Best financing route to take

[DxrkLucy]

So a lot of my friends and coworkers are telling me that i should go through my bank for financing to get the lowest APR possible. Some people say i can just go to my bank (chase bank) and see if i would qualify for an auto loan through them. Some people are telling me i should go through a credit union for even better rates. Some people say the dealerships will find the banks that best suit me. ..i guess where im trying to get at with this post is...

-What are you guys doing as far as your plan for financing?
-Would a credit union be a better route to take, and if so how do i go about getting into one?

I dont want to constantly be running my credit from banks trying to get pre-approved for auto loans, so how would i go about getting as many rates as i could without having my credit being hit each time? Should i wait til my vehicle comes in the dealer. See what they run me for and then,leave the dealership momentarily that morning, go run around town to the banks. Get quotes that same day, then head back to the dealer with my decision?

I appreciate the help and support. Ive been building my credit for the last 2-3 years very strictly for this very moment (S650), and im just trying to make sure i can put the cherry on top and make it all worth the effort by getting the lowest interest rate possible. Thanks!

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[Skye]

I'm not sure there's going to be a clear-cut answer on this one. Everyones' situation is different.

Initially, I'd check Ford from their web site, and the local dealer web site, to see what they have on offer, without talking to anyone. Set that aside. This exercise is really more for orientation.

It's been my experience, better rates are received from companies you already do business with, already have accounts or a history with. Chase Bank might be a good first step. If you have a mortgage, give that company a call. Also your insurance company. Credit Unions can sometimes offer great rates. It just depends. If you have one in the local area, maybe stop by and chat them up.

I'd check with at least two places, maybe three. I would not wait until the car arrives, but I cannot offer insight as to how soon to set something up. You know the car is coming. I'd at least chat people up and get a feel for things. When checking, ask them how long they will maintain their terms. Interest rates in general might go up another .25%, as early as June, maybe in July, during the Fed's next meetings.

https://www.creditkarma.com/advice/...-minimize-the-effect-of-hard-credit-inquiries

I have no interest in Credit Karma. I took this link for info purposes only. It supports something I was told when seeking a mortgage: multiple inquiries for the same service, within a certain timeframe, constitutes one "hard pull" (not several), nicking your credit rating by a few points.

When I applied for a mortgage from a national lender, I got a crap rate, crap service. Out of the blue, I called my insurance company who I'd had for years. Literally, within 30 minutes, I had a mortgage setup at a competitive rate, with excellent customer service.

Definitely shop around.

 

[LETHAL]

A lot of CU's went to a tiered APR rate system recently. Mine did and it sucks! Ford Credit usually does decent rates, but of course not as good as even a year ago.

 

[Ryunker]

Avoiding financing, just going to proceed with cash.

 

[Rio Lobo]

Once the dealership says the car is on the lot, ill go to my bank and my Credit union with loan approved from whichever has the lowest rate. Then I will let the dealership try and beat with whatever financing companies they use.

I will also have offers for my "trade" from Carmax, other local dealers, Give me the VIN, Vroom. The dealership will have a shot at making a fair deal on my trade in with some consideration for doing it all in one place and of course tax advantages for trading vs selling outright.

 

[mcky2011]

My credit union has matched every rate I've ever quoted them without much more than me telling them what the rate was.

Your bank should do the same.

 

[Interstellar]

This should be a stickied thread going forward.
There's the potential for some great information here.

Generally speaking, credit unions are going to offer the best rates. However, pretty much everyone has abysmal loan rates right now. Like 6.5% minimum.

I'm heavily considering 72 month financing and refinancing when applicable. However, it will likely be years before the Fed can get inflation under control

 

[ThreePedalPlow]

Is it too soon to start shopping for financing if the car won't be delivered for another 2 months? I don't really want to start making payments before the car even gets here but I'm guessing they could modify the loan to accommodate that somehow.

 

[Q6543]

Rates have had pretty crazy volatility over the last year.

we are in a credit tightening cycle as of now. No one knows where will be 60-90 days out.

anything under 8% will be good. Plan for that.
But at such high base rates a half a point up or down doesn’t make much difference.

Side note… the FED keeps raising rates to SLOW purchasing down… the government DOES NOT WANT you taking a loan to buy a car anymore… that’s why it’s gonna be so expensive.

 

[sir5574]

Avoiding financing, just going to proceed with cash.

This is the way

 

[DxrkLucy]

Good stuff guys thank you! Keep it coming! And i will definetly be getting quotes for my trade in. Never thought about getting various quotes i usually bargin with the salesman or try to break even or maybe get my minimum downpayment out of it at the least. Lets hope interest doesnt sky rocket lol

 

[unfairslide]

This is the way

Having $60-70k just sitting in cash is definitely not the way.

 

[sir5574]

Having $60-70k just sitting in cash is definitely not the way.

and paying 8+% APR on a depreciating asset is??

 

[Mspider]

I have never ever had a problem using the dealership provided rates rather it be through a bank they work with or manufacturer directly. I never understood why some people feel the need to involve a extra step with using their own bank or credit union. If you have top tier credit rating you will most likely will be able to get the best rates (no better or worse) right at the dealership`s sources.

But in these times I can understand trying to shop around a bit. I would see what rate your local dealership can provide then shop around from there.

 

[unfairslide]

and paying 8+% APR on a depreciating asset is??

Having that much cash doing nothing is throwing money away. If not invested, depending for how long, you would have missed out on much more than whatever the couple thousand the financing would've costed in the end.

So yeah, holding cash as it gets eaten away by inflation is worse.

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