non-toyota financing - how to ?

The way I went, with Capital 1 through Costco, is probably one of the easiest ways to get non-Toyota financing for a purchase. I've heard that E-loan through Sam's Club is pretty similar too. Although you can likely find a lower rate at a credit union, the process of obtaining the loan might not be as headache-free.

I filled out the approval application online, they called me ~30 minutes later to let me know what I was approved for and at what rate, and within 3 days (they also do overnight shipping) in the mail I received a Capital 1 'blank check' that I can use at the time of purchase.

My loan amount will be the amount I fill in on the blank check, nothing more (plus interest of course). No dealing with faxing paperwork anywhere or going back and forth between the lender and the dealer. I've got my blank check, ready to use, and I'm ready to go. Just waiting for my car.

Capital 1 also does extensions for the checks: mine expires on 1/19, so according to Jack06, I should call their 800-number on 1/18 and ask for an extension, and they will extend the check an additional 45 days starting on 1/18 should my car take any longer in arriving here. Or something like that, if I understood him correctly.

 

Yowsir, yowsir. "Rate lock" = 45 days + 45 days = 90 days. Then start over.

 

I actually got the lowest rate with Toyota, 4.99%. But when I bought the Sienna, I financed with Toyota. When I called USAA later that week to set up insurance, they quoted me a lower rate, so I "refinanced" with them, no penalties. They sent a check to Toyota to pay off the loan and my payments switched over to them...

 

The other way this is done when going through a bank or credit union is as follows...

Go to financial institution and apply, get approved agree to the contract and a check is cut (sometimes two, one for the car one for sales) You are not given the check for the purchase of the car in many cases instead you get a letter to take to the dealer.

The letter states that on deliver of the title the bank will provide the funds to the dealership in the aformentioned amount. You give the dealer the letter they give you the car and handle the title mailing to the bank who places the lien and disburses the funds to the dealership.

Most dealerships are familiar with how banks proceed to protect their assets (your car) and do not have any trouble making the sale final when this happens. They do not like th eloss of income from you financing outside of the dealership though.

For example my last loan (14000 @4.49% 60 months) the dealer got apx $500 from the loan from the financing bank... (it is nice working for the bank so you get to see this stuff) once booked the bank added in my employee and ACH discount dropping my rate to 4% (1.5% lower than if I had done direct financing).

Now for the other advantage... finance with your bank or credit union or more accuratly get a preapproval for a specific rate, term and amount take it to the dealer and see if they will beat it... there is a decent chance they can and will (remember less profit is still better than no financing profit). if they cant you take a quick trip back to the bank to book the loan and come back with the payment.

Since we dont have much room to negotiate on the Prius may as well make sure we get the best terms where we do have some flexability.

Good luck on your purchase.

 

I got a pre-approval from my CU for about $2000 over car's price so taxes would be financed into it too. Then went to the dealer, bought the car. Finance manager asked me to sign a loan paper with them but put on hold for 5 days so if they don't get a check w/in 5 days, they will submit the paper.

I took bill of sale back to my CU. loan officer typed up an official loan application and cut me a check for the same amount as the one on bill of sale.

I took the check and a note back to dealer, and the financing manager gave me back the 1st loan application i signed. The note tells my dealer how to handle title and lien.

 

I have preapproval from my credit union, too, for 5% for 60 months. They gave me a certificate to take to the dealer when my Prius comes in. Ordered it in December and they are projecting mid February for delivery.

 

When I bought my car I saw it on the lot (no waiting for me), I knew I wanted a Prius but I didn't expect to see any availiable at the time, they had 4.

They let me take the car before I had it financed. The finance guy at my Toyota dealership helped me the best deal on financing. He submitted my application to several dozen banks and finally found one that would give me just under 7% with 15% down payment. It wasn't easy since I am only 22, nobody wanted to finance me because I have a short credit record.

I had my car over a week before I actually got an OK on the financing.

 

I went into my Credit Union and asked them what I should do a few weeks before going to pick up my car. They said the easiest way to go was to get pre-approved for the loan before you go to close on the car. Navy Federal didn't care what make or model car I was getting, where I was getting it, or anything. They just wanted to know how much I wanted. I said $28,000.00. They said ok. (and of course, checked my credit) The next day, the loan was approved and they cut me a check for $28,0000.00. Now, I didn't use that much in buying my car, but it was nice to have that walking into the dealership. It also made for my shortest car purchases ever. (Not one of my favorite experiences)