Financing a BRZ.

[Decko]

I'm looking to purchase a 2014 BRZ when they come out, but I've never bought a vehicle brand new before and was looking for some insight. Would it be better to finance through the dealership I get the vehicle from or to just go to my credit union for financing? Sorry if it's a dumb question, just not sure how all this works.

[rapidcars]

The dealer gave me 2.9%. Other have done better with their local credit unions so it's probably worth looking into.

[Gunman]

Look at the interest rates, early payoff penalties, and other terms of the loan, and then decide.

I got dealer financing on my truck, because they gave me an extra $1000 off if I did, but the rate was higher than my credit union. I made one payment, then did a refi thru the credit union.

[Cjymiller]

Get it through the credit union, and your dealer will try to match. Just remember, don't get suckered into focusing on monthly payments. Always negotiate in terms of total cost.

[Decko]

Thanks for the advice everyone!

[ThisIsChrisKim]

Originally Posted by Marchy

This is what i did, got pre-approved at the credit union, and then went into the dealer, got the price i wanted and when i talked to the finance guy he uses my credit union and was able to submit the official loan documents for me.

Likewise. Got 1.5% for 3 years on my loan. It also helps to have a very high credit score, too.

[SkullWorks]

I signed up with PenFed credit union specifically to get their car loan.

I got a great rate, best rate i had seen, and qualified for it with no surprises. Dealer wasn't happy when they found out it was already financed. Keep that in your pocket until after pricing is settled.

[rmjjensen]

When I bought my BRZ I discovered a little trick that perhaps you should keep in mind.

I bought when it was first available and planned on paying MSRP for the car (no mark ups). We made the deal and then the finance manager called me on the phone to inform me of the details (4.75% interest rate).

I told him that 4.75% is extremely high and my credit should warrant a much lower rate. He stated he ran it through all of his creditors and that was the best rate. I hung up the phone with him and called BS. I went online a filled out an application online (bank of america) and was given a 2.5% rate.

Here's where it gets good ...I brought the finance manager my approval @ 2.5% and he insisted that he couldn't get me that rate. I just sat there and stated that I'll have to go through the process on my own then to get financing. After about 15 minutes of back and forth he wound up discounted the car by the difference in interest payments over 60 months ...yep, so I got below MSRP and was given the 4.75% rate. Sounds meh, but then, after I got home I re-financed the car through PenFed and got a 1.5% interest rate. In the end, I got the car for a little over $1,000 LESS than MSRP and a 1.5% interest rate!

I suggest you get some quotes online for a new car purchase - you can then bring them to the dealer and negotiate accordingly.

TL;DR; Got my BRZ well below MSRP at 1.5% for 60 months.

[meeskee2]

[QUOTE=Gunman;1108495]Look at the interest rates, early payoff penalties, and other terms of the loan, and then decide. QUOTE]

Exactly, do a little shopping around, that's what I did. Ended up just going through the dealer, got 1.7% which was way lower the my Credit Union.

[CTB727]

I was pre-approved by my credit union and the dealership beat that rate, much to my surprise.

[DeepHunta]

I went with dealer. I didn't care. I had to have to car. I think I got 3.6% or something. Whatevs, enjoying the car like none other

[B-R-Z]

Pentagon fed CU (www.penfed.org), I will never go anywhere else for a car loan, their rates are the lowest I've ever seen. Sign up for $10 or whatever it is and enjoy 1.74% for 60-72 months (if your credit is good).

I applied and within a day they over-nighted a check to me and I picked up my baby at the dealer. Signed a few papers and I was on my way.

[tacoss23]

Do it on your own!!

Here is the deal:
Your dealership's "finance department" is not more than a compiled list of financial institutions that give out autoloans, most importantly, that WORK WITH THEM. Anytime you hear that term "work with them" you know there is something in between. Now that something in between is not much or anything at all most of the time, but the fact is they will try to hook you up with one of these first, regardless of what rate they offer. Their interest is selling you the car THAT DAY and getting those banks another business, not the APR you will get or your best interest.

Please, shop for a car loan by yourself.

1) Credit Unions
2) Your own Bank (specially if you have credit history with them)
3) Big banks (they do offer good rates if you have a "premium CS", 720+)
4) Other banks, local

I was surprised when one of my banks, Bank of America offered me a 2.49%, compared to a Credit Union at 3.2%. Again, it varies, but check them on your own.

Then, in the case of the BRZ, ask for a 30k loan. You have to make sure you explain that you haven't setup the price, and see if your bank allows you do a flexible "blank" check of around 30k. Many of them don't do this anymore, but BoA allowed me to do that (I do have a pretty big savings account with them so probably that's why).

Anyways, the point is, buying a car becomes a great experience. You walk in the dealership with cash in hand (practically) and the pressure is on the dealership to sell you the car, you are not anymore in a situation where they have the upper hand, because they are "trying to get you" the finance, which is a lie, there is nothing, NOTHING they can do for you in terms of financing that you can't do it on your own better.

Don't ever walk in a dealership with the intention of buying without having the finance part taken car of, you give the dealership the upper hand, and most of them are experts in creating a situation where you end up "thankful" to them the deal went through, they use techniques like making you wait at the finance office with clear windows, while you watch everyone walk out to their new cars, even worst, in front of the car you just test drove, etc. Some of them will actually make you feel worst about your credit score, telling you is going to be hard to get you the financing, but they will pull strings around to help you out, etc.

Good luck!

[HiXxY]

great post tacos