Who is the best company to finance a car through, and that’s the worst?

The industry is so tightly regulated these days that you have to try really hard to get screwed on a new car deal. There are no real “best or worst” companies to finance through, only personal experiences, which vary wildly based on the preparation the buyer made before walking onto the lot.

Most new-car buyers are well-informed, and come to dealerships with invoices, Edmunds.com printouts, and lists of competitors vehicles. The dealers know this, and if you do even a bit of homework, know exactly what you want, and how much it should cost, you have the upper hand. Don’t pay over sticker, and try to pay as little as possible over invoice ($ 300-500 is fair). Oh, and factory rebates are NOT a dealer discount, don’t let them tell you otherwise. Negotiate the PRICE of the car BEFORE rebates, not your monthly payments after they are applied.

Finance rates are really the only thing they can fudge anymore, so know your credit score, what rate your bank or credit union will give you on an auto loan, and you will have an air-tight backstop to your negotiations. You might even be better off just showing up with a check for your car from the credit union, that will probably be the best rate you can get. Don’t be afraid to let them run your credit through their network of banks though, they might still get you a better rate.

This is for a simple NEW car purchase. If you are buying a USED car, or owe more on a trade-in than it is worth, you are in the twilight zone, and the dealership has many more loopholes to seize profits from the deal (i.e. screw you). Sell your trade yourself if possible, and double or triple the amount of homework you do on the EXACT used car you want to purchase. Good luck!