When did banks stop offering car loans?

[steveo12345]

It's been a long time since I bought a car through a dealer but I am considering a new car soon. I checked with my bank and two other banks and none of them offer car loans anymore. They only work through dealers. When did that happen? I always assumed I would pay a higher rate financing through the dealer. Looks like I may not have a choice.

[flipper35]

Our credit union still does.

[Scott Douglas]

I've always had better luck at our credit union.

[gordner]

In Canada banks still do.

When you dealer finance here, it is usually the dealer arranging a bank loan. My zero percent finance for my Grand Cherokee was dealer arranged, but is held by ScotiaBank.

[masraum]

Originally Posted by flipper35

Our credit union still does.

Originally Posted by Scott Douglas

I've always had better luck at our credit union.

^ This ^

My credit union is great. I work for a bank, I'm sure it's great, but I still bank with my CU.

[OldSpool87]

I walked into a dealer with a pre-approved Bank loan through my relationship bank. Their financing (which was through a large bank) was better. Likely volume driven.

[nvr2mny]

I've financed a number of cars through Pentagon Federal Credit Union (PenFed) All online and approval in @ 15min and check within 24hrs. Usually great rates on new or used.

[tabs]

Since there is a Car loan debt bubble.

[KFC911]

When they figured out they couldn't unload the crap on Wallstreet .

CU....always over a bank....jmho.

[cabmandone]

Originally Posted by OldSpool87

I walked into a dealer with a pre-approved Bank loan through my relationship bank. Their financing (which was through a large bank) was better. Likely volume driven.

More like buy down driven. "Zero percent for 60 months!".... or $3000 cash in lieu of financing. Zero percent my ass.

[strupgolf]

Our banks here in central indiana still do car loans at lower than the dealers.

[Scott R]

USAA still does, I helped a guy last weekend get a loan for a new Guardian van.

[Steve Carlton]

Your best rates are going to be from the manufacturer, if they offer a subvented rate. Even if they do, make sure it's not in lieu of a rebate. If so, compare payments with and without the rebate. Your next best rates are going to be with a credit union. Their rates can vary dramatically. The market rate for regular loans is about 3.5%, so anything under that is good. Sometimes credit unions or USAA has a special promo. If you're not financing a lot, the rate doesn't affect the payment much. Sometimes there are lease promos that blow away purchase deals. What model car and where are you located?

[smadsen]

Banks tend to not do things that aren't profitable. Maybe try GMAC or Ford Motor Credit maybe.

I think around half the cars sold today are leases. Leases are an asset play at lease termination. Very risky business. Picture a lease portfolio of Yukon/Denali/Surburbans, say 600,000 of them. Suddenly gas prices shoot up to $7.000/gallon. Your assumed residual value at lease end might end up being.....aggressive. Want to bet on gas prices in 2022? GM & Ford don't.

[Geoz1]

Manufactures are offering great rates. CU's or you're personal bank may do better. I like to use a lender to maximize my money. If the dealer doesn't want to play ball, I have no problem using a bank check.
Car purchases are pretty simple. A calculator in hand helps.

[rattlsnak]

Wells Fargo and Sun Trust still do..

[KFC911]

Originally Posted by rattlsnak

Wells Fargo and Sun Trust still do..

I would cut my sack before I did bidness with WF....but please do.

Them azzholes owe me a pension

Did I mention almost all banks suck yet....jmho

BoA....no better....mnsho.

[jcommin]

I just bought a car and got a loan to finance it, I haven't had a car loan in over 20 years so I needed to educate myself. I do belong to a credit union and they gave me rates for 24, 36 and 48 months. I brought the car from a dealer and the dealer had the same rates. I went with the dealer - I will pay the loan off early - simple interest with no penalty for paying off early.

There is more information on line to view rates, calculate payments, car pricing, etc. I had no surprises when doing the deal.

[steveo12345]

Originally Posted by Steve Carlton

Your best rates are going to be from the manufacturer, if they offer a subvented rate. Even if they do, make sure it's not in lieu of a rebate. If so, compare payments with and without the rebate. Your next best rates are going to be with a credit union. Their rates can vary dramatically. The market rate for regular loans is about 3.5%, so anything under that is good. Sometimes credit unions or USAA has a special promo. If you're not financing a lot, the rate doesn't affect the payment much. Sometimes there are lease promos that blow away purchase deals. What model car and where are you located?

Probably going used, 3 -4 years old, not new. I won't buy new. I'll let someone else take the hit on the first few years. Looking for a Subaru Outback.

[steveo12345]

Originally Posted by rattlsnak

Wells Fargo and Sun Trust still do..

I called Wells Fargo and they said they stopped doing car loans a month ago. Now they only lend through the dealers. We do all our our banking with them now and are looking to switch. I need to look at some credit Unions.