Is anyone being told that Lotus is not allowing outside financing?

[khamai]

Regarding using dealer financing, often the dealer has a contract with their "preferred" bank and receives a "finder's fee" for funneling customers to that bank. Given that the typical margin on a car is small dealer's bank on those bank finder's fees. So, coming in with cash or your own bank eliminates that profit source for the dealers so they are less likely to lower the selling price or give you more for your trade in.

I've often gone into a dealer and said "cash" and then ask them to knock off a few hundred off the selling price (savings on tax & reg) if I used their bank to finance after checking on how soon I can pay off the bank loan without penalty.

Kiyoshi

 

[Porter]

Unfortunately @KAR120C is right here, @cyanmauve is in Texas and there are no signed laws that prohibit this.

Last year the TX Senate passed SB 1464, but has not yet been signed into law.

This is unfortunately one of those things that depends on the state level laws.

I totally agree with you. But it's important to narrowly state what the claim is. If someone here had said that dealers were free to refuse to do business, that's totally correct. If someone said that dealers were free to require the use of first party financing rather than third-party financing in cases where they needed to interact with the lender, that's also totally true.

What I'm saying is a different case is a dealer that has agreed to a sale for a set price, has put that on paper, and then refuses to accept US money for that price, but will accept a debt instrument like first party financing as a payment instead. Either they're refusing to do business or they aren't.

In most states, the behavior described would be illegal. But apparently in Texas it is legal. There are a number of messed up things about Texas that Texans seem to tolerate though, so I guess we can just add this to the list.

 

[JoeNCEmira]

I was told by a sales rep that Lotus has a deal with Santander (bit odd as they usually do financing for low credit score buyers) and apparently they will be giving “aggressive” financing rates on the Emira and also some good lease opportunities. He mentioned Lotus wants the cars to be out on the road so they will be making financing attractive/obtainable to wide profile of buyers.

 

[Gprodigy]

I was told by a sales rep that Lotus has a deal with Santander (bit odd as they usually do financing for low credit score buyers) and apparently they will be giving “aggressive” financing rates on the Emira and also some good lease opportunities. He mentioned Lotus wants the cars to be out on the road so they will be making financing attractive/obtainable to wide profile of buyers.

Did they tell you the APR?

 

[JoeNCEmira]

Did they tell you the APR?

I wasn’t given any specific numbers and they didn’t go too much in depth. It sounded like they are still working on numbers but he did make it sound like with level of interest, they maybe offering longer lease terms (up to 48 months) and there is a high interest of owners planing on leasing then financing after lease ends. He suggested maybe a potential program along the lines of a “lease to own “ kinda thing.

I’d be super interested with rates and financing options the lucky folks picking their cars up this week are seeing at their dealer.

 

[Barcino2012]

Yea right. lol I walked in yesterday and gave them a personal check.
Told thanks here are your keys enjoy the car.
All the paperwork was done electronically so delivery was instant
Except everyone at dealership game out to applaud and told me have many miles of fun driving

That is very balsy of a dealership taking personal checks…..I only hear certified or bank checks…..good for you

 

[Medic518]

A check is a type of promissory note, but a fully guaranteed one if it's a Cashier's Check or Money Order. That's how large sums of money have been moved around in the US financial system for over 200 years, by definition. And if it's the paper you're worried about, that's fine... do an ACH and deposit the funds directly. That's also an option.

If a dealership refused a valid bank's check with guaranteed funds, or an ACH or wire, because they wanted to soak the customer for more financing %... that's something the Attorney General of that state would probably be interested in. As would the local media.

Can you imagine a dealer refusing a customer's own bank's cashier's check drawn from cash in their account because it's not "legal tender"... this conceptually is just not a thing. At all.

You hit on the point I was going to make - if you finance, and deposit a check from the lender (or transfer in to your account), then pay the dealer from your own account (cashiers or ACH or wire) they couldn't refuse. I have done this before with a specific lender with which I had a long relationship - worst part of that experience was the dealer not knowing their own information (routing/account) for receiving a wire transfer ..

 

[Medic518]

I was told by a sales rep that Lotus has a deal with Santander (bit odd as they usually do financing for low credit score buyers) and apparently they will be giving “aggressive” financing rates on the Emira and also some good lease opportunities. He mentioned Lotus wants the cars to be out on the road so they will be making financing attractive/obtainable to wide profile of buyers.

Interesting that US dealer (I assume) are using a Spanish bank, I am intimately familiar with Banco Santander and their internal procurement processes. Did he say Lotus USA or Lotus?

 

[EspritGuy]

I totally agree with you. But it's important to narrowly state what the claim is. If someone here had said that dealers were free to refuse to do business, that's totally correct. If someone said that dealers were free to require the use of first party financing rather than third-party financing in cases where they needed to interact with the lender, that's also totally true.

What I'm saying is a different case is a dealer that has agreed to a sale for a set price, has put that on paper, and then refuses to accept US money for that price, but will accept a debt instrument like first party financing as a payment instead. Either they're refusing to do business or they aren't.

In most states, the behavior described would be illegal. But apparently in Texas it is legal. There are a lot of fucked up things about Texas though, so I guess we can just add this to the list.

Dude, pretty rude conclusion. Bit over the line.

 

[Porter]

Dude, pretty rude conclusion. Bit over the line.

I was joking, come on. Texas has a bunch of awesome things about it too. I can make a very long list of those!

But point well taken. I went back and softened the language to clarify myself better.

 

[kitkat]

Why aren’t the Santander loan and lease details available now? Aren’t they selling these cars now? Shouldn’t these details have been ready months ago?

 

[Porter]

Why aren’t the Santander loan and lease details available now? Aren’t they selling these cars now? Shouldn’t these details have been ready months ago?

I have the same question. Makes no sense.

 

[EspritGuy]

I have the same question. Makes no sense.

Lotus Finance rate is 8.99 percent. Your CU or bank rate will vary.
You can pay cash, or a certified check from your own bank.
Lotus Lease offering involves 36 months and 10,000 miles annually.
Your dealer should have all the details. There is a pretty strong residual estimate of 69 percent after 3 years, with option to buy.
The monthly Lease amount depends on what you trade or put down.

 

[Porter]

Lotus Finance rate is 8.99 percent. Your CU or bank rate will vary.

They are literally 3.5 to 4 percent off the market. Do they really expect people who have the finances to buy a car like this to do business with their in-house bank at those rates??

 

[Gprodigy]

They are literally 3.5 to 4 percent off the market. Do they really expect people who have the finances to buy a car like this to do business with their in-house bank at those rates??

Insanee makes no sense

 

[dgrace]

They are literally 3.5 to 4 percent off the market. Do they really expect people who have the finances to buy a car like this to do business with their in-house bank at those rates??

Imagine if setting up good financing options, like emissions compliance or customer service, were just things Lotus couldn't be bothered to do.

 

[KCMO68_510]

Lotus Finance rate is 8.99 percent. Your CU or bank rate will vary.
You can pay cash, or a certified check from your own bank.
Lotus Lease offering involves 36 months and 10,000 miles annually.
Your dealer should have all the details. There is a pretty strong residual estimate of 69 percent after 3 years, with option to buy.
The monthly Lease amount depends on what you trade or put down.

They are literally 3.5 to 4 percent off the market. Do they really expect people who have the finances to buy a car like this to do business with their in-house bank at those rates??

The Lotus Finance person at my local dealership presented me with much lower rates from Lotus Finance. I don't think 8.99% is as low as they will go.

 

[Blackthought_]

I’ve heard that the bank that lotus partners with (Santander) lowest is 6.49%.

I wonder if the much higher rates are not prime credit scores. Or, dealers are not offering Santander as an option and are choosing other banks that they normally work with that have higher rates

 

[KCMO68_510]

I’ve heard that the bank that lotus partners with (Santander) lowest is 6.49%.

I wonder if the much higher rates are not prime credit scores. Or, dealers are not offering Santander as an option and are choosing other banks that they normally work with that have higher rates

I've been told that Lotus Finance would go to 5.79% on a 6 year term.

But I want everyone to know, that number changes wildly based on credit score, debt/income ratio, amount of down payment.

 

[Time2Fly]

My dealer said Santander is 8% but they're going to shop for other rates and that I'm able to bring my own bank if I like.