financing a car

[Silver R/T]

If anyone on here is paying off a car I was just wondering what rate you guys got? Where is the best place to get best rate?

[Troy]

Credit Union. Mine is approximately 3% better than any other deal I found (I belong to two different CUs and their rates are similar).

Troy

[Daytona R/T SE]

Pay Cash 

[Old Moparz]

The dealer usually comes up with the better rate compared to a bank, but I've always heard that credit unions will do better. Maybe someone else will have info on them? With a dealer's rate, you have to get them on the same page as whatever other rate you get so you can compare them equally. What I mean by that is, they will make a lot of "assumptions" for you, so it's in their favor. They'll add the tax & DMV fees, as well as other misc. fees, so the monthly payment comes out higher than a bank.

I had figured out what a payment was with a cost calculator & went to the dealer who was roughly $30 higher with the payment & same rate. After going round & round for 30 minutes trying to find out why, they finally showed me that they added tax & DMV fees to the amount I was going to finance. I had the tax & DMV fees set aside to keep the payment down so I didn't have to finance them. The higher the monthly payment, the higher the percentage they make on the loan.

One last thing, don't ever answer the question, "So, Mr Silver R/T, how much do you want to spend each month?" The answer is irrelevant because the price of the vehicle & how much you finance determines the monthly payment. They will adjust the rate & hide it to charge you more & give you the monthly payment "you wanted" to pay. That might be a 12% rate instead of an 8% rate, & you might not catch it until after you're done & have signed the papers.

EDIT:  I type too damn slow, lol.

[Charger1973]

Pay Cash 

  But if you insist on borrowing, go to a credit union. 

[Silver R/T]

would personal loan be better? How about 6.5-6.9% is that high?

[RD]

CU's are best, but they often do not value the vehicle being financed at the same rate as other institutions, usually, the value they place on the vehicle is often 2-3K less than other institutions.

[Neal_J]

Cash is best, if you have it.

If you don't have the cash, I have two preferred options. 

If you have a retirement plan that allows loans (i.e., 401(k) plan), take out a loan and pay interest to yourself.  You should be secure in your job if you pursue this option, as the loan balance is due upon employment separation or you will pay hefty early withdrawal taxes & penalty.

If you have a house, use an equity line.  The interest is usually tax-deductible and rates are better than vehicle loans.

Failing those options, then credit unions are usually best rates. 

However, my personal preference is to buy a decent beater and avoid financing cars altogether.

Neal



Neal

[Telvis]

I only do business with my credit union. it's definitely the way to go if you can join one. I can call mine on the phone and get an approval without and application in about five minutes.

[HITMAN 149]

rob a bank and pay cash!!! nothing says i love you like cold hard CASH!!!!!!!!!! hehehehe
i financed my truck with the dealer thru a local credit union, and i also financed my harley when i bought it new w/ my police credit union

[Rocky]

My wife got a credit card offer with a 1.9% until the balance is paid.  That is the only time we have used a credit card in the past 2 years.

[HITMAN 149]

wow rock....
that's a nice A.P.R.!!! can i put a couple things on there tooo?!?!?!? hehehehe

[CharlieCharger]

rob a bank and pay cash!!! nothing says i love you like cold hard CASH!!!!!!!!!! hehehehe
i financed my truck with the dealer thru a local credit union, and i also financed my harley when i bought it new w/ my police credit union

Why cant I find a police man who would tell me to rob a bank around here?

[472 R/T SE]

We use only Credit Unions.  Is the 6.5-6.9% rate you're asking about for used or new, sounds like used?  Our rates were lower than that on new, but we have pretty good credit.  That's another aspect of getting good rates is how well your credit rating is.

I knew in my head what payments would be for persay set amount, knowing ahead of time what the CU was gonna charge so I have no problems with telling the dealer what I want my monthly payments to be, which is always lower meaning they need to work with me on their price or I walk, 'err I mean roll. 

[Rocky]

rob a bank and pay cash!!! nothing says i love you like cold hard CASH!!!!!!!!!! hehehehe
i financed my truck with the dealer thru a local credit union, and i also financed my harley when i bought it new w/ my police credit union

Why cant I find a police man who would tell me to rob a bank around here?

When my brother was looking for a good summer job, my stepdad (cop) told him to start selling drugs.

[CharlieCharger]

rob a bank and pay cash!!! nothing says i love you like cold hard CASH!!!!!!!!!! hehehehe
i financed my truck with the dealer thru a local credit union, and i also financed my harley when i bought it new w/ my police credit union

Why cant I find a police man who would tell me to rob a bank around here?

When my brother was looking for a good summer job, my stepdad (cop) told him to start selling drugs.

Pays good LOL

[runninhorn]

will a CU finance a classic car? I went to mine, cuoftexas.org and they told me they didnt do old cars.

[Afflyer]

We have just one more payment left on the '05 Volvo XC-90.

USAA gave us a great rate at just 4.6% for a 5 year note in May of '05.  We will have paid it off in just over 2.

Bradley 

[runninhorn]

so do you just tell them you want to finance an 1969 car and they say ok?

[Neal_J]

Gotta love USAA!!!!

They're awesome

Neal

[ChargerRT440]

Anythings better then going through parents. I bought my 98 2 years ago for 13900 and I still owe 11000 approx.(tax brought it up to about 15500 total)

[bill440rt]

Sadly, right now the dealers are offering better rates than my credit union at my work. Some dealers are at 0%, depending on the car you're looking at.
Right now, I'm considering buying a new '07 Ram. Dodge is offering smoking deals, even the finance rate. You can buy an '06 at 0% interest. (Yes, they STILL have them!).

Anyone want to buy a MINT '98 Ram 2500?? 

http://www.dodgecharger.com/forum/index.php/topic,25335.0.html

[myk]

I'm struggling about wanting to buy another car, as well.  It's been 4 years since I've had to deal with car payments, and I can't say I miss those, but the idea of a new machine is just too tempting.  I don't know...