After reading these posts, I think I got screwed over. I have pretty good credit (719) but ended up financing at 7.9% with Mazda/Chase. They told me my credit was average and that since I was only putting $3k down and couldn't do less than a 5 year term that I couldn't get a better rate. I've been getting a lot of refi offers so I may pursue that route soon.
Dealer Changed Financing from Mazda Direct to Capital One
- Thread starter DANGSDUNKS
- Start date
TreyP
2018 Soul Red AWD Touring CX-5
Holy crap!! That is a terrible rate. Definitely pursue a refinance deal asap.
deepfriedsushi
Member
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- 95 Miata, 14 CX5 Touring FWD, 18 CX9 GT FWD
(eek2)
Kaptinjak - Wow....sorry to say...you got swindled...Your credit score isn't bad. They just straight up took advantage of you. Definitely refinance. This is why it's advised to find out what you qualify for from other lenders before you walk into the dealer.
Hopefully you can smoothly transfer the loan over to something with better terms.
DANGSDUNKS - When I was shopping around for my CX5, Fremont offered some unbelievable prices, but they always had some catch and their customer service sucked. So I went somewhere else. Be sure to rate them as you see fit when the quality survey comes in. If you're not satisfied, let them and Mazda HQ know.
Kaptinjak - Wow....sorry to say...you got swindled...Your credit score isn't bad. They just straight up took advantage of you. Definitely refinance. This is why it's advised to find out what you qualify for from other lenders before you walk into the dealer.
Hopefully you can smoothly transfer the loan over to something with better terms.
DANGSDUNKS - When I was shopping around for my CX5, Fremont offered some unbelievable prices, but they always had some catch and their customer service sucked. So I went somewhere else. Be sure to rate them as you see fit when the quality survey comes in. If you're not satisfied, let them and Mazda HQ know.
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You should contact local consumer groups and or government consumer protection about your 7.9% rate. In this current post-recession time of extremely low interest rates 7.9% is VERY HIGH. VVVVERY HIGH.
Right now banks can borrow money for nearly nothing which is why you're seeing rates of 0.9, 1.9 and 2.9%. The bank gets a small, but reliable income and you get a small interest amount.
Your credit score seems a *little* lower than mine, but I put zero down and got 1.9. They first try to set me up for 48 month at 2.9 which was probably just a way to get a little more commission but I corrected them and they were quick and polite in fixing that.
7.9 Wow, I just can't believe that. Now there may be something about your personal case that makes this legitimate, but without knowing it I would definitely investigate much further and see if you can refinance at a lower rate. Even 2.9 would be less than half of what you're paying.
Don't accept it unless you have to and make sure everyone knows who your awful dealer is.
newMazdaCX5
Member
I have a question to all the people who were able to avail the Mazda 0.9% financing through Chase.
1) Did you receive any notification from Chase regarding the load, payments, viewing loan details online. How long does it take for it to do so ?
I signed a "Buyer's Order" and "Retail Installment Sale Contract, Simple Finance Charge" which says that I will be paying the Loan Amount plus Interest at 0.9%. It also gives me the total number of monthly installments as well as the due date for the first installment. It also says the seller assigns interest in this contract to Morgan Chase Bank. Is this what everyone else had to go through as well ?
1) Did you receive any notification from Chase regarding the load, payments, viewing loan details online. How long does it take for it to do so ?
I signed a "Buyer's Order" and "Retail Installment Sale Contract, Simple Finance Charge" which says that I will be paying the Loan Amount plus Interest at 0.9%. It also gives me the total number of monthly installments as well as the due date for the first installment. It also says the seller assigns interest in this contract to Morgan Chase Bank. Is this what everyone else had to go through as well ?
Yes. I think it took a week and a half or so when I received the first payment voucher and it included instructions to access online. It didn't include a payment / interest schedule, but you can get that online or just do a google search for loan payment calculator and put in the details.
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Yes. The title goes to the lender until the loan is paid off as collateral. Just in case your next question is "are there any early payment penalties" the answer is no. Though I have to say in most cases its going to be in your financial interest NOT to pay it off early, since you aren't going to get anything else with an interest rate that low. You could do basic investments with the cash and you'd more than offset the loan interest.
robertmazda
Member
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- 2013 CX-5 Touring
Maxwax - while we all agree that 7.9% is nuts, why complain to the government or consumer agencies? Buying a car is a two way street. You can walk away at any point, no one is making you buy the car or accept the terms. The OP should have done some basic research and looked for loans before going to the dealer. There is no implication here of fraud, just of offering a bad deal that was accepted. Bad business practice perhaps, but who is ultimately responsible for accepting the agreement? Personal responsibility has to come into play at some point.
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- 2017 Mazda CX-5 GS AWD, 2017 Honda Pilot EX
The advertised rate that Mazda promotes is always through a lender. They usually have a preferred lender they like to use, but Mazda does not have their own crediting service. That's not a bad thing since they tend to offer better rates than say Honda, which has its own credit service.
Banks are allowed to sell your loan to whomever they want but they must keep the terms the same.
Now if you were mislead about the terms and you can prove it than you might have an issue you can pursue.
I would start by going in with you actually mazda direct offer and talk to the manager. If all else fails you should be able to re-fi at that rate.
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- 2013 Mazda3 i Sport
Dealer probably "upsold" the rate... IE: they gave you 4.9, but on the backend "sold" the loan at 3.9%... (Getting a 1% Profit kicked-back) a LOT of dealers do this... it's slimy, but legal (although there's a movement to try to stop this practice)
What can you do?
Get your own loan from a credit union before going to the dealership. Most likely your credit was better than you thought, and the dealer made you pay for that mistake.
For the Record, "Mazda Finance" is JPMorgan Chase (this is stated in all Mazda literature in the fine print). They also do Subaru.
