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Discussion Starter #1
I am replacing my 5 year old and buying a new one. but i want to compare auto loan rates and loan terms from multiple lenders first before getting pre- approved. Where do you think I should go for the best financing deal? go to a dealer, bank or a credit union?
 

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Check with your credit cards first and see if any of them have your free FICO score. It's wont be the same one that the bank will pull, but it will give you a general idea of what your scrore is.

Then, call several banks and credit unions around you and ask for their rates and terms with the FICO score that you have. You probably already know this but, DO NOT LET THEM RUN YOUR CREDIT!

Once you have those rates, Go you your dealer and ask what rates and terms they have for your FICO score. You probably already know this but, DO NOT LET THEM RUN YOUR CREDIT!

Once you have determined who has the best rate for you, go with them. And remember never negotiate a monthly payment with a dealer, they will screw you with a longer term loans for a lower monthly payment. Had a friend that ended up with a 96 month loan negotiating on a monthly payment.

And sometimes, Ford Finance has a rebate if you finance with them. The rate might be high, but they have no early payment penalties. When that is offered, I usually take ford credit, get the rebate and then refinance with a bank at a lower rate after I make my 1st payment. My last F150 had a $2,500 Ford Financing rebate, I paid an extra $30 for that 1st month financing and the $100 refinance fee from my bank. $2,377 less for the truck was well worth the hassle.
 

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Agreed. Having your FICO score and some local bank/CU rates is excellent to go into a dealership with. Use that information as a bargaining chip. Dealers really don't make a lot of cash per unit on the sale, but they do make money off of selling the financing. Most dealers work with 1-2 dozen different lenders and if you know what you qualify for outside the dealership you'll be able to know if you're getting offered a good rate or not.
 

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Discussion Starter #4
Thanks for the tips. I have a good credit rating. Anyway, I found out that our local credit union California Coast have really good auto loan rates. I just need to check my papers to see if I have all of the requirements.
 
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