Vehicle loan options

[ray7694]

My sister had great credit but had some medical issues and missed a few car payments. They were late. Everything has been caught up for a while and now she needs a new car loan. Her credit union is offering a 9 percent loan which is much higher then what she had before.

Is there any other places to check for a better rate?

[SnuggleBuggles]

We just bought a car and got a 1.5% loan from our bank but ultimately took the 0% financing from the dealer. I don't know how good credit has to be to get that kind of 0% deal but it's a place to check; the fine print might say.


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[AnnieW625]

If she can't get good financing say under 5% from a dealer I would have her look at a lease if she doesn't drive a lot (and I don't recommend leases usually because they scare me....every little ding is scrutinized, they end up costing more if you decide to buy and if you go over the mileage you are SOL) or buy something used under $10k with cash if she can until her credit is better, it is probably still in the high 6s to low 7s and from my experience lower than 740 can hurt things (mailed my mortgage payment to the wrong company by mistake in 2009 moved my credit from 800+ to 740 because my payment was credited until March 3rd and it was due on Feb. 1st). Thankfully I didn't need a car loan then.

I was qualified for 1.99% with my credit union and even though the dealer wasn't advertising it I ended up with 1.9% for 5 yrs. through the dealer; I think at the time Jan., 2013 they were advertising 2.5% which is why I got pre approved at the credit union.

I will be going through this again in a few months and I am not really looking forward to it especially since I am most likely buying used and credit union rates can be low, but not as good as new from the dealer, which has been between 0% and 1% for the models I am looking at and used is between 1.5% and 2% right now, but still potentially saving a bundle by buying CPO this time.

[JBaxter]

Carmax quoted my 21 yr old with no credit to speak of 6% We will cosign if they offer a lower rate

[Mikey0709]

I too experienced better rates at a dealer.... they now SHOP IT OUT to many financing companies to get you a better rate - - they don't want you walking away, they will now do the financing work to keep you there. I would guess within an hour we had quite a few offers available through banks and credit unions.