Car financing companies?

brettw22

Do any of y'all know of a good place to do auto loans? I'm technically doing a lease buyout (which for some moronic reason is a higher rate than buying a used car from a dealership), and about the lowest I've seen online was Capitol One at 6.89% (too high IMO).

The only other options I'm thinking about are to pay half of the payoff amount in cash and put the rest on my credit card at a 0% until September of next year. I've been pushing them to give me a 2.9% until paid off balance transfer which would be the only amount that I'd be carrying on the card.........

thehaens@cox.net

Do you have a Home Equtiy line of credit available. I use mine at about 5 1/2%, but write off the interest at the end of the year.

or try http://www.navyfcu.org

Used Vehicle up to 36 mos. 3.9
37 to 48 mos. 4.9
49 to 60 mos. 4.9
61 to 72 mos. 4.9
—
$25,000 minimum purchase price required for vehicle loan of 61 to 72 months

You have to be a member, which I hear is a lot easier now. It used to be only for Military, but now extended for family. If you have any family in the military, they can sign up and then sign you up...damn, that sounds like some MLM scheme.

They are the best rates that I have found..

madmax

If you do the CC thing you have to pay off quickly. In the long run you will be better off doing it that way. At least in my opinion.
madmax

ohskigod

brettw22 wrote:

Do any of y'all know of a good place to do auto loans? I'm technically doing a lease buyout (which for some moronic reason is a higher rate than buying a used car from a dealership),QUOTE]



Are you buying out the lease through the dealership? or from the Lease finance company directly. If you leased through what is called a captive finance company, all the purchase paperwork has to go through a dealer. Captive auto finance companies are not liscenced to deal directly with the public, only through auto dealers.
If it is captive and you are going through the dealership to buy out the lease, i'll ride you money that the dealership is adding percentage points to the finance companiy's buy rate. I used to work at Chrysler Financial, and we let dealers add up to 3 percentage points (basically, if the customer was dumb enough to go for it and they could get the deal through, so be it. again, we could not deal with the customer directly)

ohskigod

best way to handle this is to get the buyout (from delaer or lease company) and get financing on your own. Home equity plan that you mentioned might be an option. Or go to your own bank for an auto loan, they should give you standard used car rates. I cant see your bank having higher rates if it is specifically a lease buyout, over buying a used car from elsewhere. what matters is the age of the car (older = higher int rate usually because of higher risk)

Mike682

Certain banks do not finance off lease or off balloon buyouts from other banks than their own...so check with the bank.

Like Lou said, dealers sometime will mark up the buyrate (rate the bank gives to dealer on approval). Since indirect lenders do not talk to customers, the customer has no way of finding out the actual approval rate given to a dealer. You basically have to take the dealers word. Many banks are now limiting the percentage a dealer can mark-up. Right now the average is around 2.5%-3% with some banks soon to be limiting the mark-up based on length of loan.

Check with a direct lender, like a credit union (if you belong to one) or your personal bank. I would try the credit union first as they usually have better rates and you know exactly what your rate is going into the dealership..

ohskigod

do some banks finance used autos, but not off lease cars? I would imagine they are one in the same. Why do used auto paper but not off lease. I was in the auto finance industry for 5 years and it just dont make sence? is this something new?

Mike682

My company does not finance off-lease/balloon cars directly from the customer, but yes, they will finance a used car. Since we don't finance these, I don't know exactly why... I think it has to do with the wholesale value of the car as per NADA versus the residual pmt on the car to come off lease/balloon..our bank has strict guidelines regarding advances on used cars.

Ok asked a few questions at work:
It's best to try and call the bank you have the lease with. Most banks will refinance their own cars coming off lease, but it has to be directly through the bank's asset remarketing dept. Call the bank's cust service line and try to negotiate the buy-out price, negotiate the purchase option fee, and see what rate they will give you. Most banks will automatically re-finance their own off leases to customers who were in really good standing during the lease.

Now of you go to a dealer, they will have to buy the car from you and sell it back to you. During which they will neg price, neg rate, and purchase option fee with the finance company but most likely will not tell you what the neg price was if it was lower.

It's probably best to do it yourself

brettw22

Ok, first I called Bank of America and they said their interest rate was 13-something percent....I laughed at him and told him that he was diluted to think I'd even consider.......he was fairly quiet....so i thought I'd at least ask him if he thought that was a rate based in reality....he stayed quiet, so i hung up.....

I checked out Capital One and they had a 6.89% rate if you're doing a lease buyout, but a 5.49% rate if you were buying from a dealer used. I argued with them that it's the same car, (which resulted in me on hold for over 10 minutes because the girl didn't at all know what I was asking)......Her manager basically said the same thing and then suggested that I could just take the car to the dealership and buy it from them.......to which I responded that if I was wanting to do that, I'd already be on the phone with him.......he got quiet too.....

I called my credit card company and got them to give me a 3.99% APR until paid off on this balance transfer, so I'm going to pay half cash, then charge the other half ont he card and pay it off within a year or two.......(this will be the first thing that I've actually charged on my card in probably 5 years with the exception of a few things i did with my relocation to Chicago).

ohskigod

wierd, i guess no one wants to do the lease buyout directly. Tons of reasons why I dont lease. this is another. glad you have a solution though, others might not be so lucky.

Mike682

If this still helps:

Ok asked a few questions at work:
It's best to try and call the bank you have the lease with. Most banks will refinance their own cars coming off lease, but it has to be directly through the bank's asset remarketing dept. Call the bank's cust service line and try to negotiate the buy-out price, negotiate the purchase option fee, and see what rate they will give you. Most banks will automatically re-finance their own off leases to customers who were in really good standing during the lease.

Now of you go to a dealer, they will have to buy the car from you and sell it back to you. During which they will neg price, neg rate, and purchase option fee with the finance company but most likely will not tell you what the neg price was if it was lower.

It's probably best to do it yourself

aaharvel

ALL CAR LOAN COMPANIES will screw you. But I do have great news Brett.

I just saved a bunch of money on my car insurance by switching to Geico!

YEAH BABY! http://tonylittle.ytmnd.com/