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Last weekend we traded in our old SUV for a new one. I know, I know everyone hates SUVs but for those that like them, they work for hauling the family and all of the associated stuff. Anyways, my point...
Found the easiest way every to buy a car...Peoplefirst.com You fill out the credit application on line, and they send you a check, even overnight if you want. Got 5.49% for 60 months which allowed me to take all of the rebates the dealer was putting out. Best part, all I had to do was sign the title transfer papers, write the check and the deal was done! Eloan and banks have similar programs, but 5.49 for 60 months was the best rate I saw and was pretty close to the rates being offered as a promotion from the dealer.
BTW, for anyone looking at SUVs...the new Explorer (2002) is amazing. We traded in our 2000 Explorer for it. Yes the early 2002s had problems but ours is considered a 2002.5 or has all of the running changes and is essentially a 2003. Got a total of $4500 in rebates (including $1500 in a loyalty rebate), plus got the truck for under invoice before rebates. Think I did okay.
To anyone out there hunting for a good deal this weekend, good luck!
 

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Re: Suggestion for anyone looking at a new car... (avner)

PeopleFirst.com has great rates, but in order to get those great rates they usually require superior credit (a credit score over 720). Using them, however, will indeed let you take greater advantage of the many dealer and customer cash offers that are available on most models these days.
 

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Re: Suggestion for anyone looking at a new car... (VeeDubDriver)

yes I love peoplefirst!
I refinanced my jetta thru them a year ago, got a much lower rate.
Recently I applied for a new car loan (wrx), and I got 5.49 for 60months, and a used car loan I got 6.4 for 60.
I don't know what my credit rating is, how do you check?
I've just started establishing my credit like 2 years ago or so.
 

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Re: Suggestion for anyone looking at a new car... (avner)

An excellent way to ensure you get the very best deal is always pay cash. Now, this may seem impossible to all but a handful of buyers. Let me put it another way. Make it seem to the dealer that you are paying cash for the car. Secure financing through your credit union, personal bank, internet lender, etc. When you secure financing outside the dealership your car buying experience will be much more pleasant. Negotiations will revolve around one simple thing: price of the car (unless you have a trade). This can even be done with leasing, but I still recommend leasing through a dealership. You can get absolutely taken for a ride if you secure a lease outside a dealership.
Talk to 2-3 outside sources before you make your decision. If you are buying on imuplse or a deal comes by that you can not turn down, ask the dealer to do a hold contract while you contact your bank, mortgage holder (home equity loan), credit union, etc. Most dealerships will be more than happy to do this as they have a cashable deal if you fail to come through with your own financing. Be careful and explore every option! Buying a car this way is a bit more footwork on your part, but it pretty much ensures you get net rate on your next car loan. This will save you as little as a penny a month or as much as $20 a month (or more). In some cases you can spend more if you are too bull-headed to listen to the dealership (they may have a lower rate available).
 

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Re: Suggestion for anyone looking at a new car... (avner)

Props to PeopleFirst http://****************.com/smile/emthup.gif
Before I went GLI shopping, I applied for my financing through them (they had the best rate I could find at the time), filled out the online form late afternoon on a Sunday. On the website it said their business hours were the usual 9-5 M-F , so I didn't expect to hear anything until Monday.
5 minutes later , I get a call from one of their account reps asking to verify a few things and gave me the approval right there. He said he was working late outside of normal hours so folks would know what great service they have...(hope it wasn't mandatory overtime...)
Anyway, got my "blank" check from 'em via FedEx on Tuesday. Very quick, easy, and great service.
 

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Re: Suggestion for anyone looking at a new car... (dubfan)

So what happens if you decide you don't want to use the check? Do you just tear it up and then it expires or whatever in their computer and it's like it never happened?
 

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Re: Suggestion for anyone looking at a new car... (ChrisMD)

quote:[HR][/HR]So what happens if you decide you don't want to use the check? Do you just tear it up and then it expires or whatever in their computer and it's like it never happened?[HR][/HR]​
Yeah, I read up on them when trying to decide how to finance my current car. If you don't use the blank check then you aren't obligated for anything. Either the time alloted to that particular check expires, or you write void or cancel or something on the check and send it back. Either way, you're free and clear.
Turns out I couldn't use peoplefirst because the cost of my car was under their minimum.
Oh well. Seemed like a nice service though.
 

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Re: Suggestion for anyone looking at a new car... (ChrisMD)

That's right. In fact, that's exactly what happened to me, since I wasn't able to put a deal together within the allotted time frame (I think it's 30 or 45 days).
The only thing to watch out for is that you don't want to do this too much (get a loan approval and then not use the money), since numerous credit checks do count against your credit scoring. I'm not sure of the details (don't work in the credit biz) but from what I understand basically there is a small "cost" to your credit rating any time you apply for a loan.
There may be an additional credit rating "cost" if you apply for a loan and then don't use the funds. It's not going to wreck your credit or anything, but it's there to discourage people from making an application unless they really intend to buy.
Our moderator or someone else may have a more definitive story on this, but that's my understanding...
 

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Re: Suggestion for anyone looking at a new car... (dubfan)

OK, thanks. I understand about credit checks showing up on your report and the "cost" associated when credit is not extended. I was just asking about what happens with Peoplefirst if you don't use the check. Thanks for the info!
 

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Re: Suggestion for anyone looking at a new car... (dubfan)

quote:[HR][/HR]
The only thing to watch out for is that you don't want to do this too much (get a loan approval and then not use the money), since numerous credit checks do count against your credit scoring. I'm not sure of the details (don't work in the credit biz) but from what I understand basically there is a small "cost" to your credit rating any time you apply for a loan.
[HR][/HR]​
interesting.. i've never heard that.. but, i suppose if your credit is being checked almost daily for extended periods of time, there should be some sort of a red flag to let people know that.
 

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Re: Suggestion for anyone looking at a new car... (canadian_dubber)

Yeah, because if you keep applying for credit it might make you look desperate to get money. Definitely not a good thing.
Also, if a bank sees that other banks are checking your report but NOT extending you credit (even if they offer and you decline) then they will wonder WHY they didn't extend you credit and it reflects negatively on you.
I would suggest that anyone young with a few years of credit history get your report. You can get them for cheap online or sometimes free, and I think you're legally entitled to one free per year anyway. I got mine before buying my car and just seeing what one looked like and the info it contained helped me understand a lot about how they even work. It helped a lot more than just reading what other people had to say.
Also, make sure to get a report that includes "Your Score." This is the numerical number that the lending institution considers when establishing your interest rate. The higher the number, the better your credit, the lower your rate. You'll know EXACTLY where you stand.
 

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Re: Suggestion for anyone looking at a new car... (canadian_dubber)

Oh, of course. Your score is ever changing. Be responsible, and it goes up. Make a late payment, and it goes down. Unfortunately, it's a good bit easier to make it decrease than increase, but it will always keep up with you. So if your score is low now as a young adult and you keep your history clean (basically not biting off more than you can chew) then your credit will improve and your score will reflect that.
If you're worried about yours being low, there are some things you can do to improve it. If you don't have a credit card, get one. A credit card can really help your credit. It can also really hurt your credit. Use it wisely. Don't charge more than you have in the bank. When the bill comes, pay it off in full. This way you never pay interest and you are always on time, which raises your credit.
If you're not paying interest, you can afford to charge things you normally wouldn't. If you pay cash or debit for gas, stop doing that and pay with credit. By responsibly using the card, you build credit. You won't build credit if you never use the card, so USE IT!
If you have a card that is in your parent's name, ditch it and get one in your name. Paying the bill on Daddy's card increases his credit score, not yours.
If you can afford and want a cell phone, by all means get one (but not prepaid). The cellular company is one more creditor with which you're doing business.
If you're buying a car, do not pay cash. Even if you have $50,000 sitting in a savings account (which is stupid, but never mind) do not write a check. Take a loan for part of the car and finance over one or two years. You won't pay a whole lot of interest and it's definitely worth it to build good credit.
If you already have a car loan in Mommy's name, refinance and get it in your name. Again, it doesn't help you to pay off Mommy's loan.
Basically, just be responsible. And credit histories are what, like seven years. So if you have a few mistakes, they'll be gone in seven years anyway, hopefully replaced by seven years of responsible spending.



[Modified by ChrisMD, 9:30 PM 8-2-2002]
 
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