Anyone who financed there Legacy...HELP!!!

[Verwilderd]

Credit Unions are the best way to go, I wish I would have followed all of my own advice.

 

That's acutally not always true. It depends on many different factors, but to give you an example, there was a guy who actually worked for the auto group I work at who financed a car. He never missed a payment, but did lose his job. The credit union found out and repo'ed his car. Does seem right, but when you join credit unions, they have special rules that are sometimes different than banks.

 

You do have to be careful with everything. They are businesses too and also there to make money (which is why often in most cases, their rates are higher than rates offered by manufacturers).

 

 

The best way to ensure you get a good rate is to shop at a personal bank or credit union (if you use one or both). Get a rate quote based on your credit. From there, go to the dealership and tell them you are already preapproved for XX rate. Then if they can beat the rate, finance with the dealership. If not, then go the other route. But by going to another place first, the dealership must go with the bank that they use that offers the better rate.

 

Sometimes a dealership will shop you around to the various banks they use and they may get approvals at two different banks. Bank A may come back with a 4% rate and allow a max of 1 percentage point bump in rate (so the buy rate is 4% but they'll allow a sell rate of 5%. Bank B may offer the same 4% rate, but allow a two point percentage bump (so the buy rate is 4% and the sell rate can be 6%). Because the dealership can make more money by using Bank B, they'll offer you a 6% rate on your car note....But lets say you go to your own bank and they offer a 5% rate. Then you can go to the dealership and say you're pre=approved at 5%. Then the dealership may use either Bank A or Bank B but now offer a 4.9%. Well which is cheaper?

 

Many people will get angry because the callback is 4%, but like I said, the dealership is allowed to make money. There is no reason to be mad. You are still saving yourself money by going with the dealership over your own bank.

 

I hope this clears things up a bit for those who don't know how this whole thing works.

 

 

Basically, the best way to go, is to go with whoever offers you the best rate. The only way to know is to look around. In most cases (not all) the credit unions are more expensive than the dealerships...but you'll never know until you check both out.

[istealfrombums]

^^ Credit unions rock.

Like I said before Pentagon Federal Credit Union is a great place. I first found out about it through the 370z forums. 3.99% APR is hard to beat on both used or new cars.

Check out this thread http://www.the370z.com/nissan-370z-pricing-ordering-discussions/2321-how-i-have-scored-invoice-pricing-3-99-apr-my-370z.html

 

If you have any questions PM me as I went through this process about a year ago now.

[Dam itz Lou]

Yeah im going to apply to penfed.org today.

 

Just wondering what was ur credit score at the time ? My moms credit is just under 700, thats what the guy at the dealership told me. I applied to a auto loan with my bank online and I quickly got denied though. =\

 

verwilderd, u work for subaru ?

[Verwilderd]

I work at a subaru dealership.