Well, with my new job, I can finally realize my dream of owning a S2k, a bit. I was wondering if you guys knew of any financing deals/methods for obtaining a pretty good rate.

Is it better to get financing through the dealer? Or walk into a bank first, and get pre approved there, and then go to the dealer with the check in hand?

I don't think i'm going to do a down payment either. Not enough funds for that.

 

i found that negiotiating through the dealers internet departments was much easier. i was able to get a '06 model at invoice using this method. interest rates went up yesterday, but a typical new car loan rate has been 5-6% APR.

www.kbb.com and www.edmunds.com are both good sources to find dealer invoice.

 

Sometimes a bank offers the best rates, sometimes the dealer. Do some research.

Financing $33K is not a great idea though. You'll be upside down the moment you drive off the lot. The S2000 isn't going anywhere, save some money for a down payment. I put $20K down on mine and had it paid off in 2 years.

 

I have always found that Honda Finance is the best way to go especially if you have a good credit history. I agree about the down payment. You don't want to go upside down for the life of the loan.

 

I have found that my credit union always has better rates than the dealer. Using that as leverage, I get the dealer to beat the bank's financing. You never stop negotiating at the price. Financing is always negotiable.

 

It all depends on your credit history and how good your credit is. I applied to many banks and lenders including companies like Capital One Auto Finance and E-Loan (both available online with replies as quick as 24-48 hours).

Car stealerships WILL MAKE money from you on the financing. They buy financing from banks and then "sell" it to you for a profit. My advice is if you get a cheaper rate somewhere else and don't get financing through the dealer, do NOT tell them that... negotiate the price of the car as much as you can. When they run your credit, they will give you your rates and if its less than anywhere else you tried, then go through the dealer... otherwise, simply decline the financing through them and use your other source. My point is, if they realize you're not getting financing through them, they may not negotiate fully on the price of the car since they aren't making money on the financing. When I puchased my car 3 months ago, I negotiated for $500 under invoice (that's invoice, not MSRP)... let's just say they weren't too thrilled when I showed up with a check from Capital One

 

I agree. Always settle on the price before talking financing or trades.

 

could somebody explain the upside payment?? Isn't that when you owe more on the car than what it's worth?

 

Yes, when you are "upside down" in a loan, you owe more than the vehicle is worth. Not a good situation!!

 

Also, most banks will require that you make some kind of down payment on the car, even if it's just a dealer incentive. Borrowing the total amount of the car doesn't make good sense, economics-wise.

Now's the time to show a little patience and save up a couple of thousand toward your car. Picture this... you borrow $34k for the car of your dreams. On your way home you total the car. The insurance company gives you a check for $28k. You're out one car and still owe $6k on the loan.

Don't smirk. I work at a collision repair shop and have seen this happen more than once. (One poor family had only 24 miles on their conversion van! The wife rolled it slipping in a dvd for the kids to watch.)

Shop around for your loan just like you'd shop around for the car. Just my .02 hp.
-golfpro