Used Cars (Dealer) AFTER COVID-19

Scooter said:
They are all the same are almost. But for sure you are confusing certified and non certified.
A certified BMW ( warranty by BMW ) is 1.9%. A non-certified one is 5.99%. At the same dealer.
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I know about this, but I thought it was to be financed through their in house bank, like BMW Finance, etc... I did not know they also got those rates via regular banks.

Also, the bigger guys seem to also have better rates at banks than the smaller places, I guess due to the amount of business they do.
 
G-Bus said:
I know about this, but I thought it was to be financed through their in house bank, like BMW Finance, etc... I did not know they also got those rates via regular banks.

Also, the bigger guys seem to also have better rates at banks than the smaller places, I guess due to the amount of business they do.
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Like any other places...you can negotiate. SO how banks work, they pay back the dealer an amount depending on factors. Going to give you an example :
Between 10-15k financed: dealer gets back at 4.99% ( 500$) at 5.99% (750$) and at 6.99% ( 1000$).
Between 15-20k financed: dealer gets back at 4.99% ( 600$) at 5.99% (850$) and at 6.99% ( 1100$).
Between 20-25k financed: dealer gets back at 4.99% ( 700$) at 5.99% (950$) and at 6.99% ( 1200$).

Numbers I made up so you have an idea, not real numbers. So chances are that a bigger place ( for having more volume) are willing to negotiate easier...
All this to say, small place, big place, all get same rates and same kickbacks. It's up to you how you manage to get 4.99% instead of 6.99%.

But it is logic that at a bigger amount financed, let's say 40k financed ( at 4.99%) , they get same kickback as financing 20k at 6.99%. So that too might be a factor in the rate you are getting...


BMW finance, would only finance a certified car.
If the BMW is not certified, they can not finance it, so any other banks ( Scotia, BMO, RBC, etc) offer it at 4.99 to 6.99%
 
6.99% is pretty much the standard rates when financing through a BANK (and not through the manufacturer with a CPO program), some dealers are willing to do it 5.99% right upfront and some small used cars dealer lots are giving away their financing at 4.99% with 0$ in financing profits because they prefer to focus on selling the car and don't have any F&I to pay
 
Scooter said:
Like any other places...you can negotiate. SO how banks work, they pay back the dealer an amount depending on factors. Going to give you an example :
Between 10-15k financed: dealer gets back at 4.99% ( 500$) at 5.99% (750$) and at 6.99% ( 1000$).
Between 15-20k financed: dealer gets back at 4.99% ( 600$) at 5.99% (850$) and at 6.99% ( 1100$).
Between 20-25k financed: dealer gets back at 4.99% ( 700$) at 5.99% (950$) and at 6.99% ( 1200$).

Numbers I made up so you have an idea, not real numbers. So chances are that a bigger place ( for having more volume) are willing to negotiate easier...
All this to say, small place, big place, all get same rates and same kickbacks. It's up to you how you manage to get 4.99% instead of 6.99%.

But it is logic that at a bigger amount financed, let's say 40k financed ( at 4.99%) , they get same kickback as financing 20k at 6.99%. So that too might be a factor in the rate you are getting...


BMW finance, would only finance a certified car.
If the BMW is not certified, they can not finance it, so any other banks ( Scotia, BMO, RBC, etc) offer it at 4.99 to 6.99%
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This is pretty much every manufacturer

BMW have a CPO program that kills it; certification is like 2K and a used 3-series is getting 0.9% of financing rate
 
Thanks for the clarification @Scooter, I will keep that in the back of my mind when negotiating. I did not know they had different kickbacks regarding the interest rate.
 
Pour ceux que ca concerne et pour répondre à la question sur certains taux d'intérêts, les banques chargent maintenant une sur-prime de 2% sur le financement des 2013 et 2014, petit détail qui peut inciter quelqu'un à opter pour un 2015 avec presque les mêmes paiements qu'un 2014 théoriquement moins cher. Je pense pas que ca l'a un lien direct avec la pandémie mais contrairement à mes attentes, le taux a monté pour les plus vieux chars. Surprenant
 
I can confirm that Audi is offering 2.98% for 60 Month on their Used cars. If you want 72 or 84 its 3.98%
 
^^^ Pas la meme chose. Toi tu parles de la periode de finacement . PLus longue , plus chere. Ca c'est normal.
Lui il parle de l'anee de l'auto a financer.

Jeentonik said:
Pour ceux que ca concerne et pour répondre à la question sur certains taux d'intérêts, les banques chargent maintenant une sur-prime de 2% sur le financement des 2013 et 2014, petit détail qui peut inciter quelqu'un à opter pour un 2015 avec presque les mêmes paiements qu'un 2014 théoriquement moins cher. Je pense pas que ca l'a un lien direct avec la pandémie mais contrairement à mes attentes, le taux a monté pour les plus vieux chars. Surprenant
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Me semble que la limite est de 6-7 ans...et ca toujours etait de meme. Ou ce'st 10 ans?
Doncpour les autos de 6 ou 7 ans , pas mal plus elevee les taux.
 
Scooter said:
^^^ Pas la meme chose. Toi tu parles de la periode de finacement . PLus longue , plus chere. Ca c'est normal.
Lui il parle de l'anee de l'auto a financer.



Me semble que la limite est de 6-7 ans...et ca toujours etait de meme. Ou ce'st 10 ans?
Doncpour les autos de 6 ou 7 ans , pas mal plus elevee les taux.
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The longest I've seen was FCA advertising 96 months. Imagine getting a journey on that term? You best not stop believing it was a good move...

that's a wicked one two punch of bad decisions: super long term and steep, steep depreciation on something that just won't last.

Toyota seems pretty conservative. I'm not sure they even offered 84 months. They might now.
 
Scooter said:
^^^ Pas la meme chose. Toi tu parles de la periode de finacement . PLus longue , plus chere. Ca c'est normal.
Lui il parle de l'anee de l'auto a financer.



Me semble que la limite est de 6-7 ans...et ca toujours etait de meme. Ou ce'st 10 ans?
Doncpour les autos de 6 ou 7 ans , pas mal plus elevee les taux.
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C'est habituellement une règle de 10 ans; si tu achètes un char de 5 ans (un 2015 en 2020), tu peux habituellement financer 5 ans pour totaliser 10 ans, si le char a 7 ans tu finances 3 ans et etc. Tu peux étirer ca d'une année ou deux dépendamment du char et du crédit du client en demandant une dérogation
 
kahos said:
The longest I've seen was FCA advertising 96 months. Imagine getting a journey on that term? You best not stop believing it was a good move...

that's a wicked one two punch of bad decisions: super long term and steep, steep depreciation on something that just won't last.

Toyota seems pretty conservative. I'm not sure they even offered 84 months. They might now.
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Hyundai did 108 months for new cars, didn't last very long
 
96 is the longest
Last inquirie on a 2012 car, interest was at 7.99% (maybe 6.99% with a great credit?) I haven't applied.
 
Jeentonik said:
Hyundai did 108 months for new cars, didn't last very long
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Actually im pretty sure at one point hyundai was offering 120m promo at 0%, I remember i had clients going bananas!! or was it maybe 108...anyways it was something rediculous!

as for used cars, your credit could make a big difference on the rate and term.
 
Jeentonik said:
Hyundai did 108 months for new cars, didn't last very long
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WOW !!!
9 years to finance a car ??? Damn !!!
Well...this is why why go bankrupt...people don't have 50$ in their pocket, because they have to pay the Hyundai biweekly 108 month financing. It better be around 50$ biweekly
 
MTV said:
I got 1.98% on a 2018 CPO car....
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I presume it depends on which Audi you choose, they might have different rates?

I know for May and the Audi I chose the rates are locked at 2.98% for 60 Month (If you want 72 or 84 its 3.98%)
 
It was something like 1.98% on 5 years (60 months) and 2.98% on 6 years (72 months)
 
Ça fait pas un peu loin d'acheter ton prochain véhicule chez un concessionnaire à Brossard lorsque tu habites à Ste-Anne-des-Plaines?
 
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