Need some quick loan advice.

[JPXR]

Check out fedchoice credit Union. I became a member for our loan and they buy down new members loan rate by 1%. It was worth it to me. I couldn’t find a local cu near me that could beat the regular rate before the buy down.

Sponsored

 

[Rustynail11]

Unless a dealership can substantially beat your credit union, stick with the credit union rate.

As ruthless as some dealerships are (note : I said some) there’s a good chance they’ll deliver you at one rate....and call you back in three to five days requesting you to re-sign at a different rate.

Not sure how anyone would even get sucked in to this. Once you sign that they can't force you to resign at a different rate. At least not a way that I am aware of and if they tried they would a unit to put back in to inventory.

 

[Kyanche]

My local credit union gave me a preapproval letter to show the dealer lol.

 

[COJeeper]

I used to be a lender, I have several posts on here from a few different banner accounts about how F&I (Finance & Insurance) people are the scum of the earth. They are generally one of the highest paid employees at the dealership. As others have said, buy rate sell rate etc, we just called it a bump. We allowed our indirect dealers to bump up to 3%. Then the F&I will sell you a $1000 GAP policy when you have 20% equity in a vehicle and take a 4 year loan. They’re really terrible people who do not care an ounce about the customer.

At the CU I worked at, we offered something called the 2% solution. 2% lower than your current rate (or better if our rate sheet was better) at the same term down to a floor of prime (3.25% at the time). So my recommendation was always get the loan at the dealer then do the 2% solution andpiss off the F&I guy when they get the charge backs.

 

[gsbrockman]

Not sure how anyone would even get sucked in to this. Once you sign that they can't force you to resign at a different rate. At least not a way that I am aware of and if they tried they would a unit to put back in to inventory.

There’s a few stories floating around exactly regarding this. They hook one with a spot delivery, sell your trade-in at auction the next day, and leave one hanging like a prom date.....

 

[Santana74]

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.

One time my CU told me to write a check and they would cover my check. The same CU printed a Bank Check for me to take to a dealer another time. I guess it's whatever they feel like that day.

 

[Spartan99]

The interest rate is calculated monthly??? It usually is fixed for the term of the loan. Sure if you pay it off months, years early there is less interest paid, but the rate stays the same. I have heard of variable rate mortgages. But not car loans. .

The size of the interest payment depends on the size of the loan, which changes monthly as you pay it down.

 

[missionale]

I saw the word "quick" and had to chime in - right now 5% is a fairly good rate -

 

[maestro5531]

I picked up my Jeep 3 weeks ago and the dealer really pressed on financing with them. I have 820 score and put down almost 50%. He started with 8% but would get me a deal of my life by giving me a free extended warranty(aftermarket) and lower my interest to 7%. I was 750 miles from home and did not have a single minute to waste. I canceled the extended warranty for full refund and refinanced 3 weeks later at 3.45% with my local credit union. Big middle finger to the scumbag finance guy. Would love to see his reaction to 2 charge backs.

 

[Some Random Guy]

I always get a pre-approved check that is made out to no one and payable up to the approved amount.

Dealers never have beat my credit union so I tell them not to run my credit. They will run it with 4 or 5 different lenders and I don't want the inquiries on my credit. Regardless if loan officer considers them all one pull they still show up as individual pulls.

Allegedly if the auto inquiries are all in rapid succession (like within 30 days maybe for auto?) your score treats it as 1 auto inquiry.
I’m guessing they still show up as multiple individual inquiries on your long form credit report, but the score treats them as 1 as will any future lender with 2 brain cells to rub together.

 

[Some Random Guy]

Not sure how anyone would even get sucked in to this. Once you sign that they can't force you to resign at a different rate. At least not a way that I am aware of and if they tried they would a unit to put back in to inventory.

It’s gotten ugly enough the federal government is weighing in. From what I’ve seen they’re zero’ing in on dealers that sell the trade in before a bank has bought the loan.
Bigger/better dealers just hold the loan themselves or sell it at a loss as the cost of maintaining a good reputation. Like you pointed out, that vehicle’s value has already dropped if they put it back in inventory even if they went through an unwind. Less honest ones “Yo-Yo” the customer back in and force them into worse terms. Truly bad ones report the sold car stolen.
Some have language in the sale reflecting the loan may not be final. Some don’t have that language but treat it as non-final anyway. Patchwork laws by state.

 

[Jeepn’]

Oh man, I got a lot more responses than I thought! lol really appreciate everyone's input.

ok, one more.
so JL is 55k, and ill be giving 30k down. Should I borrow 25k from the credit union and write a separate (personal) check of 30k to the dealer? makes sense to me if I do it that way.

 

[Rustynail11]

It’s gotten ugly enough the federal government is weighing in. From what I’ve seen they’re zero’ing in on dealers that sell the trade in before a bank has bought the loan.
Bigger/better dealers just hold the loan themselves or sell it at a loss as the cost of maintaining a good reputation. Like you pointed out, that vehicle’s value has already dropped if they put it back in inventory even if they went through an unwind. Less honest ones “Yo-Yo” the customer back in and force them into worse terms. Truly bad ones report the sold car stolen.
Some have language in the sale reflecting the loan may not be final. Some don’t have that language but treat it as non-final anyway. Patchwork laws by state.

Not saying it doesn't happen I just don't know how people would let it happen. Why would you walk out for a dealer without a finalized loan that isn't sold? I have bought quite a few cars in the last 25 years that have been financed through the dealer and every single time my paperwork has said who the lender was, interest rate, date of 1st payment, payment amount etc. The dealer cant walk that back.

 

[Some Random Guy]

Not saying it doesn't happen I just don't know how people would let it happen. Why would you walk out for a dealer without a finalized loan that isn't sold? I have bought quite a few cars in the last 25 years that have been financed through the dealer and every single time my paperwork has said who the lender was, interest rate, date of 1st payment, payment amount etc. The dealer cant walk that back.

It’s fairly common. Ever bought a car when the banks are closed? Like after 5? On a weekend? Or *gasp* on a holiday? This is exactly how you got it and didn’t have to wait until the banks opened the next business day. Sorry for the tongue in cheek.
The people it happens to thought it was final. Some were even told it was final (thus new regulations being considered). Most of the time another bank will buy the loan the next business day even if the original loan sale fell through. The people hurt are usually subprime or non-W2 income.

 

[Some Random Guy]

Oh man, I got a lot more responses than I thought! lol really appreciate everyone's input.

ok, one more.
so JL is 55k, and ill be giving 30k down. Should I borrow 25k from the credit union and write a separate (personal) check of 30k to the dealer? makes sense to me if I do it that way.

Yup, but the bank might want a teller’s check or cashier’s check at that dollar amount.

Sponsored