Outside or Dealership Financing
Planning to purchase a 2-3 year old Cayman (or 5-10 year old 911) sometime in summer 2020. I like to plan ahead for everything and planned to get my financing before the purchase/outside the dealership. However, a good friend of mine did that but then the dealer told him they could get a better interest rate with another big bank - and they did - so he went with that loan negotiated by the dealer. What financing approach did you use for a gently-used car? I’ll be putting about 1/3 to 1/2 down and financing the rest.
With some rare exceptions the finance department of a car dealer is a profit center. Meaning they make partnerships with banks to get kickbacks on the loans they write. There are times where they do offer some very aggressive rates to help facilitate vehicle sales. In that case it makes complete sense to go with the dealer. However, More often than not you can likely qualify for a lower rate with a bank directly. I would recommend having talked to a bank prior to going to the dealer. At the very least to know that you’ve got options and you aren’t forced into the single finance offer from the dealer.
Thanks. My plan was to have financing before even stepping foot into the dealership; I was thrown a curveball by my friend’s experience, so I was second-guessing myself.
On the high end car side they will help you get a better deal and find the best deal for you. When I bought my Mercedes they helped me find the cheapest interest rate.
Op, check out local credit unions. They give very good rates for used cars (obviously not as good as new ones as they are subsidized pretty much)
If u walk in with an offer the dealership may offer you something better just to get a few more dollars. Take whatever is best and the shortest term. The longer the term the more interest compounds
get the best finance rate you can with banks or other lenders directly, and then walk into the dealership where you agreed on a price with financing to see if they can beat that rate
I’m more interested in understanding why you would even consider buying a 10 YO 911. Answer to your question: cash
911s actually hold value rally well (especially for a luxury car)
I get that. 10 YO seems a bit extreme. Why not 3 yo. Most of the depreciation has occurred by the. 10 yo you’re looking at putting. money back into the car in terms of maintenance and repairs.