Interest rates

[Jeeppaul91]

Make sure that 3 months is actually in the finance contract that you signed. In all likelihood that's the window in which the finance agent who sold you the high interest loan locks in his/her commission. If it's not in the contract you signed, it doesn't exist and you can refi at will. Rates are only headed one-way in the meantime.

You should look out for your own best financial interest, I promise that the dealer finance agent was looking out for someone other than you...

Im pretty sure the “no prepayment penalty” clause means that you can refi it or pay it all the way off without any issues, they are one in the same in the eyes of the lean holder. The guy I had to deal with tried to convince me that the absurd rate Chrysler Capital rate was a good deal because I got an extra $1,000 off the sale price of the vehicle. If I had waited 3 months to finance it I would have paid $1,000+ in interest. I refinanced after 4 days, F&I managers make their living by lying to their customers, I have no problem lying right back to them with a promise to wait 3 months to refi. At the end of the day, my own best interest is what I look out for, not some guy at the dealership who spent an hour trying to sell me a $6,000 warranty.

Sponsored

 

[Astheros]

Make sure that 3 months is actually in the finance contract that you signed. In all likelihood that's the window in which the finance agent who sold you the high interest loan locks in his/her commission. If it's not in the contract you signed, it doesn't exist and you can refi at will. Rates are only headed one-way in the meantime.

You should look out for your own best financial interest, I promise that the dealer finance agent was looking out for someone other than you...

even PennFed is showing 5.5. for 60 months at this point(as a premier credit rate)

 

[CodeRed]

I've used penfed for yrs but they dont seem very good these days

 

[okjeeprox]

I got 3.89 for 72 mo. through my bank which is lower than what they are advertising for my state. Figured I would have my financing ready with them unless dealer can secure something better. But these days, highly unlikely unless Stellantis is offering incentives which I'm not seeing online unless you lease.

 

[Jeepin' John]

When you start paying cash for everything, your purchasing habits change. You realize you're happier with an older jeep or lower model jeep that is paid for. Then, because you made that decision (and others like it), your bank account starts growing and you don't worry about money ever again. Soon enough you can pay cash for what you originally wanted, and still have money in the bank.

 

[COJeeper]

On vehicle purchases (aka depreciating assets)? No. I save up and write a check.

We did time the construction of our house to pin down the best possible interest rate. The wait was annoying but the savings over the term of the mortgage was of course worth it.

Good call, everyone should have $60k cash laying around burning a hole in their pocket to just buy cars on a whim.

 

[COJeeper]

I have said before, and say again ; get the longest length loan, so that those low monthly payments are affordable in a worst case scenario.
You can pay towards the PRINCIPAL with any surplus money, and pay it off sooner. This protects you against unforeseen circumstances, your choice to get that principal down.

Good and not good advice. If the rates are related to term, then that might not be smart. I would agree with "get the longest term loan that allows for the same rate." For example, if it looks like this:

48mo - 1.50%
60mo - 1.99%
72mo - 3.49%
84mo - 5.99%

Choosing an 84 month just to get a lower committed payment is not a good idea.

This is just one mans humble opinion though, if it's your money, do with it as you wish and what you think works best for you. I for the life of me cannot get my friend to sign up for a credit card and use that instead of her debit card. I keep telling her she's throwing free money away with points. I don't know why she can't understand it. Oh well, her money, she can do whatever she wants, and I'll just keep telling her she's stupid.

 

[Jim1964]

Good call, everyone should have $60k cash laying around burning a hole in their pocket to just buy cars on a whim.

People that manage their money don’t buy cars on a whim. That’s the whole point.

 

[COJeeper]

People that manage their money don’t buy cars on a whim. That’s the whole point.

I drop $1900/mo distributed between three savings accounts and don't think I'd be able to save up $55k to buy a new Jeep.

Although, I am teaching my wife my rule of no longer than 5 years to pay off a vehicle and then keep it for 10 and spend the next 5 years putting that car payment money aside so I guess I'm doing just that. However, it's not worked for me because for the last three vehicles I've purchased, the cost on them has gone up quite a bit. $18k to $38k to $51k Thankfully, I had some money set aside to be used for down payment and some good equity in my trade so my $51k purchase is only $500/mo for 60 months, which is $50 less than the max I've budgeted for an auto payment.

 

[Craigger]

...don't think I'd be able to save up $55k to buy a new Jeep.

This is probably going to sound harsh but if you can't save up $55K to buy a new Jeep then you don't buy a $55K Jeep (regardless of the whole cash vs. financing question).

 

[Jeepin' John]

Good and not good advice. If the rates are related to term, then that might not be smart. I would agree with "get the longest term loan that allows for the same rate." For example, if it looks like this:

48mo - 1.50%
60mo - 1.99%
72mo - 3.49%
84mo - 5.99%

Choosing an 84 month just to get a lower committed payment is not a good idea.

This is just one mans humble opinion though, if it's your money, do with it as you wish and what you think works best for you. I for the life of me cannot get my friend to sign up for a credit card and use that instead of her debit card. I keep telling her she's throwing free money away with points. I don't know why she can't understand it. Oh well, her money, she can do whatever she wants, and I'll just keep telling her she's stupid.

Good for your friend ?

 

[Astheros]

This is probably going to sound harsh but if you can't save up $55K to buy a new Jeep then you don't buy a $55K Jeep (regardless of the whole cash vs. financing question).

how is this any diff than saying "if you cant save 250k to buy a house then you shouldnt be buying a house"

and no, single family homes are not assets. just look at appreciation over 10-20 yrs in any decent suburb. many houses dont appreciate much in nice towns bc they are already nice and values are built in. nevermind we start talking about taxes, interest, maintenance, repairs. etc

single family homes are forced saving accounts at best.

 

[Deleted member 59498]

Paying cash for a Jeep is weird or any car. Unless I just had cash laying around doing nothing at all which is a bad idea anyway. Even in this climate cash could easily be making more money than a car loan cost. Cash doesn't give you any leg up during purchase either. If you are not financing with the dealer they don't care if the check comes out of your personal bank account of Navy Federals bank account.

 

[Deleted member 59498]

This is probably going to sound harsh but if you can't save up $55K to buy a new Jeep then you don't buy a $55K Jeep (regardless of the whole cash vs. financing question).

No just sounds silly not harsh. Sure I could save up 55k over 5 years putting the payment in my savings account as I walk or ride the bus to work or drive some beater. What is the difference than just getting a loan up front and doing the same thing as saving? At the end of the 5 years I would have paid a couple of thousand in interest instead of getting a thousand or two in interest from savings? I will keep buying my Jeeps with someone else's 55k @2.29%

5 years without a jeep to save up?
5 years with a jeep that cost couple thousand dollars?

Not even a second to decide on that.

 

[Jeepin' John]

how is this any diff than saying "if you cant save 250k to buy a house then you shouldnt be buying a house"

and no, single family homes are not assets. just look at appreciation over 10-20 yrs in any decent suburb. many houses dont appreciate much in nice towns bc they are already nice and values are built in. nevermind we start talking about taxes, interest, maintenance, repairs. etc

single family homes are forced saving accounts at best.

If i personally only rented, i'd be missing hundreds of thousands of dollars right now. And that's on personal homes - i'm not in the business or anything. You can make a lot of money on smart real estate purchases and sales. I'd highly recommend you look into real estate opportunities in your area or look into moving to a developing town/area with those opportunities. You can do great on houses ?

Sponsored