momto4kiddos
Drama Llama
Posts: 5,156
Jun 26, 2014 11:45:15 GMT
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Post by momto4kiddos on Nov 19, 2014 15:44:41 GMT
dd is going to be looking at cars. I know she needs to pull a credit report, she pulled something that didn't list things, but listed her as falling in the "good" category. My memory is bad but I think it was something with numbers in the 700's if that makes sense.
Anyway long story short, she has a cell phone she pays monthly, but no credit cards or anything that establishes credit.
Not a fan of co-signing so i'm starting to wonder if that is going to come up and whether she's better off trying to get a loan through her bank or through the car place. Does anyone know if one is easier to secure than the other? She works of course, but the credit thing I feel might trip her up.
Will a down payment on it make a difference in securing the loan? The down payment will likely be at least 1/4 of the price of the cars she's interested in. Any advice? It's been a very long time since i've been in this type of situation.
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Post by lbp on Nov 19, 2014 16:06:19 GMT
My DS is going through this right now as well. He went to the back yesterday and they told him that while he would be eligible for a loan that the dealership could probably get him a better interest rate! He is at the dealership as we speak, so I can tell you later what exactly they said. He is putting $2000.00 down on a $18,000 car.
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Deleted
Posts: 0
Aug 18, 2025 20:22:10 GMT
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Post by Deleted on Nov 19, 2014 16:09:06 GMT
I would NOT recommend getting financing at the dealership, ESPECIALLY not for a first car if you have minimal credit. The dealers will talk a blue streak and confuse the heck out of her and make bad loans seem like a good option.
She should go to her bank or a local credit union (probably an even better option in this situation) and start there.
And you're right, DO NOT cosign.
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Post by eebud on Nov 19, 2014 16:16:08 GMT
I would probably start with my bank and then also check with the dealership and go with whoever could get the best deal.
There is no way that I would co-sign for a new vehicle unless I was willing to pay for that vehicle. What we did for kids before they had credit and they needed a vehicle, we did cosign but it was only for a few thousand so they could buy a used vehicle. There was also no way I was going to let this loan mess up our credit that we have worked hard to keep excellent. One of the kids that we did this for paid us his monthly payment and we paid the note. That way, we knew it was always paid on time. I'm glad we did too because this kid had a few times that he didn't have the money when it came time for his payment. The other kid that we did this for paid his own note but was never late and I was able to confirm that. The 3rd asked to have a note cosigned one time and he wanted a $30k SUV. We told him No, that he could get a $30k SUV when he could get the loan on his own.
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Post by eebud on Nov 19, 2014 16:18:39 GMT
I would NOT recommend getting financing at the dealership, ESPECIALLY not for a first car if you have minimal credit. The dealers will talk a blue streak and confuse the heck out of her and make bad loans seem like a good option. This is definitely true if they don't go into the dealership knowing what they are doing how they will try to sell them. Many times, the dealership wants to know how much you can spend each month on a payment and will then try to get you into a car regardless of how many years the payment is. Some car loans now are 7 year loans. That is crazy. |
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Jili
Pearl Clutcher
SLPea
Posts: 4,378
Jun 26, 2014 1:26:48 GMT
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Post by Jili on Nov 19, 2014 16:22:10 GMT
Sometimes you can get a better rate through the dealership than at your credit union or bank. We've done both over the years. We always check with our credit union first and we know prior to going into the dealership if Toyota's rates (or whichever brand) are what we are interested in pursuing.
If you know going in that you want to go with your own financing, do not give them any financial information whatsoever.
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Deleted
Posts: 0
Aug 18, 2025 20:22:10 GMT
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Post by Deleted on Nov 19, 2014 17:19:18 GMT
Sometimes you can get a better rate through the dealership than at your credit union or bank. We've done both over the years. We always check with our credit union first and we know prior to going into the dealership if Toyota's rates (or whichever brand) are what we are interested in pursuing. This is definitely true when someone with top tier credit is buying a new car at a time the brand is offering a very low interest rate. Someone buying their first car with virtually no credit history is almost never going to qualify for those promotions. The financing specialists at dealerships are so good about obfuscating the true cost of a loan that I strongly discourage dealer financing for anyone who is not experienced with loans. A first time buyer and dealer financing is rarely going to work out in the best interest of the buyer. |
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Post by jamielynn on Nov 19, 2014 17:48:32 GMT
I haven't bought used cars so I don't know if that process is different.
The dealerships have always been able to get me under 2.4% in fact 0% on all but one car.
Often times they can only give the really good deal on the car without you taking their own financing. (Really good real meaning knocking 10-20% off the asking price when we make an offer).
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Olan
Pearl Clutcher
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Posts: 4,137 
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Post by Olan on Nov 19, 2014 17:53:16 GMT
I financed my car only because the rebates required me to do so. I was able to get a loyalty rebate and one other rebate that made purchasing a new car the same price as buying the other used (same make model and "package") car on the lot.
I went to my credit Union first and the rate I got at the dealership was better.
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Post by lbp on Nov 19, 2014 18:17:37 GMT
Yeah, DS just got back and the dealership rate is lower than the credit union and it's the same credit union we use! DS had already picked out the car that he wanted so there was no upselling involved. He also had them quote the car cash to see how much they were really allowing him on the car he is trading in, so he has definitely done his homework. His Dad and I are going to take a look at the car after work, just because he asked us our opinion. BTW, DS is 23 and this is the first car he is buying. We bought his first car for his 16th birthday.
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Jili
Pearl Clutcher
SLPea
Posts: 4,378
Jun 26, 2014 1:26:48 GMT
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Post by Jili on Nov 19, 2014 18:26:29 GMT
Sometimes you can get a better rate through the dealership than at your credit union or bank. We've done both over the years. We always check with our credit union first and we know prior to going into the dealership if Toyota's rates (or whichever brand) are what we are interested in pursuing. This is definitely true when someone with top tier credit is buying a new car at a time the brand is offering a very low interest rate. Someone buying their first car with virtually no credit history is almost never going to qualify for those promotions. The financing specialists at dealerships are so good about obfuscating the true cost of a loan that I strongly discourage dealer financing for anyone who is not experienced with loans. A first time buyer and dealer financing is rarely going to work out in the best interest of the buyer. That is a good point and one I hadn't thought about, since we do have excellent credit. I was thinking about our own experience and not considering the perspective of the first-time buyer. |
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peppermintpatty
Pearl Clutcher
Refupea #1345
Posts: 4,209
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Post by peppermintpatty on Nov 19, 2014 18:30:44 GMT
Sometimes you can get a better rate through the dealership than at your credit union or bank. We've done both over the years. We always check with our credit union first and we know prior to going into the dealership if Toyota's rates (or whichever brand) are what we are interested in pursuing. If you know going in that you want to go with your own financing, do not give them any financial information whatsoever. This is very, very true. When we get car loans, the dealership has always beaten the banks, even credit unions. We have excellent credit. People do realize that a car loan through a dealership is ultimately through a bank, right? The bank pays the dealership and you pay the bank. |
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Deleted
Posts: 0
Aug 18, 2025 20:22:10 GMT
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Post by Deleted on Nov 19, 2014 19:09:24 GMT
Sometimes you can get a better rate through the dealership than at your credit union or bank. We've done both over the years. We always check with our credit union first and we know prior to going into the dealership if Toyota's rates (or whichever brand) are what we are interested in pursuing. If you know going in that you want to go with your own financing, do not give them any financial information whatsoever. This is very, very true. When we get car loans, the dealership has always beaten the banks, even credit unions. We have excellent credit. People do realize that a car loan through a dealership is ultimately through a bank, right? The bank pays the dealership and you pay the bank. Dealerships do not just offer loans from traditional banks, credit unions and the like. They also offer manufacturer financing - which can be VERY good - and finance company financing, which can be TERRIBLE. Also, dealerships are only in the financing business because it makes them money. They are motivated to sell you on the loan that makes the most money for them, NOT that is the best for you. People who are new to financing or who are trying to rebuild credit are the easiest to sell on lousy loans and the dealerships push hard on them. Dealer financing CAN be the right choice, but I stand by what I said that for a first time buyer, it's very risky. They generally are just not experienced enough to not fall for the ploys of finance officers at dealerships and too often get stuck in really bad loans. I've seen countless people with thin credit files or marginal (but not terrible) credit get put in loans with 15%+ APR by dealers. I just don't trust them for anyone who has anything less than top tier credit. |
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Post by compwalla on Nov 19, 2014 19:11:35 GMT
Mostly we've seen better financing for new cars at the dealer, better with our credit union or USAA on used cars but I know experiences vary. We never finance for longer than three years though so that might make a big difference. I wish him luck on his purchase. It's a real "Oh, gosh I'm a grown-up now" experience to buy a car so congratulations to him.  |
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