Topic: Car Auto Loan

[CaféElite]

So im looking at picking up a low milage 2001 toyota tacoma but im going to need to get a loan for it. Im looking for suggestions on the best way to tackle the financing side of it. Should I go throw the same bank as home loan, the bank I have my checking/savings with, some online site that does comparison? The car dealership is a little hole in the wall that does do financing but they seem all shaddy as hell. Should I still consider them?

Yes I am aware that I should just save my money and buy it outright but thats just not going to happen.

I have already got a carfax on it and had a buddy look it over with me so im cool with it being in quality shape.

Thanks..

[apex_seeking]

I have many friends who purchased from the little dealers. All of the ones that financed through the dealer regretted it. I'd go through the bank the financed your home. They might be able to bundle them together, possibly saving you some money. Maybe.

[Cvillechopper]

You shouldn't limit your search to banks that you have business with already.  Many times the cheapest rates can be found at a local credit union.  Check for some in your area and see what the membership requirements are.  You might be surprised at how easy it is to join and get a great rate.

Also, looking at used late-model cars right now should not be your only focus depending on what type of rate you are able to get.  MANY manufacturers are offering low or zero rate financing and cash incentives which can often equate to the same payment as a lower price for a used car at a higher rate.  Just something to think about.  If you aren't able to do the calcs yourself check out one of the sites below or one like it to see what your payment tolerance is like with different purchase prices and rates.  

One last thing, ALWAYS negotiate the OTD (out the door) price.  Dealers always negotiate the vehicle price then you get hit with taxes, title, processing, other bs charges.  

I work in Finance so feel free to PM me if you have any specific questions.  

Good luck in your search.
James

http://www.cars.com/go/advice/financing/calc/loanCalc.jsp?mode=full

http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx

[tango911]

Im going to second your later statement of save up and pay cash.   

[ksmith0034]

I'll third it!

[Bob Wessner]

.. but they seem all shady as hell.

Why are you buying a car from them? Perhaps they are as shady about the vehicles on the lot as well.

[CaféElite]

Because finding a low milage 1st gen tacoma 4x4 is like finding henry abe wheels.

[Bob Wessner]

Gotcha.

[Gordon]

If you qualify to be a member of Pentagon Federal Credit Union, they tend to have the best loan rates.  Right now it's 2.99% for new car loans and 3.25% for used.  The website is penfed.org.  My wife and I have had several loans through them and have been very happy.