Dealership financing VS auto credit union aprs
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Dealership financing VS auto credit union aprs
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
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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.
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.
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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.
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.
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Originally Posted by n8236
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?
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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.
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Originally Posted by Reyes_USN
credit unions ALWAYS got me a better rate compared to dealers but it donthurt to ask around
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Originally Posted by hypeiv
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.
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.
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.
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Originally Posted by Morningglorie
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.
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Originally Posted by yobri
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.
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..
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Originally Posted by baycitybrawler
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..
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..
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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
https://my350z.com/forum/2003-2009-nissan-350z/189056-graduating-want-advise-on-choosing-my-gift.html
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Originally Posted by duc996
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.
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.
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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.
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.