How do those two compare when it comes to APR? I've never purchased a vehicle using credit union loans. Do they always have better APRs than dealerships? Or how do they work? It would save me a lot of greenbacks if I can some seriously low APRs

 

Sometimes the dealer can find you a better rate, ensure you check around and ensure the rate is fixed not variable!

 

The dealership can vary rarely find a better rate... if they say they did they are most likely "buying the rate down" which means they pay some bank the difference so they can tell you an insane low apr. They can usually do this when they are screwing you on the price of the car and/or trade in.

When I first tried to get a Z I nego'ed so bad on a used one they came back and offered me like 2.9% financing but they were buying down from 5.9% or something so that just means they were screwing me on the car and/or trade in. Luckly I smelled something wrong and walked away, went home and did my home work.

 

Best to walk into dealer with financing in hand then give them chance to meet or beat financing terms AFTER you have negociated price. But be sure you look over the financing terms carefully & the dealer is same or better than outside source.

By the way, when I bought my Z I did end up with Nissan financing. Rate was same as bank with no added fees. So I thought let dealer make a few bucks on financing through Nissan. I dealt with Sales Manager & he was straight guy who did what he said.

 

So should I expect to lose some bargaining power on the price of the Z if I do bring my own financing if it is lower than what they can offer me?

 

As Brickyard mentioned, go into this after you have negotiated price. That way you can keep these two aspects of the purchase seperate. At that point, you can tell them what you approved at (rate and term). If they can beat it, then you will consider financing through them.

 

 

What are some 3rd party auto credit union that I can contact?

 

credit unions ALWAYS got me a better rate compared to dealers but it donthurt to ask around

 

My credit union offers 4.49% to people with excellent credit. After I had negotiated the price of the car, dealer asked if I wanted to finance and when I told him the credit union rate, he said fine, go with them, there was no way he could beat that.

 

This is definitely not true. Depends on what lending instituations that dealer has access to. For instance, the dealerships I have had experience with had access to lending instituations out of Chicago (the city doesn't really matter, but being in Illinois, that's where they were from) that consistently beat the local credit unions in rate. Some people like the convenience of going local (taking payments in, knowing the people there, etc.), but they can be beat by other lenders. Happened all the time.

 

I don’t know where you’re getting your information from, but you are way off. The finance department is a complete different department than the sales department.

As far as buying the rate down, dealerships do have the option of buying the rate down but unless the customer is willing to buy it down, it doesn’t get done. The sales department isn’t going to give up front end gross to get you a better rate, if you can get a better rate go to you lender and get it done.

If you’re buying new, the dealer usually has some sort of incentivized rate from the manufacturer and can typically beat any Credit Unions rate.

If you’re buying a used car shop your banks and get pre-qualified and see what kind of rate you can get through them, and give your dealership an opportunity to match or beat their rate.

 

My credit union offered me 4.25%. I walked in with that, and the dealership found me 3.9% with Chase Auto finance. Went with that.

 

3.9%
When did you get this rate? They way the Feds are raising rates, I couldn't find anything under 5%. My credit union offered 5.25%, and I couldn't find anything lower. The dealership couldn't even match it. Kind of sucks to buy a car right now, compared to a couple of years ago..

 

True, but at the same time the demand for these big tagged interest items are also really slow. Especially since it's a car w/ stiff competition, so the buyer will have some leverage on the price. I think i got ripped off from my RSX, it has a current 5%+ rate.

 

I thought that the car is supposed to be a gift? Are you jerking me around?

https://my350z.com/forum/2003-2009-nissan-350z/189056-graduating-want-advise-on-choosing-my-gift.html

 

Mid '03.

 

I just bought mine and the best new Apr at the dealer was 4.9% which matched my credit union and used was at 6.9% again the same at my C.U.

 

My story was I went to carmax first saw an 03 for $27500 then went to this used car lot and saw an 04 with less miles for $26000 I think and verbally agreed to that price but then when I wasn't happy with the finance rate I made a call to my bank and got a lower quote. The finance guy came back to me with a lower rate that he was buying down (after talking to the sales department). I put two and two together and realized if they are willing to buy down my rate to get me to buy the car I nego'ed the price so baddly they have lots of room to work and I walked away to try again later.

So in my case they were working together to try and get me out the door before I realized I was paying too much for the car.

EDIT...

if you don't believe that the sales and finance department will work together on a sale walk into a nissan dealership and say you will pay msrp for a Z if they will give you 0% financing... I bet they will get it done.

 

They could have said they were doing this, or what could have happened is the F&I guy had you approved at a buy rate that was lower then the credit union, but he tried to charge you over buy rate to make more money on the back end.

The front end (sales) may have not been giving up any gross in this situation. It happens all the time. May not have been in this case, but it sure sounds like it.