Auto Finance

The last two vehicles I've purchased the dealer was doing a $1,500 rebate if financing with them so I did, then I refinanced with penfed at a lower interest rate 3 months later

Get the rate/note (make sure you get both) from your bank or credit union then go to the dealer and see if they can beat it. They either can or can't.

A finance manager gets paid on 2% on the rate and markup on products (warranty/gap).

With that being said, a dealer can get you a better rate or get you financed where a bank can't alot of times.

quote:

---

Get the rate/note (make sure you get both) from your bank or credit union then go to the dealer and see if they can beat it. They either can or can't. A finance manager gets paid on 2% on the rate and markup on products (warranty/gap).

---

This.

And don't buy gap at the dealership. Get it through your insurance.

Some dealers get paid more than 2%. With regards to GAP, you can purchase the dealer gap if you can get them down on price. They can sell it at cost it need be, which is close to $350-$400. Gsp is no different at a CU, bank, or insurance company.

If you're eligiblle, USAA has excellent rates....beat the credit union and dealership by a mile. uSAA also offers a prenegotiated price car buying service, if you are so inclined.

Get financing lined up before you go ( try local credit union or look online ) , and then have dealership beat it .

I went from 3.9 at dealership to refinancing to 2.1 with a credit union on a used Toyota with 30k miles .