2 years post discharge-using credit union for car loan?

[novayalife]

We are needing to purchase a bigger vehicle for our growing family. I was hoping someone might have some insight on using a credit union to get approval. We have re established credit with one credit card for the last year and have also continued to pay on our car loan through our credit union. The car is nearly paid off and we would have $10,000 to put down towards a new one once sold. Are we good candidates at this point since it's been two years? And what are the chances of approval through the credit union and getting a decent rate?

[AngelinaCatHub]

Well you are established through your credit union, so that is the best credit rating you have. You can't BK for some time so that means something too. Why not consider a reasonable used car though. New is not good in that you lose so much the minute you take Title.

Are you saying you will get 10K out of the old car, or you have 10K to put down? Don't count on 10K for a trade it value. Not without paying top dollar. 'Hub

[panda]

Within the last month my husband and I purchased a 2010 Chevrolet Impala for about $15K. Our scores through Experian were around 685, and we started with a Cap one Auto loan approved for up to 21K interest at 5.85% with a 60 month loan. The dealership was getting a bit pi**y about waiting the two or three days for the check, and wanted us to sign a back up contract at about 18% to go into effect if the check had not arrived in about four days. We had three days to back out on this deal after signing it, so we went home with the car, then the next day my husband went down to our credit union and got a loan for 4.25% PLUS a 1% cash back bonus just for being an advantage member with them.

To say the dealership was pi**ed over this would be an understatement, as they could have shopped the loan for us and got a better deal for us, plus made themselves another commission from the credit union for using them. That was one unhappy credit manager when everything was said and done.

Moral of the story is always ask and see, but go to the original source and try for the best deal. You to may be surprised.

We were discharged in February, but did have a spotless credit report prior to everything falling apart. One added bonus, the credit union manager said to come back in December after this loan seasons a bit and he will get us a decent Visa card as well.

[AngelinaCatHub]

Within the last month my husband and I purchased a 2010 Chevrolet Impala for about $15K. Our scores through Experian were around 685, and we started with a Cap one Auto loan approved for up to 21K interest at 5.85% with a 60 month loan. The dealership was getting a bit pi**y about waiting the two or three days for the check, and wanted us to sign a back up contract at about 18% to go into effect if the check had not arrived in about four days. We had three days to back out on this deal after signing it, so we went home with the car, then the next day my husband went down to our credit union and got a loan for 4.25% PLUS a 1% cash back bonus just for being an advantage member with them.

To say the dealership was pi**ed over this would be an understatement, as they could have shopped the loan for us and got a better deal for us, plus made themselves another commission from the credit union for using them. That was one unhappy credit manager when everything was said and done.

Moral of the story is always ask and see, but go to the original source and try for the best deal. You to may be surprised.

We were discharged in February, but did have a spotless credit report prior to everything falling apart. One added bonus, the credit union manager said to come back in December after this loan seasons a bit and he will get us a decent Visa card as well.

The actual profit a dealer makes on the car is far less than most think. They may make more on the financing than the net profit on the car. All the add on goodies as well.

My last car I purchased online through VW. I had a choice of delivery dealers. I picked one. Imagine my surprise when I signed the invoice for my Pre approved CU to pay them, that there was a pre printed $95 "paper work fee" in the total carry down column. I told them I was not happy and felt cheated, but since the car was there I just paid it and left. Car dealers have their name for a reason. Like: "would you buy a used car from THAT guy?" 'Hub

[justbroke]

I don't like automobile dealers' credit departments at all. I never give them my business.

[novayalife]

Thanks for the replies. We are not planning on buying a BRAND new vehicle, just new to us. Looking at a few that are about 2-3 yrs old. And yes, we will have $10,000 to put down in cash since we will be selling our Accord and not trading anything in. Panda, thanks for your story. That is encouraging to me and since we do have a long relationship with our credit union I'm hoping to get a good rate as well. We too had awesome credit right up until the end.