My SS/TC arrived at my dealership last night, so I went to have a look. It's being PDI'd and plated today, so I'll have it tonight... But that's another story.

When I got to the dealership, my salesperson made me a different financing offer (we'd agreed on 6 years at 2.9% 2 months ago).

He said GMAC was having liquidity fears given the market and wanted to scale back their amount of financing... In an offer starting today, they transferred my loan to the Royal Bank of Canada at a rate of 7.85% (!!!). Sounds like a rip-off, right?

Well, no... The dealership gave me a FIVE THOUSAND DOLLAR CREDIT, on top of the $1,300 I already had them discount the car. Even with the higher interest rate, the capital financed is so low now that I'm saving $2k over the 6 years. If I pay the car off sooner, which I have every intention of doing once I graduate, I'll save even more... Based on my quick calculations on the amortized loan, I could save up to $5k one deal to the other.

For those waiting on delivery of their cars on previously agreed-upon financing terms, ask your dealership about this. The sales guy said this is a program launched today. Maybe he's mistaken, but in my experience he's very honest and usually bang-on. Maybe this is Canada-only, and maybe someone who works at a dealership can confirm. Just though I'd share.

Not only do I get my TC today, I'm also less in debt and richer in the long run... Today is a good day

 

very nice

 

dam bro, i think your calculations are right.. ud be saving ~$5k.... thats a great deal..

 

Well, first off, I'm in Honours Business Administration at Wilfrid Laurier University and I'm specializing in Finance... I'm typically good at these types of calcs. This one is real simple, and the Excel spreadsheet I ran confirms everything the dealer said.

For those who haven't had much experience with amortized loans, I can post a copy somewhere (if someone wants to explain where I can host .xls sheets).

 

Not a bad deal.
And that's one thing people miss when dealing with loans/investment... it's more about the principle and duration, rather than the rate. You have play it smart to save.

 

shweeeet, another business person.. im specializing in accounting myself at ASU.

 

Yesterday while riding the company elevator I saw a news headline about GM only accepting people with over a 700 credit rating from now until the market settles down. I'll try and find something on it...

Yup here we go: http://www.leftlanenews.com/gmac-to-...uto-loans.html

 

you could use print screen, that might not work to well though

 

It's nice to have the actual functionality of the spreadsheet in order to crunch different numbers. I have the payments & the declining capital balance broken down across all 60 months, along with the respective splits between principal repayment/interest expense for each period.

With the spreadsheet this way you can literally forecast the exact cost of paying down the balance of the car in a given month instantly. I also put my original financing deal alongside for comparison purposes.

 

fuuuuck... thats when you know wev hit an economical downslope.. which is obvious right now.

 

Its called Extended Term Finance Purchase. We have had this since they dumped 72month GMAC financing. Now they add cash rebates if you go through the dealership at 72 months at a bank rate. And yes all Cobalt's with LT or SS trim get the $5000 Credit, while ls/base models get a $3500 (manual trans) or $3000 (auto trans) credits.

Problem they faced was GMAC has a very tight restriction on finance, as you may only be a certain percentage over dead cost. Thus most deals will now require money down. This percentage is added after dead cost and includes anything financed in the vehicle except extended warranty. Banks however do not have such heavy restrictions.

Hope that helps.

 

Awesome and congrats.

 

Does this apply in western canada as well and does it only apply if you ordered ur SS and the rate got changed before u get the car?

 

cool.

 

does this apply to the us haha ill go buy on tomorrow the dealer by me is letting 08 ss/tc go for around 19k
but its probly only in canada

 

yea after i got rid of my cobalt i had to get financing for my new car through gmac and it took them about a week to get me approved but im 20 and its a cadillac my credit was a little under 700 though not by much

 

Even if they throw in a discount I still find nearly 8% a year in interest a bit hard to swallow on principle alone.

 

Congrats.

 

hell ya

 

UPDATE:

To add insult to injury for GM on this... My dad has had a huge line of credit at 3% forever now. He's just going to buy out the loan on his line of credit (we have to wait 6 months to do so per the contract with GM, I believe) and I'll just pay him at 3% vs. the 7.85%

I'm seriously going to pocket some $6k in discounts on this thing when all is said and done.

 

get a 20g turbo lol