need a quick answer to an auto loan question

[seratonin]

Hi.  I just bought a new car and the Toyota finance guy offered me a better interest rate than my credit union.  He was kind of scary.  Is there any reason I would not want to take this offer?  Are Toyota financed auto loans managed pretty much like credit union auto loans?  Will something jump up and bite me in the end?  I have to decide by tomorrow.  Thanks.

[John060675]

I would go with the better rate if it was me.  Toyota financing should be reputable, so I would not worry about that.  Having said this, make sure you read everything.  You do not need to rush to sign the paperwork.  Take your time and make sure to understand everything you are signing.

Good luck.

[Anonymous]

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@John060675 wrote:

I would go with the better rate if it was me.  Toyota financing should be reputable, so I would not worry about that.  Having said this, make sure you read everything.  You do not need to rush to sign the paperwork.  Take your time and make sure to understand everything you are signing.

Good luck.

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i agree mostly with this post, except--today is/was a holiday and if Toyota is beating your Credit Union Financing, it is probably a subvented, or incentive rate to help generate a purchase. It can and will expire and probably is out for only a finite time.

By the same token you will not have any real problems using Toyota Financial.

[seratonin]

Thansk for the quick answer. 

[Anonymous]

One question: Is he really a Toyota Financing guy or is he the financing guy at a Toyota dealer? The reason I ask is if he is the latter he will shop around different lenders and may generate 10+ hard enquiries on your report. He might also be concerned only about shifting the car, not about the reputation of the lender or the suitability of the loan to you.

[seratonin]

That's scary.  Thanks for responding.

[Anonymous]

No, don't be scared. If he's the dealer's guy he might well be getting you the very best deal - there are just a few bad ones out there. The only thing is to be sure you know exactly what you're signing.

[Anonymous]

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@Anonymous wrote:

One question: Is he really a Toyota Financing guy or is he the financing guy at a Toyota dealer? The reason I ask is if he is the latter he will shop around different lenders and may generate 10+ hard enquiries on your report. He might also be concerned only about shifting the car, not about the reputation of the lender or the suitability of the loan to you.

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This statement is unnecessary fear mongering.

The dealership Financing Guy (finance manager) is probably who the OP meant when the post was made.

At this point in the transaction the OPs credit has already been ran.

At this point in the transaction, it is highly probably that the Finance Manager has already ran the OP's score/bureayu, and found that the OP will qualify for the subvented rate, if it is being offered against the credit union financing the OP already has.

And most importantly:

Why would any Dealership finance guy shot gun to 10 different banks someones info when all they are trying to do is beat an already low credit union rate that the OP has. Believe me the finance guy has a list of lowest minimum rates and what tier that equates for every bank they have a relationship with.

People, for the most part, get their info "shot gunned" when they have bad or questionable credit, if the deal is difficult or complicated. None of which was articulated in this post.

All that we have done now is scare some first time buyer away from the dealership and possibly a better interest rate, with a reputable dealership.

I am also not really sure about non reputable lenders? Every lender I know has some kind of horror story you can find online. Unless you are talking CAC or Joe's House of Credit, most lenders established dealers use are "reputable."