Another Car Thread (Dealer options to look out for?)

**please go to post 12 for most recent question**

...but slightly different.

Besides specific banks or credit unions, what are some good options to get a low interest rate on a car loan? The last time I got my credit checked, it was 790 so I'm hoping to get as close to 0% as possible. Are there any places that do less than 1% rates for a used car?

I also saw a thread talking about a Costco Car program of some sorts. Is anyone familiar with what this is?

edit: I would also love to find a recent article comparing 2010 year model cars so I can see how they still rate. Several I have in mind are an Acura TL, Nissan Maxima, Honda Accord, Toyota Camry, Infinity G37, Lexus ES or IS, and maybe even Cadillac CTS.

You won't get less than 1% on used, even with great credit - used cars are higher risk for lenders than new, since there may not be much value to the vehicle if it has to be reposessed. Your credit union will probably get you the best rate, but use http://www.bankrate.com to research rates.

The Costco program is intended to get a good price on a new car without having to negotiate with a salesguy. You pick the car you want, and then Costco tells you what dealer you can go to & sets the price. It can be a great deal, especially if you hate to haggle. However, there are instances where you can do better on your own or with other dealer / mfr incentives.

The last car I bought was almost through the Costco program, but the dealer actually got me a better price than they quoted because of some manufacturer incentives that were going on at the time.

Quote from Jeffbx : You won't get less than 1% on used, even with great credit - used cars are higher risk for lenders than new, since there may not be much value to the vehicle if it has to be reposessed. Your credit union will probably get you the best rate, but use http://www.bankrate.com to research rates.

I got an email back from my credit union and she told me 5.75% for 72 months is the lowest. That seems high as heck for a car loan. I'll check out that website.

edit: Blue Harbor was shown as 2.10% for 60 months. Are the reputable? Pentagon Credit Union is lower but I'm not in any military branch so I can't join.

If you can afford it, check shorter terms. A 36 month loan will generally be a lower rate than 60 or 72 months.

Quote from Jeffbx : If you can afford it, check shorter terms. A 36 month loan will generally be a lower rate than 60 or 72 months.

well I'm in the construction trade (electrician) so I go on and off of work. Because of that, I might be laid off until the next job starts. So I would rather keep my monthly payments lower so I'm not required to pay over $550 per month for a three year loan when I can pay less than $350 on a five year loan. Otherwise I would definitely look into that

Quote from RUsum1 : I got an email back from my credit union and she told me 5.75% for 72 months is the lowest. That seems high as heck for a car loan. I'll check out that website. edit: Blue Harbor was shown as 2.10% for 60 months. Are the reputable? Pentagon Credit Union is lower but I'm not in any military branch so I can't join.

The Dealer gives you low interest car loans because they want to sell you a car. What is the incentive for the bank? They need to make money on the loan, they have no profit from the car. You are comparing apples to oranges. Your dealer rate is subsidized by the profit on the car.

Can anyone comment on Blue Harbor? A buddy of mine who has a dealer's license says he can get me a 2012 Maxima SV with only 6,000 miles for $24,000. Some quick searches online say this is a $32,000 - $35,000 car so it seems like a great deal.

Anyone? I'm growing more and more sick of my car each day.

When I make a decision to get a car, I don't talk about it, I just do it. I go that day (as soon as I make a deal) and buy the car. Talking means you are still driving the same POS you hate. Doing it means you are driving another (new/new to you) car. Are you a doer or a talker?

If you need a loan to buy a used car you should really be driving your old car until the wheels (proverbially) fall off or you have enough cash to buy the car that you want. I'm sorry that's not what you wanted to hear, but this is SD.

P.S. - I used to work in the sub-prime auto loan business, and assuming that you aren't sub prime, a credit union or some sort of promotional deal at the dealer is your best bet (if they even do that on used cars).

Quote from zzyzzx : If you need a loan to buy a used car you should really be driving your old car until the wheels (proverbially) fall off or you have enough cash to buy the car that you want. I'm sorry that's not what you wanted to hear, but this is SD. P.S. - I used to work in the sub-prime auto loan business, and assuming that you aren't sub prime, a credit union or some sort of promotional deal at the dealer is your best bet (if they even do that on used cars).

That was my plan but the wheels are pretty much falling off. Here is what's wrong with my car at the moment:
1) Dash lights recently went out that show me what gear I'm in and how many miles I've driven
2) The dash was replaced once before I got it causing the odometer to be wrong (last time it was on it showed 202k miles but I have paperwork saying that number is 40k more than the actual mileage)
3) Gas gauge doesn't work (which is why it's important to know how many miles I've driven)
4) Underneath is very very rusty which caused a brake line to recently fail (mechanic said it wouldn't be worth it to keep repairing this car)
5) Once I drive it from my house to somewhere, the car doesn't like to start for me when I try to drive somewhere else. It will eventually start but I'm usually stuck at the place waiting for whatever is wrong to fix itself. No mechanic has been able to diagnose this problem because it doesn't happen when I take it to a shop.
6) Air conditioning makes a pretty loud noise that doesn't sound normal. This is very important living in South Carolina since it's usually 90+ with 90%+ humidity for at least half of the year.

also some stupid, little things that are wrong
7) Trunk release on my key doesn't actually unlatch the trunk. I just hear the motor make a noise but I'm required to use the key to open the trunk
8) Two of the speakers are blown
9) Front, driver window often doesn't like to go down. I have to repeatedly press the button back and forth to eventually get it to roll down
10) the sunroof doesn't act right if I open it all the way. It's fine if I only want to tilt it though.


There are probably other things wrong with it that I'm forgetting.

Technically, I don't need a loan to get a car but I don't want to drain my funds and have nothing left for emergencies. And if I can get a loan under 3% interest, that's nearly like free borrowed money when you consider inflation. I also don't want to just get a car based on cost and then have to worry about problems in a couple of years. I would rather get a somewhat costly car now and drive it for more than a decade than get a cheaper car and have to keep searching for a replacement every four years or so and be mad at the problems I constantly have with the older, cheaper vehicle.

new direction for this thread. I found an article [msn.com] which brings to attention dealer markups that aren't really necessary. (VIN etching, rust-proofing, paint sealant, fee for alarm installation, fabric protection, extended warranties). I'm hoping people can chip in with other fees to watch out for in the contract so I don't get hosed.

Any fee to watch out for is ANYTHING that's not on the sticker price of the vehicle. The only exceptions are local tax, of course, and finance fees for any loans.

Paperwork fees, acquisition/disposal fees, processing fees, bank fees - ALL of these can (and should) be negotiated away.

Quote from Jeffbx : Any fee to watch out for is ANYTHING that's not on the sticker price of the vehicle. The only exceptions are local tax, of course, and finance fees for any loans. Paperwork fees, acquisition/disposal fees, processing fees, bank fees - ALL of these can (and should) be negotiated away.

So there should only be their quoted price + taxes as far as the cost of the car? $400 dealership fees should be able to be excluded? Where do "Tag" and "Title" fall in terms of fees? Are those part of taxes or can those fees be nixed as well?