"Customer Choice Financing"...?
10-24-2013, 07:24 AM
#1
JK Newbie
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"Customer Choice Financing"...?
Hi all,
First of all, sorry for starting up a few threads on here. I'm thinking this should be my last question for a while and the advice you folks give is much appreciated.
So can someone explain to me how exactly this "Customer Choice Financing" works?
Does anyone have any experience with it? The only real info I can find is straight from Chrysler websites so I want something a little more unbiased.
It seems like an intriguing option. I like the idea of having the option to give it back in a few years if I want a different one or if the diesel comes out or something. The lower payments don't sound too bad either. I just want to make sure it's legit and there isn't any "fine print" that takes advantage of buyers.
Thanks in advance
First of all, sorry for starting up a few threads on here. I'm thinking this should be my last question for a while and the advice you folks give is much appreciated.
So can someone explain to me how exactly this "Customer Choice Financing" works?
Does anyone have any experience with it? The only real info I can find is straight from Chrysler websites so I want something a little more unbiased.
It seems like an intriguing option. I like the idea of having the option to give it back in a few years if I want a different one or if the diesel comes out or something. The lower payments don't sound too bad either. I just want to make sure it's legit and there isn't any "fine print" that takes advantage of buyers.
Thanks in advance
10-24-2013, 07:28 AM
#2
JK Enthusiast
Join Date: Sep 2010
Location: Phoenix, AZ
Posts: 186
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Hi all,
First of all, sorry for starting up a few threads on here. I'm thinking this should be my last question for a while and the advice you folks give is much appreciated.
So can someone explain to me how exactly this "Customer Choice Financing" works?
Does anyone have any experience with it? The only real info I can find is straight from Chrysler websites so I want something a little more unbiased.
It seems like an intriguing option. I like the idea of having the option to give it back in a few years if I want a different one or if the diesel comes out or something. The lower payments don't sound too bad either. I just want to make sure it's legit and there isn't any "fine print" that takes advantage of buyers.
Thanks in advance
First of all, sorry for starting up a few threads on here. I'm thinking this should be my last question for a while and the advice you folks give is much appreciated.
So can someone explain to me how exactly this "Customer Choice Financing" works?
Does anyone have any experience with it? The only real info I can find is straight from Chrysler websites so I want something a little more unbiased.
It seems like an intriguing option. I like the idea of having the option to give it back in a few years if I want a different one or if the diesel comes out or something. The lower payments don't sound too bad either. I just want to make sure it's legit and there isn't any "fine print" that takes advantage of buyers.
Thanks in advance
What they have done is taken a Lease and garunteed that they will finance the residual at the end.
Good news is lower payments in the first 36 months..bad news is you end up with a longer term.
10-24-2013, 07:45 AM
#3
JK Super Freak
Just doing some reading online, this option is offered through Chrysler for Canadian customers only.
It's a purchase agreement and not a lease. What it does is offer flexible payment terms for 36, 48, or 60 months. At the end of that term, you can:
a) make a lump sum payment and pay off the remaining balance (much like a loan with a balloon payment in the US).
b) Return the vehicle to the dealer and pay a one-time $199 return fee, plus any additional charges for excessive mileage or excessive wear/tear. (Remember, it's not a lease, BUT, if you return the car, it must meet specific criteria). You're basically selling it back to the dealership.
c) Keep the vehicle and finance the remaining balance at then-current rates.
In general, it's an option for people who shop on payment alone. It works well for people who want to buy more car than they can afford right then and there.
If you plan to keep the vehicle, it's not a good option as you'll end up paying more over the life of the vehicle and financing terms in interest. You're more likely to be "upside down" in your loan structure for a longer period of time and you should carry gap coverage should the vehicle be totaled by your insurance company.
Good personal finance strategy is to finance a vehicle only when it's attractive to do so, at a payment that is no more than 10% of your gross monthly income, for no more than 36 months, at the lowest possible interest rate offered to people with excellent credit.
It's a purchase agreement and not a lease. What it does is offer flexible payment terms for 36, 48, or 60 months. At the end of that term, you can:
a) make a lump sum payment and pay off the remaining balance (much like a loan with a balloon payment in the US).
b) Return the vehicle to the dealer and pay a one-time $199 return fee, plus any additional charges for excessive mileage or excessive wear/tear. (Remember, it's not a lease, BUT, if you return the car, it must meet specific criteria). You're basically selling it back to the dealership.
c) Keep the vehicle and finance the remaining balance at then-current rates.
In general, it's an option for people who shop on payment alone. It works well for people who want to buy more car than they can afford right then and there.
If you plan to keep the vehicle, it's not a good option as you'll end up paying more over the life of the vehicle and financing terms in interest. You're more likely to be "upside down" in your loan structure for a longer period of time and you should carry gap coverage should the vehicle be totaled by your insurance company.
Good personal finance strategy is to finance a vehicle only when it's attractive to do so, at a payment that is no more than 10% of your gross monthly income, for no more than 36 months, at the lowest possible interest rate offered to people with excellent credit.