How to get the best rate on a new car

[scottmandue]

Thanks Kaisin and everyone else.

[m21sniper]

Why on earth would running your credit hurt your credit rating? That's about the dumbest thing i've ever heard.

Credit unions invariably give the best rates on auto loans. A personal loan is even better, with an even lower rate, and if you fall behind they won't repo the car.

You will also save an enormous amount of money if you buy a car that's 3 years old vs a new one, or, alternatively, get way more car for a set price.

[Zeke]

Originally Posted by m21sniper

Why on earth would running your credit hurt your credit rating? That's about the dumbest thing i've ever heard.

Used to be that way. Credit bureaus got nervous when you were running all over town talking about taking out a loan. As I mentioned, it may not be in your best "interest" to be putting in credit apps at unrelated businesses all at the same time.

People getting ready to file for BK have been known to do this and skip with some new stuff that they never intended to pay for. Retailers will rely on a sudden drop in your score to deny your app.

The funny thing is, when you get to the 3rd or so car dealer, they can see where you were earlier that day! I've seen it. It's real funny when the customer tries to tell you that they aren't shopping around that much.

Yeah, right.

But, if they've been to the furniture store and opened an account, then get to the auto dealer later that day, they won't be getting the "buy rate" kaisen told you about.

[nikita76]

1. I agree with credit union rates.
2. Buy a car at the end of the month when the dealer is looking to boost numbers.
3. Walk over to the sales board and see who has sold the least amount of cars, then walk over to their desk!
Good luck!

ND

[VincentVega]

My pop is very happy with his Costco experience, he got a good deal on an Accord. Simple, to the point and a good price.

Check if Honda has a VP/Value Package right now. The are sort of between the dx/lx level and usually priced to move.

[m21sniper]

Originally Posted by milt

People getting ready to file for BK have been known to do this and skip with some new stuff that they never intended to pay for. Retailers will rely on a sudden drop in your score to deny your app.

I suppose that makes sense.

[Tobra]

last second hand car I bought, i got them to go higher than they should on the trade in and low on the sales price, acting like I believed them when they said it was the best they could do when they offered me a 5 year note at about 8% higher interest than I probably should have had to pay. They thought they were going to make all their money on the loan, but failed to realize that I had the dough to pay the car coming before the interest on the note began to accrue.

Paid it off a few weeks after I bought it. Got a call from the sales manager the day the check cleared asking how the car was, that sort of thing, worked his way up to asking about me paying it off being a good idea, turns out they can get the loan for about 7% less than he thought, blah blah.

Told him I felt like he was trying to rip me off on the loan, because there is absolutely no way my credit went up enough to cut the interest in half in a few weeks. Felt great to screw them, and get to tell them on the same deal.

The Ford dealer tried to screw me over on a new car earlier in the day I bought the second hand one. Had gone the day before looked at a car, came to an arrangement, which they changed and thought I would not notice. Had the wrong price, wrong rate on the loan. I got up, told the guy he must have thought I was kidding when I came to buy a car, guess I won't be back for the Lincoln in three years. The following Monday, the sales manager from the Ford dealer called, trying to salvage the deal I had walked away from. Sorry, I don't need a car, I bought one on Saturday.

[Rick Lee]

Originally Posted by nikita76

2. Buy a car at the end of the month when the dealer is looking to boost numbers.

I did this once. I bought a Mazda B2300 for $3700 that was listed for $5500. Business was very slow that day and I just browbeat them. They even knew I was stuck there when my then-GF threw a fit and drove off, leaving me stranded with no way home. But they finally agreed and I drove the truck home.

[kaisen]

There is a 2009 Hyundai Sonata GLS V6 at Manheim's So Cal auction in Fontana that was part of a dealer's floorplan reposession. It is 'new', I guess, with 136 miles on the odometer. Books and remotes are missing.

It will likely sell for ~$15K or so, based on recent transactions.