What's better dealer financing or bank / credit union pre approval?

[DebtFreeIn04]

We're probably going to have to get a replacement car for the wifey when teenager gets her 2013 Toyota camry around next March.  We haven't had a car payment in 5 years it's been nice.

 

I've read a lot about multiple hard pulls with dealer financing but decent rates is it always like that. We bought the camry in 2013 with DCU pre approval rate 2.99 %

 

Should I just stick with that or is there a strategy for dealer financing options to get lower rate without all the hard pulls. We're looking at Toyota or Lexus and maybe the suburu Forrester for DW's replacement...any idea's?

[Glacier]

For me, if the Manufacturer has a subsidized rate, that is lower than market average, I tend to tell the dealer, I will only accept manufacturer financing, and they have complied.  

 

For the car I currently have on order, there will be no special rate from the manufacturer, so once I need to, I will look at rates of the various banks and cu's I have a relationship with, and chose one, and obtain pre-approval.  I will then head to the dealer, tell them the rate, and they can try to beat the rate with the manufacturer.  Last time I did that, they chose to just let me proceed with my own financing.  

 

[DebtFreeIn04]

5 minutes ago, Glacier said:

For me, if the Manufacturer has a subsidized rate, that is lower than market average, I tend to tell the dealer, I will only accept manufacturer financing, and they have complied.  

 

For the car I currently have on order, there will be no special rate from the manufacturer, so once I need to, I will look at rates of the various banks and cu's I have a relationship with, and chose one, and obtain pre-approval.  I will then head to the dealer, tell them the rate, and they can try to beat the rate with the manufacturer.  Last time I did that, they chose to just let me proceed with my own financing.  

 

Directing them to manufacturer financing avoids the multiple hard pulls?

[centex]

The way to limit the number of pulls is to place it in the Agreement.  You CAN specify that they are ONLY permitted to pull for the purpose of manufacturer financing.  Few people do, and then complain that they were shotgunned across the countryside. 

 

It is difficult to say what offers might exist in six to nine months.  The automakers and dealerships know that it is NOT a buyer's market right now, so they have the upper hand.  This reduces their need for incentives.  Banks will also likely be increasing their own underwriting standards as the interest rates continue to increase. 

 

It comes back to doing due diligence and paying attention on message boards dedicated to your specific model of choice. 

[Glacier]

If you don't give them any direction, in my opinion, they will do what they can to have you finance with them, which could result in multiple pulls.  I chose to give direction, and am prepared to walk if they don't agree.  

 

Overall, I'm not too concerned with multiple pulls, as for scoring purposes, multiple pulls I think with in 7 or 14 days for auto finance are counted as one, I just don't like my information being shopped around.   

[hegemony]

CUDL

[DebtFreeIn04]

Googling 🤓

[MarvBear]

3 hours ago, DebtFreeIn04 said:

Directing them to manufacturer financing avoids the multiple hard pulls?

No. Not necessarily.

[MarvBear]

40 minutes ago, hegemony said:

CUDL

Most dealerships I am familiar with have direct access to CUDL.   You don't even need to worry about being a member of a particular credit union.   The dealership will handle all that for you at the same rate you could have procured for yourself.

[MarvBear]

26 minutes ago, DebtFreeIn04 said:

Googling 🤓

CUDL - Human-Centric Automotive Financing

[DebtFreeIn04]

38 minutes ago, MarvBear said:

No. Not necessarily.

So wouldn't be horrible to just shop for best pre approved options and have that option going in?  

[MarvBear]

1 hour ago, DebtFreeIn04 said:

So wouldn't be horrible to just shop for best pre approved options and have that option going in?  

Of course not.   Then you are responsible for the inquiries you incurred in your shopping.

[brainchasm]

I just called NFCU and got pre-approved on a Sunday evening.  Check showed up quickish, and now I'm ready to go shopping (pre-approval is good for 90 days).

 

Now I'm gonna go beat up the local Kia stealership for a Kia Telluride Nightfall with all the trimmings.  They want $6k over MSRP, and that's hilarious to me. 😂

[A Credit Ed]

On 9/13/2022 at 1:59 PM, brainchasm said:

Now I'm gonna go beat up the local Kia stealership for a Kia Telluride Nightfall with all the trimmings.  They want $6k over MSRP, and that's hilarious to me.

I'm looking forward to seeing this one play out.  Please keep us informed.

[centex]

21 hours ago, A Credit Ed said:

I'm looking forward to seeing this one play out.  Please keep us informed.

"Our final story of the evening takes place at a local Kia dealership..."

[Knight]

How do you guys negotiate with dealerships for the best deals? No matter how much research I do and how hard I haggle, I always feel I got played.

[DebtFreeIn04]

1 hour ago, Knight said:

How do you guys negotiate with dealerships for the best deals? No matter how much research I do and how hard I haggle, I always feel I got played.

Wish car buying wasn't such a hassle.

[centex]

4 hours ago, Knight said:

How do you guys negotiate with dealerships for the best deals? No matter how much research I do and how hard I haggle, I always feel I got played.

If you get a vehicle at a price you are ok with, then it is what it is...this does NOT mean there might not be times where money feels like it was left on the table.

 

It helps to NOT be shopping while in an absolute need of a vehicle.  I can make an offer and walk...done it more than once.  The two most recent occasions were related to the Spider shopping...one over numbnuts from the glass tower coming over and playing the four-square game despite having been told by my sales person that I would walk if he did that.  He did, I walked.  The GM reached out and tried to make a deal but my vehicle of choice got sold in a dealer trade before we could make a deal.  The other involved a used 124 where I had a specific number in mind and they didn't want to budge on their web price (a few thousand more).  I walked.  A few weeks later, right before it was slated to go to auction, they agreed to my price...and this was in the midst of the pandemic pricing looniness. 

[Knight]

@centex I will definitely be in touch with you when I plan to visit the dealership. I agree, the walk away is every buyer's trump-card. But many are afraid to use it.