Money question. Should I finance a vehicle through a dealer or

Faggot.

dealers often give higher interest rates but you are more likely to be approved if you have shitty credit, or non-existent credit.

>>14909195

Try to get something you don't have to finance.

A dealer is more likely to get you approved, because they work with so many banks all over the place.

This will come with higher interest rates, and general scumbaggery.

If you work through a local bank, you'll usually get a much better interest rate, they'll actually treat you like a real person, and you get to shop around for the best deals from private sellers. You'll also usually get shorter term loans. Payments will be a little higher, but you won't be stuck in debt for more than 36 months usually.

The downside is that you need good credit. Otherwise, a co-signer works fine as long as they have good credit.

Get pre-approved before you go shopping. You'll likely get a lower interest rate, especially if you finance through a credit union. It might give you a bit of bargaining power because you know what you can spend ahead of time. Don't tell the dealer that you're already approved while you're looking. You still want the lowest price possible.

Also, when they run your credit, make sure you ask for detailed information about why you got the rate you got. This way, if it's unsatisfactory, you can work on correcting it. If you want to get an idea of your credit before you go to the bank, use Credit Karma or check if your bank/credit card company offers free credit score updates. If you're really anal, you can pay to use myFICO to get all three of your credit scores plus the other more-detailed scores like the FICO Auto 8 and FICO Auto 9, which are used in auto lending. This isn't really necessary, though, because a bank can tell you all of this stuff and your auto score and regular score will almost certainly be pretty much the same.

>>14909195
Dont finance.

My rule of thumb is that if it isnt a house and you cant afford to buy it outright, you shouldnt buy it.

Stop trying to live beyond your means, it will get you in financial trouble.

I have purchased every car Ive ever owned with cash. I purchased my house with cash. I have saved tens of thousands of dollars in interest just by deciding to live within my means. Thats why I can afford so much nice shit these days

>>14909195
get an auto loan through a credit union

anyone that says any other answer just wants to make a commission off you

>>14909217
>>14910480
>people still don't understand how to come out ahead on loans
Dumbest board I swear.

>>14910505
The only real ways to come out ahead on loans are to:

A. Use them to purchase a stable, reliable marketable security with a rate of return higher than the combination of loan interest and current rate of inflation

B. Get a loan with an interest rate lower than rate of inflation

T. Economics/Finance double major

But apparently I'm an idiot

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>>14910480
>My rule of thumb is that if it isnt a house and you cant afford to buy it outright, you shouldnt buy it.

>RULE OF THUMB?

Do you know where that term comes from? In the 1900's it was legal for men to beat their wives as long as they used a stick no wider than their thumb.

>>14910553
>T. Economics/Finance double major
>But apparently I'm an idiot

Do you have student loans?

>>14910622
No.

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>>14910480
That's a bad rule of thumb. Basically you're saying you're too dumb to trust yourself with making decisions based on their own merits. Finance has its applications, its a price you pay for convenience. It doesn't universally mean you're "living beyond your means".

A few years ago I borrowed $5K on a one year term, my total repayments were $5500. So it cost me $500 for the convenience of getting the car I wanted straight away.

Your point on houses is a hilarious misconception. I bought a house 5 years ago for $300K, with a 60K deposit. Now the house is valued at $420K. So my interest repayments have been under $12K a year (less than rent) and the house has already appreciated more than that. If I lived by your mentality I'd have a big pile of cash in the bank and nothing to show for it.

>>14910553
Those are the ways. Since they exist, people telling everybody to buy things cash-only are giving bad advice.

>>14910595
What's your point? How does that effect the content of the sentence at all?

>>14910595

Well that doesn't seem like it would do too much damage would it?

>>14910553
>>14910480

I would like to counter-argue that if you can't secure a car loan below the historic rate of inflation, you have no business getting a car loan in the first place.