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Chįlläxn
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Discussion Starter · #1 ·
Through your bank/credit union? lending tree/private lenders (ex. capital one) or straight financing from the dealership?

Let me know why.

I need to know because im currently lookin for a car. Im already pre-qualified with my bank but sometimes i also think of considering financing through lending tree because of the competitive rates and lenders competing for your business. So anyone with experience please share it, would really appreciate it.
 

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I financed mine through my company's credit union @ 5% over 4 years. Does your company have that option?
 

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i would normally say go through your bank because they "know" you so they might be willing to give you a better rate....
but you mentioned lending tree...and that lenders compete for your business...so it sounds like they might give you a good deal because right now people cant really get good loans because their credit is fucked up...so if you do have a good credit score i'd give lending tree a shot just for shits n giggles...they might give you a low rate....
but then again 4-6% isn't exactly low...not if you have good credit....
good luck hope my $.02 helped
 

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Credit unions....they usually have the best rates and do 100% financing. Unless you have really good credit and can pick up on the 1.9 and below offers from a dealer.
 

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Chįlläxn
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Discussion Starter · #7 ·
but im still a teenager and i have limited credit lol. i do have good credit though, making decent $$$, no house payments, workin @ honda for more than 2 years now. i think those things matter right? i can only get around $15k right now by myself w/o cosigner from my credit union plus the money i can put as downpayment. rate is like 6% for 60 months. if i go to dealerships or try the private lenders, do you guys think i could get more than what the credit union can offer? i really wanted an 05 though (can't afford a decent one with $15k) if not ill stick with 02-04. i was planning to use some of my savings as downpayment but nah school is about to start and i gotta pay tuition, books and other stuff so if ever, i don't want to put more than 1k as a downpayment. any suggestions?

i tried to use my dad as my cosigner but the damn credit union said it didn't change my limit and the interest rate and the amount % of downpayment. wtf was that?
 

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but im still a teenager and i have limited credit lol. i do have good credit though, making decent $$$, no house payments, workin @ honda for more than 2 years now. i think those things matter right? i can only get around $15k right now by myself w/o cosigner from my credit union plus the money i can put as downpayment. rate is like 6% for 60 months. if i go to dealerships or try the private lenders, do you guys think i could get more than what the credit union can offer? i really wanted an 05 though (can't afford a decent one with $15k) if not ill stick with 02-04. i was planning to use some of my savings as downpayment but nah school is about to start and i gotta pay tuition, books and other stuff so if ever, i don't want to put more than 1k as a downpayment. any suggestions?

i tried to use my dad as my cosigner but the damn credit union said it didn't change my limit and the interest rate and the amount % of downpayment. wtf was that?
^well the the only reason it would not change anything is if he has worse credit than you...but if its about the same and he owns a house paid off cars etc. then it should help you.....now if he has a better score and owns a house paid off cars etc ...then that should definitely help with your limit AND your downpayment.... as far as the rate it will help but not drastically, because since you will be looking to get a used vehicle the interest rate are a bit higher around 4-6% for good credit last time i checked....if your a teenager n can get a 6% w out a co-x then thats good...but unless we know you or your dad's ballpark credit score i cant really offer much more help.
oh 760-^ is tier 1 .....720-760 tier 2......680-720 tier 3 ....640-680 tier 4
thats pretty much how dealers give you the breakdown....
but say for example you're a tier 3 then you can argue and get a tier bump(up to tier 2)...it all depends on how your credit history reads....
because the credit history isn't always a accurate reflection of your score.
specially if you go to a car dealership they'll try and add 2.5% onto your interest rate, because thats the limit that's whats allowed in the state of California on used vehicles....so always know your interest rate IS negotiable.:thumbsup:
 

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Chįlläxn
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Discussion Starter · #13 ·
i've only checked my credit score once couple of months ago. i had high 600s so i guess im on tier 3 or 2 right now.

i applied @ my credit union and got pre-qualified.
rate: 6.00% for new, 6.75% for used.
then i tried lending tree to see what the lenders can offer:
i qualified for $20k loan, 6.4% for certified used for 5 years.

the thing is, i don't know if getting a loan from lenders is the smart way to go. if i get like problems or whatever, who am i gonna talk to? at least the bank is just few minutes away you know what i mean.

first time buyer for the lose! lol

has anybody used private lenders to get a car loan? share your experience plox :noes:
 

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What do you mean a private lender? Like some Jim Bob who gives you a loan that isn't through a financial institution? I'd say nix that idea, if your credit score is only in the 600s you need to build it up and the way to do that is to have loans that you pay.

Here's the skinny as I see it from my perch in the failing mortgage industry. Credit unions will probably give you the best deal in terms of rate and amount, but they can be super inconvenient for things like making payments and sometimes if you get a loan through your own bank you can even get a discount for having auto deduct of your payments out of a checking account at the same bank.

In terms of interest rate, if you're putting a lot of sweat into getting anything less than .5% lower, it probably isn't worth it, you can sometimes negotiate these anyway.

Lendingtree and that is great, but the more places you apply the more inquiries you'll have on your credit and the more your credit score is going to drop and your deals won't be as good. Plus, as I've learned about Lendingtree, that's just a prequal amount, it's not anywhere near set in stone so definitely don't bank on those figures.

If it were me, I'd go with my bank's deal because I'm far too lazy to do that much shopping in the current credit environment.

Best of luck.
 

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well as far as wunderkind stating that the banks in lendingtree will "run" your credit....i highly doubt that....im pretty sure you simply input your basic info and your most recent credit score montly income etc....and they'll give you an average at what particular banks are offering in your situation....but i could be wrong...i've never used it...lol

t/s....as far as the 20,000 loan thats pretty much not set in stone....they'll usually say, "you're pre-approved for a $39,999 auto loan".....but you'll need like a $4,000 down pmt or w.e....so don't read too much into the lending tree thing until u actually speak to a person from the bank that gave the you the quote...
You're in the high 600's but you're a first time buyer for a vehicle i'd stick with your bank they're offering you a pretty good deal considering what lil i know about your credit history... but the best thing is to sit with the banks consultants and review a possible increase in the approved loan....and what can be done as far as special incentives or what not....
basically just tell the consultant i've been checking around and your offering me just about the same rates i can get at other institutions based on my credit and job history....now i know im young but i have an established relationship with your bank i think that should be taken into account and i should be able to receive a better rate, loan increase, longer term, or w.e. (don't actually say w.e. lol)
 
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