I back you up.
Based on personal experience assisting running a finance office, a dealer finance officer tries to maximize his income by charging as much as he can above the contracted buy rate from whoever the lender is.
The interest rate the dealer charges is based on only 2 things:
1. the odds you'll pay the loan off (check your credit rating) and your prospects.
2. how much he thinks he can get from you. The dealer principal may set minimum limits above the buy rate. Interest rates and loan lengths are negotiable above thos limits.

 

[quote=spearsoft;423362]Mahout, the rate is based on the car as well as the credit, so NO, you can't get 3% on a fit no matter what kind of credit you have. At least not through honda. Personally I am happy with their financing. Like matthew, I got a 9% rate because of my credit (age and whatnot), but because its simple interest I still pay more towards the principal than interest. {quote}


Loans are really based on whether you have the ability to pay the loan off no matter what vehicle, house, or business.
The collateral is almost immaterial; its only use should be it being more valuable than the loan value at any point in the loan but in the last few years in both vehicles and housing, people obtained loans in amounts greater than the expected values. The drop in vehicle values from $4/gal gas and the disintegration of housing markets demonstrate what happens with irresponsible loans.
Now we taxpapers are really going to pay for the incompetence of banks and the 'fannies'.

 

What kind of rates are people in Canada getting through their Honda dealerships? Just curious....

 

I was told the Fit is getting a standard rate of 7.2 in Canada through dealership.

 

Concurs with what I heard so thanks for your input!

 

I just applied to the bank that my father has all of our buisness loans at. I was approved for a 6.29% for $12,000 with no co-signer today. Pretty sweet deal if you ask me, figuring in my situation.

 

I just qualified at my credit union for 5.49% up to $20,000 so I was quite pleased.

 

that is a fair rate... but it also depends on your Tier Rate, etc.

i can get:up to 36 mos.
37 to 72 mos.


3.75%
5.25%

 

Honda Financial can be competitive with their rates if they want to. I recently bought an Acura and financed with them. They offered to beat my CU pre-approval by .5%, same terms. I am hoping for the same when the Fit comes in. The only drawback was their GAP insurance cost a little more than my CU so I won't realize actual savings for 14 months.

 

I got 5.39% through Honda Financial. This is for 60 months and no money down. The sales guy started at 6.9%. My bank (M&I) would do 5.49% so they had to go below this to get it. I agree with CBR2200, Honda can drop rates if they have to.

 

Was this for a FIT though?

 

Yes, 2009 Fit Sport MT. This was last Thursday (9/11).

 

Which is true; however, just because they quoted an interest rate it doesn't mean that was what it really was. If you didn't compare the monthly payments for the same principal, down payment and length of loan you don't know if you got a bargain.

 

Thats good news. My bank is currently offering 4.99%.