Financing interest rates

[Wrangles]

The dealer will shop your credit to various banks, including Chrysler Capital, to try to get you the best rate. I suggest going in with your own financing solidified and giving them the chance to beat it. Many people have had great luck getting rates between 2.49 and 2.99 with clean credit through DCU.

Almost correct. Dealers will give you the highest rate that they think you will take. They absolutely do not try and give you the lowest rate. They make more money in the form of financing kickbacks the higher rate they can get you to agree on. The “finance” person at every dealership is just 1 more way for that dealership to make money on the sale. Everyone needs to keep that in mind.

Also, from reading ahead in this thread, if you ever get a financing rebate from a manufacturer then take it. Say they give you a $1,000 rebate for financing with FCA even if it’s at some crazy high rate, take it. You can refinance immediately in 2-3 weeks when you get an FCA finance account number. There is usually NO prepayment penalty meaning these loans almost never come with a fee if you decide to pay it off early, doesn’t matter if you plop down cash to pay it off in 2-3 weeks or if your other bank pays it off, it’s the same thing.

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[Elganja]

i always use LFCU.org for all my loans-- very easy to deal with and no hoops to jump through

 

[Chocolate Thunder]

So I’m placing my order in the next few days and searching for the best finance rate available. I’m going to finance for 60 months. Excellent credit. The best rate that I’ve been able to find is 2.74%. Who’s financed recently (last 60 days or so) and has a lower rate? Where from?

 

[TheBrandon]

So I’m placing my order in the next few days and searching for the best finance rate available. I’m going to finance for 60 months. Excellent credit. The best rate that I’ve been able to find is 2.74%. Who’s financed recently (last 60 days or so) and has a lower rate? Where from?

Dealers get incentives financing through them. Most likely you’ll save $1000 financing in house. Refinance with some one like Pen Fed after a few payments with no fees and everyone wins.

 

[Chocolate Thunder]

Dealers get incentives financing through them. Most likely you’ll save $1000 financing in house. Refinance with some one like Pen Fed after a few payments with no fees and everyone wins.

Their 60 month rate is .75% higher than the 2.74% that I mentioned that I’d found. Know of anywhere lower than that?

 

[TheBrandon]

Their 60 month rate is .75% higher than the 2.74% that I mentioned that I’d found. Know of anywhere lower than that?

Not off the top of my head unfortunately. I’ll post for sure as it gets closer.

 

[eugene]

So I’m placing my order in the next few days and searching for the best finance rate available. I’m going to finance for 60 months. Excellent credit. The best rate that I’ve been able to find is 2.74%. Who’s financed recently (last 60 days or so) and has a lower rate? Where from?

Im closing tmrw on 60 Months for 2.74% at a local credit union. I work in banking and shopped around and could not find anything better than 2.74% in my area. Not to put pressure on y'all but on Sept 26 PRIME could go up. I was worried about that happening so I am locking down the 2.74% tmrw.

 

[Chocolate Thunder]

Im closing tmrw on 60 Months for 2.74% at a local credit union. I work in banking and shopped around and could not find anything better than 2.74% in my area. Not to put pressure on y'all but on Sept 26 PRIME could go up. I was worried about that happening so I am locking down the 2.74% tmrw.

Thanks.

 

[Karl_in_Chicago]

Damn I'm old. 60 month loan on a car, blows my mind. Not knocking anyone at all, simply showing my age. Never financed a car for more than 36 months and then paid it off in 18. Financed my home for 30 years but paid it off in 14. Rock on and do what you do and I'm not knocking it, just an old fogie observing the new world.

 

[Chocolate Thunder]

Damn I'm old. 60 month loan on a car, blows my mind. Not knocking anyone at all, simply showing my age. Never financed a car for more than 36 months and then paid it off in 18. Financed my home for 30 years but paid it off in 14. Rock on and do what you do and I'm not knocking it, just an old fogie observing the new world.

Thank you for your astute observations!

 

[eugene]

Damn I'm old. 60 month loan on a car, blows my mind. Not knocking anyone at all, simply showing my age. Never financed a car for more than 36 months and then paid it off in 18. Financed my home for 30 years but paid it off in 14. Rock on and do what you do and I'm not knocking it, just an old fogie observing the new world.

Do you have any observations as to why you think longer financing terms on an auto loans is more normal these days? My guess is the major reason you (and others in the old world) had shorter financing terms and paid it off quick was due to rates being higher?

My loan is for 60 months at the 2.74% but I also paid off half of the car as a down payment, does this make it less "mind blowing"? lol

Jeep Noob, looks like rates did go up, did you end up closing on a loan before it happened?

 

[Chocolate Thunder]

Do you have any observations as to why you think longer financing terms on an auto loans is more normal these days? My guess is the major reason you (and others in the old world) had shorter financing terms and paid it off quick was due to rates being higher?

My loan is for 60 months at the 2.74% but I also paid off half of the car as a down payment, does this make it less "mind blowing"? lol

Jeep Noob, looks like rates did go up, did you end up closing on a loan before it happened?

I just placed the order for a 2019 last week. Rate lock is only for 30 days (maybe 45?) so there’s no point in doing that now when I won’t have a Jeep to finance until the holidays at the earliest.

Interest rates are creeping back up again but they’re still quite low. I think I paid 17 or 18% on the first new car I ever purchased back in the early 90s when I was young and had insufficient credit. 3% isn’t going to piss me off too much.

 

[stangken]

Just FYI. I refinanced my rate from the dealer from 5.9% (75 month term) to 3.24% (60 month term) with Langley Federal Credit Union. The process was very simple.

 

[plex]

People are more materialism these days. They overspent beyond their financial limits, so the longer term they have, the lower impact to their paycheck. Who care about the compound interests, right?

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