Originally posted by: Yzzim
Originally posted by: VirginiaDonkey
credit union almost always has the best rate. If you are buying from a stealership, ask them to beat it...if they cant, use the CU
how flexible are the dealerships? Most of them say something similar to "the loan center quoted me x.x%"
Is the sales person/financial adviser able to just write in their own interest rate?
Dealerships use banks, and most are connected to the Credit Union Direct Lending system. Banks are not lower than credit unions. The only rates lower are going to be factory subvented rates, where the factory provides a bought down interest rate thru a bank, or the factory finance co, ie., Ford Motor Credit Company, offers an "incentive" interest rate for buying a new car.
I am a finance manager at a dealership. I can assure you the sales / finance people have no ability to just pull an interest rate out of the hat. They do however have the ability to mark up some bank rates, up to 2 points. In most cases, that is not happening, when a customer has excellent credit and own financing options. The dealer wants to be able to meet or beat the rate, because controlling the financing insures speedy funding to the dealership.
Where I work, we don't want to wait a week or two for the customer to bring their own money in, so we will do everything in our power to be competetive, so we avoid delay and inconvenience to the customer and ourselves. It's just good business.
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