Financing through SmartUSA?

[canon1753]

Do we know if we will be able to finance the car through Smart or will we need to go to a bank to get a loan?

Maybe a "Duh!" question but I'd think that with would be something that someone will soon know as the first cars come to the US.

[spdickey]

Originally Posted by canon1753

Do we know if we will be able to finance the car through Smart or will we need to go to a bank to get a loan?

Maybe a "Duh!" question but I'd think that with would be something that someone will soon know as the first cars come to the US.

Always better to arrange your financing before you walk into the dealer. Credit Unions have even better rates than banks or auto dealers.

And since there won't be any dealing on the car's price, you'll get stuck with a terrible interest rate with dealer arranged financing.

[eqwalker]

Indeed. I have already arranged financing through my credit union since the interest rate cannot be touched by any bank that I have checked with.

[Vlad92]

Agreed... I've used Pentagon Federal Credit Union (http://www.penfed.org) for my last 3 car loans and have been very happy with their rates and service. They currently offer 5.29% up to 72 months. Great thing is you don't even need to be in the military to join (just need to join the The National Military Family Association for a nominal fee). You get instant approval and they send you a "blank check" up to the approved amount. Very fast and easy!

[Brian7]

The Credit Union thing is really sound advice. But I notice that the interest rates are not great anywhere you go....

I've been thinking about putting the balance, after my trade-in, on my low APR credit card @ 4.9 percent, which is the lowest APR that I see out there!

[jwight]

For USAA members, their bank is offering new car loans as low as 4.94% APR.

[spdickey]

Originally Posted by Brian7

The Credit Union thing is really sound advice. But I notice that the interest rates are not great anywhere you go....

I've been thinking about putting the balance, after my trade-in, on my low APR credit card @ 4.9 percent, which is the lowest APR that I see out there!

Good luck doing that, most car dealers won't let you charge more than a couple of thousand on a credit card. I have enough credit line to buy a car, but the dealerships will only let me put $2000 on the card.

[Brian7]

Thanks for the tip, but how is the auto dealer only allowing $2000 legal?

[lizzythompson]

I am paying cash for mine.....Went to Park Place Motors in Dallas today and the Smart showroom looks finished. They has a blue/silver coupe in the showroom already. Will call them in the am to find out if they are offering test drives yet or if they will even acknowledge the fact that it is there...

[mattlimbaugh]

Brian, the reason dealers usually have a limit is b/c they, just like all merchants, are charged a fee (usually a percentage ie: 2.5%-4.5%) by the company that pays them and collects the money from the credit card company. So, an $18000 purchase would cost the dealer an extra $450 - $800 fee that has to be taken out of the gross profit of the sale. So you say, why cant they just add that fee onto my purchase so that i could buy this car, get a great rate and also earn sky miles all at the same time? the reason, all merchants sign an agreement with their local company who handles credit card transactions, not to pass this fee along to the customer.
So when you stop and think about how much money credit card companies make in interest alone from these poor fools who carry high balances, they also make a portion of that fee that is charged to the merchant.