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Hello again!
I currently live in New York. My wife and I purchased a home in Nevada and we had our drivers licences changed over to Nevada.
We will be moving there in early Feb. 2011.
The second week of Jan. 2011 we are going to Vegas to buy a car{while we still have jobs here in NYC}.
We both have 'good credit'-{730 credit score for me--about the same for her}.
Question:
1- Is there a real benefit of bringing in my pre-approval/ credit score with me to the dealer?
I was told that the dealer makes money selling loans--and if they don't use our bank {Bank of America} it could effect the price.
2- Is just 'GOOD' credit enough to be eligible for 0% financing?
It depends on what you want to do. If you go with your own financing it should be better than whatever the dealer has. What kind of car are you looking at? Some factories have 0% and .9 and 1.9% financing now which banks won't match for a car so its better to finance through the dealership.
First things, argue the PRICE of the car first, not your monthly payments. Get the price as low as possible then tack on any incentives and dealer cash to lower the price more.
For the best rates, Tier 1 credit is needed and at 730 you will be fine. Some brands have special rates for recent grads etc.
0% financing usually mean you are paying sticker price. Nobody is lending money for no interest. Dealers don't care if you pay cash or financing because they are looking to make the same profit.If you can use your home equity for a tax deductible interest loan and then negotiate your best price with the dealers.
0% financing usually mean you are paying sticker price. Nobody is lending money for no interest.
No it doesn't. 0% is a subvented rate offered by the manufacturers financing arm and completely separate from the price of the vehicle. You'll probably have to give up cash rebates but you can still negotiate on the price of the car.
0% typically isn't worth it if the cash rebates are fairly substantial. For instance, I had to give up a $500 rebate to get 0% on my Mazda. Not a big deal. But on the Nissan I was looking at, I had to give up $2000, which didn't make sense.
Shop loans out before you go and know what you can get before you walk in the door. Also, know how the financial instution handles new vehicle loans so that you're as prepared as possible to drive home with that new car if all the stars align. Some do a very simple 'blank check' system that makes things completely effortless and gives you a lot more freedom to shop how you choose. If you can find a place that works like this, I highly recommend it. I've found this is more popular with credit unions.
At the dealership, AFTER the price is negotiated, ask them what kind of financing deals they have. Also, bring some means to help you do your own calculations. A smart phone is a great thing to have here because you can go online and use loan calculators. Of course, if you're a real math whiz, just bring a calc. It's handy to be able to do this when deciding between incentives like 0% interest versus instant rebates.
At the end of the day, how you bring the money to the table is your business. They can/may/will try to make it a huge, complicated numbers thing where they start talking only in monthly payment numbers. It's not that complicated; don't let them make it otherwise. And if they want to finance you, make them earn it. If you want to bring a pre-approval letter to show them what they're up against, it wouldn't be a bad idea.
Also, with such a specific goal in mind, I have to ask. Do you have a specific make/model picked out? Is it used or new? If it's new and you know EXACTLY what you want, try this. E-mail the online sales manager (sometime it's the fleet manager) for every dealership you would be willing to drive to. Let them know EXACTLY what your looking for (make, model, options, color, etc). Be as specific as possible, including letting them know which options you're flexible on. Get the quotes, compare, then keep playing each one against the lowest price until you have a deal you want. I had a buddy do this for his new car because he knew exactly what he wanted. He ended up getting a phenomenal deal and was in and out of the dealership in less than an hour. He had to drive a bit out to get to the dealership who eventually won his business, but it was well worth it.
Most car dealers always ask about your method of payment BEFORE you nail down a FINAL price.....there is a reason for this so get their bottom line FIRST then deal with how it will be paid for. The reason they do this is because they want to work you on both ends.
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