re: Updated v.3.16 - Will Cover's 2018 buying guide to purchasing a new vehicle

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You have no idea what their holdback would be or dealer pack. You think they lost money on you

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You might not.

I do.

They lost $463.

I worked at a dealership in college and some of the people I worked with are still in industry and friends.

Asked a buddy what cost - hold back - rebates was. They were selling $163 below that. I wanted more.

May surprise the uninformed, but all too often dealers are willing to sell new vehicles at a loss in the hopes of recouping the money in financing or backend products.

Never go in not knowing more than the salesperson who is your victim for the day.


Eta: the additional 100 loss was on the free half windshield

Excellent information as always.

Thanks Will.

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And you’re so sure your friend isn’t fricking with you

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Given I have the confidential dealer price sheets from honda and polaris on the units I was looking for, yeah, I'm sure.

It never ceases to amaze me how petty some of you are when someone has access to more information that you aren't privy to.

You’re right

Anytime anyone makes any sort of claim, whether it’s financial, athletic, social, etc, everyone here shits on them for some reason

The internet is a weird fricking place

I'd love to know who, my buddy whose the finance guy for an all-star dealer says they eviscerate the guys who do that sort of thing

No one in Denham. Covington, baton rouge, Denver, Houston.

I was the only one who didn't go into sales.

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For example, someone with a 750 credit score says they qualify for a 72 month loan at 4.59% where they could’ve gotten 3.5% on a used car. The dealership is making thousands off that deal. 

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What the frick are they buying, a used Bentley?

Math isn't the strong suit for a lot of y'all.

Let's say they're doing 47 grand before tt&l, even if they get to keep 100% of the markup that's going to be around 1850 bucks. A more likely scenario is a 70% take , that's about 1300 bucks.

wow

Let's break this down for you, since you clearly don't understand.

Car loans are simple interest loans that are not compounded. We'll use a Principal amount of $30K, rates of 4.59% and 3.5% and a term of 72 months or 6 years so we can be sure you are not confused.

We'll use the formula A = P(1 + rt)

First, converting R percent to r a decimal
r = R/100 = 4.59%/100 = 0.0459 per year.

Next Solving our equation we get:
A = 30000(1 + (0.0459 × 6)) = 38262
A = $38,262.00

The total amount accrued, principal plus interest, from simple interest on a principal of $30,000.00 at a rate of 4.59% per year for 6 years is $38,262.00.


Next, we'll use the interest rate of 3.5%

A = 30000(1 + (0.035 × 6)) = 36300
A = $36,300.00

The total amount accrued, principal plus interest, from simple interest on a principal of $30,000.00 at a rate of 3.5% per year for 6 years is $36,300.00.

Therefore, the delta between an interest rate of 4.59% and 3.5% for a term of 72 months, leaves us with a difference of $1,962 . Thus, we are using a small, reasonable amount of $30K being financed.

Math clearly isn't a strong suit for YOU

quote:

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Let's break this down for you, since you clearly don't understand.

Car loans are simple interest loans that are not compounded. We'll use a Principal amount of $30K, rates of 4.59% and 3.5% and a term of 72 months or 6 years so we can be sure you are not confused.

We'll use the formula A = P(1 + rt)

First, converting R percent to r a decimal
r = R/100 = 4.59%/100 = 0.0459 per year.

Next Solving our equation we get:
A = 30000(1 + (0.0459 × 6)) = 38262
A = $38,262.00

The total amount accrued, principal plus interest, from simple interest on a principal of $30,000.00 at a rate of 4.59% per year for 6 years is $38,262.00.


Next, we'll use the interest rate of 3.5%

A = 30000(1 + (0.035 × 6)) = 36300
A = $36,300.00

The total amount accrued, principal plus interest, from simple interest on a principal of $30,000.00 at a rate of 3.5% per year for 6 years is $36,300.00.

Therefore, the delta between an interest rate of 4.59% and 3.5% for a term of 72 months, leaves us with a difference of $1,962 . Thus, we are using a small, reasonable amount of $30K being financed.

Math clearly isn't a strong suit for YOU

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I'll post a picture of the Excel files later, but your numbers are off

The principal decreases in size. You forgot that.

The actual interest on 30 grand at 3.5% over 72 months is $3,348.24, assuming a first payment roughly 44 days out.

If you wish to redo your calculations and prove me right feel free, but I want to thank you for proving my point that the majority of the people here don't actually understand what the frick they're talkin about.



Used our insurance software... But... Enjoy.

So are you going to admit that you forgot the principal decreases

Or do you plan to just keep your head in the sand?

Eta: I probably should have mentioned I run an insurance auditing firm