New Car - Where to get the loan from?

**pearlieq** · 12-27-2006, 05:32 AM

Re: New Car - Where to get the loan from?

You can use www.bankrate.com to check auto loan rates in your area.

It's usually better to go into the dealership with the financing already arranged. That way you're not dependent on them to help you pay for the car and you can control all of the terms of your loan.

In general (and there are often exceptions) credit unions offer better terms and rates than banks, so make sure you don't forget to check them.

**disneysteve** · 12-27-2006, 05:52 AM

Re: New Car - Where to get the loan from?

What I've done in the past is to find the best rate, as pearlieq suggested, then go into the dealer with that info in hand. Each time, their finance person matched the offer. It was just simpler that way to handle everything in one place.

Remember, however, that you should first negotiate the price of the car. Don't tell them about your downpayment. Don't tell them about a trade-in. Don't tell them how you plan to pay for the car. Don't tell them where you will be getting your financing. Until you have agreed on the price for the vehicle in writing, you should not discuss the financing at all.

**rob62521** · 12-27-2006, 07:10 AM

Re: New Car - Where to get the loan from?

Disney and Pearl are correct. Negotiate and don't let them know what you can or cannot do. We have found the best rates around here are from a credit union. As they said, do it before you negotiate.

**halfgeek** · 12-27-2006, 07:26 AM

Re: New Car - Where to get the loan from?

Wow! thanks a lot for your suggestions.... U people rock!

I found in bankrate that eloan has 6% chepeast.. Whats ur say about him. What is refinancing?

Also, I'm planning on Honda Civic coz its economical in long run... Should i go for hybrid in that or any other car...

I'm 25 year guy currently earning 55k and would go up 80k in two months.

**sakigt** · 12-27-2006, 07:59 AM

Re: New Car - Where to get the loan from?

Originally posted by halfgeek

Wow! thanks a lot for your suggestions.... U people rock!

I found in bankrate that eloan has 6% chepeast.. Whats ur say about him. What is refinancing?

Also, I'm planning on Honda Civic coz its economical in long run... Should i go for hybrid in that or any other car...

I'm 25 year guy currently earning 55k and would go up 80k in two months.

Unless youre doing it aimply to be green (and some argue a hybrid is worse for the environment) the advantages of buying a hybrid are hard to recoup.

Now if you can haggle them down thats a different story!

**Hot dog** · 12-27-2006, 08:27 AM

Re: New Car - Where to get the loan from?

Sometimes the dealers have good rates When I got my honda it was 3.9% brand new You will get better interest rates on a new car usually. Somehow about two years ago I got a used car and the dealer found me a loan at 3.9 for a used car It turned out to be at my own bank and I had seen no such offer myself. The salesman seems to work hard to find you a good deal if they know that is what you need to seal the deal. Hondas often don't lower their rates as often but the last couple years they have had pretty good deals. Maybe they will have them for the new year Good luck!

**Raisecapital01** · 12-27-2006, 09:11 AM

Re: New Car - Where to get the loan from?

I would try your bank first. Negotiate with the Dealership on the pricing first, and then take those figures to your bank. You would be able to get a lower interest rate. Better yet, if you belong to a credit union, you may be able to get the difference from them.

**doodles44** · 12-28-2006, 06:40 AM

Re: New Car - Where to get the loan from?

I got my car loan from Capital One Auto, it was a very good rate for a new car, but I would imagine the rate has increased since then. I purchased my car in 2002.

Capital One is very convenient - I would recommend it!

**MarianneJ** · 12-28-2006, 10:14 AM

Re: New Car - Where to get the loan from?

My credit union is always having specials on car loans. For instance, when I bought my new saturn in 1999, they were running a "Bring Your Car Loan Home" special - if you transferred a new car loan from another lender they would reduce your rate by 2.5%, so I financed my car thru the bank with the lowest rate (8.1% at that time) and then applied to the CU to transfer the loan, so I only paid 5.6% on my loan (which was extremely low for that time period).

Another example, my sister just bought a new mustang this summer. The CU special at that time was a reduction of the loan rate from 0.5% to 3.0% based on your credit score. Because her credit score was in the highest tier, she now has a new car loan at 2.0%!

It is definitely worth it to look around at all the banks and credit unions around you and ask about loan specials they may be offering now or starting in January. Good luck!

**MonkeyMama** · 12-28-2006, 12:05 PM

Re: New Car - Where to get the loan from?

I was going to say dealers have good rates if you are going in brand new. BUT definitely shop around...

**halfgeek** · 12-28-2006, 06:51 PM

Re: New Car - Where to get the loan from?

thanks a lot....

My doubt is, If i check around different places for rates... Guess, they would be doing a credit check and that would affect my credit score again... right?
Or, is there any way to get the rate without affecting my credit score?

**MarianneJ** · 12-28-2006, 08:57 PM

Re: New Car - Where to get the loan from?

You can get their range of rates, then figure you will get a little higher than the lowest one - usually the lowest is for scores above 730, I think. They'll only run your credit after you fill out an application...which you will only do when you are certain you've found the best rate.

**instantinfo4you** · 12-31-2006, 09:27 AM

Re: New Car - Where to get the loan from?

Yes. Once you have found the best rate, then they will check your credit score. You don't want everyone doing it though. That wouldn't be good.

**disneysteve** · 12-31-2006, 09:51 AM

Re: New Car - Where to get the loan from?

Originally posted by instantinfo4you

Yes. Once you have found the best rate, then they will check your credit score. You don't want everyone doing it though. That wouldn't be good.

Actually, multiple credit inquiries of a similar type in a short period of time don't count against you. The credit bureaus consider them all as one draw. They understand that people shop around for the best deal.

New Car - Where to get the loan from?