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Personal loan or car loan through dealers?
- Thread starter Golding
- Start date
I would try multiple sources, starting with a vehicle loan through your own bank.
I went through my credit union, and got a good rate. Once I found a car, the dealer offered to try to get a better rate through one of their partners, and I ended up with an even better rate.
Tell your dealer what rate you have, and see if they can beat it.
I went through my credit union, and got a good rate. Once I found a car, the dealer offered to try to get a better rate through one of their partners, and I ended up with an even better rate.
Tell your dealer what rate you have, and see if they can beat it.
Car loan through a financial institution, unless you can get a zero interest (or very low interest loan) from the auto maker (NOT THE DEALER))
Get a number from your bank, then go to the dealer and don't tell them what you have, tell them you want financing and see what they tell you. You can then tell them "oh, I went to my bank and got this, I'm going to go with it" and see what they do
I bought a car a year and a half ago and got a quote from the bank and then the dealer was a better deal!
I bought a car a year and a half ago and got a quote from the bank and then the dealer was a better deal!
Get preapproved through a local bank(credit unions tend to have great rates). Go into the dealership and see what their options are…the manufacturer may be offering 0% for 58/60/72, in which case jump all over it…free money.
I think it's ideal assuming it's for the same type of loan so the inquiries can be grouped together when done in a short time frame from each other.
Not just the rates but the prices are still way too high because inventory is shit. It's a double whammy right now.
Run it through multiple sources and snag the best APR.
Walking in with a pre-approval may get you a better deal with the dealer's internal financing.
Walking in with a pre-approval may get you a better deal with the dealer's internal financing.
Wife recently had to get a new car. Her bank told her as long as she got them done within the same timeframe there wouldn't be any impact.
Not a personal loan, rates will always be higher.
You should get an auto loan thru your bank or the dealer, whichever has better rates.
Dealer rates are usually lower and they can incentivize it. I only get bank loans for used cars, my credit union tends to have low rates for used cars. My credit union did 1.99% for my wife's used car, but Mazda/Chase was 0% for my new car back in 2017. Mazda used/certified pre owned rates were like... 3%+ at the time.
Dunno what dealer rates are these days given the fed hikes.
You should get an auto loan thru your bank or the dealer, whichever has better rates.
Dealer rates are usually lower and they can incentivize it. I only get bank loans for used cars, my credit union tends to have low rates for used cars. My credit union did 1.99% for my wife's used car, but Mazda/Chase was 0% for my new car back in 2017. Mazda used/certified pre owned rates were like... 3%+ at the time.
Dunno what dealer rates are these days given the fed hikes.
Every time I went to the dealer with my own loan pre-approval the dealer always managed to match or beat it so I've always ended up using the dealer financing.
Interesting I didn't know that was a thing. Any idea why it works that way?
Usually you can get a pre approval without having to run your credit, so you could check rates and payments from both without even worrying about a credit check. Usually... I dunno if that's still the case but it was 5+ years ago when we were buying our cars.
Bought a Honda back in March 2021 and we got a 4-year loan with 0% interest from Honda Financial Services. Didn't even bother shopping around as that was awesome imo.
My bank is giving me a 2.3% interest rate, while other dealers have been talking about between 3.5-4%. I think it just depends on your bank, but I would start there first.
I recently did this - got my bank's rate, which was fairly competitive... took that to the dealership and they beat it by a point. So I would definitely come with an offer, have them run a few and see what they can get you. They're going to want to beat the bank and give you an option.
Worked in credit unions and banks for 10 years. Get a secured loan as the rate will always be lower as the collateral will bring the rate down.
In my experience the car loan options will be Credit Union Car > Bank Car > Special Financing Through Dealership (Just be careful and read fine print) > Unsecured Personal Loan
In my experience the car loan options will be Credit Union Car > Bank Car > Special Financing Through Dealership (Just be careful and read fine print) > Unsecured Personal Loan
Last time we bought a new car 2018, the dealer offered the best rate +incentives with my wife's 800+ credit score. Just shop the rates like car insurance and go with that lender. Credit unions are typically a great go to, but always see what the dealers is offering in comparison.
This. Do this, OP. Especially if you have an okay or better credit score. Did something similar last year and got a much better rate than what they were initially offering.
Nope, if they do it within a certain time period it reads out in there systems as shopping around for a loan. So you only get hit once with a hard credit pull on you're credit score.
In Oregon I can get a loan from a credit union thru the car dealer. Don't need to make a separate trip or anything.
I have to buy my first car next month too.
reading this thread, i may see what my bank has to offer first.
reading this thread, i may see what my bank has to offer first.
Word of warning.
A friend had a 2014 VW Touareg to sell and they offered it to me for $12,000 b/c that's what she paid several years ago and the market is HOT. Well in the end she decided to throw it on Facebook Marketplace instead, and she sold it for $17,500. Buyer paid cash.
The market is fucked, but if you need a car it is what it is. I need cars for my two 16 year olds but no fucking way right now.
A friend had a 2014 VW Touareg to sell and they offered it to me for $12,000 b/c that's what she paid several years ago and the market is HOT. Well in the end she decided to throw it on Facebook Marketplace instead, and she sold it for $17,500. Buyer paid cash.
The market is fucked, but if you need a car it is what it is. I need cars for my two 16 year olds but no fucking way right now.
