Hi Guys,

I'm probably a week out from taking delivery of my car and i'm starting to look into financing options. I'm inclined to use the Credit Union through my job because the rates are pretty favorable.

I know that financing through the dealership is usually going to be a bit more on the high side in terms of APR. For those of you that financed through the dealership, are there any inherent advantages to doing so? Some obvious ones that come to mind would be the ability to roll something like Lojack into your financing so you aren't paying for it up front but I'm not really into paying interest on an item over a 5 year period, so that doesn't really appeal to me.

Are there any other things i'm overlooking? Forgive me guys its been 11 years since i've purchased a car

 

it's really just a convenience thing.

i say get the best rate you can at the terms you want.

i've found though, that manuf. financing is usually CHEAPER nto more expensive since they are incented to sell their own product.

find out what rates you can get from both parties withOUT doing a credit check. bring in a printed copy of a credit report and score to help them estimate. those three-in-one reports are great because you never know which credit union the dealer or credit union might use. and doing a self-check does NOT affect your credit score. it just costs money.

 

When I purchased, the dealer had nothing special for the G but had a good rate for the FX. I went with my credit union as well.

 

I searched for my best rate online and got 6.39 (my credit score is 805). Then Brought that in to infiniti and they gave me 6.24 and said they were not taking any points on it (i don't know if this is true or not). But it was a better rate than i could find anywhere else so i took it.

Search for your best rate and then tell them about it when you go and buy your car. They will try to give you a better rate.

 

I received 5.9% from Infiniti. when everyone else was 6.5%-7.9%

I think going with their financing allows you flexibility in early termination if your staying with infiniti for an upgrade. Often there are returning incentives, not sure about infiniti, but I just bought a Dodge Grand Caravan this week and was given an extra $1000 off for being a return customer and they paid the last month's payment on my Jeep.

Typically you will get better rates then banks. and I can say that NILT has excellent customer service, which I can't say for most banks and lending institutions.

 

it doesn't matter whether the dealership is taking points or not. all that matters is you like your rate.

who cares if the dealer gets to make money? it's business.

btw, that was a rhetorical question... not directed at anyone.

 

agreed with pretty much all of that...

 

you better not be directing that at me. JJ

I don't mind if they are taking points but they told me they were not. Just wondering if they have to disclose that or not. It was a better rate than anything else i could find so i didn't care.

 

at least in CA, i *think* have to disclose that if you ask, and if they lie, it's a crime. don't know if that's a federal law or not... sorry. I know that in CA the max points that can be applied is 3. that said, if the FI is selling the loan to the dealer at 3% and the dealer sells it to you at 5%, they absolutely can NOT advertise the deal as a 3% rate.

that doesn't mean it doesn't happen, but these days with the consumer protection and enforcement the way it is, dealers are honestly afraid of the repercussions and it's not worth the risk.

 

When I bought my car last month, I was offered 4.99% financing when I went to get an insurance quote.
The best rate available at the time via bankrate.com was 6.25%

However I leased

 

That was on a 60 month term from USAA

 

I just thought of one disadvantage. Infiniti's electronic payment website is the worst I have ever had to use.
I am going to have to start mailing in checks or something.

 

greeeeat. i loved using hondafinancial.com

 

11 yrs is a long time ... however you should know that in the Tri-state infiniti is offering 3.99% apr upto 72 months .... and frankly I dont know of any credit union in this area giving less than 5.9%.... so here the dealers rates are much better.

Give your dealer a shot and see what they have to offer.

 

go where ever the rate is lower.. credit unions usually sell mechanical breakdown Insurance or gap insurance cheaper tho.. they also might have options of longer term. Also dealers usually give lower rates when it comes to trucks and suvs these days because they are trying to give more incentive in buying a gas guzzler.. its been harder to sell in the last couple of years