Cheap car loan

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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CarefulBuilder14
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Postby CarefulBuilder14 » Wed Apr 15, 2015 9:40 am

My car-shopping experience is limited to buying one lightly used car after a lot of online research and test driving a total of about 11 cars at 5 local dealerships. Of the five salesmen I talked with, not one was straightforward, and they all stretched the truth somewhat aggressively.

Why should I expect them to be totally honest? They don't get paid to find the best car for me. They get paid to sell me what they have in stock. They have no incentive to tell me that I might really like a competitor's offerings across town.
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JamesMS
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Postby JamesMS » Wed Apr 15, 2015 10:57 pm

Every dealership is different, a lot of it will depend on the type of dealership that you go to. I have bought cars at places that as you stated "just tried to sell me what's in stock" and I've been to dealerships that to earn my business, found a car that matched everything that I wanted and had it shipped to them, 350 miles. They didn't have exactly what I wanted in stock.
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daniel2304
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Re: Cheap car loan

Postby daniel2304 » Tue May 12, 2015 10:44 am

Apparently there is something called "first time buyer" with car loan. I joined a credit union in my area and went to talk to them. The lady told me that since the first car I paid by cash, I am considered as "first time buyer" and the rate starts at 8.5%, no matter how well-qualified my credit score is. She even advised me to go finance with the dealer ship then re-finance with them later because at that time, I wouldn't be the first time buyer anymore. I think it's ridiculous.
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Vermonster
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Re: Cheap car loan

Postby Vermonster » Tue May 12, 2015 11:27 am

daniel2304 wrote:Apparently there is something called "first time buyer" with car loan. I joined a credit union in my area and went to talk to them. The lady told me that since the first car I paid by cash, I am considered as "first time buyer" and the rate starts at 8.5%, no matter how well-qualified my credit score is. She even advised me to go finance with the dealer ship then re-finance with them later because at that time, I wouldn't be the first time buyer anymore. I think it's ridiculous.


That is absurd. My wife and I were "first time buyers" and we got stellar rates for used cars. 4 year old Honda fit with 70k miles for $11k and a 5 year old Subaru with 78k miles for $13k. 60 month at 3.75% and 48 month 4.15% respectively. This was through Chase too. We had very limited banking with chase at the time, a 2 month old credit card, 2 checking and 1 savings.
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Vattené
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Re: Cheap car loan

Postby Vattené » Thu May 21, 2015 9:41 pm

Yeah that is some BS. I got my first car loan through a dealership at 1.9% with just three years of credit history (would have qualified for 0% if I purchased a higher end model). You can do a lot better.
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daniel2304
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Re: Cheap car loan

Postby daniel2304 » Sat May 23, 2015 11:18 pm

Would you mind sharing at which score that you were qualified for 1.9%? Does the dealership require proof of income?
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

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Vattené
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Re: Cheap car loan

Postby Vattené » Tue May 26, 2015 12:46 pm

It was through a Toyota dealsrship, and I believe my TU FICO was 740. The only history in my credit profile was from credit cards. I didn't have to verify income as in provide check stubs or anything, just filled out an application and got approved instantly for the lowest rate IIRC.
-Vattené
FICO-8:
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Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

daniel2304
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Re: Cheap car loan

Postby daniel2304 » Thu May 28, 2015 4:57 pm

Did you negotiate the price before applying for financing? Do they raise the price of the car when you have that low rate?
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

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Vattené
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Re: Cheap car loan

Postby Vattené » Sat May 30, 2015 9:28 pm

I didn't, but now I think that probably wasn't the best way to go about it. It was the first time I financed a car. If I did it again, I think I would want to negotiate a price first. Once we knew we would be getting a car from the dealer, though, I went ahead and applied for credit since I knew I wouldn't be getting a better rate than their promotional one. I'd think negotiating a price would just give you more leverage. Once you apply for credit they know you are pretty serious about buying from them. Waiting to apply allows you to play more hard to get and let them court you more.

It's not that they charge you more, technically, it's just that (I suspect) they wouldn't come down in price as much. They start at the MSRP but have some room to come down. As far as I know no (reputable) dealer would charge over MSRP.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

webbrowan
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Re: Cheap car loan

Postby webbrowan » Wed Nov 16, 2016 7:47 pm

I think that there are a lot of other factors that the financing institutions and credit unions take into consideration before they just give out a car loan at an awesome rate. You might be better off looking for a financing professional or broker and asking them to hook you up. Worst case scenario is they help you find a pretty amazing deal from somewhere else...



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