When to start the finance process?

Mike_1

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Hi All,

I placed an order for my JL on 4/16. I don’t plan on it being delivered until late June or July or even later. However, at what point should I start the financing process? I’ll be comparing rates with the dealer and my credit union.

This will be my first time ordering a custom vehicle.

Thanks in advance for your feedback.





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GtX

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If you're financing at the dealer then you finance the day you take delivery and actually buy the vehicle.

If you're financing somewhere other than the dealer then check with the lender. I don't believe you can sit on financing for an extended period of time.

If you're paying cash. Write the check anytime you want and date it for delivery day.

Ordering a vehicle is really no different than buying one off the lot except the delay between identifying the vehicle you want to buy and buying it.
 

JDJL

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I'm doing the same thing. My credit union's offers are only good for 30 days, so be careful.

Your dealer should give you a delivery date once everything gets moving again. So I would wait until you're a few days from taking delivery, then go and apply for the loan at your CU. They'll give you whatever interest rate, and a blank check that you can write up to a certain amount.

When you go take delivery of your Jeep, bring that check to your dealer and let them run your credit to give them the chance to beat the terms you already have through your CU. If they can beat it, great. If not, you still have your CU loan... and it only shows up as one hard credit check :like:
 

wibornz

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I'm doing the same thing. My credit union's offers are only good for 30 days, so be careful.

Your dealer should give you a delivery date once everything gets moving again. So I would wait until you're a few days from taking delivery, then go and apply for the loan at your CU. They'll give you whatever interest rate, and a blank check that you can write up to a certain amount.

When you go take delivery of your Jeep, bring that check to your dealer and let them run your credit to give them the chance to beat the terms you already have through your CU. If they can beat it, great. If not, you still have your CU loan... and it only shows up as one hard credit check :like:
So, this is what I did. I told the dealer that if he could beat the best rate I could find, that I would finance through the dealer. Then he did. I looked and contacted my credit unions, and normal banks that I do business with. He was able to beat all the rates that I could find and used a bank that I currently have accounts at.
 
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Mike_1

Mike_1

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Thanks all. This is great info. I appreciate the feedback.
 

IAJeepguy

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Check with your bank as some will do special extensions if you are ordering a new vehicle. One particular bank that I know does this is Delta CCU.
 

BruceA78

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I would wait until the Jeep is ready at the dealership. If you apply now for an auto loan and then apply for another one in 30+ days then your credit score is going to take a bit of a hit. If you apply within a few days of each other to get the best rate then usually the credit bureaus only consider it 1 hard hit instead of 2 (or more).
 

Some Random Guy

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I would wait until the Jeep is ready at the dealership. If you apply now for an auto loan and then apply for another one in 30+ days then your credit score is going to take a bit of a hit. If you apply within a few days of each other to get the best rate then usually the credit bureaus only consider it 1 hard hit instead of 2 (or more).
I second this because most banks and credit unions will give you an instant decision to bring in to the dealer. When your jeep is ready, apply with your credit union/bank and bring the pre-approval to the dealer. Your dealer will not sell your jeep if you don’t show up within hours of it being delivered. Most people need to request time off work.
 

Craigzjeep

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Go to your Credit Union, or Bank, when you are ready.
And avoid the dealership loan program plan like the plague.
I've been there , done that, the finance guy at Puyallup Larson tried to F my loan sideways.
 

Tar Heel Wrangler

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I had a new experience recently buying a JT. I would get an extra 1% under invoice if I financed with the dealer. Well, I knew what rate I could get from my bank and credit union 3.95% for 72 mths, but I wanted to know upfront what I could qualify for from the dealer. Dealer said to do a pre-approval with Capital One (they use CO often and get pretty good rates).

I did the online preapproval maybe a week or 2 before my sold order came in, which is a soft pull (no credit hit). I was shocked to have gotten 2.24%. The dealer used my preapproval (well I did have to apply through their system as well) and I got the 2.24% plus the 1% extra under invoice with no hassles. Was a relief to understand what rate I should be getting BEFORE I went in to finance. After the $1k rebate was included, I was at 8.8% under invoice (5% off the bat, +1% financing, +1% tread lightly).

Looking back on other purchases where I just asked the dealer to beat my credit union, they did.....but how much lower could they have gone? I had no clue, but took the slightly better rate. I'm sure I left $ on the table on those deals. Tri City rocks in all aspects is all I have to say.
 
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galleywinter

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I'm getting additional off invoice for dealer financing. My initial thought was go in with a check from Navy Federal for back up, great rates. I'm afraid the dealer will be a high rate because they think I have to finance with them. Instead of doing that I'll do dealer finance, take the discount and after two payments refi with Navy Federal. Not sure about others but Navy Federal still considers a vehicle New Vehicle rates if still under 7500 miles. Somethings else I considered was my trade. If I drive my truck 4 hours to pick up my new JL and we can't get together on my trade offer, I'll be stuck with driving both back and then dealing with selling my truck. That would be fine but I'm using the truck equity for down payment. I'll need that $10k at close. The dealer might also think I have to trade and not give me as much. I have a standing offer with Carvana, probably more than I would get for trade anyway. So sell my trade to them before taking delivery, put that money down, use dealer finance, refer after 2 payments with my credit union is the plan.
 

Tar Heel Wrangler

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I'm getting additional off invoice for dealer financing. My initial thought was go in with a check from Navy Federal for back up, great rates. I'm afraid the dealer will be a high rate because they think I have to finance with them. Instead of doing that I'll do dealer finance, take the discount and after two payments refi with Navy Federal. Not sure about others but Navy Federal still considers a vehicle New Vehicle rates if still under 7500 miles. Somethings else I considered was my trade. If I drive my truck 4 hours to pick up my new JL and we can't get together on my trade offer, I'll be stuck with driving both back and then dealing with selling my truck. That would be fine but I'm using the truck equity for down payment. I'll need that $10k at close. The dealer might also think I have to trade and not give me as much. I have a standing offer with Carvana, probably more than I would get for trade anyway. So sell my trade to them before taking delivery, put that money down, use dealer finance, refer after 2 payments with my credit union is the plan.

See if you can get a preapproval through whom the dealer recommends to see what your rate should be (see my previous post). Compare that rate with Navy Federal. If it's lower than NF, then no need to refinance. I saved almost $1,800 just by doing that.

You will be much more in control (rather than the dealer) if you go ahead and sell to Carvana and have that cash to put down. Be sure to factor in if your state gives you a tax break on trade-ins though and compare.

I don't know about you, but after I'm done negotiating a deal and have gone through purchasing a vehicle, the last thing i want to do is come back and refinance.....ever.
 

TXRubicon

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You won't even be able to start the financing until a Monroney/invoice has been generated. Just wait until the car hits the dealership. If your credit is solid they can get you processed same day or next day through any bank or CU.
 

Tar Heel Wrangler

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You won't even be able to start the financing until a Monroney/invoice has been generated. Just wait until the car hits the dealership. If your credit is solid they can get you processed same day or next day through any bank or CU.
They can, but will you trust that they are giving you the best rate they can give you or will they take a bigger piece out of it? Maybe they will pull up all of your rate options and show you their screen so you can be sure, (IDK)?
 

Ratiogear

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On Carvana vs dealer: Some dealers will give a good deal. Carvana pretty much always does. The tax difference in using your car as a trade vs selling to Carvana is probably not going to make up the difference, if your state is like mine and only taxes the difference.
 

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