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Is Chrysler/Dealer financing a good/bad option?

That One Guy

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As the thread implies. I'm probably ordering this weekend, and dealers often want to talk in-house financing. Should it be avoided? Do rates tend to be higher? Is it worth the savings?

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Chocolate Thunder

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Shop outside sources and get a preapproval or several before you order. Ask the dealership to beat your best rate by at least a quarter point if they want your business.
 

Rhinebeck01

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Shop outside sources and get a preapproval or several before you order. Ask the dealership to beat your best rate by at least a quarter point if they want your business.
@jeepnoob

I totally disagree with your saying get a "preapproval".

And "get several" .... are you kidding. You take a hard credit hit for each one!

Yes, shop interest rates from just before you order to the day you sign on the line for the Jeep.

When you get that one/single, pre-approved car loan you take a hard credit hit. That pre-approval, it will only be good for 30 days. If your Jeep does not come in, within 30 days you will be faced with having to get another car loan approved (or re-approved) which means you will take another credit hit.

You can get a car loan approval instantly or with in 24 hrs.. Wait til close to delivery time to get your loan approval. YES, watch rates and your timing in regard to the loan.

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Rhinebeck01

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@That One Guy

The car loan interest rate, undoubtedly, will be higher then loans you can find locally or online. Do your local / internet research.

Start searching loan rates the day you order the Jeep, to the day you sign on the dotted line.

During bargaining, at the dealership for your new Jeep, if you are asked whether you will be having them do the financing, answer yes. You can say no to dealership closer on delivery day. Dealership sales dept. may offer you a slightly better deal if they think they are financing.

-Do read my post above saying do NOT get a pre-approved car loan until just before delivery day.

.
 
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OldGuyNewJeep

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Credit Unions will have lower rates. Try AAA who will shop for you. They got me 1.99% last week via MSCU.

Agree with @Rhinebeck01 - don’t go crazy applying as it will adversely affect your credit score.
 

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Chocolate Thunder

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@That One Guy

Here’s some information regarding auto financing preapproval and a “hard” vs “soft” credit check and how they affect your credit score. If your credit is stellar, even the small hit from a hard pull isn’t much of an issue. If less than stellar or borderline it’s more of an issue. However the preapproval I mentioned earlier does NOT impact your credit score. When it is time to actually go through with finance options, multiple hard pulls in a short period for a single type of credit (auto financing in this case) only affects your score as ONE inquiry, not multiples. Typically the best rates to be found are through credit unions and organizations that have car pricing/buying/financing services like AAA, USAA, etc. Good luck!

https://www.supermoney.com/2017/11/...proved-auto-loan-without-hard-credit-inquiry/

https://www.edmunds.com/car-loan/get-a-car-loan-interest-rate-without-a-hard-credit-inquiry.html

https://budgeting.thenest.com/hurt-credit-score-prequalify-car-loan-22703.html
 
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That One Guy

That One Guy

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More information: I have already went to a local credit union and been approved. I made sure to do that so I wasn't solely left with dealer financing. With all these rate hikes, it's 4.24%
 

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Pre-approved auto loans are only good for 30 days. If you get a auto loan now and your vehicle comes in after the 30 days you will need to get another loan approved which means another credit hit.

Do your homework and you will find out about credit checks and how they affect things.... it is not wise to willy nilly "get a preapproval or several before you order".
 
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That One Guy

That One Guy

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Pre-approved auto loans are only good for 30 days. If you get a auto loan now and your vehicle comes in after the 30 days you will need to get another loan approved which means another credit hit.

Do your homework and you will find out about credit checks and how they affect things.... it is not wise to willy nilly "get a preapproval or several before you order".
Hence why I don't want every dealership in the land dinging my credit.
 

Chocolate Thunder

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More information: I have already went to a local credit union and been approved. I made sure to do that so I wasn't solely left with dealer financing. With all these rate hikes, it's 4.24%
Oh my God! You’ve already wrecked your credit with a preapproval! Nooooooo!!!! Lol.

If you’ve got really good credit you can find a better rate than that. The 1.99% that @OldGuyNewJeep mentioned is about as good as I’ve seen in a while. Aim for that. If you don’t find anything better that you qualify for, ask the dealership to beat that rate. They’ll make money so they have an incentive to at least try if they can.
 

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https://www.capitalone.com/cars/

Here’s just ONE of many examples of a resource where you can get a preapproval with “NO IMPACT TO YOUR CREDIT SCORE”, just as was suggested by authoritative sources on automotive finance. Not just a random dude on the internet without any facts to back up an opinion.

Here is another good source of information with some places you might want to check out. https://www.nerdwallet.com/blog/loans/best-car-loans-for-good-fair-and-bad-credit/#purchase

If you read the info at the links in my earlier post it explains the process and how it doesn’t ding your score as some posts claim. That wouldn’t be good. Just make sure it’s one that doesn’t actually have you fill out an actual application for credit. Maybe that’s what those guys are thinking of?
 

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Noob is right, if the credit pull is for the same purpose (ie auto loan) and done with 72 hours of each other multiple inquires only count as one. So shop around but do it in a short time frame. You may find that financing through the dealership actually provides the best rate as a good finance guy should have connections and know what various banks are looking for, some may put more emphasis on Loan to Value or Debt to Income where others may focus just on a FICO. Rhinebeck is correct that multiple inquires if not close together could hurt your score, but it will be very minimal impact and won’t last very long. This impact is nothing like a missed payment or a charge off. Unless you are on a bubble for approval I won’t even worry about it.

Final thoughts don’t compare your rate offer to what others recieved last week because the FOMC raised rates yesterday and banks will have most likely already adjusted today. That means that any comparisons are no longer apples to apples.
 

Chocolate Thunder

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Noob is right, if the credit pull is for the same purpose (ie auto loan) and done with 72 hours of each other multiple inquires only count as one.
The first source I linked says Experian counts all hard pulls for the same purpose within 14 days will only count as one. Has this changed that you know of?
 
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That One Guy

That One Guy

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Noob is right, if the credit pull is for the same purpose (ie auto loan) and done with 72 hours of each other multiple inquires only count as one. So shop around but do it in a short time frame. You may find that financing through the dealership actually provides the best rate as a good finance guy should have connections and know what various banks are looking for, some may put more emphasis on Loan to Value or Debt to Income where others may focus just on a FICO. Rhinebeck is correct that multiple inquires if not close together could hurt your score, but it will be very minimal impact and won’t last very long. This impact is nothing like a missed payment or a charge off. Unless you are on a bubble for approval I won’t even worry about it.

Final thoughts don’t compare your rate offer to what others recieved last week because the FOMC raised rates yesterday and banks will have most likely already adjusted today. That means that any comparisons are no longer apples to apples.
They raised rates again??

I sure picked a bad summer to buy my first new car.

I have a 745 credit score. Length of credit history is only about 2.5 years. High income. I guess if I really end up hating my APR, I'll just pay it off quicker.

Who knows where the rates will be in 2 or 3 months when my order should arrive.
 

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I went conservative as I believe the purpose of the inquiry along with which bureau you have pulled will impact that. 72 hours should be pretty safe regardless, it is true that certain inquires may allow a longer time frame, but I don’t know what it is for every possible scenario.
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