how should I finance my new car?

[tparvaiz]

Hi,

I have a credit score of around 795 and planning to get a NEW car through financing (my goal is to pay it off in a year).

Q. Would you recommend getting a loan through the bank I deal with (BoA), the dealership (Cadillac)? or any other means?  

Please advise

[hrguy]

I would start looking at your local credit unions or even national ones unless Cadillac captive finance company is offering promo terms.  With that score, you should get top tier.

[tparvaiz]

I am in Chicago.

any recommendations on which credit unions should I reach out to? Or how to search for them?

thanks

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@hrguy wrote:

I would start looking at your local credit unions or even national ones unless Cadillac captive finance company is offering promo terms.  With that score, you should get top tier.

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[tparvaiz]

One more question... Usually, it takes 8 months for a new car to be delivered.

May I know when my credit will be checked? With the initial order/application or at the time of delivery?

I am asking because I might apply for a new CC and anticipate it will impact my credit score. Thanks

[hrguy]

Try Alliant right there. They are a popular national credit union based in Chicago, might be worth going in, in person to see how you can benefit. Also, Penfed or DCU. 

[hrguy]

You won't want to apply for financing now until the car is closer to coming. Rates will change and it will be a wasted inquiry if 8 months away. I'd apply no more than 2 weeks out as long you know your overall standing credit wise now and there is nothing to work on that could improve your standing to get the best rate in 8 months. 

Tell your salesman you need a 2-3 weeks head ups to line up financing, which they should be doing anyway to let you know when it's beiong built and leaving the factor etc. Most places the approval is good for 30 days minimum. Some longer. Ask before applying.