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Car Financing

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lazydeac

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What is the best way to finance a car these days?

I'm driving about 750 miles a week now a days and I would like to get a car that doubles my MPG to around 30 to save on gas. My question is what is the best way to finance a car nowadays? Through the dealers? I always see Capital One running these car financing deals where you can finance through them up front and shop as a cash buyer...is it worth it? Any other experiences?
 
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It's almost always through the dealers if you're trying to get under 1% or anything along those lines.
 
best thing you can do is go through a bank and just SEE what kind of rate they can give you. then when you're at the dealership, see if the dealership can beat it. a lot of the time they can because they do so much business with certain banks that they get a really low rate. but the more you know, the better you can argue.
 
Timely question; I will be dealing with this later this spring.
 
Don't pay over 3% on a new car loan. Money very cheap right now and will be this spring.
 
While you should certainly get the best financing you can the best way to save money when buying a car is obviously to get the best deal you can. That being said if you are buying new and know what you want utilize the internet and your phone and start calling dealerships. Here is the process the professor in my negotiations class broke down buying a new car:

1. Decide what you want
2. Call dealerships that you would be willing to buy from, casting the widest net you can.
3. Ask each dealership for their best quote.
4. Once you've got the lowest price, call all the other dealerships back and ask them to beat it. (trying to improve your BATNA)
5. Continue until there is only one dealership left.

He included some dealerships in PA when doing this, I am in NC, because apparently they have some different tax treatments and ended up getting the lowest price up there and had someone in NC match it. Two caveats...this only works for new cars because every new 2012 Corolla is essentially the same where as there is large variance in 2005 Carollas and it really only works if you are a cash buyer i.e. you have financing lined up ahead of time.

Sorry for the long post but hopefully it helps you save a few bucks.
 
lazydeac said:
What is the best way to finance a car these days?

I'm driving about 750 miles a week now a days and I would like to get a car that doubles my MPG to around 30 to save on gas. My question is what is the best way to finance a car nowadays? Through the dealers? I always see Capital One running these car financing deals where you can finance through them up front and shop as a cash buyer...is it worth it? Any other experiences?
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what kind of car are you thinking of buying?
 
DeacHoops said:
best thing you can do is go through a bank and just SEE what kind of rate they can give you. then when you're at the dealership, see if the dealership can beat it. a lot of the time they can because they do so much business with certain banks that they get a really low rate. but the more you know, the better you can argue.
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Qft. Had my bank number and before i mentioned to the noob car salesman, he qoutes me 7% like its the best they can do. I was like LOLGTFO, here's what I already have through my bank 3%. Then they realized I was not a mouthbreather noob and sent me to the real finance guy in the back who basically said he would beat my bank and give me the lowest rate they offer period. Bam done. Financed near 0 on a hot ride. And this was back when the shit was bottoming out and it werent no money going around nowheres. Only reason I bought a new ride instead of used.
 
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DeaconSoDear said:
While you should certainly get the best financing you can the best way to save money when buying a car is obviously to get the best deal you can. That being said if you are buying new and know what you want utilize the internet and your phone and start calling dealerships. Here is the process the professor in my negotiations class broke down buying a new car:

1. Decide what you want
2. Call dealerships that you would be willing to buy from, casting the widest net you can.
3. Ask each dealership for their best quote.
4. Once you've got the lowest price, call all the other dealerships back and ask them to beat it. (trying to improve your BATNA)
5. Continue until there is only one dealership left.

He included some dealerships in PA when doing this, I am in NC, because apparently they have some different tax treatments and ended up getting the lowest price up there and had someone in NC match it. Two caveats...this only works for new cars because every new 2012 Corolla is essentially the same where as there is large variance in 2005 Carollas and it really only works if you are a cash buyer i.e. you have financing lined up ahead of time.

Sorry for the long post but hopefully it helps you save a few bucks.
Click to expand...

This + a billion. I've bought 6 cars this way. 3 different times, I've had the GM of a losing dealership call me, and after confirming the terms of my purchase, say something like "Damn. They must be desperate to sell a car. We can't beat that price. Congratulations on getting yourself a hell of a deal."

Even better than calling the dealers is negotiating via email. That way you have everything in writing and you don't have to piss away hours on end listening to dealers ramble on the phone. Review the offers & negotiate when it's most convenient for you.

The dealer that can put the best offer out there, the deal that no one else can beat, that's who gets your business.
 
ctdeac13 said:
what kind of car are you thinking of buying?
Click to expand...

I'm honestly not sure. I don't really care about what it looks like that much...other than probably not wanting a Kia. I just want teh best mileage I can get while still being comfortable. It would be a plus if I could take a passenger or too to lunch every now and then, but I'm basically just using it for commuting.

I'm open to new or used for the best deal, but I'm thinking probably used with low mileage since I'll be putting 40-50k on it per year and a new car will become used QUICK.
 
If you're putting that many miles on your car you should look at a hyundai, probably a sonata since it pretty spacious and gets 35mpg on the highway. The reason I say Hyundai is they have the 10 year 100,000 mile warranty and you can get a low miles sonata for pretty cheap since a base one starts at 19k.
 
ctdeac13 said:
If you're putting that many miles on your car you should look at a hyundai, probably a sonata since it pretty spacious and gets 35mpg on the highway. The reason I say Hyundai is they have the 10 year 100,000 mile warranty and you can get a low miles sonata for pretty cheap since a base one starts at 19k.
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i'm fairly certain that hyundai's powertrain warranties are 10 years/100,000 miles, but ONLY apply to the first owner of the car. so he can't buy a used hyundai and have that warranty still stand.

(this is not true of all brands. but unless hyundai has changed their policy, it is true of them)
 
DeacHoops said:
i'm fairly certain that hyundai's powertrain warranties are 10 years/100,000 miles, but ONLY apply to the first owner of the car. so he can't buy a used hyundai and have that warranty still stand.

(this is not true of all brands. but unless hyundai has changed their policy, it is true of them)
Click to expand...

yeah you're right the second owner has the 5 year 60,000 mile warranty, my bad. still a nice car that you can get cheap. You could also get a ford fusion since its a comprable car.
 
Just financed my new ride today through my credit union. It was super easy.

Also I drove home my new ride tonight from the dealership. First car I've ever purchased. I feel like a grown ass man.
 
Chill22 said:
This + a billion. I've bought 6 cars this way. 3 different times, I've had the GM of a losing dealership call me, and after confirming the terms of my purchase, say something like "Damn. They must be desperate to sell a car. We can't beat that price. Congratulations on getting yourself a hell of a deal."

Even better than calling the dealers is negotiating via email. That way you have everything in writing and you don't have to piss away hours on end listening to dealers ramble on the phone. Review the offers & negotiate when it's most convenient for you.

The dealer that can put the best offer out there, the deal that no one else can beat, that's who gets your business.
Click to expand...

This +2Billion.
 
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