LVTiffy
Well-Known Member
This is exactly what we are doing. I have about a 780 credit score and an 800 something auto score. I know the FCA rates are horrendous even with high scores. My plan is to use their financing then refinance with my local credit union for hopefully 1.99% or 2.49% afterwards.There's a rule of thumb from the financing thread that 3/4 of a point of financing is worth roughly $1,000 over the life of a loan (60mos?). So if one can get 2% financing from Langley Federal Credit Union (VA) and 3.5% financing from a dealer (60mos), that's roughly a difference of paying $2,000 more for the dealer's loan (3.5% -.75 -.75 = 2%).
Some people go with dealer financing (3.5%), but within 6 mos, they pay off the dealer loan (assuming the dealer loan is written such that it can be paid off without penalty) with a credit union loan.
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