Best Place to Get Used Car Loan

[djaco]

I'm looking at buying a used car, and am looking at getting a preaproved loan for around $10,000. My credit rating is excellent, I have a good income, and very little debt, so I should qualify for the best rate available. I've done a little research online, and CapitalOne seems to have one of the best deals out there - around 5.6% for up to 60 months.

I was wondering if anyone has ever used them for an online car loan, and if you would recommend, not recommend, suggest another lender, etc....

Thanks!!

[safari]

Capital One Auto Finance is good. You get pre-approved and they send you a blank check that you take to the dealership. http://www.capitaloneautofinance.com

I used them 3 years ago, got approved for $20K, but in the end I decided to lease the car instead, so i just discraded their check.

By the way, where did you see such low rates? Currently Capital One is offering 7.29% on used car loans.

[Gruntina]

Can you join a Credit Union Bank? My credit was good but not excellent and I received a 2.9% auto loan for either used or new(I got used) I belong to Patelco CU

[safari]

Originally Posted by Gruntina

Can you join a Credit Union Bank? My credit was good but not excellent and I received a 2.9% auto loan for either used or new(I got used) I belong to Patelco CU

Was that recently? 2.9% is VERY low. Some car manufacterers are offering promotional financing, as low as 0%, which is a lot better than any rate you can get from a bank or credit untion. However, promotional financing is only offered on new cars.

[Gruntina]

That is current with my bank. If you do not have a savings/checking account, it can go up to 3.9%. I would be careful with the dealership financing as they have hidden fees or include fees with the total price on the 0% financing. Also its only for the first two or three years and then the interest are really high after that.

I opt to purchase a used car from a private owner to avoid extra fees(i.e. lot and care fees).

Best way is to save up for a car, purchase from private owner and not pay any sales taxes or interest.

[safari]

Originally Posted by Gruntina

That is current with my bank. If you do not have a savings/checking account, it can go up to 3.9%. I would be careful with the dealership financing as they have hidden fees or include fees with the total price on the 0% financing. Also its only for the first two or three years and then the interest are really high after that.

I opt to purchase a used car from a private owner to avoid extra fees(i.e. lot and care fees).

Best way is to save up for a car, purchase from private owner and not pay any sales taxes or interest.

Their current lowest rate is 5.9%, according to the Patelco website http://www.patelco.org/rates/loan_rates.aspx. I don't think there is any credit union offering 2.9% or 3.9%.

[Hypersion]

I have a cap one loan on a used car at 4.79% for 36 months. No problems so far, I would high recommend it.

[greedy4chips]

Originally Posted by Gruntina

Best way is to save up for a car, purchase from private owner and not pay any sales taxes or interest.

How do you not pay sales tax? In Wisconsin when I went to do the title transfer on my last purchase they ask the purchase price and you pay the State sales tax right there. Also, you can only lie a small amount on the purchase price since the price should be somewhat close to book value...not sure how they could prove you wrong though.

[fake_usa]

Originally Posted by greedy4chips

How do you not pay sales tax? In Wisconsin when I went to do the title transfer on my last purchase they ask the purchase price and you pay the State sales tax right there. Also, you can only lie a small amount on the purchase price since the price should be somewhat close to book value...not sure how they could prove you wrong though.

true.. it's the same way in NJ, I had a friend that lied and he got a bill in the mail from the Governor saying basically pay tax on the book value or you'll be getting a subpoena in the mail. lol

[Elgin526]

Originally Posted by safari

Was that recently? 2.9% is VERY low. Some car manufacterers are offering promotional financing, as low as 0%, which is a lot better than any rate you can get from a bank or credit untion. However, promotional financing is only offered on new cars.

Many times a dealer will offer special financing, (0%, 1.9%, 2.9% or whatever) OR a cash rebate. Often the rebate is the better deal. You can get your own financing via CapOne or whoever and then go get the rebate. Best of both worlds! If you aren't sure what would be the better deal, interest or rebate, there are online calculators that will work the numbers for you and help you figure it out.

[Gruntina]

Originally Posted by greedy4chips

How do you not pay sales tax? In Wisconsin when I went to do the title transfer on my last purchase they ask the purchase price and you pay the State sales tax right there. Also, you can only lie a small amount on the purchase price since the price should be somewhat close to book value...not sure how they could prove you wrong though.

You can go to the DMV with the private owner and list the car as a "gift" even though you gave cash to the private owner. It depends on if it someone you know or if its somone willing to put "gift" on the DMV sheet.

[shelbylovesmelby]

you can go to bankrate.com to look @ current rates in your area.

I would go to a credit union as they are less stringent on how perfect your credit it & offer lower interest rates. YOu can also go in & see what you can get pre-approved for prior to going car shopping.

Also you usually get a higher interest rate on the vehicle if you finance @ the dealership (as they get kick backs for getting loans for certain lenders) & they require a down payment before you can leave with your new car.

[slimcustomer]

As previously stated, credit unions are often the way to go. Here's a list of auto loan rates from both banks and credit unions Auto Loan Rate Thread. Rates are not always up to date, but it's a great place to start your search for a used car loan.