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Discussion Starter · #1 ·
Is it better to get pre-approval through toyota financial.com or to sit down at the dealer?

I ask because my fico score is only fair and there may be some finagling required.

Thanks
 

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I would have a second rate before I bought the truck anyway. So going in with the rate for them to beat would work in your favor. A lot of dealers may give you a "decent" price on the truck and then screw you on the rate. They do this by saying you qaulified for a 5.9% rate when you actually qaulified for 3.9% and then they pocket a little extra profit from the bank for selling a loan at a higher rate. NEVER TRUST A SALESMAN. Their job is to sell the truck, they don't care about you, only the sale.
 

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I would have a second rate before I bought the truck anyway. So going in with the rate for them to beat would work in your favor. A lot of dealers may give you a "decent" price on the truck and then screw you on the rate. They do this by saying you qaulified for a 5.9% rate when you actually qaulified for 3.9% and then they pocket a little extra profit from the bank for selling a loan at a higher rate. NEVER TRUST A SALESMAN. Their job is to sell the truck, they don't care about you, only the sale.

Well if you are that concerned then you might just want to let the dealer do it, they can do all kinds of things, I had a fairly high score and Toyota wasn't the lowest at the time.

I say wait til you get to the dealer only because of your concern with your score, because everytime they make an "Hard Inquiry" on your credit, your score takes a hit, your points go down, if I was questionable I would let them run it to several lenders (which they do automatically) at the dealer at the same time in same day that way your Hard Inquiries wont be seen on that if you do them all in one quick pile, rather than doing it and then going in at a later time this just might not be favorable to your rate at all ... I mean only a point can take a person into a whole different % rate level.

If you find the rates are horrible then you might just want to walk and take your chances at your own bank or credit union, you can also try and get them down on the rate at the dealer, say I will do it if you get me __% rate, they can buy down the rate if they feel you will walk without it sometimes, its definatly worth trying, they want to sell you a vehicle.
 

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I'd say if you have any relationship banking, then get pre-approved through your bank first (or better yet Credit Union). If not, then research what the rates are based on your FICO score (teared rates that is) and at least be armed with that info.
Whatever you do, do not talk about monthly figures as that would be a jackpot for the dealer where you could get shafted on the interest rate, vehicle price and possibly even trade (if any).
 

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Discussion Starter · #7 ·
Great info guys thanks

keep it coming

I should get the TFS results tomorrow and then I'll go from there.

I don't have any relationship with a credit union but have been meaning to start one, is it too late
if I wanted to use it for this auto loan??
 

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It's worth a try but based on your initial info, it might be a stretch for this purchase, with the Credit Union.
 

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Back in December they were running 1.9% --- They told me you only had to have a 630+ score to qualify through TFS.

I can't believe the rates are back up to 3.9+.. my '07 was 0% for 60mo... and now I'm 1.9 for 60mo again. WTF?!
 

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Discussion Starter · #10 ·
WTF!

Called TFS to ask a couple questions and they said if my app is approved
all I'm given is a certificate to take to the dealer. It doesn't tell me the percentage
rate which means it really doesn't help me.


What's the benefit of getting the pre-approval if the sales guy still has the upper
hand by knowing all the rates?
 

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just get some rates from local credit unions... then go to the dealer,, let them go though their bull and tell the finance guy up front,, i can get 3% at such and such, so if you can match that then i will stay here, if not i will go there.. they will do what they can do to get it for you,, they need to make the money,, they dont want you to leave...
 

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Get a rate from outside them, go in armed with it. The dealer wants your finance business if he can get it. Alot of times he'll get a little something extra for getting you to finance with him. He may have deals set up and bring finance companies enough bulk business that if you walk in with a blank check with a pre-approved amount, he can beat it and still get his kickback. This is another potential profit center in the deal. But he will not be competetive unless you've educated yourself on it and he knows he has to. Otherwise he will simply get you a rate.

I shopped around before going into the dealer. There was low financing but I took the cash instead and went for the lowest rate I could get. It was the same on the last two trucks I bought. NOBODY beat the dealer rate, but he only made his best offer to me once I let him know I knew what I qualified for elsewhere. Ideally, throw this out there when you're ready to buy: "OK I like the truck, I know what I want for options and I see what you have on the lot. I can get x% on my own, I'll go close that deal and be back to sign the papers in a few days once financing is lined up." They do not want you to walk away, and will do whatever they can to get you to sign RIGHT HERE, RIGHT NOW rather than let you leave and risk that you'll wander onto another Toyota lot elsewhere. He will start off with "If I can check it out and see if I can beat that rate, can we close this deal today???"

If you do this the only thing to watch for is make absolutely sure you're approved and not PRE-APPROVED pending a final credit check, to avoid receiving a phone call after the truck has sat in your driveway for a week wherein you find out your app was denied and they want you to sign a new deal and pay more money.
 

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as an example,, I had 5.9% for 5 years on my new scion last year,, but got 3.9 on my 07 tundra this year for 6 years,, and my credit blows too....
 

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Get some quotes before you go to the dealer. Then, if they can beat it, fine. if they can't, then fine too.

And yes, make sure the finance guy at the dealer doesn't add stuff in and then say it's 'included'. They mean included in your payment, not included in the price you were quoted for the vehicle by the sales guy.
 

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all excellent advise here, and im assuming you arent bringing more "complications" to the table right? i have a friend that had a low score and was trying to get out of his car, he got approved online, thorugh capital one, i believe, for XX dollars but when he went in, even though the finance amount was going to be the same amount, he had too much negative equity in the trade and the bank, although they said they would loan XX dollars on a vehicle, they wouldnt loan that same amount with too much of it being negative equity...if that makes sense...the dealer wound up doing their own thing through another bank that would work with him, he got a higher rate but they let him trade out of the upside down car...bad idea and decision? yup. but so were all the rest of his ideas...thus his low score.
 

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Bad pattern to get into...that's how you end up owing many thousands on a beat up clunker that is sucking up both payment money and maintenance money at the same time. Unfortunately some people tend to think if they make just the right series of vehicle trades they can somehow make that problem go away when the only real solution is to suck it up and hold a vehicle til it's paid off and then some.
 

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Discussion Starter · #18 ·
Yeah my trade in is a 06 RSX that I have about $2k in equity which I'll put down on the truck if i have to. I'd rather put it towards a new wheel/tire combo : )

Still waiting to hear back from TFS btw
 

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Discussion Starter · #19 ·
Yeah my trade in is a 06 RSX that I have about $2k in equity which I'll put down on the truck if i have to. I'd rather put it towards a new wheel/tire combo : )

Still waiting to hear back from TFS btw
 
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