My local credit union (tropicalfcu.org) has 4.99% rates on new cars for 60 months. used is 5.49% I beleive. I took a home equity loan for a few grand and used that- it is a 7% rate, but tax deductable.

I do not think Honda ever gives 2.99% etc rates on the s2K.

 

^ If you have home equity, that's the best way to borrow money. Credit unions are fantastic.

 

I got 2.99% from Honda but that was in December 2003.

 

I just bought two cars through American Honda Finance at 4.9% on both. I bought a new Odyssey and an Acura in July. I financed them through Honda for 4 years at 4.9%. I could have had 2.9% if I had financed them for 3 years.

 

6.7% here @ 60 months thru McDill C.U.=$349 a month (only owe like $17,500)

 

5.5% (4 years) from my credit union .. 5.25% (3 Years)

 

I've heard that a dealer might lower the price of the car in order to jack up the interest rate -thereby making the customer think he's getting a deal before he figures in the cost of financing. If that's the case you can have the credit union option standing by to pay off the dealer loan on the first payment, getting the lowest price for the car and a low intrest rate.

This assumes no early pay off penalty.

 

If you are going to purchase a vehicle and are going to finance, the best thing to do once you decide on a car is to obtain your own financing.
Then go to the dealership to haggle the price ( or you can go to an online dealer such as Carsdirect.com etc and get a great price no hassle). Remember you control the price since you have financing.
I purchased my 04 this way, I already had financing from Navy Federal Credit Union at 5.9%. When I got to the dealership and we agreed on a price they asked about financing. I told them I was paying in preapproved check. They wanted to see if they could beat it and Im all up for competition.
I drove out 30 mins later with same price on car but 4.9% from AHF.

T

 

what is ur credit score if you dont mind me asking turnerg1?

 

My credit score was 787 when I financed my '05 Scion xB that I use for work. Toyota's APR was I think 5.5% at the time (April 2005). These days, the average APR for a 740+ through most manufacturer banks are about 6.25% (Toyota/Honda at least), while some are more like 7% (Ford/GM). These rates would be for what they considered "standard" rates. Unless they offer a lower APR in a special, the standard rate is what it is. I'm an independent new/used dealer, and the "average" APR for any car that I would finance through a third party bank (Chase, M&T, etc..) is around 6.5-6.75% for 740+ credit. Just face it, no matter how hard you shop it, the interest rates these days aren't all that good. Credit unions and community banks would help though, usually offering better rates than larger banks.