Car Buying Tips Guide 1

forever. TIP: A cosigner doesn’t have to be locked into the car loan^

If the first six to 12 payments are all made on time, it is usually possible tofind another lender (or even the same one) to refinance the original loan
without a cosigner, assuming that person hasn’t damaged their credit andstill has an adequate DTI ratio. Contact the original lender and some new
ones; those on-time payments will make all the difference.
WHERE TO FINANCE
The usual financing sources are:

1. At the dealer, using the “captive” finance companies (owned by themanufacturers, such as Toyota Motor Credit) and manufacturer-
   affiliated banks such as Ally (General Motors).


2. Nation-wide banks with strong auto lending arms like Wells Fargo andChase (who also finance at dealers through their indirect-lending
   arms).


3. Credit unions (who now finance almost as many cars as banks).


4. Local banks.


5. Subprime lenders (more on this later).


6. Large lending institutions such as Capital One.