Getting a loan from the credit union how exactly do they figure the actual value of a vehicle. I am not talking a used one now, I mean a new one, how can the "worth" be less than the MSRP?
The credit union does not figure the actual value of a new car....the amount that the credit union will finance will be the actual sales price that you agree to with the dealer less any downpayment...the credit union will get the bill of sale and that is what their financing is based upon. MSRP means nothing...and never did....I don't know of any right minded individual who ever paid MSRP...that's just a reference number to start your negotiations from.
Well unfortunately, ATV usually sell for MSRP.. But, does the credit union finance the TTL for it or not.. I am putting down 10%, and the CU is going to finance 90% of the cost.. Just trying to figure out if I am going to have to come out of pocket for the TTL also.. Its a holiday so I cant ask anyone at the bank, but when I tried before, she says she cant tell me anythign without an actual invoice, even though I was tellign her exactly what I was buying.. SHe was saying something about what it was worth. The loan will be based on what it is worth, versus what it is selling for.. I am clueless in this area, cause I want to lock them into a finance number, and then shop dealers to find one cheaper.. Thanks for your help////
Look...the Buyer's Order & Invoice will have about 25 lines starting out with List Price, TTL, fees, extended service agreements, etc....then CASH DOWN PAYMENT and lastly....BALANCE DUE....this is the number that your credit union will finance....So if say the vehicle is $30,000 (including TTL) and you put down 10% or $3,000, then the credit union will finance the balance or $27,000. The TTL is irrelevant because it is already included in the summary of charges and theoretically your downpayment of 10% covers that. So no you will not have to come out of pocket for anything except your 10% down - or whatever amount you decide to put down. The girl at your credit union sounds like she is not real on top of things....the CU should be able to give you an interest rate and an amount that you would qualify for...obviously you need to give them some advice as to the ballpark value of the vehicle that you are looking at. Then you have your financing pre-approved and can shop the dealers for better rates. Once you agree on the vehicle, the CU gets a copy of the Buyers Order and the dealer drafts on this. On a NEW vehicle, there is no "what its worth versus what it's selling for...that would apply to USED purchases only...maybe she is getting confused. The CU will finance the BALANCE DUE number from your Buyer's Order once you negotiate a deal with the dealer. And one last comment....dont go into a dealership with the mentality that ATV's sell at MSRP....some actually pay more....MOST always pay less. This a a car salesman's ploy.
well the CU is only going to finance 90%. I am not actually putting anything down, just have to pay what the CU doesnt pick up.. I think you are right though, the girl at the CU was getting on my nerves with all teh worth versus price stuff, and I even tiold her three or four times, its new.. Anyway, I appreciate your help..
The CU is only financing 90%?? Tha's very odd....if I were you..I would see what the dealer could do...they can finance 100% and with the incentives that are going around now..you might be able to do the deal at a better rate with no out of pocket costs....also...for negotiating...the best time to buy a car is on a Monday or Tuesday morning at the first of the month or the last day of the month as dealers are trying to make their quotas.
