Bank auto loan or dealer
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Anonymous
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My bank said I'm approved for a 2.16% loan on a car I'm going to buy. I'm meeting with the dealer tonight to handle all the paperwork, etc. If the dealer says they can match the interest rate, or even beat it - is there any reason I should NOT go with them?
Will they try to tack on extra hidden fees in my loan and screw me over? I'm concerned they will find a way to get more money out of me than the bank would. k. Should I just avoid dealer financing altogether even if they claim they can offer me a better rate? Will they tell me they have to run my credit to confirm the better rate? If so, I don't want to bother since I already |
Anonymous
| I always hear people say to go credit union for cars. That said, the dealers can almost always beat the CU or bank interest rates AND you can often negotiate a lower price if they think you will choose their financing. They earn money from financing through their system so they usually give you a little break for doing so. |
Anonymous
| If you get a loan through your dealer, they will have to run your credit. They can literally do it in 15 minutes. I also don't see anything wrong with giving the dealer a chance to beat the bank rate. Dealers make more money off of the loans than they do from the actual car sales so you may find the dealer is going to work hard to get you to take their loan and that's fine. If it's a good deal then take it. |
Anonymous
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I have played the game of using a credit union and the dealer will match the interest.
I think you have nothing to lose by having the dealer running your credit. Maybe lying about the interest rate the credit union offered will work in your favor, meaning, say you got 3% in your case, and maybe the dealer will come back with 2%. |
Anonymous
They will have to run your credit to see which of their lenders are willing to hold your loan and to determine what % you qualify for. |
Anonymous
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I do not allow dealers to run my credit anymore because I have experience them adding on "extra fees, etc." And because last time the credit offer came back from BoA and I am not a fan of BoA-even if the rate wsa lower. The dealership tried to convience me that the 1.99% offered by my credit union was not better than the 2.09% offered by the dealer.
If you come with your check in hand, they will still try to get your ssn because they make most of their money on selling you a loan. I no longer give up my ssn and make it know that they do not have permission to do so. |
Anonymous
| You just have to look at the all the terms. I got a better deal most recently from the dealer. |
Anonymous
I just want to highlight this point. Even if you use the bank auto loan, you should tell your dealer before you negotiate the nominal price of the vehicle that you might use them for financing, because they will give you a lower price on the car itself if they think you will then purchase financing from them. Don't eliminate the possibility of financing through them until you have obtained their best offer on the vehicle price. |
Anonymous
| You will probably get a better deal on thecar if you tell them you are going to go with dealer financing. See if they will give you .9% or 1.9%. If not, then you have the bank. |
Anonymous
| Once I got a loan thru dealer. About a week later they called saying they made a mistake and I had to re-work the loan (to a higher rate). I ended up returning the car and they were willing to take it back rather than giving me (lower) original loan. |
Anonymous
| At 2.16%, there is not much profit on the loan. (for a 30000 car, total interest would be 1600 on a 5 yr note). But it does not hurt to let them know. |
Anonymous
| OP, any update? |