Hello. I’m currently having a credit union and the dealer bid down on best interest rate. Dealer started at 8.99 but after showing them our approval from a credit union at 4.99, they matched it. I spoke to the CU representative and it seems like they can’t go lower. So question is.. who should I sign with if they are both matching? I hear credit unions might be the pick because of cheaper add ons and transparency.
It’s consumers credit union vs a bmw dealership by the way.
Posted by RoutineTea1387
11 Comments
It really doesn’t matter…
I had a dealer meet a CU and I went with the dealer just because it was easier – less back and forth with paperwork.
> I hear credit unions might be the pick because of cheaper add ons and transparency.
If you read your contract before signing it, you won’t have any unexpected add-ons. Vehicle sales contracts are transparent, people just don’t bother to look.
The dealer is going to get a kickback on the loan, originally it sounds like they were going to take a large percentage, now probably a fixed fee.
You’ll have marginally more negotiating power on the car if you finance with them, but we’re talking like $100 at this point and if you already agreed on the price you’re done anyway.
I would go with the CU. Dealers have to “offload” the loan to a bank, which could unwind if they can’t find a bank with the right terms (I just saw another redditor have this exact problem yesterday) whereas getting it from a real bank (CU) you get a check, pay for the car and you’re done other than making your payments.
Credit Union. The dealership was hoping you were dumb and easy money. They will try to get that money back by adding all sorts of crap anyway.
Extended Warranty being the main culprit
Just google “car dealership addons when buying”
Whatever the heck you do not do is Nitrogen in your tires. Tell me where you can get a nitrogen refill? Why, did you know that our atmosphere is something like 78% nitrogen.
It doesn’t really matter. If the dealer is going trough BMW Financial that’s probably going to be the simplest to work with.
Thank you all for your input! I’m leaning towards the dealership only for the “do it all there” type of deal. But I’ll be on the lookout to not get hit with a lot of unnecessary add ons
Credit union . They are non profit. Dealership isnt .
Credit union will be more sympathetic if u can’t make a payment.
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The fact that the dealership obviously could have offered you 4.99 initially but instead offered an almost double rate should tell you everything, shouldn’t it? Why is there any question at all at this point?
Depends on which has a lower interest rate. If the dealer can match it, then go with the dealer.
Always go with the credit union. Last car we bought, I had a letter from the credit union with the amount authorized for the loan and the dealer took that like it was cash, they processed everything and I now have a loan with my CU that I can go to the branch and deal with real people if I have an issue.
Get GAP, check with your car insurance, I got GAP added on for $10 a year. If they don’t the CU themselves will usually have a GAP rider available. Dealer is the last option for it (which you’d have to do their financing).
Add-on…the answer is “NO”…”NO”…and “NO” to all add-ons. Period. They are all bad deals.