NEW AUTO LOAN RATES??? Any tips?

Chrysler-Factory-Warranty

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Congrats on the new Jeep. I have 20 years in the business, Proud its with a Jeep dealer:) You can shop for a better rate online among the banks in your area. Once you do this you will want to print out the rates you find and let the dealer know you would be just as happy to finance with them if they could match the rate. Most of the time they would rather secure the financing thank not, even if it is at a lower rate.

 

five9dak

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There are cash flow considerations of fully paying vs financing, no doubt about that. However, if OP wants to tie up a disproportionally larger amount of their future cash flows in form of high(er) interest rates because the asset depreciates rapidly then who am I to argue with that logic?

Why not stop there?! If depreciation rates determine financing strategy then OP should just buy a 392 XR with all cash. Many members of this forum seem to think that the value of 392s won't decline much, some even think they will go up given V8-collectibility at the sunset of ICE vehicles. Therefore ALL CASH!
While expensive jeeps retain high absolute value residuals, the cheaper trims retain more percentage, and cost less up front. 2dr base has traditionally been the best bet for lowest cost of ownership, even though the rubi owners are proud of their high resale price. They lost more owning it usually.

Recently with the supply disruption I'm sure there are anecdotes both ways, but if you look at the history of JKs and JLs before covid, that's what happened.
 
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Congrats on the new Jeep. I have 20 years in the business, Proud its with a Jeep dealer:) You can shop for a better rate online among the banks in your area. Once you do this you will want to print out the rates you find and let the dealer know you would be just as happy to finance with them if they could match the rate. Most of the time they would rather secure the financing thank not, even if it is at a lower rate.
Yeah I may be going that route. I switched over to driving Jeeps last year, I sold cars years ago at a Toyota dealer and drove nothing but Toyotas. I never had to worry about financing because they always hooked me up with the best rate possible and the best price possible for the vehicles I bought. Toyota finance never had high rates, so my customers rarely came in with ready checks. The whole concept of having to find your own financing to get a good rate is new to me. We had people buying used vehicles at 2.99% and used at 0% or 1.99%.… I saw 6% people on this Forum with top tier credit getting quoted 6% and couldn’t believe it.
 

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Yeah I may be going that route. I switched over to driving Jeeps last year, I sold cars years ago at a Toyota dealer and drove nothing but Toyotas. I never had to worry about financing because they always hooked me up with the best rate possible and the best price possible for the vehicles I bought. Toyota finance never had high rates, so my customers rarely came in with ready checks. The whole concept of having to find your own financing to get a good rate is new to me. We had people buying used vehicles at 2.99% and used at 0% or 1.99%.… I saw 6% people on this Forum with top tier credit getting quoted 6% and couldn’t believe it.
I honestly couldn't imagine walking into a dealership and dealing with the salespeople, sales mangers and f&i managers. I like to think we are pretty easy to work with. We are a family owned and operated dealership which I think makes a big difference.
 

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I placed an order with Koons back in June. My projected ship date is 9/1. Buying cash is an option but its not ideal, makes more sense to finance a vehicle vs tying up a bunch of cash in a depreciating asset. Koons supposedly hits people with ridiculous Chrysler Finance rates (6%+). Anyone have any tips on who to go through for an auto loan? Ive looked into some options but the credit unions require membership and I don’t bank at a credit union. I have top tier credit and income is good so approval isn’t an issue, I just want the most competitive rate possible so I can head down to Koons with my own financing.
Check with the dealer, they sometimes have several options with lower rates; check to see if Jeep has any special finance options currently; in addition to your own bank or credit union.
 


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The reason I asked is because pretty much all of the major banks that I looked into are listing interest rates in the 4% range as of this morning. A couple of the local credit unions that I’m eligible to join where I live are all the same as well, best I could find was 4.249%. - not exactly a stellar rate. I don’t qualify for the credit unions around here with the super low rates, its pretty much all employer related up here in PA, and none of my family members use credit unions so I don’t have an option to join that way either.

There are a lot of small credit unions all of the country that don’t pop up on ”auto loan rate” google searches, a couple of folks on here pointed out some decent options that I would’ve never have thought of (NUSENDA CU in New Mexico is a good example, 2.8% for 60 months ain’t bad). Looks like there isn’t any specific criteria to join that one either, I may be able to open an account there tomorrow. I guess my post may have delivered some results after all.

I wouldn’t necessarily question someone’s financial/investing knowledge or prowess based on asking a typically friendly community where they got their low rates at. From my experience, being the smartest guy in the room never got me too far, I’d rather ask a question and risk looking like incompetent vs trying to be the guy with all the answers.
I’ve used Alaska CU, Arrowhead CU and
SCE CU for car loans in the past. Everything was done online and only had to put $5 into a checking account to become a member. All of their interest rates were considerably lower than any bank.
 

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Go credit union all the way. Also, some credit unions will "beat" anothers rate. In may i found a CU doing 1.99 for 60 months, and i brought it to my local one and they beat it and now i have 1.89 for 60 months. Granted rates have generally gone up, if you put in some leg work you can still get a decent deal.
 

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Just stopped at my credit union, PFCU 60 months 2.49% and even 84 months was 3.99%.

At the very least, leverage at the dealer to match (or come close).
 

JRudi392

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I financed mine a few weeks ago for 1.99% through a credit union. Joining one as others has posted was simple - min. $5 in a savings account and I have to have payment taken out of a checking account automatically. When I told my dealer what they were offering he didn't even try to talk me into using them for financing.
 


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It’s literally rare that a dealer will ever beat a credit union rate, they might be willing to match it to get your business but CU are the way to go, I know navy CU and Penn CU were really good months ago not sure what they are offering right now
 

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Local credit union here is 2.49% up to 60 months. 1.99% if you use their car buying service.
 

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People say this but what no one accounts for is the additional risk you assume in doing so. It's not like you're investing in risk free Treasury bonds, so a flat comparison of interest rates is inaccurate. Imagine if a dealer offered to do the same but just handle the investing for you - you buy the Jeep and pay cash for the full amount and in 5 years the purchase price would be adjusted according to stock market performance, with you then settling up with the dealer for either a refund or suddenly paying the dealer thousands more. Few would choose that option, even though as I describe it, it's equivalent.
I agree. There is some risk. But,
I bought in April and rates were about 4%. So for every $10k financed it would cost me $400, or $2,000 for the first year because Rubicons are $50k.
Two Thousand Dollars.
If you have the cash, pay cash. Pay your savings / investment account like you would the loan. Just make sure you keep the vehicle with full coverage and have the deductible tucked away as well.
 

2020 Rubi Diesel

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My interest rate on my used 2020 Rubicon was 2.5% last summer, my wife had 2.25% in 2018 on her used 2017 pilot and I bought a new yukon in 2016 and my rate was 1.9%. My local bank(FCBbanks.com has always beat the local Scott credit Union rates) currently has rates at 2.99% and SCU is 3.75%. I used FCB for the jeep and pilot and was going to use it on my Yukon, but the dealer offered me a lower rate.
 

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Paying cash or financing really comes down to the cost of money. If you have a 2% rate, and the rate of inflation is 2%, then it's basically "free money". If you have a 2% rate and inflation is 10%, you're basically making 8% on the deal.

If you have your own company (LLC, S-corp, etc.) then buy big and take the accelerated deduction while you can. It's going to go away... My wife got a G-Wagon because the GVWR was high enough to qualify for the full tax deduction. Funny because she uses it 100% for work, but she works from home and never drives it.

Back to rates - I've always worked with Pen Fed or USAA, but lately they're not so great. I got a 1.9% loan on my 392, and thankfully it's a done deal because they raised their rates to almost 6% for the exact same loan in a matter of weeks.

Rates probably will come back down, but in any case, doing the math is the most important thing to determine if financing makes sense or not.

With all the high-dollar cars coming out soon, there may be some cash bargains to be had. People who normally would finance might not be able to afford what's on the horizon, and it'll be a buyer's market again.

 

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