Car loans and mortgages, question

[turbotalon1g]

Do banks give you better rates if you have accounts with them or have certain balances in accounts?

I'm just wondering we are saving money for a down payment for a house and I wasn't sure if a bank would give you a better rate based on your account balance or whatever.

I have 2 banks that I use, a local credit union and USAA. (Both advertise amazing rates btw)
But I'm just wondering if it would be better to pile up the cash in one place so when I'm ready they will cooperate better.

Just curious, i'm also planning on taking out my first real car loan too.

[Trogdor]

Financing with the dealer is generally your best option, assuming they work with multiple lenders like we do. There's three reasons for this, but ultimately we'll get you a better rate 9 times out of 10. Here's why:

- If we get more than 1 bank approval we'll send it back and forth between those banks and let them fight it out.
- We broker more loans for the banks in a week than most people take out in a life time. They're going to give us a better rate.
- We get paid more as a dealership when you fiance with us (the banks pay us)
We have a financial incentive to offer you a better rate.

That 1 out of 10 times when we can't beat your bank is like when someone works at a bank, or is going to use a 401k loan. However, I have seen us beat the rate of some bank employees.

PS. Come see me! I can get you just about any make and model in our 71 dealership group.

[93gtpeater]

I would shop around and see what banks would do. But I dont think if you bank with them.means you get better rate. but I have a car loan right now with my bank. I have about 6 bucks in my account there and they gave me a loan. The interest rate is crazy low. You could take a bank into a better deal if you offer them more of you business. like move all your money over to them.

[Speedfreak]

The dealership offered me a better rate than my bank, and the bank offered a good rate in the first place. If you are buying private, than your balances could be considered, and debt to earnings ratio will be factored in.

[Trogdor]

Things that affect your ability to get a loan are credit score, debt to income ratio, and length of history*.

*There are different types of credit. When you use your credit card and pay it off, it's different from a structured monthly loan that you pay off. If you only had one or the other, having a scheduled loan that you've paid looks better than paying a credit card that you only use once every few months.

[goodhart]

Dealers have never once beat my credit union. We've taken out 6 different auto loans now. What they did do however when we bought one of the cars is check with 12 different banks, pull our credit 12 times and fucking murder our credit for about 2 years and still didn't find a better rate, or even equivalent rate for that matter. never again will I finance through a dealership. If you already bank with a credit union, anyone would be hard pressed to beat their rates. I think most people who get better rates through dealers most likely bank with giant banks like US Bank, Wells Fargo, etc that don't offer very good rates even to people with great credit scores.

Text me or something and I can tell you more of my experiences, I don't feel like posting details online.

[t-revzr]

I just bought a house and I searched and searched forever. I got my best deal with wintrust mortgage from a guy named jeff papus. Best mortgage person I have ever delt with. There were so many times that We could not make it to his office to sign papers or drop off things that he needed from us and he came to us at work or wherever we were. Hands down the BEST! Best rate was with him also. Credit union never even came close. You want more info let me know and message me i can give you his number.

[Trogdor]

Dealers have never once beat my credit union. We've taken out 6 different auto loans now. What they did do however when we bought one of the cars is check with 12 different banks, pull our credit 12 times and fucking murder our credit for about 2 years and still didn't find a better rate, or even equivalent rate for that matter. never again will I finance through a dealership. If you already bank with a credit union, anyone would be hard pressed to beat their rates. I think most people who get better rates through dealers most likely bank with giant banks like US Bank, Wells Fargo, etc that don't offer very good rates even to people with great credit scores.

Text me or something and I can tell you more of my experiences, I don't feel like posting details online.

Woh! That's stupid... what dealership did that? Generally, that's one of the benefits of working with the dealership. We pull your credit once and shop it around. Sounds like whoever that was really fucked you big time.

In the 7 months I've worked at the dealership, I've only run across us not being able to beat someone's credit union twice. Another time was a US Bank employee, and another was a 401k loan. So in total its only happened to me 4 times where we couldn't get a lower rate.

[CornFed2.4]

I agree with trogdor. I have had two credit unions and not once have Ive ever taken a loan through them unless it was some sort of CD.

Now Im at one credit union and have been there for almost 12 yrs and do quite a bit of business through them, including my Business and personal.

To the question about how much money you have in the bank? That only helps if your credit score is on the lowerside and a bigger down payment is just to show them that you are putting up your own money. So what you borrow has a less chance to default since you have more of your "monies" into it.

Also if you havent bought a house before you more than likely qualify for a first time homebuyers mortgage. This means you can finance 100% plus closing costs into your loan leaving you with the down payment in the bank. 3%-10% down on a home really isnt that much money considering how long you will have the loan and will probably only shave a few dollars off your total monthly payment.

If I were you I would finace the house at 100% as its still a semi good investment that you will be paying on for a while in hope to one day see a return.

Buying a car on the other hand pay as much as you can up front cause the sooner you pay it off the better you dont wanna get upside down in a car loan. Plus they depriciate usually quick to.

*I was once told by someone that the best thing to do for a car loan is take the 3.49% interest rate that your bank offers you, combined with the special offers of bonus cash the dealer gives (0% or $xxxx amount back at purchase) can usually be the best deal hands down though. As the cash you recieve back from the dealer will be more than the 3.49% interest paid on the loan.

Maybe Trogdor can answer the Cash allowances?

Aaron whats the need of having two accounts? I had two credit union accounts and now Im down to one. Just move your money to the better bank of the two and use one. More money or business you give them the easier and faster they will work for you. At least in my case. But again I would never use them for a 5-30 yr loan

[turbotalon1g]

Basically, I used to bank at wells fargo completely then they sucked so we went to a credit union after hearing so many great things.

Then I heard about USAA and they are freaking awesome, it was always a pain to make it down to fridley to cash checks and then to find certain ATMs.
With USAA i just take a pic of the check and its ready instantly and I can do up to ATM transactions a month wherever I want to and the pay me back the fees i pay so its free.
The credit union was also part of me hearing from lots of people about how they give the best rates on loans and such, they did just send 1.25% on a new car for Sam up to $30,000, even she said it was good.

Thanks for the help guys, you answers have been helpful.