Best place to get a car loan?

[MomtoGKC]

Hi all,

DH and I are considering getting a new (used) car after Christmas. We haven't bought a new car in years and I was wondering what you all think is the best place to apply for a loan. I know, I don't really want a loan, but after dealing with old used cars that we could afford I'm ready fro something that might not break down every month. Right now we're paying more to the mechanic every month than we would for a car loan.

Thanks!

 

[akcire]

Generally speaking the best rates are at credit unions.

Something else to think about is that many of new car dealerships currently have 0%. If you intend to buy a gently used new car, you may wish to run a cost comparison with a new car (with warranty) and 0% or a used car, cost of repairs plus the cost of accrued interest.

 

[Pigeon]

Dh and I belong to a couple of credit unions. We bought a new car about six months ago. The credit unions had better rates than the banks, and even the dealer.

 

[megsters]

Generally speaking the best rates are at credit unions.

its been about 3 years, but i agree with the credit unions. they often run specials/special rates too. when i purchased my car and got a loan through the credit union, it was no payments for the first 90 days. it helped to be able to use that money to tax and title it. so i vote look at what dealers are offering, and def. shop credit unions!! good luck!

 

[bakalorber]

USAA has really good rates too.

 

[SarahKate]

i agree w/ other posters, credit unions are a great place to get good rates. BUT, be sure to see what financing deals the dealership can offer you because it might be better to go thru them instead. Last year when I bought my Honda Accord, I got I think it was 1.9% for 60 months. Some dealerships are also offering 0% for 60!

 

[natenapril]

WE bought a toyota for 1.9. Way better than any credit union was offering. Although I LOVE USAA, Toyota had them beat.

 

[Green Tea]

penfed credit union has 3.9 on cars. I joined just for the auto loan rate.

 

[Tisha_PA]

I did my most recent car loan through capital one. They were offering a 4% interest rate and my choices were to take the 4% and get the dealer cash incentives on the car or take the 0% financing through the dealer but lose the cash incentives. I worked the math and the dealer cash incentives were more than the amount of interest I would pay through the 4% loan so I went with Capital One. Our local credit unions had rates in the 5-6%

 

[Darcy03231]

Usually credit unions have the best rates. If you're buy a brand new car there have been some ads on tv with some dealers (Toyota comes to mind) offering 0% financing on some 2010 models.

 

[DawnM]

Please do your homework and get a detailed amoritized loan analysis before buying.

We got a new Toyota back in 2004. We ended up getting a fleet deal though the internet for $300 over invoice for new AND got .9% interest for 5 years.

We couldn't beat that with a used at all! The 2-3 year old (same) cars were the same if not more cost than the internet/fleet pricing, and the interest rate was much higher, making the overall cost of the vehicle more than new!

Dawn

 

[DawnM]

BEWARE of Penfed. I have recently had a bad experience with them.

I applied for a home loan/refi through them and they sent me the docs to sign to get the process going.

I NEVER signed or sent them back but they went ahead with a title search and then CHARGED me $200 for it! I fought it and we have taken some of it off, but I met one really RUDE person there. I am trying not to judge the entire place based on one bad apple, but........

Dawn

penfed credit union has 3.9 on cars. I joined just for the auto loan rate.

 

[Green Tea]

BEWARE of Penfed. I have recently had a bad experience with them.

I applied for a home loan/refi through them and they sent me the docs to sign to get the process going.

I NEVER signed or sent them back but they went ahead with a title search and then CHARGED me $200 for it! I fought it and we have taken some of it off, but I met one really RUDE person there. I am trying not to judge the entire place based on one bad apple, but........

Dawn

Wow. I don't live anywhere near a branch but signed up for the auto thing. It has been seamless. Very easy and efficient.

 

[DawnM]

That is how our first loan with them went as well. Second time did NOT go as well! I really believe it was the woman I dealt with, but I am now wary of them!

Dawn

Wow. I don't live anywhere near a branch but signed up for the auto thing. It has been seamless. Very easy and efficient.

 

[TMB1203]

I have a loan through Chrysler. 0% interest rate.
My credit union was 5% at the time.

 

[Green Tea]

That is how our first loan with them went as well. Second time did NOT go as well! I really believe it was the woman I dealt with, but I am now wary of them!

Dawn

I did everything online. Never went into a branch. Do they even have branches? I have no idea. There are none in my area.

 

[MomtoGKC]

Thanks , everyone! We would most likely be looking at a Toyota, but not a new one. We're going to start looking after the New Year I think.