Auto Loan which Bank? (Pittsburgh: mortgage, get credit, loans)

[coolpix99]

I am planning to buy a used car and was wondering which bank will give me a good car loan rate (planning to get a $10K loan)? I have an account with National City and just found out they will charge $150 straight away for processing fee. Has anyone ever received a loan from them and whether they charge pre payment penalty?

Thanks.

[RedBall]

Unless I am completely off base here... pre-payment penalties are generally illegal.

[PeterRabbit]

Federal law permits prepayment penalties and banks that are federally chartered can ignore state laws and make it part of a loan.

If you were getting a mortgage you'd shop around for the best deal so it's the same with a car loan. I don't know, but you might get the best deal at a specialist like GMAC. Larger car dealers make a commission on your financing and maybe the smaller ones too. If the bank charges them 10% they might charge you 10-1/2% or more. Ask what bank they use then go there (call) yourself. If the dealer called you in they may remember your name but won't know what rate the dealer quoted you or call anonymously and ask for their current rate.

I guess loan processing fees run 1% - 2% of the loan amount. I regard them as unnecessary and like a commission for the person who does your paperwork. If you have strong credit I'd try to negotiate this to zero. Negotiate the loan rate, negotiate everything.

[Pitt Chick]

Mine have always been through Ford Credit, as they have given me the best terms (better than my credit union even).

My last loan was at 0%, and I paid it off four months early with no penalty.

[sleepybeth]

Credit unions often have great rates on auto loans. Perhaps you can try Pittsburgh Federal Credit Union? I'm not sure of any others.

[hempfield mania]

Originally Posted by sleepybeth

Credit unions often have great rates on auto loans. Perhaps you can try Pittsburgh Federal Credit Union? I'm not sure of any others.

Bingo,
Since you typically won't be eligible for any financing deals for a used car, a credit union will be your best bet as far as low rates and low/no associated fees.

[khyron]

One more vote for your friendly local credit union, plus generally you get other perks from banking with one, like cheap Kennywood tickets.

[trlstreet]

I'd caution against using Chase. They have poor customer service and make it very difficult to make extra payments against the principal of your loan.

[rugerjitsu]

one more vote for a credit union...they rock with used car loans. you just have to get credit approval.