Next summer, I might consider getting a new car with finance.
This is, however, will be my first time.
I am currently in no debt (never been in debt, actually) and have good credit history.
If I am to buy a new car (or recent pre-owned) from say…a Honda dealer…what kind of financing company should I go? Any suggestions? Any hints/tips/advices?
FYI: I might consider trading-in my current car…or perhaps should I sell it privately first and use it as down payment?
BTW, I am looking to get 2003-2004 Accord Sedan…My current car is 2003 Civic EX…
go to a credit union and get approval based on the type of car and price you’re looking at. then compare that to whatever they tell you at the dealer. Don’t tell them the credit union part up front, wait until their finance offer sucks then show them and have them beat it if they can.
as for the price of the car once you find the one you want:
don’t talk payments, only the full price of the car… tell them you’re not financing until you get them as low as possible on the price, then ask them about financing, otherwise they’ll screw you at the other end of the deal to make their money.
it’s a little like playing poker, don’t show your cards until it’s in your favor if possible.
This is a great advice! However, can you give me more detail on this credit union? Is it done online?
If I am to do this, will it affect my credit history?
Another great advice. I also heard about this from friends around me.
Another thing though, is about trading in, in that case, is it really okay…if i really really fight the price down…and then mention about the trade-in at the very end? will it affect the trade-in price (since they might get pissed)? :whip:
look for credit unions in your area. phone books, internet etc.
What is the difference between a bank and a credit union?
A bank is a for-profit organization. Banks hold deposits, make loans, pay checks, and provide other related services for the public. They collect funds from three sources: demand, savings, and time deposits; short-term borrowings from other banks; and equity capital.
A credit union is a not-for-profit financial cooperative that makes personal loans and offers other consumer banking services to individuals sharing a common bond or affiliation, such as a common employer. Because credit unions operate as not-for-profit institutions, they are exempt from both federal and local taxes. Consequently, credit unions can charge below-market rates on loans while paying higher rates to savers. A credit union gets its operating funds from shares purchased by individual owners, who are members. It also pays dividends (representing the payment of interest) out of earnings.
that’s the basics, but these days most credit unions will take anybody regardless of having an affiliation. As a general rule, credit unions have better rates than banks.
as for the trade in – yes, mention that after you’ve negotiated the car’s price. (but before talking about financing)
YES - you will piss them off, but that’s a good thing - it means they are not making much / any money. If your sales person has not introduced you to his/her manager then you’ve most def. got more room to push.
push your luck but be as polite as you can - “if they’re smiling too much, you’re paying too much”
if you have a hard time telling a lie when they ask about trades/financing then just say “assume cash, we’ll talk about that later” or “lets get a price on the car first”
