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Started By
Message
New Car Loan
Posted on 5/5/14 at 9:48 pm
Posted on 5/5/14 at 9:48 pm
Hey MT,
I just bought a new Jeep today and financed it through a local credit union (TVA). I was offered 1.69%... My question is how can they even possibly make any money with such a low rate??? I understand their cost of capital is much lower than commercial banks... But damn!!!
I just bought a new Jeep today and financed it through a local credit union (TVA). I was offered 1.69%... My question is how can they even possibly make any money with such a low rate??? I understand their cost of capital is much lower than commercial banks... But damn!!!
4
Posted on 5/5/14 at 9:53 pm to DontTazeMeBro
They usually make their money through a fee they charge to the dealer.
Posted on 5/5/14 at 10:04 pm to DontTazeMeBro
Oh you.....
You will realize it in a few years.
Congrats on entering the never-ending cycle.
You will realize it in a few years.
Congrats on entering the never-ending cycle.
Posted on 5/5/14 at 10:09 pm to DontTazeMeBro
when you pay .001 on savings accounts it is easy to do the math
Posted on 5/5/14 at 10:22 pm to Teauxler
quote:
They usually make their money through a fee they charge to the dealer.
FYI this isn't true. On a prime loan like this the lender would be paying the dealer a small fee, subprime loans get discounted.
The dealer likely isn't involved here though since it was a local credit union.
Posted on 5/5/14 at 10:25 pm to TigerSaints318
True true
Posted on 5/6/14 at 7:36 am to Mr.Perfect
quote:
Oh you..... You will realize it in a few years. Congrats on entering the never-ending cycle.
I'm not following here
Posted on 5/7/14 at 8:15 am to DontTazeMeBro
quote:
My question is how can they even possibly make any money with such a low rate???
Low overhead
No need to pay shareholders
No profit motive
Plus, the interest they are paying out is so low.
Posted on 5/7/14 at 8:17 am to Mr.Perfect
quote:
Mr.Perfect
More like Mr.DaveRamsey, amirite?
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