Tips on Buying Cars: financing new auto, credit unions, random numbers

Question
It seems to me that obtaining my own auto loan would be better than going into a dealer and letting them work out all the financing.  My first 2 purchases went that way and I felt like I had very little control about where all the numbers were coming from.  It seems like getting my own loan and then going to a dealer to get the car I want as long as it is within my limit would be a lot less hassle and I would have more control and feel less swindled.  Any advice would be appreciated, thanks.

Answer
Hello,
Well your assumptions are partially correct and partially not... I shall explain.. By obtaining your own you can usually find a lower rate, and have less of a hassle (although it will still be a hassle.. as is all dealership purchasing). However, sometimes dealerships will give you a lower price on the car if you finance through them (because they will profit later off of that).. My advice, get quotes from local lenders (banks, credit unions, etc) AND the dealership.. basically... go to the dealership (tell them you will finance through them, argue the finalized vehicle price down as low as you can, find out the rate/duration of the loan, and tell them you will think about it & leave) take that same price to the locals and see what rate/duration they give you for the same amount.. The trick here is IF the dealership adds to the price because of your other financing agent, you will know the dollar amount of each price & can calculate which one is more advantageous.  So say (random numbers) the interest rate w/ dealer was .9% for 36 months on 24,000 .. and the bank gave you .5% for 36 months for the same amount... If the dealer changes the price to say... 25,000.. you should easily be able to call (or calculate yourself) and see how much the price changes your final price... (meaning... 3yrs X .5% of 25,000... versus 3 yrs X .9% at 24,000)... Yes its alot to do, but in the end the results could save you hundreds, perhaps thousands... ALWAYS lead the dealer into thinking you will go through them first (when paying cash it can go either way... larger dealers will tend to offer better deals through dealer financing.. smaller ones do better with cash).. (this way they wont stray TOO far away from that price when you "change your mind")... Thats about all I can tell you.. I am not a credit expert but I do know how dealers work.. If you want to save the hassle, just go with the bank.. much less chance of being ripped off... (unless the dealership has some special offer.. but beware the fine print!).. Hope that helps. Thanks!
-Rob