I'm joining the club! What's a good APR from LFS?
11-02-07, 05:05 AM
#16
Lexus Champion
Just checked eLoan; a 3 year loan on a new car is 6.09% for those with "excellent and substantial credit". CapitalOne shows 5.99%. Both of these use the 'Blank Check' method. You apply for the loan online and they send you a blank check valid up to a maximum amount. You fill in the Payer and Amount when you buy your car, and then the loan starts. If you go this route be sure to check with the dealer first. Some dealers balk at accepting these checks although they are completely legit.
Hint: don't overshop for your car loan. A half point either way doesn't have that great an effect on the total paid due to the relatively low amounts and short terms compared with a mortgage. Convenience is worth something, which is why LFS works for many people. There are calculators at Bankrate.com so you can run the numbers.
Good luck, and congrats on the eventual arrival.
Hint: don't overshop for your car loan. A half point either way doesn't have that great an effect on the total paid due to the relatively low amounts and short terms compared with a mortgage. Convenience is worth something, which is why LFS works for many people. There are calculators at Bankrate.com so you can run the numbers.
Good luck, and congrats on the eventual arrival.
Regardless of what rates LFS shows, if you get into the dealer without another payment method ready to go, they have you over a barrel--your paperwork for your purchase is signed, you're ready to go. All they have to do is make up some lame excuse, like the rate went up, or that program is for a 3 year loan only--what are you going to do? Unless you can and will walk, they know they've gotcha.
11-02-07, 06:32 AM
#17
Lexus Champion
If I had a dealer tell me they would not accept that payment method, I'd tell them to **** off, and I'm ready to walk out. That's their little control method to get you to use their financing.
Regardless of what rates LFS shows, if you get into the dealer without another payment method ready to go, they have you over a barrel--your paperwork for your purchase is signed, you're ready to go. All they have to do is make up some lame excuse, like the rate went up, or that program is for a 3 year loan only--what are you going to do? Unless you can and will walk, they know they've gotcha.
Regardless of what rates LFS shows, if you get into the dealer without another payment method ready to go, they have you over a barrel--your paperwork for your purchase is signed, you're ready to go. All they have to do is make up some lame excuse, like the rate went up, or that program is for a 3 year loan only--what are you going to do? Unless you can and will walk, they know they've gotcha.
There have been some issues with the eLoan, CapitalOne, blank checks which is one reason dealers are sometimes hesitant to take them. Anyone contemplating using them should alert the dealer beforehand just so everyone is aware of the situation.
There is responsibility on both sides when it comes to financing. Buyer can't complain if they haven't done their homework and gotten their financing in order. Financiing is a profit center for the dealership. Too many people don't pay attention to this aspect and get nailed.
11-02-07, 06:54 AM
#18
Lexus Champion
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I've got 5.65% for 60 months through www.octfcu.com
They use the blank check method too. They personally gave me a blank check and told me not to exceed the amount of $50,000.
I was sooo tempted to get an IS350.. but had to settle for an 250.
They use the blank check method too. They personally gave me a blank check and told me not to exceed the amount of $50,000.
I was sooo tempted to get an IS350.. but had to settle for an 250.
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