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Old 08-15-2013, 12:37 PM   #1
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Credit Union vs Dealership Financing?

So I was curious for those financing their rigs (or planning to), did you go through the Dealership or use a Credit Union, etc? How were your dealership rates? If you went the Credit Union route, who did you go with and how is your rate there? I've seen a few mentions of better rates through the CUs, but I've never dealt with them before and have no idea of the process...I'm starting to thoroughly research this as I plan on ordering in September sometime and am just looking for some info from those of you that may have some experience here! Thanks!

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Old 08-15-2013, 12:40 PM   #2
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unless the dealer is offering some ridiculous 0% rate, i would always start with a credit union. always...

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Old 08-15-2013, 12:42 PM   #3
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Rate through our Credit Union was 1.95% (Florida Central Credit Union) for a new car loan. Rate through the dealership was 2% (PNC bank).
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Old 08-15-2013, 12:43 PM   #4
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I went to 3 credit unions and used the lowest one to finance a better rate through the dealer. Always negotiate the car value first....then financing. Dealers have a magic way of working the color of money.
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Old 08-15-2013, 12:44 PM   #5
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unless the dealer is offering some ridiculous 0% rate, i would always start with a credit union. always...
^^^Agreed, start with the bank/credit union. Once you have your rate from them you can always use that as a bargaining chip with the dealer. Get them to match rate and give you half of their financing kick back
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Old 08-15-2013, 12:47 PM   #6
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We borrowed against my Vanguard (retirement) and paid it in full, now we just pay ourselves back, it was like 1% interest and we are paying ourselves back instead of the bank. The dealership was 4.9% and Capital one was 3.9%.
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Old 08-15-2013, 12:57 PM   #7
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I also went credit union. Lower rate and you get hippy points for not supporting 'big banking'.
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Old 08-15-2013, 01:08 PM   #8
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+1 on credit union....Our rate was 1.75%...I told the dealer if you can beat it, the loan is yours. They could only match, with the same CU.
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Old 08-15-2013, 01:11 PM   #9
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As the others have stated, always start with the credit union first, and see what kind of deal they can work you, than use that is leverage for bargaining with the stealership.
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Old 08-15-2013, 01:33 PM   #10
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For mine and my wife's last three vehicles we've gone with our Credit Union. I even did my boat through them last year. Much better rates than I was offered anywhere else.
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Old 08-15-2013, 01:37 PM   #11
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Credit Union. Navy Fed has 1.99%. Was the way to go for us.
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Old 08-15-2013, 01:55 PM   #12
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We have used the credit union associated with my wife's employer for our last three vehicle purchases, and we will always use them. I got 1.9% on the Jeep purchase a few months back, I believe.

They are easy to deal with, they almost always have the lowest rates (outside of specific 0% or 0.9% dealership promotions), and their headquarters is 3 miles from my house should there ever be an issue.
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Old 08-15-2013, 01:58 PM   #13
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My dealer was able to beat the lowest CU rate (1.9%) with a 1.49 through Wells Fargo Dealer Services (NOT Wells Fargo consumer bank/finance but a subsidiary).
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Old 08-15-2013, 02:04 PM   #14
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My dealer was able to match my CU. I went with my CU anyway. For one, it's my CU and so my other accounts are there which makes management easy. The other thing is I'd have had to pay an extra chunk of money for GAP with the dealer's setup. My CU includes GAP for "free" on their loans. So in reality I saved money even though the APR and terms were the same.

edit: BTW I didn't realize the GAP thing till later when I initially had gone with the dealer's CU. Yes, we ended up re-signing the paperwork and making them use my CU. I don't think they were very happy about it, but they did do it.
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Old 08-15-2013, 02:08 PM   #15
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When we bought our JKU back in November we used PenFed (PenFed.org). They had the best rate, which I believe was 1.74%. You have to pay a small fee ($5-25, can't remember exactly) to join, and a $50 deposit to open an account, then you can apply for a loan. They also offered us zero down payment. Sometimes they have special rates for holidays, too. For Fourth of July they were offering .74%. I'm wondering if they will offer something similar for Labor Day.

Once you have your VIN they can see what the vehicle is worth and they will send you a blank bank draft (good only up to a certain amount, but way more than our jeep cost), which you make out at the dealership for the total amount owed. That way you have added in all the taxes, TTL, deducted your trade, etc. Once the dealership cashes the check and sends in the paperwork PenFed will calculate your payment amount. That took about three days.

PenFed supports full online banking and you can make your payments online. I wouldn't deal with any financial institute that DIDN'T have online access.

All in all, it was a painless process. The dealership did ask if we would use their financing, so we told them if they could beat PenFed's rates we would consider it. Salesman came back a few minutes later and said they couldn't even get close to meeting that rate.

We are planning to use PenFed again when I get my jeep ...that is if they ever release hydro!!!

If there's some aspect I didn't mention that you'd like to know, please feel free to ask or send me a PM.

Good luck!
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Old 08-15-2013, 02:12 PM   #16
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Old 08-15-2013, 02:29 PM   #17
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Getting it done through my CU was a bit of a pain, probably because my Jeep was used, but they beat the dealership rates by 2%.

My first auto loan through my CU was painless...this one, not so much. It might have been the person I was dealing with though. She didn't seem to understand the full process.
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Old 08-15-2013, 02:53 PM   #18
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Dealership offered to finance through a local CU for me at their advertised rate of 1.89%. Based on this forum, I had already joined Alliant CU and had a rate of 1.49%. Dealer matched that and did it through the local CU.
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Old 08-15-2013, 03:34 PM   #19
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Usaa

I used USAA and got it under 1%.
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Old 08-15-2013, 03:46 PM   #20
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I have typically used my credit unions when purchasing vehicles from deals. For my jeep however, they beat USAA's rate. Keep in mind that my jeep was two years old when I bought it so financing rates are a few points higher. For a brand new vehicle, credit unions are the way to go. Especially if you've received good service in the past. Good luck!
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Old 08-15-2013, 04:51 PM   #21
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CU rate was 1.49%, while dealer could only go 1.9%. As a bonus and the biggest reason I've always used my credit union is the automatic payroll deduction. 1 less bill I have to worry about mailing out and I can NEVER miss or be late with a payment !! Easy way to make your credit look great.
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Old 08-15-2013, 05:11 PM   #22
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Yea sometimes Chrysler Financial has 0% financing for 36 months on the Wranglers. I've never seen 60 months on the Wrangler but I did that for a Liberty I had several years ago. Otherwise my CU has always gotten me between 3-6% depending on that current status of my credit score.
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Old 08-15-2013, 07:06 PM   #23
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I like to find what I like and get it when it hits 0% financing which almost anything does at some point in a year. I am self employed so I get financing through the dealer. Great credit score and thats all it takes and I can buy anything on the lot. Bank wants to see all kinds of paper work for self employed even though Ive been there for 16+ years and good credit
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Old 08-15-2013, 07:18 PM   #24
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Credit Union all the way.
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Old 08-15-2013, 07:23 PM   #25
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credit union, hands down... i had roughly a 660 credit rating, and the best the dealership could do was 6.99% went to my credit union and they gave me 4.25%, plus half a percent off because the dealership i bought from was part of a partnership, bringing it down to 3.75% with nothing down. My credit union also said that they will beat any interest rate i get from a dealership by .25%, although that one didn't apply to me.
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Old 08-15-2013, 10:13 PM   #26
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get pre approved at your credit union and then give the dealership a chance to beat the rate.. credit union offered 1.9% and dealership 1.6% that was only a difference of $4 a month.... went with the credit union instead of some out of state bank...
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Old 08-15-2013, 10:14 PM   #27
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Credit Union all the way.
We've always done well through our credit union. When we bought our jku in July we actually found a better rate through State Farm. They recently began offering auto loans. We've used them as our insurance forever.
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Old 08-15-2013, 10:21 PM   #28
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We have always financed our vehicles through State Farm. We have used them for auto loans for over 15 years. Most people don't realize they do auto loans, and I don't think you have to have them for insurance. They gave a us a great rate last Oct.
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Old 08-15-2013, 10:27 PM   #29
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get pre approved at your credit union and then give the dealership a chance to beat the rate.. credit union offered 1.9% and dealership 1.6% that was only a difference of $4 a month.... went with the credit union instead of some out of state bank...
I went this route. Shopped around different banks and credit unions to find my best rate (interestingly, USAA was no where even close - disappointing. They also refused to even compete for my business - it's "a technique.") then went in to the dealer. I told them what they had to beat and gave them the opportunity to compete.

More competition for your business = better choices and rates for you.
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Old 08-16-2013, 08:37 AM   #30
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Credit union beat the dealer by 3%.

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