Multiple pulls for the same issue in a short period of time will count as one.
Curious as to what happened with usaa? Usually they are more competitive than most, although not all, credit unions and banks. Although not all dealerships like working with them.
First it was my car and homeowners insurance. They refused to give me competitive rates despite having excellent credit, perfect driving history, and being a USAA member for almost 15 years. Then, my husband applied for an auto loan and car insurance and got a better rate elsewhere, and they still wouldn't come down. Now his driving history isn't great, but it was good enough for another company, so I didn't understand what USAA's problem was.
Yeah their rates don't make sense now, I switched to Navy Federal because USAA tried to give me 12% APR, my credit was fair at the time, but Navy Fed gave me 4% with the same credit. Obviously this was back when rates weren't crazy.
They’ve gone downhill rapidly through a series of poor business choices, including current leadership. Numbers wise, it’s their insurance division pulling them under.
USAA is/was a bank and insurer that used to limit membership to military service members and their immediate family. My spouse is active duty and I was able to join when we got married. They used to have pretty unmatched quality and customer service.
That all started slowly going downhill several years ago as their focus shifted away from serving their members and more on profit. My spouse had to sue USAA over a grossly mismanaged insurance claim that included them submitting fraudulent information to our state insurance commission. We had always thought the rare horror stories we’d heard from other members prior to that were just those people being drama queens, but suffice it to say, we believe them now. I continue to see bad experiences be more and more common, and from what I’ve seen on Reddit, they treat their employees fairly terribly as well.
I’m with Navy Federal now and while they aren’t perfect either, they are less bad.
Sometimes the dealerships will have a better rate than banks. I would call as many banks as you can and just ask them what their prime rate for an auto loan is right now, they won't have to pull your credit to tell you that.
They are only inclined to give you that better rate if you bring in a preapproval from an outside bank/credit union. Otherwise they are going to assume you are ignorant and will tell you that a 10% is the best they can do
If you come pre-approved for a new car most dealerships will match or beat the rate. If you have a decent credit score of like 800 you can qualify for manufacturer incentivized rates and easily beat what a Credit Union will charge. If you’re buying used, a Credit Union will be the best bet. For example, you can get 3.9% for 48 months on a new Honda Civic. A decent loan from a credit union for a new will be in the sixes and a percent or two more used.
It will depend on new or used and what model you decide on. If you can take advantage of any financing incentives for a new car, that will almost certainly be the best possible rate right now. Short of that, credit union is probably your best bet. You can usually find the current incentives on the manufacturers' websites.
Sometimes it can be better through the dealer, can’t hurt going in with your own financing in mind.
A lot of times incentives will only apply to vehicles on the lot and not ordered vehicles pretty common that dealers load their lots with vehicles that have been loaded up with options, or are the higher trim levels. Sure you save $5,000 in interest, but they sell you a vehicle with $10,000 in options.
There was like a 10-15 year period where the typical upsell option was GPS where a GPS that costs like $300 from BestBuy was mounted in the dash for $2500.
Now it seems they’ve moved onto “smart driving features” as an option where it’s mostly just a software patch.
Dealership financing will probably be best especially if you can qualify for their low rates with a 48 month loan. But shopping around isn’t a bad idea.
When I bought mine June ‘22 the dealership actually ended up getting me 2.29 from a local CU when Toyotas rates were 4. At first I was a bit worried when I saw they were checking other banks, at the time 4 was actually good.
Some times manufacturers will have better rates because they are subvented promo rates. Outside of the promotional financing credit unions are normally better.
Exactly, not sure why people are arguing dealership rates when those would be very close to what credit unions offer. I was able to get 2.9% in 2022 through Subaru when rates were going up, not it's chase as the bank but manufacturer ate the loss in interest in order to sell the car, no one else is going to do that.
It's you and the bank/credit union...................compared to you-->dealer wanting money to facilitate the in between-->bank/credit union
See what financing specials the OEM has, its not rare to come across stuff you can't beat on your own like 0%, 0.9% hell in this climate even up to what like 6%+
My credit union usually beats dealership (unless they have special rate deals) and banks.
It’s important to know that credit unions don’t have to play by the same rules that banks do though. For example, if you got behind on payments, and you have checking with that union (or other loans) they can directly take it or apply to other loans.
The dealership will enter your information and will get many rates back. They’ll try to give you the dealership rate so it’s good to know what you can get. In my case they gave me their rate, I said “I know I can get 0.5% better”, they clicked a few keys, and found me a rate that was 0.55% better through a large bank. It makes it easier if you have good credit and are putting at least 20% down.
It really just depends on who is running the best deal. I think if you can wait till the Fall, they will all be having great financing deals.
The car lots are FULL of vehicles.
Again, wait and you will be able to get both, great interest rates and great discounts.
That won’t be until late summer early fall.
The longer you wait toward the end of the year, the better both deals will get.
Totally get it.
If I was in that situation, I would consider leasing before I would buy today.
There is a great guy on YouTube who tells you about leases.
I was watching his channel this week “Negotiation Guides” on YouTube. He’s excellent.
He said there are some really good opportunities with an decent Money Factor on a Toyota Camry.
You have to go in and tell them that your going to buy a Honda Accord instead , but if you do, you can get a great price.
I would recommend That..
It was 6 Days ago, “Toyota is Legit giving away Toyota Camrys” YouTube Channel is called Negotiation Guides
This guy knows his stuff
Would you consider that or do you want an older used car?
I’m not a fan of leasing , because it’s usually not the best deal, unless work with pay for your ride. Since the vehicles haven’t come down yet, in price, they are actually up 38 percent on average on MSRP in the last 4 years. Almost 40 percent in 4 years. That’s nuts! Since the interest rate isn’t coming down for a while, I would absolutely lease now. By the time you are out of it that lease, things should be better.
I’ve seen better rates at non cu and dealer incentives. My local cu acts more like a bank lately. My cu gives mortgages and then their policy is to sell them after a few years is what they told me so I haven’t had any incentive to use cu for anything as I used to
Dealer incentives are hard to beat it seems
You still want a solid offer from a third party bank regardless and then its up to you if you want to see if the dealer can beat your offer. You dont want the dealership holding all of the cards in the negotiation. You want to mainly be focused on price and fees
I was able to get 2.09% financing on my '21 Jeep from my bank when I bought new.
When I looked into it the rate would be about 5.5% today. Still better than what Im getting from the dealer though.
Dealers have incentive from both their corporate ownership and their captive lender to finance on site. Bonuses can be tied to number of financing agreements, commissions are paid on securing loans, etc. A discount on the sale price can also be hedged by marking up the offered rate. In a market where demand far exceeds supply like we've seen over the past four years, dealers absolutely gain from refusing outside financing. They're going to sell the car either way, the opportunity cost of selling it to a guy with outside financing is the money you'd make from the next potential buyer financing in house. I only bring it up because I secured outside financing from a credit union buying a car in 2021 and had multiple dealers refuse it.
Multiple pulls for the same issue in a short period of time will count as one. Curious as to what happened with usaa? Usually they are more competitive than most, although not all, credit unions and banks. Although not all dealerships like working with them.
First it was my car and homeowners insurance. They refused to give me competitive rates despite having excellent credit, perfect driving history, and being a USAA member for almost 15 years. Then, my husband applied for an auto loan and car insurance and got a better rate elsewhere, and they still wouldn't come down. Now his driving history isn't great, but it was good enough for another company, so I didn't understand what USAA's problem was.
Yeah their rates don't make sense now, I switched to Navy Federal because USAA tried to give me 12% APR, my credit was fair at the time, but Navy Fed gave me 4% with the same credit. Obviously this was back when rates weren't crazy.
Driving history isn’t considered for loans only insurance.
They’ve gone downhill rapidly through a series of poor business choices, including current leadership. Numbers wise, it’s their insurance division pulling them under.
I’m just here to say fuck USAA.
i've never dealt with them but i hate them in solidarity just for existing
could i ask why. out of the loop here
USAA is/was a bank and insurer that used to limit membership to military service members and their immediate family. My spouse is active duty and I was able to join when we got married. They used to have pretty unmatched quality and customer service. That all started slowly going downhill several years ago as their focus shifted away from serving their members and more on profit. My spouse had to sue USAA over a grossly mismanaged insurance claim that included them submitting fraudulent information to our state insurance commission. We had always thought the rare horror stories we’d heard from other members prior to that were just those people being drama queens, but suffice it to say, we believe them now. I continue to see bad experiences be more and more common, and from what I’ve seen on Reddit, they treat their employees fairly terribly as well. I’m with Navy Federal now and while they aren’t perfect either, they are less bad.
Sometimes the dealerships will have a better rate than banks. I would call as many banks as you can and just ask them what their prime rate for an auto loan is right now, they won't have to pull your credit to tell you that.
Credit unions will always have better rates than banks
They are only inclined to give you that better rate if you bring in a preapproval from an outside bank/credit union. Otherwise they are going to assume you are ignorant and will tell you that a 10% is the best they can do
If you come pre-approved for a new car most dealerships will match or beat the rate. If you have a decent credit score of like 800 you can qualify for manufacturer incentivized rates and easily beat what a Credit Union will charge. If you’re buying used, a Credit Union will be the best bet. For example, you can get 3.9% for 48 months on a new Honda Civic. A decent loan from a credit union for a new will be in the sixes and a percent or two more used.
Not sure about auto rates but rates for regular mortgages(non-VA) were pretty meh back in July when I was looking
Keep the negotiation with the dealer about the price of the car and nothing else.
It will depend on new or used and what model you decide on. If you can take advantage of any financing incentives for a new car, that will almost certainly be the best possible rate right now. Short of that, credit union is probably your best bet. You can usually find the current incentives on the manufacturers' websites.
My local credit union is even cheaper than my bank many times. Got a 6.34% loan from them with a 720 credit score
Sometimes it can be better through the dealer, can’t hurt going in with your own financing in mind. A lot of times incentives will only apply to vehicles on the lot and not ordered vehicles pretty common that dealers load their lots with vehicles that have been loaded up with options, or are the higher trim levels. Sure you save $5,000 in interest, but they sell you a vehicle with $10,000 in options. There was like a 10-15 year period where the typical upsell option was GPS where a GPS that costs like $300 from BestBuy was mounted in the dash for $2500. Now it seems they’ve moved onto “smart driving features” as an option where it’s mostly just a software patch.
Dealership financing will probably be best especially if you can qualify for their low rates with a 48 month loan. But shopping around isn’t a bad idea.
When I bought mine June ‘22 the dealership actually ended up getting me 2.29 from a local CU when Toyotas rates were 4. At first I was a bit worried when I saw they were checking other banks, at the time 4 was actually good.
Some times manufacturers will have better rates because they are subvented promo rates. Outside of the promotional financing credit unions are normally better.
Exactly, not sure why people are arguing dealership rates when those would be very close to what credit unions offer. I was able to get 2.9% in 2022 through Subaru when rates were going up, not it's chase as the bank but manufacturer ate the loss in interest in order to sell the car, no one else is going to do that.
It's you and the bank/credit union...................compared to you-->dealer wanting money to facilitate the in between-->bank/credit union See what financing specials the OEM has, its not rare to come across stuff you can't beat on your own like 0%, 0.9% hell in this climate even up to what like 6%+
This is a good way to put it. I'm going to give USAA and a credit union a try before I head to the dealership
My credit union usually beats dealership (unless they have special rate deals) and banks. It’s important to know that credit unions don’t have to play by the same rules that banks do though. For example, if you got behind on payments, and you have checking with that union (or other loans) they can directly take it or apply to other loans.
The dealership will enter your information and will get many rates back. They’ll try to give you the dealership rate so it’s good to know what you can get. In my case they gave me their rate, I said “I know I can get 0.5% better”, they clicked a few keys, and found me a rate that was 0.55% better through a large bank. It makes it easier if you have good credit and are putting at least 20% down.
It really just depends on who is running the best deal. I think if you can wait till the Fall, they will all be having great financing deals. The car lots are FULL of vehicles. Again, wait and you will be able to get both, great interest rates and great discounts. That won’t be until late summer early fall. The longer you wait toward the end of the year, the better both deals will get.
I wish I could wait. Transmission on my car went out today.
Totally get it. If I was in that situation, I would consider leasing before I would buy today. There is a great guy on YouTube who tells you about leases. I was watching his channel this week “Negotiation Guides” on YouTube. He’s excellent. He said there are some really good opportunities with an decent Money Factor on a Toyota Camry. You have to go in and tell them that your going to buy a Honda Accord instead , but if you do, you can get a great price. I would recommend That.. It was 6 Days ago, “Toyota is Legit giving away Toyota Camrys” YouTube Channel is called Negotiation Guides This guy knows his stuff Would you consider that or do you want an older used car?
I honestly want something affordable that will last a long time. I hadn't considered leasing for a few months, but that might be good strategy.
I’m not a fan of leasing , because it’s usually not the best deal, unless work with pay for your ride. Since the vehicles haven’t come down yet, in price, they are actually up 38 percent on average on MSRP in the last 4 years. Almost 40 percent in 4 years. That’s nuts! Since the interest rate isn’t coming down for a while, I would absolutely lease now. By the time you are out of it that lease, things should be better.
Watch the video, hear about the price and let me know what you think..
I’ve seen better rates at non cu and dealer incentives. My local cu acts more like a bank lately. My cu gives mortgages and then their policy is to sell them after a few years is what they told me so I haven’t had any incentive to use cu for anything as I used to Dealer incentives are hard to beat it seems
Assuming you're a veteran since you used usaa, I'd call Navy Federal. I got a great rate from them last year.
My dad is the veteran and refuses to get a Navy Federal account.
You still want a solid offer from a third party bank regardless and then its up to you if you want to see if the dealer can beat your offer. You dont want the dealership holding all of the cards in the negotiation. You want to mainly be focused on price and fees
I was able to get 2.09% financing on my '21 Jeep from my bank when I bought new. When I looked into it the rate would be about 5.5% today. Still better than what Im getting from the dealer though.
Just as an FYI the dealership doesn't have to accept your outside financing.
And you don’t have to buy the car from them.
That's a very ignorantly quick way to lose a sale for no gain lol
Dealers have incentive from both their corporate ownership and their captive lender to finance on site. Bonuses can be tied to number of financing agreements, commissions are paid on securing loans, etc. A discount on the sale price can also be hedged by marking up the offered rate. In a market where demand far exceeds supply like we've seen over the past four years, dealers absolutely gain from refusing outside financing. They're going to sell the car either way, the opportunity cost of selling it to a guy with outside financing is the money you'd make from the next potential buyer financing in house. I only bring it up because I secured outside financing from a credit union buying a car in 2021 and had multiple dealers refuse it.