New Tacoma OR

Hey guys, I'm new on here. After a couple of weeks of looking, the dealer that I am working with located a new OR and reserved it for me. ETA: 60 days. Woohoo. My question is, has anybody gone with outside financing and if so, can I simply show up at the dealer when the truck arrives and let them know or should I let them know ahead of time?

 

Nice and welcome to TW!

 

Definitely get your financing in place before going to the dealer - then let them try and beat what you have. Use it to your advantage!

 

Gotcha. They asked for a $1k deposit from me to search and reserve the truck. Wondering what they will do with the $1k if I show up with outside financing?

 

It should go towards the truck!
So you should now be financing (yours or theirs, doesn't matter) the difference, ex $36k truck, you're now financing $35k. Of course watch out for their mostly bulkshit document fees, they'll try to lump those in as well.

 

They'll just apply that to the price of your truck. If truck is $40k - you'll owe $39K + tax, title and license. Get pre-approved before hand so that you know what your interest rate will be (shop around and get the best one). Then tell your sales guy what you can get it financed at and then their finance guy will have to do his job and find you a better rate. It's just another way to save yourself some money as they'll try to stick you with a higher rate if you are not prepared (the finance guy makes money on how high he sets the interest rate on the loan).

 

Congrats on finding a new truck! I just got mine a little over a week ago after waiting a month for it to come in. $1k deposit went to the down payment. I looked at outside financing which had much better rates than the dealer but they dug deeper and came back with a rate that was closer. Went with what they found even though the rate was slightly higher just for the convenience of one stop shopping.

 

Bring outside financing, odds are you'll get a better interest rate unless the dealer is running any Toyota Finance specials. I got a certified Camry from them for 1.9%, for the wife, but it was only due to special terms at the time.

Normally for my vehicles I bring them a draft from a credit union. Typically these are good for 60 days after your credit is pulled. After 60 days credit would have to be pulled again.

If you do outside financing, make sure you ask how long you have to get the car until another credit pull is necessary.

 

That's a great point - don't start pulling until you're close to delivery.

 

Great advice! Thanks man

 

Bring your best rate to the table. A lot of times they can do better. They work with a lot of competing banks/credit unions.

 

And when the truck is in, and it's time for the actual purchase, remember to say "No Thanks" to every thing the Finance person tries to sell you. Although he/she will sound super convincing, absolutely NONE of is needed on your new truck.

 

Finance Guru: "but don't you know how much it costs to replace the head unit in these - if it goes out, it's like $4000"
me: yeah I know, no thanks I don't want your extended warranty.....
FG: "but...."
me: nah I'm good

Practice that and you'll be golden

 

Yep, then they’ll tell you “these trucks have over 350 computers”, which is probably true, but they want to get you worried, even scared!

 

Each time the finance person asks if you want to add this or that, politely decline but immediately ask for things like "free lifetime" oil change, air filters, detail/wax, etc. Make a long list and memorize it. That way you don't come up short in between their long list of things they'll throw at you.

 

Sales guy tells you how reliable the truck is. Finance guy tells you how many things might break. Sales guy tells you about the wonderful factory warranty. Finance guy tells you how many things the warranty doesn’t cover or won’t cover over time. Hell of a juxtaposition!

 

And you can remind both of them... "At least it's not....." (insert your favorite hated brand here).

 

Go threw a credit union to get your financing . They usually have the best rates and you can purchase gap and extended warranties threw them at a discounted rate .

 

But never borrow from a credit union where you have a savings account or other assets held.

 

If your credit score is good ( mine was 869 / 900 when I bought mine ) then you should be eligible for 1.9%
especially if you put a good bit down and go for 4 years.

Not sure any institution can beat that. When I bought the Subaru in 2017 for the wife we got 0% financing.

Remember you can always re-finance but I believe rates will most likely go up a bit.