[Chesmu]

Is it better to finance through the dealership at the time of purchase or get an auto loan prior to buying the car?

[John 070]

I don't know for sure, buy my hunch is to do it in advance--make it so you need nothing from the dealership. I applied and was approved through Cap One. I think everyone is relaxed because nothing needs to be done between now and picking up the car (just apply within the 45 days of taking delivery due to the rate lock). My CA did suggest I see what their lenders can do, if they beat, great. If not, just stick with Cap One. I do know that HSBC and eLoan are identical rates and terms. This blank check concept just puts everyone at ease, I think, and it's much easier to negotiate a discount with no financing and no trade imho....

[TXSoxFan]

I did Cap One as well, and you can actually automatically extend it to 90 days with the rate lock without having to reapply, etc. My dealer couldn't beat the CapOne rate, but I guess it depends on what banks/lenders your dealer works with. Also, doing Cap One/Eloan etc is good b/c then the dealer can't mark up the rate on you to make more $$ for himself...

[AHY]

Originally Posted by Chesmu

Is it better to finance through the dealership at the time of purchase or get an auto loan prior to buying the car?

You should def. shop around for loans. Cap One is good, try local Credit Unions too. Once you get a few ask your dealer to match the best one (which 95% of the time will not happen), then go with the best rate. Its easier if you have the loan all set before you pick up the car.

[Pete335i]

What others have said - local credit unions generally offer the best rates but there are times when the dealer may be better - if a manufacturer backed promotion is offering special rates for example (which is common with models they are trying to move like the X5 nowat the end of this body style, or the Z4's that aren't selling). It is always better to go into the dealer with your financing lined up so that you are a "cash" buyer to the dealer and can get the best deal possible. Things get murky when trade ins and delaer financing get involved and this is where dealers make their most money.

[John 070]

Originally Posted by Pete335i

What others have said - local credit unions generally offer the best rates but there are times when the dealer may be better - if a manufacturer backed promotion is offering special rates for example (which is common with models they are trying to move like the X5 nowat the end of this body style, or the Z4's that aren't selling). It is always better to go into the dealer with your financing lined up so that you are a "cash" buyer to the dealer and can get the best deal possible. Things get murky when trade ins and delaer financing get involved and this is where dealers make their most money.

I agree....unfortunately my CC is horrible (how do they even stay open?). I noticed the Navy FCU is 5% up to 72 mos. Wish I could join that one....