Quote:
Originally Posted by Mattei213
Can anybody enlighten me? I'm currently at 4% for 48 months. I wonder if I'm being mugged? After reading the thread, I've seen many better conditions than mine. What are these companies taking into consideration when performing loans with various interests?
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How’s your credit and history? Who’s the bank? There are so many pieces to your story that we can’t really apply a blanket statement or reasoning.
As a former finance manager, I have seen some banks put a higher buy rate on 36 and 48 months. As a consumer, it seems counterintuitive, but remember a bank seeks to make money on these loans. So they’ll put a higher rate in exchange for the shorter term, in short the bank always gets their money.
Either that or the dealer added a point or two to the buy rate and you accepted it.
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