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SVTPerformance's Chain of Restaurants
Road Side Pub
Current New Vehicle Market
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<blockquote data-quote="13COBRA" data-source="post: 16798929" data-attributes="member: 138337"><p>Couple of things.</p><p></p><p>1. Not necessarily 0%, just whatever their preferred APR is for the term. You can do a 66 or 75 month flex buy. The 66 term will go off the advertised 60 month rate, and the 75 will go off of the 72 month rate.</p><p>2. The way it works... If you finance $50k for 66 months at 0%. You take the amount financed, divide it in half. Then either move 15% or 18% to the back term. So, half would be $25k and $25k. First $25k is due in 36 months, and second the remaining 30 months. You can move an additional 15% ($3,750) or 18% ($4,500) from the front to the back. If you chose 15%, your payment would be $707.27 for 36, then $815.44 for 30 months. If you chose 18% it would be $682.31 for 36 months, then $845.39 for 30 months.</p><p>3. The buyer having less equity isn't a positive for the dealership. In fact, in moot, unless they're trying to trade, and we'd prefer them have a bunch of equity as it's much easier to get approved.</p><p>4. There is no pre-payment penalty. The second term payments won't lower though, it'll just drop the principal off of the end of the loan (i.e. pay it off if 58 months rather than 66).</p><p></p><p>Flex Buy came into being for college students, or people who are planning for a change in their life in a few years. College kids could enjoy the lower payment, then when they supposedly got a good paying job, they could handle the bump.</p><p></p><p>9 times out of 10 people either trade out or refinance before the payment goes up.</p></blockquote><p></p>
[QUOTE="13COBRA, post: 16798929, member: 138337"] Couple of things. 1. Not necessarily 0%, just whatever their preferred APR is for the term. You can do a 66 or 75 month flex buy. The 66 term will go off the advertised 60 month rate, and the 75 will go off of the 72 month rate. 2. The way it works... If you finance $50k for 66 months at 0%. You take the amount financed, divide it in half. Then either move 15% or 18% to the back term. So, half would be $25k and $25k. First $25k is due in 36 months, and second the remaining 30 months. You can move an additional 15% ($3,750) or 18% ($4,500) from the front to the back. If you chose 15%, your payment would be $707.27 for 36, then $815.44 for 30 months. If you chose 18% it would be $682.31 for 36 months, then $845.39 for 30 months. 3. The buyer having less equity isn't a positive for the dealership. In fact, in moot, unless they're trying to trade, and we'd prefer them have a bunch of equity as it's much easier to get approved. 4. There is no pre-payment penalty. The second term payments won't lower though, it'll just drop the principal off of the end of the loan (i.e. pay it off if 58 months rather than 66). Flex Buy came into being for college students, or people who are planning for a change in their life in a few years. College kids could enjoy the lower payment, then when they supposedly got a good paying job, they could handle the bump. 9 times out of 10 people either trade out or refinance before the payment goes up. [/QUOTE]
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SVTPerformance's Chain of Restaurants
Road Side Pub
Current New Vehicle Market
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