2007-06-20 18:19:32 · 5 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
Credit unions are great, good luck
10 yrs in the biz
2007-06-20 18:30:17 · answer #1 · answered by misty m 4 · 0⤊ 0⤋
I'm rather dubious of these claims that you can get a 4.9% rate (or less) by going through a bank or credit union. The lowest rates I've seen are around 6% right now, and keep in mind that is only for people with excellent credit. Anything lower than this would almost certainly have to come directly from the car manufacturer as a sales incentive -- often they will offer either a low interest rate loan or a cash rebate if you buy a particular make/model that they're trying to move.
Auto manufacturers can do this because they're making money on the sale of the car and are willing to break even or even lose money on the financing, but banks & credit unions don't get a cut of the sale, so they can only offer loans at the competitive market rate (which again, starts at around 6% these days). That's just the economics of the loan business -- lenders borrow money and then lend it out, making profit off the difference. But at 4.9% or lower, with today's interest rates, there's really no room for profit.
If you want to check out the latest manufacturer incentives, look here: http://autos.msn.com/home/rebates_all.aspx
2007-06-20 21:55:12 · answer #2 · answered by nevergonnaletyoudown 4 · 0⤊ 0⤋
1
2016-09-26 05:57:26 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Hi, You might even find a lower rate at Sierra Central Credit Union. That's were i get my loans for cars. My KiaSportage was 1.99 you can't beat that.
poppy1
2007-06-20 19:09:30 · answer #4 · answered by poppy1 7 · 0⤊ 0⤋
You want what.!!!... when ??? :)
If your credit is outstanding, and you have a decent down payment, you will have no trouble finding a low interest rate anywhere.
2007-06-20 18:28:09 · answer #5 · answered by Revenant Hamster 4 · 0⤊ 0⤋