APR for financing new car

[mky]

Hi guys,

Few dealers in SoCal area are giving me 0% APR financing but only on 2016 models. On 2015, the best they said they can do to anyone with Tier1 credit score is 1.99%. I talked to couple of dealerships and they seem to give me this number. What do you think about it? Is this normal or I can score a better deal than this?

 

[StarPower]

Check some of your local banks and credit unions. I've seen a couple that offer a little below that (e.g. 1.79% for 36 months), but they may have different membership requirements (e.g. specific job or live in a certain area). If you have military veterans in your family, USAA is the lowest I've found (1.49% or 0.99% if you use their car buying service).

You're usually better off getting pre-approved before you walk in to a dealership. It makes it harder for the dealership to finagle with the loan numbers to make it look like you're getting a better deal than you really are.

 

[losboricua]

Yea, talked to the local banks. When I bought my care almost 2 years ago they offered 0% for the 2014 model and the lowest they could offer me for the 2015 was 2.9%. Called a few banks and I was able to get 6 years for 1.29% from US Banks.

 

[hokie1525]

Most dealers will take your credit information and propagate it to many banks, as much as say 30. They will probably be able to do as good a job as you getting you good financing. Although I guess it depends on the dealer and how they do things. Generally if they're offering a "special" of, say cash back or 0% APR, then don't expect to have much room to haggle on price. 6 of one, half dozen...

 

[Lord Humunculous]

I'd agree w that, simple version, but quite accurate

 

[ksoze]

Most dealers will take your credit information and propagate it to many banks, as much as say 30.

Which BTW can be considered a "hard pull" of your credit data and effect your credit score for a while. Each one of those bank hits is a credit pull.

 

[danygenesis]

Which BTW can be considered a "hard pull" of your credit data and effect your credit score for a while. Each one of those bank hits is a credit pull.

Yes but even though you get many inquires in a short period of time all of them will be considered as just one credit inquire in points reference, it will be inside of an "open window" and will affect your credit score like just one simple inquire.