Car Loan Questions

[smalls2598]

I'm looking to pick up a new car within the next few weeks, but I'd like to go into the dealership with a loan instead of having to deal with their high rate BS.

 

Has anyone ever tried Lending Tree.com for a loan? I've heard many commercials on the radio about them, but I don't know anyone who has used them before.

 

Or does anyone know of another highly reputable online loan agencies?

[Rex Hudler]

I'm looking to pick up a new car within the next few weeks, but I'd like to go into the dealership with a loan instead of having to deal with their high rate BS.

 

Has anyone ever tried Lending Tree.com for a loan? I've heard many commercials on the radio about them, but I don't know anyone who has used them before.

 

Or does anyone know of another highly reputable online loan agencies?

 

 

I've refinanced two auto loands through eloan.com and everything went well. They typically are very competitive. I would guess that they would be on new loans as well as the refi's.

[Texsox]

Usually, you can also refinance after leaving the dealership. I have shopped my loan a couple times after leaving a new car dealer with the car. Both times I wound up with different financing than when I started.

 

Kudos on thinking about that. The cost of the loan is significant. The problem you will run into is needing the information on the car you are purchasing. You can not get a loan, usually, for more than the car is worth. So you can't get a loan for say $5,000 to buy a car without knowing what car you are buying.

[sox4lifeinPA]

two options off the top of my head:

 

are you a home owner? if so, I'd suggest a HE loan...

 

if not, then if you can join a credit union, they also have great rates on car loans, usually.

 

I think Tex's suggestion is one of the smartest.

[EvilMonkey]

Like PA said, if you belong to a credit union, they usually have some decent deals and can get you taken care of fast.

[smalls2598]

Unfortunetly, I am not a home owner or part of a credit union, but I'll definetly look into it.

 

The good thing is that I know exactly what car I want (2007 Honda Civic EX), so that will help if I do apply for a loan online.

 

Thanks for the suggestions, guys.

Edited December 12, 2006 by smalls2598

[Texsox]

Unfortunetly, I am not a home owner or part of a credit union, but I'll definetly look into it.

 

The good thing is that I know exactly what car I want (2007 Honda Civic EX), so that will help if I do apply for a loan online.

 

Thanks for the suggestions, guys.

 

Most credit unions have very easy membership rules and you would probably qualify. Pick up whatever the factory is offering and ask how much time you have to shop the loan. IIRC you should have 30 days and it will still be a new car loan.

[Balta1701]

Unfortunetly, I am not a home owner or part of a credit union, but I'll definetly look into it.

 

The good thing is that I know exactly what car I want (2007 Honda Civic EX), so that will help if I do apply for a loan online.

 

Thanks for the suggestions, guys.

Excellent car choice btw. (I got one of the last few 06 EX's).

 

Another thing you can do, if you are willing to finance with the dealer is use their desire to write a deal that day as a means to get a little additional money or an add-in tossed in on your deal. If you have a credit union membership, and you want to apply for a loan for a specific car, you can get a deal set up, then walk out and the dealership will give you a couple days to secure financing through a credit union. My person knew I had quotes from about a half dozen other dealers and didn't want me walking out of there and winding up with a slightly better deal from another one, so it got me a little bit better deal just to finance through the dealer (and I'm going to pay the thing off so quick that the slightly higher interest rate literally will wind up as a negligible cost)

[sox4lifeinPA]

What Balta is getting at is these companies need YOU and not the other way around. Tell them the names of the other Honda dealers in town and say "I know what car I want and I know what other dealers are going to give me, give me your best price"

[Rex Hudler]

What Balta is getting at is these companies need YOU and not the other way around. Tell them the names of the other Honda dealers in town and say "I know what car I want and I know what other dealers are going to give me, give me your best price"

 

Or better yet, do your homework on edmunds.com and go to the Honda dealer and tell them "This is what I want and this is what I am willing to pay, not a dollar more. If you can do it, we have a deal today."

 

And don't let them ad the BS to the end of the invoice. Give them a bottom line price. Car dealers make a big profit on rust-proofing, paint protection, etc. If you really need it, you can usually get it aftermarket cheaper. Most agree its not necessary.

 

Depending on the competitiveness and # of Honda dealers in your area, I'd offer about $200 over invoice price. If you lack a lot of Honda dealers in town, tell them you are deciding between a Civic and a Corolla (or similar make from Toyota or Nissan). Oh, and be prepared to walk if they don't give you the deal. Patience can often get you what you want.

 

Note: I am not sure what the market will bear for a Civic right now, so $200 over invoice may or may not be realistic. That's why you need to do your homework first. When I helped my girlfriend buy an Accord, none of the local dealers wanted to come off sticker at all for a 2-door because they were in demand. I was patient and finally found what she wanted at a dealer in another town. We had to drive to go get it, but that wasn't a big deal for us because I had family there.

 

Just don't get in a big rush buying your first car. Do not let them pressure you into anything. A deal that is there today, will be there tomorrow. Maintain control of the sale from the very beginning. But having financing in place ahead of time (or at least being pre-approved) is a good move because they can't play interest rate games with you.

Edited December 13, 2006 by Rex Hudler

[santo=dorf]

QUOTE(Texsox @ Dec 12, 2006 -> 05:19 PM) <{POST_SNAPBACK}>

Most credit unions have very easy membership rules and you would probably qualify. Pick up whatever the factory is offering and ask how much time you have to shop the loan. IIRC you should have 30 days and it will still be a new car loan.

I got a .25% off for using direct deposit with my checking account there, and another .25% off for being there a long time. I ended up with 6.65% for 4 years, when the dealership was trying to do 11% for 4 , hell maybe 5, years

[Rex Hudler]

What are auto rates at now? I'm currently at 4.95% on a refi, done about 3 yrs ago.

[Balta1701]

What are auto rates at now? I'm currently at 4.95% on a refi, done about 3 yrs ago.

I bought mine at just under 6% through the dealer. I could have saved .2% by going through my Credit Union.

[Chisoxfn]

Usually, you can also refinance after leaving the dealership. I have shopped my loan a couple times after leaving a new car dealer with the car. Both times I wound up with different financing than when I started.

 

Kudos on thinking about that. The cost of the loan is significant. The problem you will run into is needing the information on the car you are purchasing. You can not get a loan, usually, for more than the car is worth. So you can't get a loan for say $5,000 to buy a car without knowing what car you are buying.

Ya, what you do is get financing from the dealer but go with the plan you are going to get alternative financing. If you don't get the alternative financing within like a 3-5 day period where you can go around and find your own financing (which is almost always less than that of the dealer, unless you are getting special financing like 0% or something along those lines).

 

What Balta is getting at is these companies need YOU and not the other way around. Tell them the names of the other Honda dealers in town and say "I know what car I want and I know what other dealers are going to give me, give me your best price"

No, just go in and tell them what you want to pay. In fact, I usually just call up on the phone..ask for the fleet manager and say do you have this car and can I get it for this. I refuse to pay more than few bucks over invoice and thus far I've never had to. But in some cases you may not be able to get a car for invoice, still go to edmnunds.com or carsdirect.com and see what type of give dealers have and go from there.

 

I don't even negotiate anymore and I've never had much trouble with it.

[santo=dorf]

QUOTE(Rex Hudler @ Dec 12, 2006 -> 06:11 PM) <{POST_SNAPBACK}>

What are auto rates at now? I'm currently at 4.95% on a refi, done about 3 yrs ago.

Are we talking about new cars, or used?

 

Frankly, I don't see the point in buying new cars. The only advantage you get is a lower rate (but you pay more in inusrance, and the car loses a lot of value after you drive it off the lot.)

 

I got my Corvette for almost half the price of a new one, and mine only had 9600 miles on it.

[Iwritecode]

I got a .25% off for using direct deposit with my checking account there, and another .25% off for being there a long time. I ended up with 6.65% for 4 years, when the dealership was trying to do 11% for 4 , hell maybe 5, years

 

I got a 5-year loan with some outrageous interest rate when I bought my first car from a dealer. Back when I was younger and dumber.

 

By the time I was into about the 3rd year of the loan, I owed more that what the car was worth. I eventually got into an accident and they totaled it. Probably the best thing that could have happened to me because I finally got out from under the loan. I only had to come up with $600 out of my own pocket because the check from the insurance company wasn't quite enough to pay it off.

 

Since then I've stuck with private owners and gotten loans from my bank. One of my vehicles is already paid off and the other will be in about 4 months.

[Rex Hudler]

Are we talking about new cars, or used?

 

Frankly, I don't see the point in buying new cars. The only advantage you get is a lower rate (but you pay more in inusrance, and the car loses a lot of value after you drive it off the lot.)

 

I got my Corvette for almost half the price of a new one, and mine only had 9600 miles on it.

 

I was asking in general. Mine was a refi, so the used. I do agree with you however, that new cars are not a great financial deal. But that wasn't the question asked. lol

 

I bought a 3-yr old Lexus ES300 (with ext. warranty to 100k miles) for the same price as my girlfriend bought a brand new Accord LX about 5 yrs ago. I had to eat 40k miles, but with a good car that is well worth the price you pay. I've found that you can get a much nicer car, esp if you catch it after it has been leased, for the same money as a lesser new car and you don't lose the depreciation. Leased cars tend to be more well taken care of in my experiences.

[Texsox]

One of the salespeople that worked for me bought three consecutive cars from the major rental places. She felt the strict maintenance schedules kept out weighed the "screw it it's a rental car". Plus she was usually getting higher end luxury cars and those drivers tended to be older and less likely to abuse a car.

[sox4lifeinPA]

 

zeroing in on a loan... new car for a new year and a new job, woot!

[smalls2598]

The Civics came out with a new bodystyle for 2006, and they are pretty hot sellers.

 

Someone mentioned Edmunds.com.... I love that site. This will actually be my 2nd new car, and I used that site quite frequently before and after i bought my last car in July of 2003. But now that I'm slightly older, it's time to 'grow up' and get a fuel efficent car that is more practical....you know, all that BS. But I really do like the new bodystyle and features offered on teh Civic EX line.

 

anyways, like I said, the Civics are HOT HOT HOT. I've been thinking about a Civic since last year, but didn't start getting quotes until this past March, with unhappy results...The closest I got to Invoice pricing was about 500 dollars....until last week. I had a guy emailing me once a month for the past few months about a car. He finally agreed to sell to me at Invoice, so I may be paying him a visit next week.

 

First I needd to stop into Carmax, just to see what they will give for my car. Then I'll be able to use that number when I hit the dealerships. Of course, as I learned through Edmunds...don't even bring up the thought that I have a trade in until all prices on teh new car determined

 

Once again, thanks everyone for your help and opinions.

Edited December 14, 2006 by smalls2598