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Going through CU for auto loan?

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Anonymous
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Going through CU for auto loan?

Just curious, future planning....... What is process like going through a Credit Union for a auto loan vs. Going straight to auto deal or your regular bank?

I have never had any dealings with a credit union and was trying to plan out my options for best route to go when I do trade my car in for a truck possibly at end of this year or beginning of next year.

( I thought about maybe staying with Chevy since I get a discount through work for one....but on other hand I do get a Ford discount of $500 through Farm Bureau) Any thoughts on best thing to do?

I currently have a 6.99 interest on my car paying $334 month... got it 3 years ago this November. My score at the time was 720... I have no idea what my auto score would be now....

my Fico have dropped from almost excellent to just average almost good range in past 2 years.... (high utilization and 1 old school loan delinquent that will be falling off report this October ).... Help, please
Message 1 of 15
14 REPLIES 14
Anonymous
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Re: Going through CU for auto loan?

Also, I have a 4k or 5k gap on my car...ekkkk... I traded in a car but they did not ask for a downplay mentioned when I bought this one. They paid off my old car which was not much on it .. maybe 1500 or so. And I gave dealership what they asked for on this car which was around 18k give or take. ...
Message 2 of 15
Anonymous
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Re: Going through CU for auto loan?

I think most people are going to need more information. Unknown score, unknown income, unknown info about what type vehicle your looking to purchase.
Message 3 of 15
Anonymous
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Re: Going through CU for auto loan?

Well last I looked on fico score with Credit Check Total was ex 671, tu 689, eq 662. Income 35k approx.

Was possibly looking for a truck not sure if going with Chevy (for discount from work) or ford (for $500 discount from Farm Bureau insurance ) ... I am not sure if I will be going for a brand new truck or one that is a couple years old yet.

I was thinking about possibly doing the trade at the end of this year like December maybe after a old school delinquency falls off report (in October )....
Message 4 of 15
Anonymous
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Re: Going through CU for auto loan?

In my second post....I meant to type that the dealership did not ask for downpayment on car I have now.
Message 5 of 15
Anonymous
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Re: Going through CU for auto loan?

I have never put a down payment down on a vehicle and your scores should be fine, find out what scores ford and chevy pull and go for the one that pulls your highest score, get prequalified with a CU for bargaining power but keep in mind that Ford and Chevy among others are offering great offers right now. I wouldn't wait until December as they are more motivated right now and September to get 2017s off the lot. End of the month to meet incentives. Used cars have cheaper purchase prices but usually higher interest.
Message 6 of 15
me12345
Frequent Contributor

Re: Going through CU for auto loan?


Tryin2betterscore2 wrote:
Just curious, future planning....... What is process like going through a Credit Union for a auto loan vs. Going straight to auto deal or your regular bank?

I have never had any dealings with a credit union and was trying to plan out my options for best route to go when I do trade my car in for a truck possibly at end of this year or beginning of next year.




My experience with PenFed CU has been amazing....

 

I went online joined and applied for a car loan & CC at the same time, all instantly approved. No Income documentation, no hassle, I already had the car picked out and the price negotiated, I just filled out a Buyers order and I sent it to PenFed and they overnighted me a check, I gave it to the dealer the next day and drove away....simplest process I've ever seen....I have not financed a car in 20 years, I was impressed on how easy this was. 

 

The rate was 3.99% on a 72 month loan and a CC with a $13,500.00 SL..

 

I hope this helps...Thanks

VA & FHA down to 550...
Licensed Senior Mortgage Loan Officer in the states of Arizona & California
Specializing in VA, FHA, USDA & Conventional loans. My company is also licensed in 12 states, Arizona, Colorado, Nevada, California, Oregon, Washington, Utah,
Alaska, New Mexico, Texas, Illinois and Florida
Message 7 of 15
Anonymous
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Re: Going through CU for auto loan?

Very nice.... very helpful. Thanks. 😄
Message 8 of 15
Appleman
Valued Contributor

Re: Going through CU for auto loan?

If you really want to know your true Auto scores you will need to pony up for a 3B report on myFICO. CCT provides accurate FICO 08 scores but your auto and mortgage scores can be markedly different.

 

Take the time and do your research before going into buy.

 

1. Take your car to CarMax and have them do a FREE buy offer. This is what CarMax would pay you for your car today and is a great place to check the trade-in value of your current car. Or plug you car into KBB to see the current (potential) trade value. Another favorite is CarGurus.

 

2. Get pre-approval through a credit union (I too am a fan of PenFed) so that you know what rate you would qualify for on an auto loan. I would do this the week you plan to go buy and certainly before you step onto a lot. If the dealer know you have financing they will certainly try to beat your financing. Be careful as they will sometimes shotgun your application to a bunch of lenders.

 

3. There are currently plenty of incentives on trucks, research this or the dealer will be able to play games betweeen rebates, invoice, financing, negative equity and loan terms. They do this (sell cars) every day all day and most of us do this (trade/buy cars) every few years or longer. 

 

4. It you can wait until the baddies fall off that would be ideal but imagine you can get financing prior to that point.

 

5. Do not sign anything until you are comfortable. The dealership wants yout to get emotional, excited and think you can only get this deal today! These are all techniques to obtain the maximum profit on the part of the dealer.

 

6. Find a good wingman to help you while at the dealer. This person hopefully knows a bit about negotiating and can help you walk away from a bad deal.

 

Good luck!

Message 9 of 15
Anonymous
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Re: Going through CU for auto loan?

Awesome advice! Thank yall so much! 😄
Message 10 of 15
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