I would not ask the dealer to try to beat it, and here is why.... When you go to a dealer you have to fill out a credit app. so they can pull your credit (hard inquiry), then they will submit it to a few different banks (at least two), the thing is that the banks will also pull your credit (more hard inquiries), now, what will happen when those offers come back higher than the interest you got at your bank? Well, the dealer will submit it again to a few more banks (more hard inquiries). All this will affect your credit at the end.
Also, when you use dealer finance, 80% of the time they'll add points, (what this mean?) Well, say the bank they sent it to approve you at 7% apr, most dealers will add 1 or 2 more points, and they will tell you that you got approved at 8 or 9% apr. Who you think the difference in % goes to? Pure profit for the dealer. But, if for some reason you really need to go to a dealer there is a way around it. Once the dealer tells you that you are approve, ask to see the "BUY SHEET" from the bank. The bank sheet is the document the banks send the dealer with your approval, which shows the terms and APR. This way the dealer can not add any points. If they don't want to show it to you, then my friend you are in the wrong place doing business.
Best,
1- Once you are pre-approved with your bank for an auto loan,
Go to a dealer, (DO NOT TELL THE DEALER YOU ARE PRE-APPROVE), they will not negotiate the price that much if they know you are going to pay the car cash, since they will not make any money in the finance end of the deal. Find the car that you want, check KBB "Private Party" value (yes, private party, never pay retail for a car, the dealer does not either). Then negotiate down from that price. Once you lock the price ask for a buy contract, take it to your bank, pick up you check, and go get your car.
There is so many ways and areas a dealer can trick you... if you have any questions let me know.
-n
 |