I am getting ready to buy a new car, Since xmas is here I am going to finance it rather than pay cash like i have always done. Should I get the financing @ the dealer or go out on my own and shop for the best rate? please give me a detailed answer. Many Thanks, Jimi
2007-11-21 03:40:01 · 8 answers · asked by jimi061 1 in Cars & Transportation ➔ Buying & Selling
Car guy here, You should allow the dealership to do the financing. This will allow you more time and you most likely will get a better deal on the car if the dealership does the financing. Dealers get paid from banks for arranging the financing. You may pay a little more in % rate but your talking maybe $400 to $700 more in finance charges. If you pay the loan off early (which sounds like you will) the % rate won't matter because all car loans are simple intrest and you only pay finance charges on the daily balance of the loan. If you have any other questions or if ANYONE here has questions feel free to email me. I will save you money and give you sound advice FOR FREE!!!!! What car guy would ever do that????? good luck!!!
2007-11-21 04:07:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋
1
2016-09-26 13:34:27 · answer #2 · answered by ? 3 · 0⤊ 0⤋
The smart shopper will have been pre approved for a loan before entering a dealership, Get a pre approved amount to shop with from your Bank or credit Union.
you can also shop the Internet , if your credit is in good standing Capital One is the best, here is an application form https://www.capitaloneautofinance.com/Public/ApplyNow/Default.aspx?show_calc=FALSE&PFFSRCID=ALCJ07AF*GAFGNRCBA1106001&referrer_id=10415002^2139259
If you go with dealer financing you will be considered a payment buyer and most likely end up with the short end of the stick.
2007-11-21 04:23:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Go to your bank or credit union, and at least one other local bank, and also check the rates at the dealer because there is a lot of zero percent funding going on now.
The bottom line is that it is up to you to get the best rate based on your own research. Run the numbers through a loan motorization program and see which one gives you the lowest payback when the loan is over.
You should check at least four places.
cheers
2007-11-21 03:51:44 · answer #4 · answered by Perplexed 5 · 0⤊ 0⤋
I'd say do both. Go into the delaership having already done your research regarding financing. If you can get preapproved from aloca bank or credit union, you can always go that way, but give the dealer a chance to meet or beat the offer.
2007-11-21 03:58:55 · answer #5 · answered by Jay P 7 · 0⤊ 0⤋
The heck with Christmas, pay cash. Tell everyone you had to get a new car and Christmas will be a little thin this year. At the very least, if you decide to take out a loan - pay it off early, ASAP. You sound like a smart person, don't let that loan linger on.
2007-11-21 03:52:03 · answer #6 · answered by voluntarheel 5 · 0⤊ 0⤋
Go to FFCU.com. Federal Freedom Credit Union. They usually are able to give you a really good percentage rate. Good Luck! =)
2007-11-21 03:48:37 · answer #7 · answered by ♥CarolinaMommy♥ 3 · 0⤊ 0⤋
Go to lendingtree.com and you can decide which lender you want to go with (who has the lowest rate). It's very easy and I've used this myself.
2007-11-21 03:48:57 · answer #8 · answered by Anonymous · 0⤊ 0⤋