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Interested in a new car at the dealership. No sure which make or model yet.
Applied for a PenFed auto loan online. Selecting the option where I don't know make or model or amount of car.
Put in income information.
I inputted $20,000 for what I will put down.
I inputted $25,000 auto loan.
First time auto loan application, ever.
System in a few seconds spit out I was approved for $25,000.
PenFed will now send me paperwork in mail and a "draft" which I spoke to rep said is a like a check I can write for an amount up to $25,000 (I can use less than $25,000 if I don't want to use the whole amount).
I may just use my own $20,000 cash to buy a new car, but wanted to have the option of a tapping into an auto loan ($25,000 approved credit)
Anyway, I see BOA's website has 2.74%. Wells Fargo is 3%+.
I did not want to get stuck with applying at deader since I heard they do multiple hard pulls.
Now with this approval I don't have to rely on dealer finnaicng.
1. So is 2.74% PenFed auto loan rate a good rate for someone like me with excellent credit, never missed a payment and htis is my 1st auto loan if I choose to use it?
2. Is it worth comparing what the dealer can finance at dealership or likely they cannot beat 2.74%?
3. Should I try other banks for a lower than 2.74% rate or leave well enough alone and hard pulls, and stick with this 2.74%?
Thanks
@Anonymous wrote:
That is a good rate, but if you have excellent credit the dealer might be able to beat. I would rather know what I have going in, but you could use it to help negotiate at the dealership
^^^^
Thanks for your advice
@Anonymous wrote:
Only thing I would add, if you know your scores going in, talk with the dealership about if they think they can get a better rate, and bring in your pre-approval. Make sure you don't agree to them pulling your reports until you talk a little with them; may save you a few pulls.
When I bought last year they had me fill out an app and I already had financing. I told them I didn't want my credit pulled and wrote at the top of the form as well. If you're not worried about inquiries, that part may not matter to you
****
Thanks. I am worried about inquires. I will do as you say and come prepared knowing my auto scores etc
Ended up with a 1.90% rate through Lexus Financial Services. Dealer beat PenFed's 2.74%.
@youdontkillmoney wrote:Ended up with a 1.90% rate through Lexus Financial Services. Dealer beat PenFed's 2.74%.
Congrats, I was going to mention that the only lenders that would beat that rate would be a captive lender because factories will subsize the rate to move inventory. Having that preapproval in hand before you buy is a great way to keep the dealer from marking up your rate so well done.
Bought the 2017 Lexus IS 200T with Navigation package for $43,000 exact Out the Door (taxes, DMV fees, etc etc all rolled in).Sticker price was $43,923 before taxes and fees so they started of offering me $49,000 out the door. Brought it down to $43,000 and then I asked to add in (1) all season mats, (2) 2 lexus key chains, and (3) 2 Lexus pens for the glove compartment, full tank of gas of course and a car wash. This is Los Angeles, CA area.
@youdontkillmoney wrote:Bought the 2017 Lexus IS 200T with Navigation package for $43,000 exact Out the Door (taxes, DMV fees, etc etc all rolled in).Sticker price was $43,923 before taxes and fees so they started of offering me $49,000 out the door. Brought it down to $43,000 and then I asked to add in (1) all season mats, (2) 2 lexus key chains, and (3) 2 Lexus pens for the glove compartment, full tank of gas of course and a car wash. This is Los Angeles, CA area.
Well done