Financing a new car

From the Motley Fool:

Financing That New Car, Part 1

Financing That New Car, Part 2

Two good articles. I add this advice:

  1. Arrange financing before the sale. A good strategy is to put $ 100 to hold that car of your dreams, and walk away and arrange the financing. Dealers will normally hold a car for a couple of days with just a fully refundable $ 100 check!
  2. LendingTree.com is a great way to get a car loan. We've used this service in the past. My one time with LendingTree.com ... we walked into a car dealership to buy a new car. The dealer offered me a certain rate. When I told the dealer I had a lower rate from LendingTree, the dealer bettered the LendingTree rate. We also used LendingTree.com for our last home refinance!
  3. Open an account at a local credit union. Here in the Twin Cities we have The Postal Credit Union. Open the account well before you want a loan. You'll get a good rate on deposits and build a relationship that will enable a reasonable car loan.


  1. I like no financing at all, paying cash by saving the money and not buying a new car. The more I listen to Dave Ramsey, the more I agree with him. He says, Why pay more for something that depreciates in value? I would rather save the money and get a cheaper car.

  2. Good comment, Terry, and a good way to go!

    Many skip buying new cars altogether and buy 2 year old used cars. These would still have 1 year of warranty left (3 yr / 36000 mile) but the heavy depreciation years are past.


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