I am trying to buy an Audi and it seems like their financing rates are relatively high. I was quoted a 6.7% rate. This is too high since I was offered ~4% by BMW and I paid off my IS with a 5.5% rate. What are some good banks to get auto loans from?

 

if you're part of a credit union, they usually have good rates... if you're a costco member you can usually get special rates through Capital One. Capital One usually has good rates even for non-costco members.

 

Another approach - work out the diff. in interest you'd pay between the rate they're offering and the rate you want and tell them you'll take the car if they'll knock that amount off.

 

My insurance company is USAA--they also have a bank and have good rates.

You also could try and find lenders at bankrate.com. They may have some credit unions listed there.

If you have financing lined up before you go in to seal your purchase, you will stand a much better chance of having Audi knock down the rate. These lenders send you a "sight draft" which functions like a bank check. But--you haven't accepted the loan until the dealer "cashes" the sight draft. So, if Audi gives you a better deal, you cancel the other loan and tear up the sight draft.

Otherwise, Audi will play games like "I don't think you will get a better rate elsewhere/those are teaser rates/there are hidden fees" etc.

 

That's a very good idea!

 

the problem with that is that I am looking to buy a car that is in great demand and short supply. if I tell them I won't buy the car without a discount they would just say ok and will be able to sell to someone else few days later.

 

I'm not personally a Costco member (I use my mother's card), would that work?

 

i'm not sure if that would work... but you could try.. it's all online(costco.com, auto, auto services), just need to type in your (or in this case, your mom's) membership number, but then the application woudl all be in your name...

 

Capital One usually has some pretty good rates. You could also try going to your local banks and see what their rates are. When I bought my first new car back in 1994, I just walked into a bank and told them that I needed a car loan. Their rate was a lot lower than what American Honda offered me.

 

I got my loan for 20k with a credit union ( Nor Isl Co Cred Uni) @ 4.99%.

 

Well, I got a Zero Intrest rate by borrowing from family. I only needed 1K for a car loan though. Thats bc my money is tied up with a CD, other than that I pay cash.