Buying a vehicle with auto loan?
Looking into getting a new truck, well used but within 3 years preferably for my budget. My credit score is 750, so im hoping they would approve me. But would it better to get a loan from my bank (whom offers very low APR) and use that money to buy the vehicle upfront? Or should i see if they dealer will offer a lower apr? Im going to br going through CarMax or enterprise.
- Anonymous2 months ago
(1) Loan approval depends on more than just credit rating. It depends on your credit history, your employment status and employment history, your income, your age, your monthly expenses and whether you have any dependents.
(2) It's best to get pre-approved from a bank or credit union first and then go shopping. You aren't required to use the loan you are pre-approved for, but it gives you an option if dealer financing can't give you better terms.
(3) You can usually get the same vehicle for quite a bit less from a private seller than from a dealer, so don't overlook that possibility. Just be sure to do a thorough pre-buy inspection, or pay a shop to do it for you. It's qworth it if you can save a couple thousand. Being pre-approved from a bank gives you that option.
- Anonymous2 months ago
Bank financing is almost always better. If you are getting a within 3 years used car, you can expect to save $3000 or so by avoiding a dealer.
Plus, the dealers have doc fees and they will hammer you hard to buy crap like extended warranties. (which you should avoid)
Best is to find a motivated private party and let your bank handle the financing.
Some cars have a 5 year 60,000 mile power train warranty. Based on the date it was sold which you can get by calling a service department with the vin.
Hyundai used to or still does have a 10 year 100,000 mile warranty but its not transferable, its only for the original owner. So it reverts back to something less once its sold or traded.
- ScottLv 72 months ago
A personal loan is unsecured and always carries a higher interest rate than an auto loan. Apply for an auto loan through your bank or credit union.
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- CBLv 72 months ago
If you can get your own loan approved you wouldn't have to overpay used dealer prices and could find one that is being sold by a private party for less. Just have a pre-purchase inspection done by a certified mechanic.
- griggleLv 72 months ago
You can probably get a better deal through your bank or credit union. At least get approved for a loan, that gives the dealer some incentive cut you a better deal on financing. I've done this and it works.