Auto Loan

[musicprofessional]

Hi All,

I'm currently looking to take out a small auto loan for a used car (first time). Car is $5500.00, not counting anything else. I have $1000-1500 for a down payment. What is generally a better idea: Financing the remaining balance through the local dealership, or taking out a small loan from my Credit Union? I would presume the Financing is the better idea b/c the Interest will probably be better, but again...first time doing this...and I don't know what hidden fees are included with doing that. Thanks for your help.

[Max G]

Shopping around will help. Start with a credit union and see what they can offer. Than go to a car dealership and check their options. Depending on whether dealer is motivated enough to sell you a car you can find a pretty good deal

[ecoadapt]

I also think financing would be better but keep your options open!

[Johansen8]

Shop around and compare before you apply.. and make sure to check hidden fees.

[cooliemae]

I would suggest checking out PenFed. They've got a 1.49% rate for up to 60 months going on right now.

[bjl584]

Hi All,

I'm currently looking to take out a small auto loan for a used car (first time). Car is $5500.00, not counting anything else. I have $1000-1500 for a down payment. What is generally a better idea: Financing the remaining balance through the local dealership, or taking out a small loan from my Credit Union? I would presume the Financing is the better idea b/c the Interest will probably be better, but again...first time doing this...and I don't know what hidden fees are included with doing that. Thanks for your help.

Your credit union will probably give you a better rate than the dealership, but you wil need to shop it around.

While on the subject, make sure that your payment doesn't exced more than 10% of your monthly take home and don't finance the car for more than 3 years.

[musicprofessional]

Thanks for all for the postings...good advice all-around. I think it's probably a case by case basis, and the more options, the better! I've applied for both financing through the dealership, and a loan through my credit union (just in case). I had asked for a little larger loan for the car, just in case this car falls through (6K), and my credit union approves me for 30K loan at 3%! Needless to say, I will not be taking any more money than what I need. That's crazy, or just a mistake.