Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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If you know that you will definately finance through the credit union, then complete the loan process. Most of the time the credit union will issue you a convenience check to purchase the car.
If you want to see if the dealership can beat the terms, then just take the information you researched with you to the dealership and see what happens.
If you want to see if the dealer can match or beat the credit union's interest rate, then yes, you should know the interest rate they've approved you for. The dealership should not need to see anything in writing unless you're trying to get them down to a particular figure and they're close but not budging... even then they don't really need to see anything in writing from your credit union but may ask to, just to be difficult.
You can also just as easily walk into your local bank and apply for a loan. From the signs in the lobby, their rates are competitive, and probably not all that much different than a CU these days. In any case, low is low, and lately, rates is low.
I personally found it to be a major hassle the one time I got a loan from the bank directly, instead of through the dealer. Back and forth with papers, etc. Much easier to do it at the dealer (convenience).
Also, in theory, the dealer should be able to get the best rate around (whether it makes it to the buyer depends on if they mark it up), since they usually have a number of banks and captive sources they deal with. That's how they usually manage to beat whatever pre-approved rate you bring in, even if they don't always offer the lowest they can do up front.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Assuming the consumers credit is up to par.
dealership can almost always match or beat any outside bank or credit union rate. Many don't shop around finance rates or ask the dealer to match the rate.
In my case, no paperwork back and forth at all between dealer & credit union. One phone call and an electronic draft. Pretty painless for all concerned.
As far as dealers/manufacturers almost always beating credit union and/or bank rates for customers with credit up to par, I have not found this to be the case unless you're talking about 0% manufacturer financing. Short of that, my credit union consistently beats the manufacturers' standard rates by a country mile. If you qualify for manufacturers' 0% financing and opt to go that route rather than taking cash back, more power to you. If you're financing at anything 3.9% or above, if the dealer can beat it by a decent margin, good for you! If they can't beat it by enough to make a real difference, or even if they match it, I still prefer to stick with my credit union for the personalized service and I also prefer for them to make money off me rather than Ford, Chevy, Honda or whomever.
I have a 2001 Dodge Ram financed with my wife as a co-lender. I Also have a 2002 Ram with me being the sole lender. When I applied, I indicated that I would be trading in the 2001. Which would show me as having 2 loans in my name only and no co-lender.
Now the sticky part, My Fico hovers around 625, and I was applied through a subprime loan company. The loan I applied for would actually have been less than the current payment on the 2001 Ram, but by failing to include a co-buyer, I think I might have gotten myself rejected.
Does this seem reasonable, while I await the formal rejection letter via USPS?
Thanks for the expertise
Chris
1 butt, 1 seat.
also, if you are super-strong, credit-wise (730+), many make exceptions. i was referring to the 625 score, mostly.
I know what you are saying though. Most secondary lenders require that any open auto loans be traded or PIF before they will fund the new loan.
all but the smallest of dealers use bank sources other than the manufacturers standard finance sources...This is where almost any dealer can get the consumer a better rate than what a consumer can get on their own. But, if the consumer isnt somewhat proactive they may not realize this. The reason dealers get better rates is due to the volume of loan business they generate. If a dealer sends joe blow bank $5 million or more in loans per year they will pass along "buy rates" to the dealer that will be better than one consumer buying one car. With top tier credit we can get non-subvented rates as low as 3.04% for up to 66 months. I don't know of any bank or credit union in my area that is anywhere near that rate with an instant approval....
It is always best to be aware of whats available from all sources...This way the consumer can make the decision that works for them.
I understand the argument about dealer F&I getting great rates from banks because of the large business volume. Using the same reasoning, I used to swear by one mortgage broker - until I found a mortgage bank a couple of years ago that no broker could beat. They do not resell their mortgages, either.
That's exactly the way my deal went too.
I am trying to buy a new 04 maxima and I am thinking about trading in my 98 camry.. the dealer is talking about paying off the camry but will add the loan back on the maxima.
are they supposed to do that? i thought once they (dealer) pay off the camry,it shouldn't be added on my new loan... can someone please explain?? thanks
The dealer suggests going with the GMAC for 3 months so I qualify for the 1500 bringing the total rebate up to 6000 and after the 3 months refinance with the Credit Union.
Are there advantages/disadvantages to this????
Also, you need to find out what they are offering for your car. Have you booked it out on any website? What is your payoff, as quoted by the bank? I would suggest you post ALL of the specific numbers, including the specific car and options and your purchase price here BEFORE going any further. You need direction, but you've come to the right place!
if a single dealer has all of its financing contracts paid in full before a single payment is made, the finance company will come down hard on the dealer.
it is told to people to make sure that "most" dont pay it off in a week.
it is told to people to make sure that "most" dont pay it off in a week.
So, it's not fraud if you tell it to people, only if you write it down?
they will not be very lenient on the loan amount, so you may have to come up with a little bit extra cash...but your terms, if approved, will be alot more attractive.
from his pay check.
He can't earn a bonus if what he sold is refunded.
Geo K
If you are conservative with what you buy, and make all the payments on time, it will also help your score go up.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
I have $3500 down for a 19K car.
Not knowing all the details .. the dealer will probably have to give a "kicker" to the lender to carry this paper ... your also on too much vehicle.
Terry.
Im looking to buy a 2003-2004 Infiinti G35 $30,000...I can afford the payments its a matter of if i can get financed w/ the credit just paid
A. How long till it shows up on my credit as paid...
B.How much will my credit score go up
C. How long should i wait till I look for this vehicle...Would it be better to wait till beginning of year...Or go now and bring proof these are paid...If you have opinions or suggestions you can email me at jqzuga@yahoo.com
Never wait until it just "shows up" ... credit bureau's (all three) are very slow, and you might be seeing your first grey hairs or your very first social security check before that info hits the deck, there is no guarantee it will ever "show up" unless you take the initiative to have your credit checked, I look at credit everyday and I see things from 1989/92/96 - don't ever wait for them .l.o.l.....
B. Can't say, it depends on why you received the tax lein, type, how long you had it and what type of credit card, but you need every piece of proof that you have - and I have a feeling your very young and there is some other issues you haven't explained, yet .. but if I were to guess, somewhere between 45 and 60 days depending on when they received the info and how hard you stood on them.
C. Refer back to A.
Terry.
I think/know I got ripped off by my dealer the other day, but using my fuzzy math skills, I am unable to ascertain by how much. I am hoping someone with some math skills can help. Here is the scenario......
I have
car # 1 that is worth $5000 (trade in value/what they gave me).
Car #1 Pay Off Value is $9000
I purchases car #2
Purchase Price is $25000
I give them $4000 down payment
and my trade in
I return Car #2 due to very poor gas mileage!!!
They give me $24000 for car#2
I buy Car #3 for 15000
I givem them $1800 more down
So, what is my total payment for the car (not including finance), if anyone knows???
It seems like a simple question, but I am not thinking right, or am I ?
If I paid $4000 + $1800 +$15000, I am paying $20800. According to my math.....Thanks.
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I have
car # 1 that is worth $5000 (trade in value/what they gave me).
Car #1 Pay Off Value is $9000
I purchases car #2
Purchase Price is $25000
I give them $4000 down payment
and my trade in
I return Car #2 due to very poor gas mileage!!!
They give me $24000 for car#2
I buy Car #3 for 15000
I givem them $1800 more down
So, what is my total payment for the car (not including finance), if anyone knows???
It seems like a simple question, but I am not thinking right, or am I ?
If I paid $4000 + $1800 +$15000, I am paying $20800. According to my math.....Thanks.
Your first car is worth $5,000. However, it looks like your upside down $4,000. So the car is worth -$4,000.
You buy a car that's $25,000. Trade in your first car that is -$4,000 and put down an additional $4,000. Since most dealers tack on the -$4,000 onto the selling price of the new car, your $4,000 down was negated. Therefore you're financing $25,000.
You trade in car 2 for $24,000. Since you owe $25,000 and only get $24,000 back, your -$1,000 at this point and have no car.
Then you buy another car for $15,000. Assuming this is from the same dealership, your actually paying -$16,000 (-$1,000 from car 2). You once again put a deposit on the car, $1,800.
In the end, your financing $14,200+fees and are out $5,800 in cash.
Wow, I hope you love this 3rd car.
For instance, if you bought that $25K car here in jersey, you'd be looking at $1800 in taxes .... oh, but you had the $5K trade-in, so that would be $20k trade difference and $1200 in taxes. Then you have registration and fees. So let's say you are up to $21,600, then you gotta add that $9k debt. $30,600. Then you put $4k down. $26,600. Then you trade in for $24k. So you carry $2600 negative to the next car. AH, but you bought a cheaper car .... therefore that should have been tax free, no? Then you put $1800 down. So methinks maybe around $16K give or take a couple hundred is the final balance of the whole deal?? Am I warm? Do I get a cookie?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S