Used Car loan rates - current rate help?

[ram120]

Thinking about purchasing a second Wrangler, 2018, can someone comment on with Tier 1 credit (750+) what is the best used car loan rate people have gotten this last few weeks through the dealership (I am aware they work with a ton of banks)... just trying to figure out if I should go through my credit union or the dealership.

Thanks!

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[dgoodhue]

Goto your credit union and research/ask what you can get for rates. Then got the dealer and see if they will match or beat that rate.

 

[Jeepeto]

Just got 0 down and 2.49% at my local small town bank on Friday

 

[ram120]

Just got 0 down and 2.49% at my local small town bank on Friday

^separate question- from a bank providing standpoint is it better to put lets say 15,000 down for a 40,000 loan or 0 down on a 25,000 loan?

 

[ram120]

Goto your credit union and research/ask what you can get for rates. Then got the dealer and see if they will match or beat that rate.

the best rate I got offered from my credit union was 3.71% assuming Tier 1 credit but didn't process it yet so I'm wondering if I should go through with that or if Chrysler Jeep Bank loans are lower than that right now?

 

[Jeepeto]

^separate question- from a bank providing standpoint is it better to put lets say 15,000 down for a 40,000 loan or 0 down on a 25,000 loan?

I am in no way qualified to give financial advice. However, with that said, I would assume the bank would probably rather have money down as it provides them with cash colladeral on the loan.

i.e. if you default on the loan, they keep your 15k

 

[ram120]

thank you.
I'm curious to see what rates other people are getting on a used car through chrysler/jeep

 

[dgoodhue]

^separate question- from a bank providing standpoint is it better to put lets say 15,000 down for a 40,000 loan or 0 down on a 25,000 loan?

Generally, I don't think it makes difference for an auto loan.

the best rate I got offered from my credit union was 3.71% assuming Tier 1 credit but didn't process it yet so I'm wondering if I should go through with that or if Chrysler Jeep Bank loans are lower than that right now?

The credit union in my area that my finance uses had better rates for new cars (I didn't ask about used). Lightstream who I have used twice in the past has better rates than you were quoted, unless you are doing a 84 month loan. I am not sure if Crysler Capital does used car loans.

 

[gnvNole]

Check out DCU. Decent rates.
https://www.dcu.org/about/rates.html

 

[BDinTX]

^separate question- from a bank providing standpoint is it better to put lets say 15,000 down for a 40,000 loan or 0 down on a 25,000 loan?

we had a dealer fudge numbers in our favor by boosting the trade in value and purchase price by the same amount. It got us a better interest rate. Granted, this was about3 years ago.

 

[ram120]

we had a dealer fudge numbers in our favor by boosting the trade in value and purchase price by the same amount. It got us a better interest rate. Granted, this was about3 years ago.

would be nice but we aren't trading anything in

 

[DOOKEY]

^separate question- from a bank providing standpoint is it better to put lets say 15,000 down for a 40,000 loan or 0 down on a 25,000 loan?

Depends on your credit rating. From a banking stand point they want you to loan out as much money as possible pending you pay it back. That's the most money they can make off that transaction. If you have legit credit and they think you'll pay it all back they want to loan as much as they can.

Where most financial institutions draw the line is loan to value. Most all of them have it in writing that they will loan you xx% against the retail value of the vehicle. So they're trying to protect their investment.

 

[gerlbaum]

Payment term is also a factor. The longer the payback period the higher the rate.

Generally, the older the vehicle the higher the rate as well - 5 year old car being the oldest you can get a loan against.

Rates are pretty low right now and from what I’ve read they’ll start going up in late 2021/early 2022 through 2023 to help slow inflation.

 

[Arnoldzz5]

gerlbaum, that's right. But not all of those loan companies, which provide those loans for the used cars, not all of them have the same rules and terms. I can highly recommend a webresource I could discover few months ago - here is a webpage with a car loan estimator, and well, it will explain everything of how it counts your used car's price.

 

[Luxy60]

If you or anyone in your family is a veteran, USAA and PenFed have some decent rates right now on used car loans (around 2.5% depending on term).

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