Can someone explain this?

[TheFate]

My score right now is 724 Fico and ive had 3 used cars financed and all been paid off early. Only negative thing on my report is over 5 years and is paid off. I'm assuming I'm going to get really good rates on an auto loan if not the best 0%.

I wanted to get approved thru my credit union first before going to the dealer as a backup since they offer 1.74%.I called today and before she even ran my credit she says I'm pre approved for 4.49% up to 25k?? I said how's that?  She said they did a soft pull last month on their own and my auto fico is 680? 

I asked if I actually run my credit will I get a better rate she said it's probably going to be the same since they checked on their own not too long ago. How is that possible? Is she just trying to get over on me? 

I'm going to try at the dealer next but honestly thought id get a far better offer from a union I've been with for 9 years. What your guys take on this? 

[StartingOver10]

Some credit unions are actively solicting business now and others aren't.  Your credit union appears to not be actively wanting to finance autos right now at that rate.

Try DCU see what they say.

[TheFate]

It just seems odd to me. Why even advertise 1.74% and not offer it to someone who has built a long term relationship? And how did they get 680 auto fico? I mean I've never purchased a car over 20k but I have 3 that were around 12-15k and all paid off early and never missed a payment ever. 

I'll try DCU first I guess, has anyone here had difficulty getting their lowest rate? 

I'm almost certain the dealership is gonna offer me a really great rate, I just wanted assurance and bargain power

[TheFate]

I don't want to take it personal but as a long term member of my CU I gotta say I'm really disappointed and it's making me think twice about future business with them

[Anonymous]

Hey Fate, while I love my credit union, we were able to get 0% financing on our car through the dealership with a 660 FICO. I'm not sure if you are aware, but FICO has "subdivisions" of their scores for autos, insurances, etc, designed for just the one thing, and do not use the same model or scoring algorithm as the main FICO score. Typically these secret scores are only available to businesses. While I don't think she is necessarily blowing you off, the CU lady should at least do a more recent SP, since they typically have set rates for different score ranges and you may qualify for a better one. I say try the dealership as you plan to, and especially with the holiday deals coming up, you may be able to get the 0% financing.

[TheFate]

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@Anonymous wrote:
Hey Fate, while I love my credit union, we were able to get 0% financing on our car through the dealership with a 660 FICO. I'm not sure if you are aware, but FICO has "subdivisions" of their scores for autos, insurances, etc, designed for just the one thing, and do not use the same model or scoring algorithm as the main FICO score. Typically these secret scores are only available to businesses. While I don't think she is necessarily blowing you off, the CU lady should at least do a more recent SP, since they typically have set rates for different score ranges and you may qualify for a better one. I say try the dealership as you plan to, and especially with the holiday deals coming up, you may be able to get the 0% financing.

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Thats a little relieving to hear thanks but everyones situations are different. How long was the loan for and how much did you finance if you dont mind me asking?

[Creditaddict]

What car are you looking to buy?

There are many instances that I would skip the credit union and go straight for dealer financing!

[TheFate]

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@Creditaddict wrote:

What car are you looking to buy?

There are many instances that I would skip the credit union and go straight for dealer financing!

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I may go with the 2015 Kia Optima SXL

@Anonymous offers 0% for 60 months and 0.9% for 72 Months for Tier 1 credit. Assuming I qualify for Tier 1 I may opt for the 72 months @ 0.9% to keep the payment low.

@I just called DCU today and they seem to be far more leinent than my own CU. He said 675 Fico will get you the Tier 1 lowest rate @ 1.49%. So I'm debating if I should just apply thru DCU first then goto Kia and hope for the 0.9% as negotiation power.... Any funny business I show proof i'm already approved for 1.49% and either have them beat it or I take the loan with DCU. I'm just not sure if I would lose the Customer Rebate by not financing thru Kia so I may end up punching numbers at the end of the day to see what makes more sense

[TheFate]

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@Creditaddict wrote:

What car are you looking to buy?

There are many instances that I would skip the credit union and go straight for dealer financing!

---

I may go with the 2015 Kia Optima SXL

@Anonymous offers 0% for 60 months and 0.9% for 72 Months for Tier 1 credit. Assuming I qualify for Tier 1 I may opt for the 72 months @ 0.9% to keep the payment low.

@I just called DCU today and they seem to be far more leinent than my own CU. He said 675 Fico will get you the Tier 1 lowest rate @ 1.49%. So I'm debating if I should just apply thru DCU first then goto Kia and hope for the 0.9% as negotiation power.... Any funny business I show proof i'm already approved for 1.49% and either have them beat it or I take the loan with DCU. I'm just not sure if I would lose the Customer Rebate by not financing thru Kia so I may end up punching numbers at the end of the day to see what makes more sense

[Dj4Money]

 What does the small print say with Kia's rebate?  Are you not reading Kia's website -

 Cash back from Kia Motors America, Inc (KMA). Must take delivery from a participating dealer and from retail stock from 11/4/2014 to 12/1/2014. Cash Back offer when you purchase a new car only and may not be combined with Special Low APR offer.

  You can not combine (not many will let you) the large rebate (over $1,000) and low APR. The only way both get combined is on slow selling cars, especially if they have been discountinued.

 The difference between 1.49% and .9% isn't worth talking about, it might be a 2 person meal at Carl's Jr. once a month. Take the rebate and go through DCU, I think you have to opt into auto pay as well to get the low rate.