only leased a Lexus IS before. Good to know. Thanks!
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Do you still plan to lease the car and put $20k down?
I already did it for the F-Type SVR. This was in 2017. My lease is over already.
Then what was the point of asking the question 3 years later?
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- For Gross (Translates to profit)
- Terrible Credit Score
- Dealership following Bank’s Direction
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Why does it matter if it was 3 years later or not? I was still wondering.
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From a dealer perspective. We couldn’t care less what you put down as long as you get approved.
Was the car in their stock or was it a build or swap? If so, They just want the 20k so if you back out on the deal they don’t get hurt on the car. But I would just refund the 20k and go with the lease upon you taking the car.
As the others have said it was probably captives orders.
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If you had asked this question 3 years ago, I would have recommended not to put that much down.
As others have mentioned, this is probably because of the bank rather than the dealer. While your credit might be perfect, the bank assumed there was a risk where they had to cap the monthly payment or total loan. It could be because it was your first highline purchase or your debt to income would rise to a risky level for them without a down payment. Either way, they perceived a risk and acted accordingly.
Down payment has nothing to do with gross, as a matter of fact it takes away from any markup on rate.
Only reason I ever want money down is to get someone approved, if someone can get approved with nothing I prefer nothing. More gross off reserve and less headache collecting down payment and dealing with the headache that comes with the accounting behind it.
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Jaguar Financial (Chase) is really picky about comp auto history. If you’re jumping from a 40k car to a 100k+ car they usually will ask for money down regardless of score or general history. It’s a bit of a pain.
They’re also picky about payment to income ratio which could be another reason they asked for such a large down payment.
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I have never worked for or heard of a big name brand dealer that has done this, but an old co-worker owned a buy here/pay here lot that would take down payments as profit or commission. But since every finance deal was done in-house with credit criminals, that was their way to make money before having to repo the car a month and resell it. It was just a viscous cycle of repoing the same cars over and over again.
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That’s buy here pay here where they keep down payment on the concept that the buyer is a guaranteed default. That’s obviously a niche thing that doesn’t apply to people on this forum, especially a lease on an F-Type SVR. It is a pretty interesting business model, John Oliver had a decent breakdown of it on Last Week Tonight for those that are curious. Unless you’re holding your own paper, hefty down payment and default is meaningless as it goes to the bank. What’s interesting is how auto lenders have been extremely aggressive on equity positions recently. Got a 550 done at Chase with an 8% buy on a Tahoe LS because LTV was so strong. Never seen Chase do that before. GMF is also buying deep on equity positions as of late.
For franchise dealerships down payment means less gross if there is any markup on rate. If there is no markup on rate it is meaningless.
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Well when you know the fiance guy is going to crush someone with add ons, down payment gets the deal bought before they step foot in his office. It also tricks people into thinking a payment is lower than it really is, you know the bit “ok folks, most of our customers put down at least $3000, so I assume you were planning $5000 down on this super loaded special edition turd box”
That’s what cheap money aka 0% interest rates are doing. GMF is borrowing from the FEDS @ 0 or negative and then lending at 8%. With this kind of margin, they are soon going to be lending to anyone with a pulse…