Financing options?

Question

What is the best option when financing a new car? Dealer? Bank? Other lender? I'm, of course, looking for the best interest rate I can get.

I have real estate, thank you. I need a car.

Answer 1

typically when you have these LOW interest rates from manufacturers like GM, Ford, Chrysler...etc...you CAN NOT buy the vehicle for the same price as you would if you pay cash. Usually they have a CASH DISCOUNT price. Most of the time (not all the time) it pays for you to go to your own bank and get a car loan and take the CASH discount price. Like I said usually you will save more money than the low or no interest rate that they are advertising.

At my dealership we can get all kinds of discount rates from different banks...but one thing you have to be aware of is some banks have Admin charges and some do not...even though your RATE is good make sure that you are not being forced to pay big OTHER charges (like admin etc)

Either way the best idea is to negotiate your price before you talk about financing and once you have done that check out the finance options....

To show you my point I will use an example....at one time you were able to buy a Chevy Cavalier at 0% financing...MSRP (manufacturer retail price) was at between $17000-$21000 cdn dollars...BUT if you bought it for cash (did not use GMAC finacning) you were able to buy that same car for $12000-$16000...well...that difference is WAY MORE than what the interest would cost you at an interest rate of 7-8%....so it would pay for you to finance it on your own and take the cash discount.

At the dealership that I own I encourage our sales people to give ALL the options to the customer...

Answer 2

Credit Unions have the best rates. They buy money at a discount from the Fed, something that the banks hate.

Banks will have great rates as well, but they usually will require money down.

The Dealers have access to sale rates from manufacturers (0, 1.9% etc), but remember, it's just like a rebate, its only on the models that are slow moving or are being replaced soon.

Best advice: Search for the car that you want. The one that fits your needs the best. Use the internet for this. Try to narrow it down to 3 vehicles. Then talk to your bank/CU about their rates and get pre approved. Then goto the various dealers armed to the teeth with info from http://www.edmunds.com and get what you want. There's no need to shop at 4 or 5 dealers of the same make, for the same model, they all get them at the same price. Be weary of "addendum pricing" (a so called "adjusted market value" number that is above and beyond the MSRP). They're all b/s with few exceptions and I doubt you're in the market for a new GT 500 or Bugati Veyron.

Answer 3

It completely depends. I am a dealership Finance Manager. There are times when I can provide my customers a lower rate from a bank than they can receive from their own sources (credit unions or local banks) As far as the Manufacturer's low rate (0%) it is in lieu of some or all of the Manufacturer's rebate. Usually the more you finance the better deal the low rate becomes, because as you finance more that rebate that you gave up becomes less impactful to the total cost of ownership.

I hope that this helps.

Answer 4

Most of the American manufacturers ( & even some Foreign) often have low (if not 0%) financing available on new vehicle purchases> I would check with my own bank BEFORE going to the dealer. That way I would know what the HIGHEST rate would be >> If the dealer or manufacturer can do better , GREAT ! If not than you already know wwhat you can get on your own.

Answer 5

Open an account in Credit Union, they are the cheapest. Other option is on line lenders.

Answer 6

Buy real estate,don't waste hard earned money on something that will lose value. Jobs are going overseas everyday. Buy a used car and buy a home. You can sell the house if they take your job.If you are a Democrat I'd say buy more property. If you are the other I'd say get in debt to your eyeballs, I hope they outsource your job, and you are in Bankruptcy court.