best place for a car loan

[revvystoke]

Interested in a new vehicle, haven't decided between used or new yet but budget is 20-50k. Is it a better value to go with dealer financing i.e chrysler capital, or a credit union? I have no balances on my cards and only two small loans that I will pay off before applying.

[xerostatus]

Never a bad idea to set up your own financing at credit union before you even step foot into a dealership. This basically removes the financing-factor of your negotiation, and you can focus solely on the actual purchase price instead of letting them steer the conversation one way or the other. Or, you can try to let dealer match or beat the rate you get from your CU, to make it even more competitive for you, if you can afford the extra inquiries.

[revvystoke]

---

@xerostatus wrote:

Never a bad idea to set up your own financing at credit union before you even step foot into a dealership. This basically removes the financing-factor of your negotiation, and you can focus solely on the actual purchase price instead of letting them steer the conversation one way or the other. Or, you can try to let dealer match or beat the rate you get from your CU, to make it even more competitive for you, if you can afford the extra inquiries.

---

I did that in March, but what I found was that the CU's were offering 2.5-2.99% and GM was offering 1.99%, all three were 0 down, but I had read negative reviews about dealer financing and didn't purchase anything.

[Remember0]

Dealer financing is fine as long as you're smart about it. Here's my guide on how to avoid the common pitfalls:

http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289...

I still think there's value in applying at a place like DCU which offers 1.24% and having the dealer try to beat it. If they can't you always have your own financing to fall back on. And 1.24% will honestly be lower than some promos run by Chrysler.

[Slim1Der]

---

@revvystoke wrote:

Interested in a new vehicle, haven't decided between used or new yet but budget is 20-50k. Is it a better value to go with dealer financing i.e chrysler capital, or a credit union? I have no balances on my cards and only two small loans that I will pay off before applying.

---

Coming from a Finance Manager at a Honda dealership, I'd say that unless the manufacturer is offering incentives (0.0% - 0.9%), then the best option is a credit union. They are typically easier to get approved with and the rates are always lower than traditional banks. 

That being said, manufacturer financing specials are always the way to go, but are more FICO score based and you MUST score to get that special rate.