Where should I go to finance an auto loan?
jc asked:
Should I use my bank, a credit union, the dealer? If I have good credit, which will give me the best interest rate and monthly payment?
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Should I use my bank, a credit union, the dealer? If I have good credit, which will give me the best interest rate and monthly payment?
August 10th, 2009 at 7:03 am
Ask them all and compare. It varies so much that there is no single valid answer. My credit union runs “specials”-if you time it right to get one of those, it might be the best deal; sometimes the dealers also have financing specials. A bank is probably the least likely to give you a terrific rate. If your credit is good, you’ll find a good deal somewhere. Do a little loan shopping along with your car shopping.
August 10th, 2009 at 11:17 am
new car – dealer finance is best
used car – credit union finance is best
Good luck
August 13th, 2009 at 12:55 pm
Go to all of them and compare rates. In general, if you have good credit then a credit union will offer you the best deal.
August 15th, 2009 at 6:11 am
On some new and certified used cars there may be special interest rates that are worth looking into. On new cars the dealer will usually have pretty good rates but credit unions are unbeatable on both new and used. Banks generally have higher rates than either, at least here they do. Oh and sometimes in order to get the 0% or whatever special they are offering you give up all rebates so you need to see which way works better.
August 15th, 2009 at 7:02 am
Get pre-approved at your credit union. Then tell your dealer you are pre-approved but ask if they can do better in terms of the interest rate, etc. Often the dealer can shop around for you because they deal with many different lenders. My dealer beat my credit union by a full percentage point on the interest rate.
See Mom Knows Everything’s answer. It turns out she does!
August 16th, 2009 at 6:49 pm
Credit unions seem to be the best. I always hear that from the financial gurus on the radio.
August 17th, 2009 at 7:35 am
Compare various terms and conditions of various banks. The dealer may make the procedure easy for you, but, quite possibly, may NOT give you the best loans, on zero/minimum interest.
August 19th, 2009 at 12:46 pm
if they manufacturer is offering subvented rates, they are typically better than others. If they don’t offer rates, or have an either or program, go with the rebate and the credit union financing.