through your bank (where most of your savings and paycheck direct deposit goes)?
through the car dealer itself?
somewhere else?

i have never done this before so i'm completely clueless. any pointers?

Your local bank where you hold accounts or a credit union.

American Honda Finance approved us for 10.50%, after 1 year of making on time payments. We refinanced with our local Credit Union for 3.99%.

Not to hijack, but on the flip-side, what are the advantages of paying in cash? Do you get discounts or anything (if at all)?

cash = no interest to pay :p

man... i have to do the same soon... blasted silverado caused a 5 car accident and my toyota will probably be totaled.

I financed through my bank for my last car. I work at my bank, so I get the going interest rate -1.75%. It's also good for my profit sharing to get a loan through the bank I work for. :D

Credit Unions tend to have better interest rates, though.

Your local bank where you hold accounts or a credit union.

American Honda Finance approved us for 10.50%, after 1 year of making on time payments. We refinanced with our local Credit Union for 3.99%.

i just asked my bank and based on the information that i gave them (without a hard pull), they say it's going to be around 6.5%. plus or minus depending on my credit status.

ahh.. refinance. if you didn't mention it i would never have thought about it. so it is possible to get a loan now, and then refinance through different source later if i can find someplace else that will give me a better rate. got it.

I financed through my bank for my last car. I work at my bank, so I get the going interest rate -1.75%. It's also good for my profit sharing to get a loan through the bank I work for. :D

Credit Unions tend to have better interest rates, though.

that's an awesome rate!

when you say CU have better rate, do you mean any CU or CU that i have account with? i don't know, can i just come in to any CU and ask for a loan even though i don't have an account with them?

the university here have a CU where a friend of mine got a good rate for her car loan (i believe it was around 4-4.5%), but she does have an account there and her paycheck goes there every month. i technically don't have a personal account there, but i'm sort of a treasurer for a student organization that has an account there, and my name have been tied with that account for at least 4 years now (so i have a 'customer id' on their database, i just don't have a personal account). i wonder if they'll give me a good rate. i'm planning to ask.

i just asked my bank and based on the information that i gave them (without a hard pull), they say it's going to be around 6.5%. plus or minus depending on my credit status.

ahh.. refinance. if you didn't mention it i would never have thought about it. so it is possible to get a loan now, and then refinance through different source later if i can find someplace else that will give me a better rate. got it.
Is this for a new or used car? What year is the vehicle?

Usually if it's 2003 or newer, they will consider it a "new car loan" which means better rates.

Glad I mentioned refinance, yes you can refi anytime you want. As long as your credit, debt/income ratio and collateral are all within credit lending guidelines.

I think that most CU's don't give loans to non-account holders. I could be mistaken, though.

I think that most CU's don't give loans to non-account holders. I could be mistaken, though.
You are correct and thank you for reminding me about this minor stipulation.

To become an account holder, it's usually a two step process:

Credit unions usually have elibility requirements, some of them are very easy to qualify for. For instance our credit union where our car was refinanced states if you live, work, go to school or attend church in downtown Portland - you are eligible. Some employers offer their own credit union. Go to joinacu.com (http://www.joinacu.com) to find a CU near you. Remember to call around and ask two questions.
Who is eligible for membership and what are your auto loan rates?
After you have confirmed you are eligible for membership, you need to become an account holder. Just open a savings account with an initial deposit of $5 to $25 and that's it. Our CU required a $5 deposit to open a savings account. After that we were able to sign loan documents.


I hope that helps :)

Is this for a new or used car? What year is the vehicle?

Usually if it's 2003 or newer, they will consider it a "new car loan" which means better rates.

Glad I mentioned refinance, yes you can refi anytime you want. As long as your credit, debt/income ratio and collateral are all within credit lending guidelines.

we haven't actually decided yet between several options. but it's most likely going to be an 01/02 car. it's good to know that they might consider 03 as 'new car', at least i can ask which year would be their cut-off point in considering new vs. old car and what is the rate difference.

i understand about the credit history and debt/income ratio, but with collateral do you mean 'making sure that i don't have too many stuff on me that are collateral (for a house, another car, other loans, etc)'? sorry if that doesn't make sense, i just understand the word 'collateral' yesterday :)

Edit: thank you so much everybody for your help. you won't believe how helpful this thread is to me. i have to go away from the computer now for a few hours, but i will be back later this afternoon. thanks again.

we haven't actually decided yet between several options. but it's most likely going to be an 01/02 car. it's good to know that they might consider 03 as 'new car', at least i can ask which year would be their cut-off point in considering new vs. old car and what is the rate difference.

Those are great questions to ask.

i understand about the credit history and debt/income ratio, but with collateral do you mean 'making sure that i don't have too many stuff on me that are collateral (for a house, another car, other loans, etc)'? sorry if that doesn't make sense, i just understand the word 'collateral' yesterday :)

Sort of like buying a house, the loan to value ratio. For instance they won't let you borrow $20k on a car only worth $16k. This usually only affects old used cars, so you should be fine. Make sure to buy a RELIABLE car, with GOOD safety ratings and EXCELLENT resale value. What models are you considering?

Edit: thank you so much everybody for your help. you won't believe how helpful this thread is to me. i have to go away from the computer now for a few hours, but i will be back later this afternoon. thanks again.
No worries, happy to help :gd_steeri

Make sure to buy a RELIABLE car, with GOOD safety ratings and EXCELLENT resale value. What models are you considering?

heh, and this is what is keeping me from biting the bullet and taking a loan out on getting a 3s :(

heh, and this is what is keeping me from biting the bullet and taking a loan out on getting a 3s :(
What's wrong with the 3s?

What's wrong with the 3s?

too new to determine reliability IMO. My mx6 auto trans sucked ass. If all the major parts are mazda parts, which I think it is.. then it should be fine. I believe the auto in my mx6 was ford's doing... not sure tho.

but yeah, my goal right now is if I do buy a new car, I'd like it to last a good long time.

The transmissions in the S are not made by Ford...They are made in Japan, and then finally assembly is done in the US.

Then I would take a look at Toyota, Honda and Nissan.

Or if you want best value I'd buy a new 2005 Hyundai Elantra GLS auto for around $10,100 out the door.

heh, no hyundai :p The problem w/ toyota, honda, and nissan... there ain't nothing I want from them that's new :p MAYBE the tC. But that's not something I'd like for long term really.

argh.. decisions decisions.. i hate big financial decisions

heh, no hyundai :p The problem w/ toyota, honda, and nissan... there ain't nothing I want from them that's new :p MAYBE the tC. But that's not something I'd like for long term really.

argh.. decisions decisions.. i hate big financial decisions The tC is awesome! :) My cousin just got one, and I'm surprised at how well those turned out. I was expecting something really cheap-looking/feeling... now I'm thinking about taking an xB for a test drive. :2football

argh.. decisions decisions.. i hate big financial decisions
Remember the best time to buy a new car is at the end of the month and towards the end of the year.

Buying a car is a huge financial decision and one that should be carefully researched.

Remember the best time to buy a new car is at the end of the month and towards the end of the year.

Buying a car is a huge financial decision and one that should be carefully researched.

Have you guys heard of fax attack?

(this is probably good for new cars only, but probably can be altered for used car)

simply research the car and options you want, and fax it to all the dealership in your area to get the quote. that way, you save time (without going to all dealership) and money (by stipulating that you are faxing all over the dealership in the area).

Have you guys heard of fax attack?
Yes but I've never heard of it referred to as "fax attack".

Same principal with phone and e-mail attack :)

Play dealerships against each other.

Then I would take a look at Toyota, Honda and Nissan.

Or if you want best value I'd buy a new 2005 Hyundai Elantra GLS auto for around $10,100 out the door.

Ross, are you serious in recommending that? value is definitely what i'm looking for. yes, the car needs to be reliable and to some extent have good resale value, but i'm not exactly willing to spend too much since i'm not too sure how long i can stay in this country.

so i guess my next step would be to create a thread of: "what is the best car to get around (preferably less than) $10,000?" :)

Ross, are you serious in recommending that? value is definitely what i'm looking for. yes, the car needs to be reliable and to some extent have good resale value, but i'm not exactly willing to spend too much since i'm not too sure how long i can stay in this country.

so i guess my next step would be to create a thread of: "what is the best car to get around (preferably less than) $10,000?" :)
Yes and No.

Hyundai has made significant improvements since 1998 or so. If you plan on taking care of your car with frequent oil changes and tune ups, it's worth considering. Also factor in the low upfront cost and generous warranty.

A few of my concerns would be:

Very low resale value compared to Honda and Toyota. Remember a car is not an investment. If you plan on owning this for a long time and driving it until the wheels fall off, then forget about resale value.
I'm not sure how good or bad the crash test results are for this vehicle. Probably not as good as the Honda Civic, Toyota Corolla or Mazda 3.
For $5k more I would seriously consider the new and very improved Hyundai Sonata (http://forums.vwvortex.com/zerothread?id=1556353).


The Hyundai Elantra is an excellent value as long as you know what you're getting into and research it thoroughly. Here are a few reviews worth reading to help you make up your mind. If I were young and in the market for an economy car I'd consider a Hyundai Elantra or even Sonata.

http://www.edmunds.com/new/2005/hyundai/elantra/100478648/review.html

http://www.automotive.com/2005/12/hyundai/elantra/reviews/index.html

http://autos.yahoo.com/newcars/hyundai_elantra_2005/4168/model_user_reviews.html

http://auto.consumerguide.com/auto/new/reviews/full/index.cfm/id/38139/name/2005-Hyundai-Elantra/

http://www.carsdirect.com/research/hyundai/elantra/2005/gls/reviews

http://www.carsurvey.org/review_73740.html

This is the GT model not the cheaper GLS version
http://www.nctd.com/review-intro.cfm?Vehicle=2005_Hyundai_Elantra&ReviewID=1681

Yes and No.

Hyundai has made significant improvements since 1998 or so. If you plan on taking care of your car with frequent oil changes and tune ups, it's worth considering. Also factor in the low upfront cost and generous warranty.

A few of my concerns would be:

Very low resale value compared to Honda and Toyota. Remember a car is not an investment. If you plan on owning this for a long time and driving it until the wheels fall off, then forget about resale value.
I'm not sure how good or bad the crash test results are for this vehicle. Probably not as good as the Honda Civic, Toyota Corolla or Mazda 3.
For $5k more I would seriously consider the new and very improved Hyundai Sonata (http://forums.vwvortex.com/zerothread?id=1556353).


The Hyundai Elantra is an excellent value as long as you know what you're getting into and research it thoroughly. Here are a few reviews worth reading to help you make up your mind. If I were young and in the market for an economy car I'd consider a Hyundai Elantra or even Sonata.

http://www.edmunds.com/new/2005/hyundai/elantra/100478648/review.html

http://www.automotive.com/2005/12/hyundai/elantra/reviews/index.html

http://autos.yahoo.com/newcars/hyundai_elantra_2005/4168/model_user_reviews.html

http://auto.consumerguide.com/auto/new/reviews/full/index.cfm/id/38139/name/2005-Hyundai-Elantra/

http://www.carsdirect.com/research/hyundai/elantra/2005/gls/reviews

http://www.carsurvey.org/review_73740.html

This is the GT model not the cheaper GLS version
http://www.nctd.com/review-intro.cfm?Vehicle=2005_Hyundai_Elantra&ReviewID=1681

thank you so much Ross. that's extremely helpful.
i'm going to do my homework now researching all that stuff.

i have also been looking at Hyundai Sonata and heard that it's good.

we want a new sonata. unfortunately we're not buying a new car anytime soon what with school starting up soon and both of our cars fine. (well mine's fine at least.)

Remember the best time to buy a new car is at the end of the month and towards the end of the year.

Buying a car is a huge financial decision and one that should be carefully researched.


oh yeah, I know. it's just unfortunate that I kinda have to buy w/in a month probably. As I have no vehicle now. Public transportation can only go so far :( Cause if I were to buy a new 3s.. the 2006 model seems like it'll have some nicer options ;) I highly doubt I'll do it tho... it would just spread me too thin right now.

When I bought my VW Beetle in 2000 there were just three VW dealerships nearby. Well in the state of georgia I think. One was downtown Atlanta. The other was Marrietta and then Stone Mountain.

I called Marietta and tried to get some pricing. They really would not commit to pricing. I called Stone Mountain and the salesman was really nice. Much nicer than I thought a salesman would be. He quoted me a price and I asked him if that would be good for the next 3 days. He said yes. So the next day I called to see if he was there. Me and my dad went there and bought it that day.

It was financed through the bank at the dealership. It was 7% and the CU was around 8%. My dad had to cosign because I had really no credit. I had to pay some money down. I brought $800 but I asked if I could pay $250. They accepted it! I was really surprise. The owner said with my dad working at military plant and me being an accountant they couldn't go wrong.

I think I got luck with the salesman as the others were slick talking.

Shop around and see which one will give you a better deal. The dealership or CU.

I've finally got my car paid off. Extra $400 a month goes a long ways.

actually, speaking of how to get car loans... how does the dealer/bank determine your APR? Do they actually pull a credit check, or do they go by FICO scores... or both... or something else?

just curious as if I go around talking to each dealership/bank trying to determine what a good rate for me will be... having a whole bunch of credit checks sure doesn't help...

Linh, it's based on several factors but mostly your FICO credit score. Dealers have several different lending sources which can be an advantage. If you have average credit (like I do), try your local bank or credit union first.

Linh, it's based on several factors but mostly your FICO credit score. Dealers have several different lending sources which can be an advantage. If you have average credit (like I do), try your local bank or credit union first.

yeah, I was definately going to hit the banks first (kinda sucks they close at 3.. ugh...). How do they do it, kind of the same way I suppose?

And dammit... it seems I keep getting pushed on to just buy the damn 3s :p

just curious as if I go around talking to each dealership/bank trying to determine what a good rate for me will be... having a whole bunch of credit checks sure doesn't help...

It's worth noting that when the credit bureaus report your credit score, they count all inquiries within a certain time frame (I think it's 30 days, but don't quote me on that) as 1 inquiry. In other words, while having an inquiry on your credit report every month to open a new credit card will look bad, 5 inquiries in 2 days researching a car loan will show as 1 inquiry when determining your FICO score. It won't look (to the bank) like somebody being irresponsible with credit by looking to open a new credit card account every month to fund their lifestyle; instead it will look like someone being responsible and researching their options before committing to financing.

Interestingly enough, I went to the bank, and the guy flat out said go to the dealer first.. they are more likely to give you a better rate since the banks can't get that low.

My co-worker was offered 9% on her honda (couple years back), while a friend of mine got 3.5% from a used lexus dealer... hrm... dunno what to do now.