Need some quick loan advice.

[Jeepn’]

So I believe my credit union is at 5% at 60mo. I’ve seen dealers ask for an opportunity to beat or match rates. How exactly would that work? Would my credit union send me a check and if the dealer beats it I don’t cash it?

Sorry if it’s a dumb question. I’ve always gone with the dealers bank, never done credit union or had them compete for business so I’m not entirely sure how to go about it.

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[Barney392]

So I believe my credit union is at 5% at 60mo. I’ve seen dealers ask for an opportunity to beat or match rates. How exactly would that work? Would my credit union send me a check and if the dealer beats it I don’t cash it?

Sorry if it’s a dumb question. I’ve always gone with the dealers bank, never done credit union or had them compete for business so I’m not entirely sure how to go about it.

Just tell the dealer you can get a loan at your credit union at 5%. If they can beat it go with the dealer. If not go with the credit union. (You will want to get pre-approved)

The credit union will not give you a check. If you go with them they will pay the dealer directly.

 

[Old Jeeper]

SImple, you need nothing other the knowledge that XYZ Credit Union has a 5% for 60 mo...you should be able to see this on the website and take a screenshot.

Tell the Finance guy if you can you beat it if not, thanks but no thanks.

 

[Sticks]

I got preapproved from my credit union and they sent me a check (draft) for the purchase. The dealership asked the question about beating their interest rate and ultimately did. I went with their bank and simply destroyed the check sent by my credit union.

 

[The Last Cowboy]

Get pre approved. That way they know that you qualify for that rate. Even with the good rate, if the dealer can match or beat it, they get money for originating the loan. Yeah, they'd like to shaft you for 10-12%, but they will gladly sign you for 5% rather than losing the originating fee.

 

[DOOKEY]

Make sure you ask the dealer for their buy rate. If they won't tell you... go somewhere else. Thell them you'll agree to pay their buy rate which is the rate they purchase the loan for. Their sale rate to you is usually more than their buy rate.

 

[Jeepn’]

SImple, you need nothing other the knowledge that XYZ Credit Union has a 5% for 60 mo...you should be able to see this on the website and take a screenshot.

Tell the Finance guy if you can you beat it if not, thanks but no thanks.

Interesting, I didn’t think a screenshot would work. I was pre-approved for 4.78% thanks for the advice!

 

[Rustynail11]

Just tell the dealer you can get a loan at your credit union at 5%. If they can beat it go with the dealer. If not go with the credit union. (You will want to get pre-approved)

The credit union will not give you a check. If you go with them they will pay the dealer directly.

That isn't always true, some dealers won't accept electronic transfers or ACH from outside lenders. When I bought my 22 JLUR I got a buy sheet from my dealer and the CU cut a check that I picked up and took to the dealer. Did the exact same thing a few months ago when I bought my daughter a car

 

[Barney392]

That isn't always true, some dealers won't accept electronic transfers or ACH from outside lenders. When I bought my 22 JLUR I got a buy sheet from my dealer and the CU cut a check that I picked up and took to the dealer. Did the exact same thing a few months ago when I bought my daughter a car

Who was the check made out to? You or the dealer?

 

[Jeepn’]

That isn't always true, some dealers won't accept electronic transfers or ACH from outside lenders. When I bought my 22 JLUR I got a buy sheet from my dealer and the CU cut a check that I picked up and took to the dealer. Did the exact same thing a few months ago when I bought my daughter a car

In a situation like this, had they beat your rate would you just shred the check and tell the CU never mind?

 

[Rustynail11]

In a situation like this, had they beat your rate would you just shred the check and tell the CU never mind?

No, I had my loan approved with the CU. Gave the dealer the opportunity to beat the CU and when they couldn't even come close sent the buy sheet to the CU and they cut a check that I picked up and carried to the dealer.

 

[Rustynail11]

Who was the check made out to? You or the dealer?

Check was made out to the dealer

 

[Some Random Guy]

In a situation like this, had they beat your rate would you just shred the check and tell the CU never mind?

Yup. You can always call the CU just to be safe.

 

[Barney392]

Check was made out to the dealer

Thanks. Haven't experienced this. Maybe they didn't trust me with the check.

 

[Rustynail11]

Thanks. Haven't experienced this. Maybe they didn't trust me with the check.

LOL, I have done it a couple times now and the 1st time I was a little surprised they gave me the check. For the last several vehicles I have bought I always have financing set set through my CU before even talking to a dealer.

When I bought my 22 JLUR I didn't even go to the dealer until it was time to drop the check off, sign the paperwork, and inspect the vehicle. The one they had on the lot had everything I wanted so I worked with the sales guy over the phone,. They tried to beat my CU financing and couldn't. I was at the dealer for maybe 45 minutes total and most of that was me looking the vehicle over doing a quick test drive. I was in finance for 10 minutes at most to give them the check and there were only 4 or 5 things to sign.

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