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My daughters 5speed 4WD should be here in a few weeks and now we are loan shopping.

First - what interest rates have you others paid on your purchase loans? The dealer offered 7% which is such a joke I almost fell down laughing.
E-loan offered me 4.09% which is more like it.


Also, have any of you financed through the internet rather than a local bank? What was your experience like?
 

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My husband and I got great rates from ELoan and People First.....the problem is finding a Honda dealer that will actually go through either company. We found one Honda dealer in St. Louis that would accept the PeopleFirst Loan, but they also wanted to price gouge us.

We went and talked to the dealer that was offering us the best deal.....and they went finance shopping for us.....their main goal was to match the interest rate.....they actually found one lower.

I guess it depends on how much your dealer wants your business.

Peace Out
Diane
 

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Online I got 4.09% from E-loan, and called Peoples First (who had come in with 4.49), and Peoples First came down to 4.04%. Told my dealer, and he said that they would match or beat 4.04%. Oh, this was for financing up to 24K for 60 months.

BTW, online rates were through LendingTree, and are good through 5/22, which I think is 6 weeks since I filed the application. Hopefully, my E will be here much sooner than that.

JoeDentist, the on-line process was really easy and very fast. I had my first loan offer in about 15 minutes. That was E-loan, and they followed up the next day with a very informative phone call. All their loan info forms are downloadable, so you don't have to wait for anything to come in the mail. They will also give you names of dealers in your area that they recommend (my dealer was on the list, so I'm not worried about using E-loan, if the dealer match doesn't work).

With People's First, they must mail you the forms, but it did not take very long.
 

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tell the dealer you want the 1 week fincance thingy (where you have 1 week from date of purchase to find another loan at a better rate)... then tell them when you've found a better rate... and the dealer will all of the sudden be able to match the rate!
 

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[quote:95df072c51="voodoo"]My dealer beat eloan through chase auto finance with 3.89%.[/quote:95df072c51]

Ditto, Chase for 3.99% My credit union was at 4.65%
 

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Assuming you have excellent credit 750+ beacon, you should be well under 4% for 60 months or less. In reality if you have a good dealer they can probably get the best rates for you, and make it a lot easier. The internet banks are such a pain for the dealer most will not accept their checks or they make you wait until they are funded. Just use them to negotiate a better rate with the dealer. Be nice to the F&I manager and most will work with you.
 

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My dealer wanted 6.04% and i had excellent credit and wasn't willing to look for a better rate for me??? I guess it was a take or leave it kind of a thing. I was lucky People's First approved me for 4.49% through 60 months. I could of gotton 3.99% but i didn't want to finace the whole thing at 36 months. My state < IL > does not reconize or accept E-Loan.
 

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Sorry I have to learn to be much more specific when I input my two cents.

Dealer bet eloan (4.2%). 3.89% 60 months 0 down.

Richard Smiley at Troy Honda was a pleasure to deal with.
 

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Well, the dealer did beat Eloan (4.09) and Peoples First (4.04)! Honda financing at 3.64%!! (That's 60 months financing about 21K.) I'm a happy camper! :)
 

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Credit union quoted us 4.9% for 60 months, 0 down.

Dealer's rate was 4.7% with 0 down for 60 months, or 6.1% for 72 months with 0 down.
 

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It is hard for me to qualify for loans since I am self-employed. So far I have saved about $5K and I expect my car to sell for about $5K. My credit card company offered me $10K at a rate of 2.99% for the life of the loan, so I took them up on it. Probably will buy my gold 4wd ex Element later this month.

I have had time to shop around and found a dealership selling at invoice ($19,722) so I expect to buy there.

BTW -- Hi there. This is my first post, but I have been lurking.

Yoko
 

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A few things to keep in mind when it comes to rates:

1)Don't expect a dealer to quote you 3.9% or some ultra low rate without sitting down and doing a credit application. There is a huge difference between a person with a 750 beacon score, who has never financed a car and a 750 beacon score from someone who has purchased 5 cars. People who come in, don't work any numbers on a vehicle, won't do a credit application, and just want to know the lowest rate, won't likely get what they are looking for.

2)While it is good to have all your ducks in a row when it comes to completing your purchase, don't put the cart before the horse. If the rate is 3.9% and the sale price isn't yet agreed upon, you have done no good for yourself.

3)If the rate is not acceptable, you can always go through your own bank (assuming the dealership accepts that banks check, etc). This means all the way up to the finance office. You haven't purchased a vehicle yet, until everything is signed and accepted by you. Including the interest rate. The finance manager is the person best suited for this, not the salesperson or the sales manager, etc.

4)One of the important parts in determining the final interest rate, is going to be the amount you are financing and the term you will be financing. It only makes sense that a bank will give a lower rate if you are only financing a certain percentage of the vehicles value (invoice). Usually, most banks will give an extra discount if you are financing less than 90% of invoice.

Hope this helps
 
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