Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I bank with Wells Fargo. If I buy a used car through a dealership, my understanding is that they have access to a bunch of credit unions so they would probably be able to do better on a loan rate, is that generally correct? Also, what about a site like Autotrader where they refer you to apply for a loan via Lending Tree and receive a few different offers? Are they any good, and how does it work if say I got a loan through a Lending Tree referral and then want to buy the car at a dealership or even from a private party? Does the lending company transfer the funds into your bank account, or ?
The lending company will generally never write you a blank check that you can deposit into your account. Sometimes a car dealer may have better financing than your bank, and sometimes it will not. It pays to shop around for loans. Just because its a "credit union" doesn't mean it will have better financing than your bank. Some credit unions and banks will have better rates than others. Other than 0% financing from an auto dealer the best rates I've seen are 1.99% APR.
Ideal situation is to buy a car without a loan. But if you are going to go in knowing that you need financing, always go in with financing before you go into the dealership. It takes one more negotiation off the table, unless they can beat your rate. You can get approved up to a certain amount online for a specific rate and they will give you a check to give to the dealership. If you don't go in with a rate already locked in the dealership will eat you alive. They'll get you into the "what payment can you afford per month" game and then they will play with the interest rates and loan term until they come close to that monthly payment. When you run the numbers and realize that the interest rate is awful and the length of the loan is unnecessarily long they will give you a whole list of reasons (first time buyer, okay credit etc.), but you won't know what rate you could actually get if you haven't come up with financing already. If you come in preapproved the only negotiation is the total price of the car.
As md21722 mentioned a lot of dealerships offer 0% financing from time to time. Be careful though, often though they will offer 0% or $XXXX cash back. Really all they are doing is having you prepay the interest if you take the financing option instead of the cash back.
Negotiate the price of the car first.
Then negotiate the price of any trade in.
Then negotiate the financing.
Keep it all separate.
Be prepared to walk out. If you seem like a serious buyer, and you walk out, chances are they will call you and make you a better offer.
When its time to talk about financing, it really pays to have options already in your pocket. That way when they make loan offers you can simply say "my bank offers X" and they can either do better or they can't.
The rates will depend on your financial institution. I've seen rates as low as 1.99% advertised for both new and used. I do not think any dealers will offer 0% on used.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
