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    Default automobile financing

    Hey everyone. I've only ever financed a vehicle through a dealership. How does it work if I want to finance a private sale? I could use my unsecured LOC to purchase, but the rate is around 6.75%. If I could get a car loan for a better rate, that would be best. I'm assuming I couldn't get a car loan without knowing what I'm buying and if that's the case, can I buy and then finance to pay myself? Also, any recommended lenders? Looking to spend 20k-30k. Any advice. Thanks

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    For private sales, you either obviously have the cash or you find your own financing. Many institutions will have promotional rates. For instance, TD is offering a Fixed Rate at 4.29% for 1 year.

    They also offer auto loans but they come with conditions such as the car being less than 5 years old, etc.

    My advice is nothing that you don't already know. Shop around and call each bank to see what they're offering.

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    Be tough finding a better rate than your LOC. That's what I would use if it's available.

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    What i have done in the past, is broker the deal through a used car dealership. The buyer gets access to the dealer rates and an inspection (an AMIVC requirement), the seller doesn't have to hassel with paying off loans ect, and the dealer gets kickbacks from the bank for the deal.

    Often the dealer will add on the admin fee so they get a little more money out of the deal but that is easily made up on the 2-3% interest rate reduction.

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    Quote Originally Posted by spike98 View Post
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    What i have done in the past, is broker the deal through a used car dealership. The buyer gets access to the dealer rates and an inspection (an AMIVC requirement), the seller doesn't have to hassel with paying off loans ect, and the dealer gets kickbacks from the bank for the deal.

    Often the dealer will add on the admin fee so they get a little more money out of the deal but that is easily made up on the 2-3% interest rate reduction.

    Generally what rates were you presented when going this way?

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    Quote Originally Posted by pf0sh0 View Post
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    Generally what rates were you presented when going this way?
    That entirely depends on the age of the vehicle. But for my situation, the bank was offering me 6.99% and the dealer 3.99%. The bank was only slightly better than my LOC at 7.49%.

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    What dealer did you use? I am just curious as to how that works

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    I can tell you, 6.75% is pretty good, for a $20K used car, (say 5 or 6 year old) banks will charge 7% or more for 48 or 60 month.
    The Original !

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    Quote Originally Posted by spike98 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    What i have done in the past, is broker the deal through a used car dealership. The buyer gets access to the dealer rates and an inspection (an AMIVC requirement), the seller doesn't have to hassel with paying off loans ect, and the dealer gets kickbacks from the bank for the deal.

    Often the dealer will add on the admin fee so they get a little more money out of the deal but that is easily made up on the 2-3% interest rate reduction.
    I assume you would have to have decent credit for a good rate. Doubt they would be giving away 4% rates to 'everyone approved' kind of setup.

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    Someone else commented this through PM and it seems like a good idea. I will probably look into this option and see what the rate will be. Called TD and they quoted me a rate of 5.94 without knowing really anything specific. I have great credit, so I imagine the used car lot will be the best option when the time comes.

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    Trade off is you will need to pay GST on the used vehicle if you go through a dealer ? Might end u guys being the same. 6.99% but no gst or 3.99% + 5%gst
    Last edited by RX_EVOLV; 06-28-2019 at 05:42 PM.

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    Quote Originally Posted by RX_EVOLV View Post
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    Trade off is you will need to pay GST on the used vehicle if you go through a dealer ? Might end u guys being the same. 6.99% but no gst or 3.99% + 5%gst
    No, he was talking about BROKERING a loan through a used car lot. You might get dinged an Admin fee plus the inspection fee.

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    Just tell the bank you are looking for a personal loan to buy a vehicle. You are not sure what you want yet. I have done this a few times without any issue.

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    I actually had an unrelated Bank appointment and asked. The rate was marginally better than my LOC. Not worth the hassle. They also knocked .05 off my current rate.

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    Heloc that shit yo!

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    Neither of my mortgage providers offer that. I've been reading Beyond long enough to know that is ALWAYS the first option!

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