Is Chrysler/Dealer financing a good/bad option?

[Chocolate Thunder]

745 is good. If length of credit history is a big factor you might only qualify for some lenders second best offer, but I think you’ll qualify for the best rate offered by most sources.

I just checked USAA if you’re a member or eligible for membership. Current new vehicle financing rate is 3.29% for terms up to 72 months.

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[NavyJeeper]

Mortgages are 30 days and Auto Loans are 14 days. You can get 30 hard requests in 14 days and it has the same effect as 1; the system was changed about 10 years ago to encourge people to shop for better intrest rates.

 

[ember_season]

@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-227

@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/auto-loan-pre-approval-soft-pull-get-pre-approved-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

Yeah unfortunately this just isn’t what happens in real life. I know from personal experience car shopping when I had not so perfect credit

 

[Sgt Beavis]

Jeep noob is very much correct. I've bought and financed dozens of cars over the last 25 years. My credit is outstanding and I always get at least one other credit offer before I set foot on the dealer lot. You will always find yourself in a better negotiating position by doing that.

Some of the best rates out there are Pentagon FCU and Navy FCU. Both are below 3% right now. Check the membership requirements before you dismiss the idea of using them. PenFed can let you join if you become a member of one of two organizations that have a one time membership fee. The fee is only $17.
https://www.penfed.org/auto/new-auto-loans
https://www.navyfederal.org/products-services/loans/auto/auto-rates.php

 

[gfo]

745 is good. If length of credit history is a big factor you might only qualify for some lenders second best offer, but I think you’ll qualify for the best rate offered by most sources.

I just checked USAA if you’re a member or eligible for membership. Current new vehicle financing rate is 3.29% for terms up to 72 months.

Sorry to dig up an old thread...

I have USAA for my insurance and was looking to get financing through them - for reference, my credit score is 802 as of this week.

Their site quotes this figure and I was expecting to get around that, but they're telling me I can get 4.39% APR at 72mo. This seems like a lot - though I can get a slight insurance discount if I use them and I also have about .75% off that rate if I auto-pay (.25%) and because I used their car buying service (.5%). I almost feel like it's worth checking for deals from the Dealership on financing because of this?

The only reason I think it happened, unless there are other factors at play, is that I had a higher than normal credit balance last month due to some home improvement projects - but that was all paid off immediately at the end of the month.

 

[Chocolate Thunder]

Your score is your score. 802 will get you the best finance rate offered from any source. It’s higher because rates have increased since that post I made back in June. There’s better to be had. Within a point. You have to look around st credit unions, they’ll almost always have the lowest rates. Check all of them in your area that you qualify to join. Many accept almost anyone.

 

[LeoTheDragon]

My average FICO score across the 3 bureaus is 833. It's pointless after 780 or so, but definitely 800+ is all the same and you won't get anything better for having 800 vs 850. I got 2.49% for 36 months through my CU and the dealer was exactly double that for the same period. They wouldn't budge, but that's because they give people a discount by financing through them. Needless to say I refinanced as soon as I got home. My CU also offers 0.99% if you use their car buying service (kind of like Costco) but since I didn't want to deal with that hassle I just took the 2.49% for new refinances they offered.

If you have excellent credit, 9/10 times you'll get a better rate from a 3rd party loan because from what I understand, the dealership rates are inflated a bit so they can skim some profit off the top. Even if the dealership uses the same bank you got your loan separately from, it would be higher through the dealer.

 

[gfo]

Your score is your score. 802 will get you the best finance rate offered from any source. It’s higher because rates have increased since that post I made back in June. There’s better to be had. Within a point. You have to look around st credit unions, they’ll almost always have the lowest rates. Check all of them in your area that you qualify to join. Many accept almost anyone.

Sorry, I should have specified - the rate you mentioned is actually higher than what USAA quotes now (3.02% APR) per their site: https://www.usaa.com/inet/wc/bank-loan-auto-main.

Per their disclaimer, that rate includes the two discounts I qualify for. I might call to see why it came back so high, but generally the agents just tell me they don't know more than what the computer says. Local credit unions advertise rates that are comparable or worse than the quote USAA gave me. Seems like from one of your posts in this thread I could be better off telling my dealer the rate I was given from USAA and try to do better?

I can easily recoup the insurance discount by opening a bank account through USAA at no cost (which I should probably just do anyway) and not bother touching it.

 

[plex]

I am cringed at the thoughts of people financing their car for 84 months...

 

[homerun]

FOMC meeting is next week, I can't predict rates but many economist think there will be another increase. If you are close on your decision might want to lock in the best rate you can find on Monday or Tuesday.

 

[ZoeSanderson]

Here is some information regarding credit cars and getting a loan or hire purchase agreement. The type of deal that could work for you will depend on the type of car you want, your budget, and your credit rating. The good thing about hire agreement is that deposit payments are relatively low - typically around 10% of the total value of the car. I couldn't afford to pay upfront so I chose this one. Monthly I pay 1500 plus taxes. If somebody is interested to understand how it works I leave the link below


https://www.moneyexpert.com/car-finance/hire-purchase/

 

[Mid-life Wrangler]

Jeep noob is very much correct. I've bought and financed dozens of cars over the last 25 years. My credit is outstanding and I always get at least one other credit offer before I set foot on the dealer lot. You will always find yourself in a better negotiating position by doing that.

Some of the best rates out there are Pentagon FCU and Navy FCU. Both are below 3% right now. Check the membership requirements before you dismiss the idea of using them. PenFed can let you join if you become a member of one of two organizations that have a one time membership fee. The fee is only $17.
https://www.penfed.org/auto/new-auto-loans
https://www.navyfederal.org/products-services/loans/auto/auto-rates.php

We just bought a Durango for my wife. I had pre-approval from Navy Federal for 60 months at 2.19% or 72 months at 2.29%. It is good to get at least one pre-approval before going to the dealership, so you know what you can get and then give them the opportunity to beat it.

 

[guarnibl]

Navy federal is good, so is PenFed. PenFed is 2.99% for 72 months, so not as good as Navy Federal. PenFed has been very good to deal with though.

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