r/askcarsales • u/No_Excitement7463 • 1d ago
US Sale How much can I put up front on the gentlemen’s agreement?
I got a great deal on a new car with the “gentlemen’s agreement” to not pay off the financing for 6 months. I understand I’m under no obligation to follow this but I’m really happy with the car, the price and the dealer so I’d like to throw them a bone.
The dealer suggested I could put a huge chunk of it in the first month (they told me a number that’s like 85% of the loan) and then pay off the rest over the next 5 months.
I had two questions related to how to not screw the dealer over: 1. How much is too much to put in month 1? This loan is about 35K. 2. Do I need to wait until I receive the first statement to start paying? Considering they charge interest by the day I’m considering contacting the lender and getting going on the payment ASAP, before that first statement and payment due date.
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u/BiggestmanBlastoise Ford Sales 23h ago
You should know ahead of time how much interest you will pay on the first 6 payments - check your payment schedule. Pay normally the first 6 months (unless you are hard up for cash) then pay the rest month 7. You shouldn't be paying terribly much in interest. Wait for the first statement.
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u/IronSlanginRed Independent Used Sales 23h ago
You have to wait till the loan is originated and you get the statement. You can break it up however you want, it makes no difference when, its just waiting till the dealers 3-6 month agreement with the bank runs out so they can't clawback their finance reserves.
Don't overthink it or make the math crazy hard on yourself for very minimal savings. Do a chunk with your first payment, then at 6 months get a payoff quote and pay the rest. To find out how much you can do, find your pricipal loan amount, subtract 6 months of your normal payment. Then you can do up to 75-85% of that.
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I got a great deal on a new car with the “gentlemen’s agreement” to not pay off the financing for 6 months. I understand I’m under no obligation to follow this but I’m really happy with the car, the price and the dealer so I’d like to throw them a bone.
The dealer suggested I could put a huge chunk of it in the first month (they told me a number that’s like 85% of the loan) and then pay off the rest over the next 5 months.
I had two questions related to how to not screw the dealer over: 1. How much is too much to put in month 1? This loan is about 35K. 2. Do I need to wait until I receive the first statement to start paying? Considering they charge interest by the day I’m considering contacting the lender and getting going on the payment ASAP, before that first statement and payment due date.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
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u/Nice-Ad1989 Sales 23h ago
Basically leave enough payments for the 6 months.
$500 payments, comes out to 3k ish. I would throw 30k as soon as you get access to your loan account. Then normal monthly payments till the 6 mo mark.
Used random payment for example purposes.