I would add something a wise person once told me. Know your Credit profile (Score, Debt-to-Income Ratio, Employment History, Write-off’s, etc.). Score is only one component considered by the Lender. Great video Kimberly, thanks for sharing your knowledge 👏
One thing no one ever considers with using a credit union is Cross-Collateralization Cross-collateralization simply means using the collateral for one loan on another loan. How can this happen? When you borrow money from a credit union to purchase a car, the loan contract might include a clause that says not only is the asset the collateral for the loan you just procured to buy it, but it will also be the collateral for any other loans you take out through the credit union-including normally unsecured credit cards and personal loans. By law, Banks can not do this. Credit Unions can.
Yep and this is why if you file bankruptcy, and you have a credit card, signature loan and a car loan, you can’t keep the car without reaffirming all of the loans from the credit union. So I advise people to not open multiple lines with one credit union.
Nice work and great delivery! I’d love to see a video of how to get out of the dealer finance office quickly as they offer all the extended waranties, special coatings, and other seemly smoke and mirrors. :)
Thank you as always for the videos. This is EXACTLY what I needed. Which definitely let me feel much more empowered when I sit in front of the Finance Manager. This whole process is daunting and only because there just is so much I don't know.I don't like the idea of me going into the dealership with them having such a HUGE upper hand/advantage over me. This is a big purchase and I don't want to be simply taken advantage of like most ppl do or even I have in the past.
Great advice for those financing. I was raised to believe if you can't pay cash for something, or pay off your credit card each month, you can't afford it. I recently purchased a new Lexus LC500, with cash. After negotiating and getting a written car purchase agreement. The finance manager was shocked and dismayed when I pull out my checkbook and wrote him a check. To add to his shock, I told him I would be happy to take delivery when the check cleared.
I was approved by my credit union.. I know what my credit score is, so if I want to see if the dealer can beat it is there a way to know that they’ll only check my credit with there financing, or will they automatically shop my credit score?
Hi Kimberly! I’ve been a member of PenFed CU for 3 months, and I’m also a member of my employer’s CU FedEx Employees Credit Association since 2006. All of my FICO scores are over 800. Should I apply for both credit unions at the same time, or should I choose just one CU to apply for a used car loan? Thank you for your Great TH-cam videos, as well.
Hi @c50grand2 ! Perfect that you 'know your credit first' ✅ Next, check out each C/U's interest rates & terms for Used on their websites, look for any rate discounts they offer for ex: .25 rate decrease if you sign up for automatic payment withdraw and speak with an auto loan officer from each one, should you have any questions. If rates are about the same, find out who will provide the smoother transaction for you with the dealership. Will they provide you with a blank check to take to the dealer? CHOOSE ONE C/U . Find & negotiate the vehicle you want. Tell the dealership F/I Mgr. your score is 800 and they can have the opportunity to beat your C/U rate by a point but only send it to 2, no more than 3 banks. That will take 5 minutes once they have the numbers. Many times, dealership F/I can beat the C/U which is nice as it saves you time and money. Also, if you're looking at Certified Pre-Owned vehicles (CPS's), ask Finance Manager for Special Incentive Rates for it. Hope that helps!
Great content! Happy new subscriber glad to see you start your own channel! 👍 Where can I ask you some specific questions regarding credi?.. like how applying for credit cards prior to auto loans might affect potential auto loans etc? I am looking to expand my LLC credit profile and personal credit (currently 793 score) and would like to know if I should wait until after a truck loan. The expanded credit would decrease my credit utilization (currently 39%) although my DTI is pretty low around 15%
Thank you for your information… I have a score 579 on Buick trans union and the Chevrolet was 659 score with expedía should I just buy my lease with credit union or the dealer.. I really would lease a new car.. please let me know
Some do! @TRuffin ! For example, Navy Federal says: " Navy Federal Credit Union offers both business and commercial vehicle loans for small-business clients." Ameriica First C/U also does them! With some, you may need to be the Co-Guarantor on the loan using your credit. This scenario can also be done with the dealership F/I Mgr. as well.
I find it so frustrating that in today's market it really is difficult to figure out what the interest rate may be on a loan. So say I want to borrow $78,000 for the car I'm interested in. At 0% interest rate in today's market I'd be all over it in a hurry. However, I can't even begin to guess what the actual interest might actually be so I have to apply for the loan to get a realistic number. Well that means that I have to let them do a hard pull and if it comes over 5% I will not finance it but I have that hard pull already. When i call they tell me they can't even give me a guestimate rate!!! I have 850 plus credit which I think is really good. Any guesses on what interest rate could be on that?? i got a guesstimate after I posted this initially . I was surprised. Still too high for my taste.
Unless you’re getting 0 Apr…anybody who finances a car through the dealer is an absolute fool…get the check for the exact amount minus all the dealer steal tries and walk out.
I would add something a wise person once told me. Know your Credit profile (Score, Debt-to-Income Ratio, Employment History, Write-off’s, etc.). Score is only one component considered by the Lender. Great video Kimberly, thanks for sharing your knowledge 👏
💯 Mike! Love seeing you here! 🙏
One thing no one ever considers with using a credit union is
Cross-Collateralization
Cross-collateralization simply means using the collateral for one loan on another loan. How can this happen? When you borrow money from a credit union to purchase a car, the loan contract might include a clause that says not only is the asset the collateral for the loan you just procured to buy it, but it will also be the collateral for any other loans you take out through the credit union-including normally unsecured credit cards and personal loans.
By law, Banks can not do this. Credit Unions can.
Yep and this is why if you file bankruptcy, and you have a credit card, signature loan and a car loan, you can’t keep the car without reaffirming all of the loans from the credit union. So I advise people to not open multiple lines with one credit union.
Nice work and great delivery! I’d love to see a video of how to get out of the dealer finance office quickly as they offer all the extended waranties, special coatings, and other seemly smoke and mirrors. :)
You can politely say that your discussion is over and walk out the door.
I would love a video on those of us who have prime or super prime credit to see what advantages we have
Thank You and good one!! @MrLoungist ✅ On my list!
Thank you as always for the videos. This is EXACTLY what I needed. Which definitely let me feel much more empowered when I sit in front of the Finance Manager. This whole process is daunting and only because there just is so much I don't know.I don't like the idea of me going into the dealership with them having such a HUGE upper hand/advantage over me. This is a big purchase and I don't want to be simply taken advantage of like most ppl do or even I have in the past.
This is very informative. I'm looking to buy a vehicle this week so I have to know what little tips and tricks I can get for my best offer
Glad to help & thank you for being here!
Great advice for those financing. I was raised to believe if you can't pay cash for something, or pay off your credit card each month, you can't afford it. I recently purchased a new Lexus LC500, with cash. After negotiating and getting a written car purchase agreement. The finance manager was shocked and dismayed when I pull out my checkbook and wrote him a check. To add to his shock, I told him I would be happy to take delivery when the check cleared.
Thank you for the information. It's great to get an inside view on how it works.
I learn something new in each one of your videos.
Navy fed just gave me a 4.79 % rate the dealers refused to tell me their buy rate so I went with navy fed
I was approved by my credit union.. I know what my credit score is, so if I want to see if the dealer can beat it is there a way to know that they’ll only check my credit with there financing, or will they automatically shop my credit score?
This channel is going to get so gooooodd!!!!
Thank You!! I'm working hard on new content every day! 💥
Hi Kimberly! I’ve been a member of PenFed CU for 3 months, and I’m also a member of my employer’s CU FedEx Employees Credit Association since 2006. All of my FICO scores are over 800. Should I apply for both credit unions at the same time, or should I choose just one CU to apply for a used car loan? Thank you for your Great TH-cam videos, as well.
Hi @c50grand2 ! Perfect that you 'know your credit first' ✅ Next, check out each C/U's interest rates & terms for Used on their websites, look for any rate discounts they offer for ex: .25 rate decrease if you sign up for automatic payment withdraw and speak with an auto loan officer from each one, should you have any questions. If rates are about the same, find out who will provide the smoother transaction for you with the dealership. Will they provide you with a blank check to take to the dealer? CHOOSE ONE C/U . Find & negotiate the vehicle you want. Tell the dealership F/I Mgr. your score is 800 and they can have the opportunity to beat your C/U rate by a point but only send it to 2, no more than 3 banks. That will take 5 minutes once they have the numbers. Many times, dealership F/I can beat the C/U which is nice as it saves you time and money. Also, if you're looking at Certified Pre-Owned vehicles (CPS's), ask Finance Manager for Special Incentive Rates for it. Hope that helps!
@@AutoFinanceSenseThank you soooo much, Kimberly! I'm watching some of your other TH-cam videos, so you might see me again asking more questions. 😊
I borrow from myself. Does that sound OK, Kimberly? The CU charges a small fee to handle the transaction. I think they call it a promissory note.
If my credit union refinanced my vehicles with a lower 600s score does that mean they'd finance a new one?
17th!
Enjoying the channel.
Great content! Happy new subscriber glad to see you start your own channel! 👍
Where can I ask you some specific questions regarding credi?.. like how applying for credit cards prior to auto loans might affect potential auto loans etc?
I am looking to expand my LLC credit profile and personal credit (currently 793 score) and would like to know if I should wait until after a truck loan. The expanded credit would decrease my credit utilization (currently 39%) although my DTI is pretty low around 15%
Excellent 👍
Thank You!!
Love your channel
Thank you for your information… I have a score 579 on Buick trans union and the Chevrolet was 659 score with expedía should I just buy my lease with credit union or the dealer.. I really would lease a new car.. please let me know
Thanks
Thank YOU Jim!!
Can i place a vehicle under an llc going the credit union route?
Some do! @TRuffin ! For example, Navy Federal says: " Navy Federal Credit Union offers both business and commercial vehicle loans for small-business clients." Ameriica First C/U also does them! With some, you may need to be the Co-Guarantor on the loan using your credit. This scenario can also be done with the dealership F/I Mgr. as well.
@@AutoFinanceSense thanks
I'll definitely check America first cred union as well as dcu cred union
What a beautiful intelligent amazing lady. Not to mention a super Mom.
👍🏾
I find it so frustrating that in today's market it really is difficult to figure out what the interest rate may be on a loan. So say I want to borrow $78,000 for the car I'm interested in. At 0% interest rate in today's market I'd be all over it in a hurry. However, I can't even begin to guess what the actual interest might actually be so I have to apply for the loan to get a realistic number. Well that means that I have to let them do a hard pull and if it comes over 5% I will not finance it but I have that hard pull already. When i call they tell me they can't even give me a guestimate rate!!! I have 850 plus credit which I think is really good. Any guesses on what interest rate could be on that?? i got a guesstimate after I posted this initially . I was surprised. Still too high for my taste.
good info
So who is the creditor ? Sure ain't the bank or credit union .
Unless you’re getting 0 Apr…anybody who finances a car through the dealer is an absolute fool…get the check for the exact amount minus all the dealer steal tries and walk out.
Need help thanks ☺️
What does financing $17.28 per $1000 financed mean in the car dealer finance contract?
All that means is your payment is 17.28 per 1000 borrowed. So if you financed $10k your payment would be $172.80. 17.28x10(1000x10=10000)
For every $1000, you get charged $17.28 to finance it, $1000*25k*17.28= total price you pay for the “privilege” of financing it through the dealer.