re: capital one/ my dealer..

[rleggs]

My dealer just told me that they will not accept capital one's check/draft?..am i getting scammed here? ..this is Knauz MB in Chicago. thanks

To remove this ad, register today or login if you already are registered!

[superchet]

He wants the finance biz too? Tell him to go **** himself.

[oknish]

Did they say why? And if they say, it's because of the delay in payment, tell them that you will pick up the car when check clears.

This is an old tactic and they want you to use their financing so they can make some money of the "dealer spread" on the interest rate.

[cjh.]

That seems kind of odd, especially if you used to be able to use it.

[GLDriver]

Is the sales guy trying to trick you. Wondering if he has someone else interested in your car paying much more I bought my GL with capital's check. I don't understand why there is an issue

[mbslk350]

Just sent you an email. I bought from the same dealer last week. He told me that there is a line of people out the door willing to pay more than MSRP for the GL320. An exaggeration to be sure...but the demand is high and the supply is low. Maybe they regret the deal they gave you. I know they regretted my deal.

[rleggs]

Hi...yes that iridium silver is mine....total price is $78,538. Wanted your opinion...they're giving me 7.95% for 60mths with no money down. Is this a good deal?...6.95% for 60 with 10k down.

capital one is giving 7.85 for 72mths..more interest obviously...

Our friends recommended knauz to us...friendly..etc...

I await your response asap!...

Thanks.

[rleggs]

that capital one will "bog them down in paper work" that they have already done with other banks"...what BS?....called cap.one...told me that all they have to do is to call them and talk to funding dept. ?

thoughts?

[rleggs]

i just started a new job..will not get a paystub until a couple of weeks...cap.one needs a copy of a paystub/contract....so, should I

1. wait for 2 more weeks and go with cap.one ...7.85 for 72mths...or

2. go with the dealer @ 7.95 x 60mths..and get the car now?

Thanks guys.

[Stumblefoot]

Originally Posted by rleggs

i just started a new job..will not get a paystub until a couple of weeks...cap.one needs a copy of a paystub/contract....so, should I

1. wait for 2 more weeks and go with cap.one ...7.85 for 72mths...or

2. go with the dealer @ 7.95 x 60mths..and get the car now?

Thanks guys.

IMO, it depends on whether you need to extend the payments for another year, to help with cash flow. Personally, if you've got to finance the vehicle, why not take out a 10 yr. HELOC at 7%, pay it off in the same time period you were planning to do so with the vehilce loan anyway, and get the tax write-off of interest to boot?

[oknish]

I think what mbslk350 has hit the nail on head. The dealer is probably seeing more demand now and are trying to play you. They know they have a confirmed sale with you but are not making as much money as they can. So the old "Bait and Switch" comes around with the excuse that Cap One will bog them down. Tell them you can take care of paperwork with Cap One and will pick up the car when it's all done. Trust me, there is nothing out of ordinary about paperwork with Cap One.

[rleggs]

only possible problem with that is we recently purchased a home...equity?

the other loan i heard of: 1040 auto loan?..tax deductible interest?..anyone heard of this? ...offered by first american bank?.

thanks.

[Nevada Jack]

Originally Posted by rleggs

only possible problem with that is we recently purchased a home...equity?

the other loan i heard of: 1040 auto loan?..tax deductible interest?..anyone heard of this? ...offered by first american bank?.

thanks.

That sounds like another name for a equity loan to me...:-)

Have you tried any credit unions? They are quick to take on new accounts and generally have much better rates.

[mbslk350]

I would go along with Stumblefoot's suggestion. Home equity would be cheaper because you can deduct the interest. If that's not an option, then I also agree with his observation that your cash flow situation may dictate whether you can do a 60 month term or a 72 month term.

I know that the interest rate goes up as the term extends out and as your down payment shrinks. In your case, you're looking at long terms and small down payment. But you're being quoted nearly 8% from both places. My credit union is offering 5.99% for 60 months and 6.49% for 72 months. But you have to be an employee to get that rate. Do you have a credit union where you work?

So, I think you should look at home equity or else shop around for a car loan. Look at local banks. Especially those with local ownership (not nationwide brands).

Regarding the new job and the lack of pay stub: Your employer should be able to give you a letter of employment and income verification.

[oknish]

One more thing rleggs - WHATEVER you do, don't show any anxiety to dealer that you really want this car. They are pros and know how to elicit the right response viz. your signature on dotted line.

Buyer's remorse is not pretty, especially, after you spend so much money. You want to enjoy the car not regret your decision.

So hang in there, ask all the questions you want. I am sure there is 320 out there with your name over it.

[Txhurdle]

From personal experience, I can tell you of a former finance director at my dealership who cut ties with Cap One because of the hoops they throw at dealers. Fee's directed at dealerships to accept their checks, slow payment, asking for additional client paperwork after the fact...and then not funding based on the new stipulations they brought up after paperwork was signed. New Director opened the door to them again, but as I mentined, from personal experience they can make it difficult to work with them when they want to.

[cc5731478]

I used cap one with my dealer and had no problem. But another suggestion would be if you belong to a warehouse club (Sam's, Costco, etc) and you'd get a membership rate. I used Costco and they go thru cap one, not sure who Sam's Club uses but it may be worth a try.

[eesnard]

Originally Posted by Stumblefoot

IMO, it depends on whether you need to extend the payments for another year, to help with cash flow. Personally, if you've got to finance the vehicle, why not take out a 10 yr. HELOC at 7%, pay it off in the same time period you were planning to do so with the vehilce loan anyway, and get the tax write-off of interest to boot?

I have a problem putting my house up as collateral on a car loan.

[oknish]

Originally Posted by eesnard

I have a problem putting my house up as collateral on a car loan.

Then don't. Stumble merely presented an option that could work for some people and won't for others.

[StevethePilot]

Originally Posted by eesnard

I have a problem putting my house up as collateral on a car loan.

While literally that'd be what you're doing, technically you're getting a home equity line of credit and choosing to purchase a car with it. Is all.

[boxboss]

Originally Posted by eesnard

I have a problem putting my house up as collateral on a car loan.

The only time this would be a concern is if one has ANY doubt about their ability to pay the loan. If that is the case, they shouldn't be buying the vehicle - be it a GL or a Kia.

I understand unforseen circumstances happen that change financial positions, but one should have enough reserves to deal with that prior to making such a large $ purchase.

[Stumblefoot]

Originally Posted by oknish

Then don't. Stumble merely presented an option that could work for some people and won't for others.

Thanks for having my back oknish.

eesnard, I appreciate your point and for some, I agree that they should never pay for their car by borrowing against their home. IMO, those aren't the same consumers who can "afford" a GL, because they are financially secure and savvy. If it is, then they probably shouldn't be buying the GL anyway.

Again, this is just my opinion and what makes this forum so great... the sharing of many differing perspectives. Best wishes to you!

[eesnard]

Hi Stumblefoot,

I apologize if I came off sounding like I was personally attacking you. That was not my intention, I was just trying to point out some of the pitfulls others may not have considered when getting a home equity loan. rleggs, my apologize to you for the thread drift.

[Stumblefoot]

Originally Posted by eesnard

Hi Stumblefoot,

I apologize if I came off sounding like I was personally attacking you. That was not my intention, I was just trying to point out some of the pitfulls others may not have considered when getting a home equity loan. rleggs, my apologize to you for the thread drift.

No worries at all and I'm glad to have you contributing to the forum. Hope to see more of you around the threads.

[oknish]

eesnard - I don't think you came off as "attacking" anyone. Like Stumble said "what makes this forum so great... the sharing of many differing perspectives.".

Welcome aboard