Good question, I have a problem with it because it will almost waste my down payment, plus the gas guzzler tax and it's just to much....

 

Typically, a bank uses a formula/ratio called "loan to value". That's basically how much you're borrowing vs how much the car is worth. The formula is used more for "pre owned" car loans, based on the NADA value at the time of the loan application. But you can rest assured that a bank will not write an auto loan for more than the real value of the car. A bank will not use a "speculative" value, such as anything that considers the current or future "collectability" of a car in considering it's value.

The bank is held accountable to it's share holders. If a loan falls into default and the collateral for that loan must be reposessed and liquidated to recover the assets/investment the bank has in that collateral, the share holders want the loan to be satisfied through the sale of the collateral in "one fell swoop". This includes settling the additional costs of recovery - locating and taking posession of the collateral (collection fees), returning it to the bank, and subsequently holding an auction to recover the investment. The bank prefers to NOT get into legal action to recover a deficit balance after the collateral has been liquidated, the proceeds have been applied to the outstanding balance on the loan, and a balance due still remains. Therefore, the bank typically will only lend 90% of the value of the collateral offered on a loan. Inasmuch, taxes are not included in calculations since they're not recoverable or influential on the value of the collateral, regardless of posession.

If your Challenger MSRP's at $41,195.00, the bank (typically) will lend as much as 90% of that amount, or roughly $37,000.00, regardless of how much over MSRP the dealer is charging you. The first 10%, as well as taxes, title, registration is the purchasers responsibility.

I posted a thread some time ago called "Financing Tips" for folks who were preparing to engage in negotiating a car loan. You can find that thread here: https://dodgechallenger.com/forums/m_13243/tm.htm . I also offered to answer any questions anyone may have "confidentially" via email or PM that they didn't want to ask publicly. That offer still stands.

Hope this helps.

 

Will they still be charging over sticker price in the 09 model year? Or should I bite the bullet and put a deposit on one? the best I could find so far wants 5K over.....

 

That's your decision, Bud. If you want a 2008 bad enough, get it. It's your money.
Since the 2009 Challenger will be "regular production runs", and Cerberus has changed Dodge's "production policy" to facilitate ordering more of what dealerships can sell as opposed to what Dodge made too many of, I'll assume the dealers will be "encouraged" to sell the 2009 Challengers AT or Slightly Below MSRP.

 

Just wait a few months and prices and the 2009 Challenger will be cheaper.

Patience is a virtue.

Just my suggestion.....oh yeah, I am taking my suggestion.

 

Thanks for your response in this matter, I was thinking so myself, but it's just good to hear it from someone else..
I want a manual box anyways and the updated 5.7 sound like the ticket for me, I already own a 05 Magnum R/T so I know first hand that platform is a very good one, I hope that they do put MDS in the SRTs 6.4 so as to not receive the GG tax, If that happens it's a SRT for sure!

 

dodgedriver, the Challenger will be on an LY or LC platform which is a shortened LX platform. Hopefully, that means a lighter car and better handling.

Of course the, rear seat space may be sacrificed.

 

But the Magnums for there size do handle very well, ESP helps I am sure...

 

Car and Driver has stated that the base and R/T Challengers will go on sale as 2009 models. They will make their first appearance the New York auto show this March.

 

how much were the 5.7L chargers going for??? i'm not into the new chargers so i never paid much attention. i'm hoping your guess'timate is right on the r/t's. i know after all the rebates the hemi rams come in about 30-33k but then again those are rams...

me and my local dodge don't really get along so after they tell me the price for one and smerk i'll just smerk back and tell them i get it for 1% over invoice doesn't include srt8 models. kinda sad about that.