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Old 07-28-2020, 11:12 AM   #44
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Drives: '20 2SS Convertible 6MT
Join Date: May 2020
Location: CT
Posts: 1,223
Originally Posted by Coded4SS View Post
Avoid dealer loans. They do things like not let you pay off the principal faster you have to mail in hand written checks to pay off the principal. There is things like this with dealer loans they work to their advantage. Why go through a third party middle man for what you can do on your own?

Go to credit union get the best rate you can and if you want to see if your dealer can beat it then go ahead. In my experience it's always always better to avoid the dealer.
Initially, I wanted to cry for the first part of this post. Then I realized something...

There's a HUGE difference between "buy here, pay here" financing (what is truly a "dealer loan") and loans secured through a legitimate lender that are "brokered' by the dealer (you fill out a general loan app at the dealership and they shop your loan to various banks). The former should be avoided at all costs. They are huge rip-off's financially. The latter seldom will have penalties for early repayment.

Credit Unions are 100% -NOT- the panacea that so many people claim them to be. As mentioned before, I have only gotten a better rate from a credit union ONCE than I did from any other lender when buying a car. And, honestly, I was quite surprised that I got the rate that I did as the manufacturer was already offering reasonable rates for their CPO cars.

If you are shopping for a loan based on the rate, Credit Unions seldom have better interest rates than banks if you have a high credit score (over 700-725). Sometimes they have better rates if you have a significant amount of money on deposit with them.
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