Question regarding Dealership Financing

[kizzle02]

Hey all!

I've heard everyone say that you should not finance your car through the dealership but can it really be that bad?

I've been working on getting pre-approved financing through one of the local credit unions or banks but the dealership which I am planning to order through told me that I could hold off on the finance side and let them get me the best rate possible. He said that they are linked with dozens of banks that will compete to get my business and give me the best interest rate.

This guy has been super creditable so far. I met him at the Auto Show here and he was giving people information about the new Camaro. We exchanged information and he has called me whenever they have gotten one of the new Camaros in to let me come check it out. He has been trying to arrange for me to test drive the next one that is not already pre-sold.

I will probably continue to look for outside financing but what do you guys think about this situation in particular?

I plan to put about 10k down and finance 25k.

[Vash]

Did he offer you muffler bearing upgrades, underbody coating and a paint sealant?

You are doing the right thing getting pre approved. Don't let him shop your credit.

[MikeySoft]

Originally Posted by kizzle02

Hey all!

I've heard everyone say that you should not finance your car through the dealership but can it really be that bad?

I've been working on getting pre-approved financing through one of the local credit unions or banks but the dealership which I am planning to order through told me that I could hold off on the finance side and let them get me the best rate possible. He said that they are linked with dozens of banks that will compete to get my business and give me the best interest rate.

This guy has been super creditable so far. I met him at the Auto Show here and he was giving people information about the new Camaro. We exchanged information and he has called me whenever they have gotten one of the new Camaros in to let me come check it out. He has been trying to arrange for me to test drive the next one that is not already pre-sold.

I will probably continue to look for outside financing but what do you guys think about this situation in particular?

I plan to put about 10k down and finance 25k.

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[87irocz]

Originally Posted by kizzle02

Hey all!

I've heard everyone say that you should not finance your car through the dealership but can it really be that bad?

I've been working on getting pre-approved financing through one of the local credit unions or banks but the dealership which I am planning to order through told me that I could hold off on the finance side and let them get me the best rate possible. He said that they are linked with dozens of banks that will compete to get my business and give me the best interest rate.

This guy has been super creditable so far. I met him at the Auto Show here and he was giving people information about the new Camaro. We exchanged information and he has called me whenever they have gotten one of the new Camaros in to let me come check it out. He has been trying to arrange for me to test drive the next one that is not already pre-sold.

I will probably continue to look for outside financing but what do you guys think about this situation in particular?

I plan to put about 10k down and finance 25k.

If you looked around and he finds you the best rate, then go for it. With that said. My brother in law is a salesman at a dealership. He told me that he finds the best rate, say 6%. Then he tell the customer that the best rate is 7%. He then gets a kick back from the bank of the difference between what the buyer finances at 7% and what was available at 6%. So, be cautious.

[Andro]

Originally Posted by 87irocz

If you looked around and he finds you the best rate, then go for it. With that said. My brother in law is a salesman at a dealership. He told me that he finds the best rate, say 6%. Then he tell the customer that the best rate is 7%. He then gets a kick back from the bank of the difference between what the buyer finances at 7% and what was available at 6%. So, be cautious.

Thats just wrong

[Vash]

Originally Posted by 87irocz

If you looked around and he finds you the best rate, then go for it. With that said. My brother in law is a salesman at a dealership. He told me that he finds the best rate, say 6%. Then he tell the customer that the best rate is 7%. He then gets a kick back from the bank of the difference between what the buyer finances at 7% and what was available at 6%. So, be cautious.

No.

Never shop your credit.

You pull your 3+1 score. That's all 3 plus FICO.

Then you fix any errors. Then you get pre approved. Deal with one bank only.
Pref a NCUA credit union, in my opinion.

Your credit and score is not someones play toy to make a buck. You have to use the Matrix to your advantage and not let someone use you as a cash object.

[87irocz]

Originally Posted by Vash

No.

Never shop your credit.

You pull your 3+1 score. That's all 3 plus FICO.

Then you fix any errors. Then you get pre approved. Deal with one bank only.
Pref a NCUA credit union, in my opinion.

Your credit and score is not someones play toy to make a buck. You have to use the Matrix to your advantage and not let someone use you as a cash object.

What are you saying no to. I basically said not to trust the financing guy at the dealership. Don't shop your credit? What do you call looking around for the best rate?
If you don't look around then you are going to be stuck with whatever one bank offers you. You have to look around on different bank websites and other places that compare rates like bankrate.com to find the best deal. If you are saying not to put in several applications for loans, that's ok if you have great credit. Someone with great credit can look online & find out what the best rates are, then show up and be guranteed a car loan. However, not everone qualifies for each banks best rate, so you have to apply to find out. I personally put in for a loan from 4 different banks before I got approved (Associated Credit Union, USAA, Capital One, & Navy Federal). I was hoping to get approved by more than one so I could pick the best rate, but since I had a bankruptcy 3 years ago that didn't happen. I have a FICO score of 685 and good credit since. I got approved by Navy Federal and of course will go with them at 6% for 60 months. I still say go for wherever you get the best rate.

[Mr_Draco]

Originally Posted by 87irocz

What are you saying no to. I basically said not to trust the financing guy at the dealership. Don't shop your credit? What do you call looking around for the best rate?
If you don't look around then you are going to be stuck with whatever one bank offers you. You have to look around on different bank websites and other places that compare rates like bankrate.com to find the best deal. If you are saying not to put in several applications for loans, that's ok if you have great credit. Someone with great credit can look online & find out what the best rates are, then show up and be guranteed a car loan. However, not everone qualifies for each banks best rate, so you have to apply to find out. I personally put in for a loan from 4 different banks before I got approved (Associated Credit Union, USAA, Capital One, & Navy Federal). I was hoping to get approved by more than one so I could pick the best rate, but since I had a bankruptcy 3 years ago that didn't happen. I have a FICO score of 685 and good credit since. I got approved by Navy Federal and of course will go with them at 6% for 60 months. I still say go for wherever you get the best rate.

What he is saying is don't let a dealer shop your credit. 3-4 hits to get the best rate won't hurt your credit but when you approve your dealer to run a credit check they look at dozens of banks and CU's, each counting as an individual hit. This really hurts your credit and the APR you can get approved for.

[Jeanius]

I pulled my reports from annualcreditreport.com, but where do I get the 3+1 with the FICO score?

[Iwantone2]

Really? I heard that if you get credit checks within a 1-week window (i think that is right) it will only count as one inquiry. if you get more inquiries outside of that window, then it will count as a seperate inquiry. of course, i could be wrong...what the heck is a 3+1?

[pruettfan]

Here is what I do everytime I buy a car. I let the dealer give me their financing. They believe they are getting a kickback from the bank so they are happy to negotiate to various extents on price. You have a couple of months from the time you buy this car to still finance it as a new car. If you get a better offer for financing you just take it. The dealers hate this because they miss out on some bucks from the financing transaction. I even had a finance manager call me and tried to make me feel guilty because he said I took advantage of them. You could not wipe the smile off of my face for a week.

The fact is dealers are very good a getting financing but they have little incentive to get you a great deal on financing. If you have decent credit then you will get plenty of offers to compare. If your credit is not so good then you will get less offers. I have always been able to beat the dealership unless they are offering a factory subsidized deal but I never seem to care for the cars that qualify for that.

[pruettfan]

Originally Posted by Iwantone2

Really? I heard that if you get credit checks within a 1-week window (i think that is right) it will only count as one inquiry. if you get more inquiries outside of that window, then it will count as a seperate inquiry. of course, i could be wrong...what the heck is a 3+1?

If you inquire 3 times in a couple of weeks for a car then even if it takes a few points away they can see that it is the same inquiry. Of course if you are applying for a house, car and new credit card in a week you will make at least one of those transactions difficult.