Let's say you want to get a second car loan. Lets say you had one in the past and finished paying it off with no late payments or missed payments. And you have a clean excellent credit. When you go to dealerships or banks or credit unions, does it help to say that you've payed off a vehicle before? Does that help improve your chances of getting a higher loan or getting approved a second time? Does it matter how big your monthly payments were before with that first loan or the length of time it took to pay it off? Does it help you when applying for a mortgage to say that you can handle a loan? does it do anything? (Besides lowering your credit score since you aren't making any more payments).
Sure if you prove your paid off your other stuff on timely of course like that but do realize you're going through a dealership you're paying for especially used cars two to three times generally what they're worth they rip you off so bad. It's the last place I ever tell anybody to go buy a car.
@scottykilmer
Normally I would agree, but I discovered this company in san Diego that puts driver assistant modules in your car that works like auto pilot. And it works best with new 2020 and 2021 model corolla. It works similar to tesla autopilot but is only 1k
@scottykilmer
Some of that autopilot stuff is really putting you in a grey area legal wise with cars. If you crash into someone and your car was on autopilot will the person sue you or the company that made the module? Some of these tech companies are trying to drop as much liability on the consumer while they real road test these things out. You shouldn't put yourself in a bad spot if you can help it.
You won't have to tell them. When they pull your credit they will see it on your credit history. Now if you financed with a shady in house place that doesnt report to the bureaus, then no...it won't help.
All that matters to the financial institution is your credit report and ability to pay. They look at those items and make a decision on your loan based on that.
Anytime you get a loan, you want to shop around. I bought two new Toyotas from the dealership and financed them at around 6% interest. However, when I bought my new truck, I established an account at a local credit union, and even with “good” credit I was able to get a loan for 3.19% interest. A good habit to keep is checking your credit on free places like Credit Karma to get a general idea of what your credit looks like (you won’t get a direct bureau score from them, you have to pay Equifax/Transinion/etc. in most cases). If you really want to know how good your credit is and what your possible rate would be, buy a full-fledged credit report from whatever bureau the bank will use to retrieve your credit score. This is a solid way to know how good or bad your loan rate could be, or if you’d even be approved.
Long story short, never finance through the dealers. You’ll get ripped off. The only possible exception to this (someone please correct me if I’m wrong, since I’ve never done this in practice myself) is if the dealer offers incentives or discounts on the price for financing through them. This way, as long as there’s no prepayment penalty, you can turn around and refinance it through somewhere like a credit union which much lower payments/a better rate!
@christos
I agree with your comments on this 0% I would recommend to get all facts up front. I recently saw ad for a dealership new car 0% interest or cash back the sticker was if you went 0% they wanted full MSRP. Best bet get cash and refinance at lower rate with your credit union. The big thing do some homework on rates .
A dealer can give you 0%@72 if you qualify, especially right now. No bank or credit union can touch that.
If you have rough credit, your local institution MAY be worth looking at. Financing at a dealer isn't always a bad idea. Particularly if you get 0%. Now, if you don't pay attention to the details, you can get hosed. But that's on you. Read before you sign and if you think the rate is too high, ask your bank what they can do.
Definitely work with a credit union if at all possible as banks are terrible.