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    Auto Loan

    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.

    #2
    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

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      #3
      I also think financing would be better but keep your options open!

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        #4
        Shop around and compare before you apply.. and make sure to check hidden fees.

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          #5
          I would suggest checking out PenFed. They've got a 1.49% rate for up to 60 months going on right now.

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            #6
            Originally posted by musicprofessional View Post
            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.
            Brian

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              #7
              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.
              Last edited by musicprofessional; 08-15-2012, 12:01 AM.

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