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used auto rates

69 26 February 12, 2020 at 04:28 PM
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I am going to be looking at getting a newer used car in the next few months and was wondering about used car rates. Do people usually get a better rate by searching online, like penfed, or by letting the dealership use their network to find the best rates?

Also how has the process been for people who get approved ahead of time with a place like penfed? I have only ever used the dealership financing and I am interested in the process as well. Thanks.

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Joined Jun 2005
Let Sleeping Dogs Lie
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#2
I have always had the dealership match the rate I could get, so I just show them the rate.
If you want to be creative you might want to look at Credit card cash advances. If you can get the money for 300 bucks for 18 months you could make out pretty well I bounced a 20K new car loan between credit cards for about 3 years.
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#3
Penfed or USAA always seem to be the lowest I can find.
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#4
I've always gone with Penfed for auto loans since they were the lowest. Last one I had was 2.5% through them. The only way you'll find a better is if you're buying new and the dealer has a 0% promo going on.

You apply for the loan, and they'll tell you the maximum amount that you've been approved for. They then overnight you a blank check that you make out to the car dealer when you purchase. Easy-peasy. The best part is, you get to go in and say I'm pre-approved, and don't give a damn about you trying to get me into a low monthly payment. You get to focus on the vehicle purchase price only and avoid the stupid dealer tactics and games.
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#5
Quote from jordanz12
:
I've always gone with Penfed for auto loans since they were the lowest. Last one I had was 2.5% through them. The only way you'll find a better is if you're buying new and the dealer has a 0% promo going on.

You apply for the loan, and they'll tell you the maximum amount that you've been approved for. They then overnight you a blank check that you make out to the car dealer when you purchase. Easy-peasy. The best part is, you get to go in and say I'm pre-approved, and don't give a damn about you trying to get me into a low monthly payment. You get to focus on the vehicle purchase price only and avoid the stupid dealer tactics and games.

For new cars, promos typically cycle between - lower price and higher financing, or vice versa. What's stupid is that it seems many new car dealers that offer financing don't care if you pay it off right away. So, wait for the lower price/higher financing, buy the car, then immediately refinance with a place like Penfed that's going to give you a much better rate. The best of both worlds.
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#6
Quote from jordanz12
:
I've always gone with Penfed for auto loans since they were the lowest. Last one I had was 2.5% through them. The only way you'll find a better is if you're buying new and the dealer has a 0% promo going on.

You apply for the loan, and they'll tell you the maximum amount that you've been approved for. They then overnight you a blank check that you make out to the car dealer when you purchase. Easy-peasy. The best part is, you get to go in and say I'm pre-approved, and don't give a damn about you trying to get me into a low monthly payment. You get to focus on the vehicle purchase price only and avoid the stupid dealer tactics and games.
Thanks for the info. I hate the stupid dealership games, it makes the process take all day. The last vehicle we purchased we knew the manager and it still felt like it took forever.
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Last edited by robinnutz February 13, 2020 at 10:48 PM.
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#7
Has anyone had any luck with the Costco auto program as far as purchasing a used car?
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#8
Quote from Dr. J
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For new cars, promos typically cycle between - lower price and higher financing, or vice versa. What's stupid is that it seems many new car dealers that offer financing don't care if you pay it off right away. So, wait for the lower price/higher financing, buy the car, then immediately refinance with a place like Penfed that's going to give you a much better rate. The best of both worlds.
Interesting. "What's stupid is that it seems many new car dealers that offer financing don't care if you pay it off right away."

Why is that?
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Quote from Behave
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Interesting. "What's stupid is that it seems many new car dealers that offer financing don't care if you pay it off right away."

Why is that?
Because their respective financing wings are very lucrative [usnews.com], meaning they have all the incentive to lock you into their financing for a certain period of time, at the very least.
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#10
I shopped around my local banks and credit unions when I was looking for a used car loan.
I kept getting 5 - 6% APR for a 60 months
Dealership got me 2% APR for a 60 months.
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#11
Try CU in the area. Some areas have really, really low rates that are not matched by the dealership, banks, or creditors.
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