Finance rate dilemma 5.74% vs 6.99%

[Keiichi Tsuchiya]

So, I have scenirio for you guys.

If you have a good FICO credit score (around 790+ish)

one bank tells you 6.99% finance rate for the period of 60 months on a 22K loan
and

Local credit union tells you 5.74% finance rate for the period of 60 months for the same loan, what would you do?

Would you take the rate from credit union or still look around for a better rate? Now speaking of better rates, would you just start calling big bank like Bank of America or Capital One etc?

You input in highly appreciated. Thanks.

[lib]

You can get a MUCH better rate. Especially if you have a FICO score close to 800.

BMW is offering 3.9% on 1er's and 0.9% on most other models right now. With that score you should have no problem qualifying baring any strangeness in your history.

If for some reason that falls through PenFed is offering 3.99%.

(Assuming you're in the States... If not, I have no idea )

[lolo419]

Why get the loan form the bank when BMW Financial Service offers 3.9% on the 1 series. I was in your shoes when I ordered my 1 back in Dec, and now i don't have to worry about it since BMW is offering 3.9% APR.

Lib beat me to it.

[Keiichi Tsuchiya]

Originally Posted by lib

You can get a MUCH better rate. Especially if you have a FICO score close to 800.

BMW is offering 3.9% on 1er's and 0.9% on most other models right now. With that score you should have no problem qualifying baring any strangeness in your history.

If for some reason that falls through PenFed is offering 3.99%.

(Assuming you're in the States... If not, I have no idea )

My purchase car is not a bmw. I like the crowd here a lot and thought I can get some good info.

The PenFed looks great but I am not in the Army or homeland security. I work at a hospital. But that's the kind of response I was looking for. Is there any other bank or financial institution offering rate similar to that?

Originally Posted by lolo419

Why get the loan form the bank when BMW Financial Service offers 3.9% on the 1 series. I was in your shoes when I ordered my 1 back in Dec, and now i don't have to worry about it since BMW is offering 3.9% APR.

Lib beat me to it.

You guys are lucky with the BMW Financial Service. That's a very good rate. If BMW finacial wasn't offering 3.99%, what other options would YOU use?

Thanks. BTW, if it matters, it's a Nissan and NMAC do not have any specials going on!

[lolo419]

Well before BMW offered 3.9% i was gona go with 4.9% at my dad's credit union... I was shopping around and 4.9% was the lowest. This was back in Dec. good luck on ur loan hunting.

[boxerdog]

5.74% vs 6.99% --- if these are your only two choices, I don't really understand your question.
Hope you can find something better.

[chazm]

^I think he's asking if he should try elsewhere.

I would try Bank of America, they seem to be one of the few banks that didn't loose their back end on the home financing burst, and maybe they can give a better quote.

A better question is, if you're not buying a BMW, why are you asking in here?

[Derk1127]

Anyone can be a member of pentagon federal, you have to donate $20 to the National Military Family Association and you can become a member, just give them a call, I did

[lib]

Originally Posted by Derk1127

Anyone can be a member of pentagon federal, you have to donate $20 to the National Military Family Association and you can become a member, just give them a call, I did

^This. The low rate you'll get is well worth the $20 one time fee to join.

If you decide PenFed has the best deal, go to option 7 on the following page and select a 1 year membership.
https://www.penfed.org/howToJoin/overview.asp

With your FICO score you should definitely check out PenFed.

I used them for my financing and it couldn't have been any simpler. The whole process took at most 15-20 minutes online and a 2 minute phone call just prior to delivery to arrange the final details for the check.

[Keiichi Tsuchiya]

Originally Posted by lolo419

Well before BMW offered 3.9% i was gona go with 4.9% at my dad's credit union... I was shopping around and 4.9% was the lowest. This was back in Dec. good luck on ur loan hunting.

Thanks.

Originally Posted by boxerdog

5.74% vs 6.99% --- if these are your only two choices, I don't really understand your question.
Hope you can find something better.

Originally Posted by chazm

^I think he's asking if he should try elsewhere.

I would try Bank of America, they seem to be one of the few banks that didn't loose their back end on the home financing burst, and maybe they can give a better quote.

A better question is, if you're not buying a BMW, why are you asking in here?

You're correct. Those are my only options at the moment but I was looking for other options. I have Bank of America credit cards at the moment. May be I will give them a call. Good idea. But I should also mention this as well, I have always felt Bank of America is a little sneaky. I have got slammed with hidden fees and increased APR on my credit card from time to time. I will have to very carefully read the fine lines if I go with this one.

I have ALWAYS loved this forum. This was a fresh start from the scratch and I literally saw this forum grow. Then One day I became member. There are some knowledgeable people here and I am probably going to get a more mature response than lets say "Sentra V or Z forums" haha .

Originally Posted by Derk1127

Anyone can be a member of pentagon federal, you have to donate $20 to the National Military Family Association and you can become a member, just give them a call, I did

Did NOT know that. Awesome! I'll try to join the association.

Originally Posted by lib

^This. The low rate you'll get is well worth the $20 one time fee to join.

If you decide PenFed has the best deal, go to option 7 on the following page and select a 1 year membership.
https://www.penfed.org/howToJoin/overview.asp

With your FICO score you should definitely check out PenFed.

I used them for my financing and it couldn't have been any simpler. The whole process took at most 15-20 minutes online and a 2 minute phone call just prior to delivery to arrange the final details for the check.

wow.. I'm in. I am def going to try it to sign up tomorrow night.

This is why I made the thread here and now if everything goes smooth, I may shave a nice 1.74% APR from my lowest APR rate (5.74%) offer.
I appreciate all your input. THanks.

[Keiichi Tsuchiya]

Originally Posted by lib

^This. The low rate you'll get is well worth the $20 one time fee to join.

If you decide PenFed has the best deal, go to option 7 on the following page and select a 1 year membership.
https://www.penfed.org/howToJoin/overview.asp

With your FICO score you should definitely check out PenFed.

I used them for my financing and it couldn't have been any simpler. The whole process took at most 15-20 minutes online and a 2 minute phone call just prior to delivery to arrange the final details for the check.

Okay I have became a member now. Now what's my next step? Let's say I am at the dealership, do I have the dealer call them or do I personally call them?

Also, I am seeing that 3.99 is only offered via online. So does this mean I must apply online (instead of calling them)?



Thanks

[Derk1127]

Originally Posted by Keiichi Tsuchiya

Okay I have became a member now. Now what's my next step? Let's say I am at the dealership, do I have the dealer call them or do I personally call them?

Also, I am seeing that 3.99 is only offered via online. So does this mean I must apply online (instead of calling them)?

Thanks

Yes, you have to apply online and they will mail you a check for the amount you applied for.

[Keiichi Tsuchiya]

Originally Posted by Derk1127

Yes, you have to apply online and they will mail you a check for the amount you applied for.

Thanks.