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Message
Best option to finance a vehicle?
Posted on 1/1/22 at 2:15 pm
Posted on 1/1/22 at 2:15 pm
Traditionally I always use the dealership for financing, but I know there are better deals out there.
What do you recommend and how do I use this to my advantage with the dealership?
What do you recommend and how do I use this to my advantage with the dealership?
Posted on 1/1/22 at 3:08 pm to tigerfan311
Almost everyone is offering 0% right now. Take it out as long as you can b/c you'll make more on the inflation.
If not pretty sure Ally and PenFed are offering 1.9 for 60. I have Ford at 0% for 72 mos and a GM at 0% for 36 mos.
If not pretty sure Ally and PenFed are offering 1.9 for 60. I have Ford at 0% for 72 mos and a GM at 0% for 36 mos.
Posted on 1/1/22 at 4:01 pm to tigerfan311
Check with your local bank and/or credit union. A lot of times they will want to know which car you want, and how much you’ll be financing. If you’re already a customer, they can get you a rate/quote without hitting your credit report. You can then go to dealership; in my experience dealerships won’t try to match your rate and will tell you to just go with your bank rate.
They are currently doing this with trade in values as well. They believe (I agree) that these carmax, Carvana types are over extending offers and in another 2-3 years will be in financial hell; as a result, they aren’t trying to match those either
They are currently doing this with trade in values as well. They believe (I agree) that these carmax, Carvana types are over extending offers and in another 2-3 years will be in financial hell; as a result, they aren’t trying to match those either
Posted on 1/1/22 at 4:43 pm to tigerfan311
quote:
Traditionally I always use the dealership for financing
Dealerships tend to have higher inception fees through an internal finance manager through a CUDL system (Credit Union Direct Link). Also, keep in mind that a lot of the time dealerships will give you financing through them, when in reality they are getting it from an outside bank and adding points to pack a car deal with added profit for them. Hidden fees arent so hidden anymore if you read the contract you are signing thoroughly and asking about evey cent on there.
Get pre-approved through a credit union first and don’t tell them your rate or pre-approval letter for the purchase until they present their numbers first. Once the “floor manager” or “closer” comes in to replace the sales guy with their rate and payment portions you’ll see 9/10 they’re always higher with the rate even with a top end credit score. Once you hit them with your credit union rate, and letter the Finance Manager will drop their pants and will frantically try and match or beat your rate.
If you prefer to save time, you can do this all via email. However, IMO, I’ve had better results in person if the dealership feels the pressure and you always have the option to walk away, which the GM will run out to keep you from leaving.
Posted on 1/1/22 at 5:23 pm to tigerfan311
Pay cash, but don't tell them you're paying that way. Get the price settled first. If you do finance, don't do it for a period longer than 3 years. If you cannot afford the payments on a 3-year deal, get a cheaper car. Nothing wrong with buying used. Most dealers make more selling used cars, and in normal times cars lose a lot of value the moment they leave the lot. I bought my wife's car used with about 11K miles on it. Big SUV that I got for less than $30K.
Posted on 1/2/22 at 7:53 am to Weekend Warrior79
quote:
They believe (I agree) that these carmax, Carvana types are over extending offers and in another 2-3 years will be in financial hell; as a result, they aren’t trying to match those either
Idk, if they offer you 10 and sell it for 15 they are making money. The dealer may offer you 6 and then hit you with a market adjustment in your new vehicle. They are fricking you.
Posted on 1/2/22 at 8:11 am to Rev1897
quote:
If not pretty sure Ally and PenFed are offering 1.9 for 60. I have Ford at 0% for 72 mos and a GM at 0% for 36 mos.
After being a customer for 20 years, I'm done with PenFed after mylast 2 loan applications regardless of how good their rates are. They constantly frick things up and officers are impossible to get a hold off.
This post was edited on 1/2/22 at 8:12 am
Posted on 1/2/22 at 10:06 am to Auburn80
quote:
If you cannot afford the payments on a 3-year deal
LOL
Posted on 1/3/22 at 7:45 am to Weekend Warrior79
Carmax and Carvana offered both offered me around 25k for my truck. I traded it into the dealership for 34k last week.
Posted on 1/3/22 at 8:06 am to tigerfan311
Just check the manufacturer financing options before going on the vehicle you want. A lot of times that is the best rate you'll get assuming you can qualify (not close to everyone does). Almost 100% of cases if you cant get that, you're probably better off getting a credit union/bank loan instead of the rates the dealer will pull. The rate the dealer will pull they always tack on a little extra to make a cut, this is part of how dealers make money on new/used car sales themselves. So if you can get say 2.9% from Bank of America for example, they may say they can finance you for 3.4% from Bank of America, they pocket that extra 0.5%.
Not near everything is 0% right now, although that certainly exists for a lot of models, it's not the standard by any shape of the imagination. A lot of 0% offers though are only for 36 months (see: Honda right now), so unless you have a substantial trade in or cash down, expect very large payments if you're financing say a $30k-$40k vehicle for just 36 months. A lot more American manufacturers run 0% for longer periods like 60-72 months.
Not near everything is 0% right now, although that certainly exists for a lot of models, it's not the standard by any shape of the imagination. A lot of 0% offers though are only for 36 months (see: Honda right now), so unless you have a substantial trade in or cash down, expect very large payments if you're financing say a $30k-$40k vehicle for just 36 months. A lot more American manufacturers run 0% for longer periods like 60-72 months.
Posted on 1/3/22 at 2:24 pm to tigerfan311
I only buy vehicles with 0% financing and negotiate purchase price down beforehand. The process of dealing with people is exhausting but do some research for baseline numbers and never go in blind. Remember to keep it simple and take time to read line item charge by line item charge.
Never ever let them present financing to you in terms of a monthly payment. They will try that on people they perceive as suckers.
Never ever let them present financing to you in terms of a monthly payment. They will try that on people they perceive as suckers.
This post was edited on 1/3/22 at 2:26 pm
Posted on 1/3/22 at 2:53 pm to tigerfan311
quote:
Traditionally I always use the dealership for financing, but I know there are better deals out there.
What do you recommend and how do I use this to my advantage with the dealership?
Cash is king...
Posted on 1/3/22 at 3:02 pm to DiamondDog
quote:
Never ever let them present financing to you in terms of a monthly payment. They will try that on people they perceive as suckers.
Otherwise known as 4-square method.
Negotiate trade separate from vehicle sale.
Get the price of the vehicle out the door, get the price they are willing to pay for trade in (separately). Then you try and get the interest rate/term you want.
Posted on 1/3/22 at 3:56 pm to DiamondDog
quote:
I only buy vehicles with 0% financing
I've done this for the last 4 vehicles I've purchased and I keep them on average 11+ years, but I'm not seeing 0 % currently, and I'm looking because I have a 16 yr old that will be needing a car for next fall.
Posted on 1/3/22 at 5:11 pm to tigerfan311
108 month at 4.9% baw get you that platinum f250
Posted on 1/4/22 at 11:39 am to deltaland
Unfortunately dealers have the upper hand right now. No 0% financing really available.
Fun fact, I visited a dealer yesterday that told me if I used outside financing there was a $2000 add on fee.
Comedy!
Fun fact, I visited a dealer yesterday that told me if I used outside financing there was a $2000 add on fee.
Comedy!
Posted on 1/4/22 at 11:49 am to tigerfan311
Why is Toyota not doing 0%? Was doing the build options on the new Tacoma’s and they were showing 4.49%…
Posted on 1/4/22 at 12:22 pm to Double Oh
quote:
Cash is king...
ok pawpaw.
Posted on 1/4/22 at 2:11 pm to Auburn80
quote:
if you do finance, don't do it for a period longer than 3 years. If you cannot afford the payments on a 3-year deal, get a cheaper car.
worst advice in this entire thread
Posted on 1/4/22 at 2:11 pm to Double Oh
quote:
Cash is king...
OK boomer
but it isn't
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