Car loan question

[cmjh10]

Looking into upgrading vehicles and the last part I am looking into in car loans, especially interest rates. Im looking into trucks that are 5 years old or less. I have a rate from my bank (6% fixed), but my dad is convinced I can get better somewhere else. Any ideas on where I should look and what rate I could get? TIA

 

[heyguy85]

I bought a 5 year old truck and got a 4.5% rate from my bank. Maybe try a credit union if your bank won't do any better.

 

[ArgentCy]

A lot depends on your credit of course but I was able to get something ridiculous for my car, 2.5% or less. Of course I was debating to just use a short term credit card no interest because I had over 50% in cash. 6% seems awfully high for today's low rate environment.

 

[legi]

You can try the place where you will be purchasing the car. They usually work with different banks and can get good rates.

 

[ruxCYtable]

You can usually get a better rate from a credit union...

PS just checked my credit union and their rate for a 5 y.o. vehicle is 2.99% so I'm going to say if you look around you'll do better than 6% unless you have lousy credit.

 

[BoxsterCy]

Banks. :realmad:

 

[BoxsterCy]

If you are an ISU Alumni Association member you can join the Greater Iowa Credit Union. You didn't mention how old the car is or how long the loan term. Older cars = higher rates. Longer terms = higher rates. (Usually)

Loans: https://www.greateriowacu.org/loans/rates/

These guys are at 2% for 5 years on 2013 or newer.

 

[NATEizKING]

Members 1st CCU is 2.99% I believe.

 

[Jambalaya]

Looking into upgrading vehicles and the last part I am looking into in car loans, especially interest rates. Im looking into trucks that are 5 years old or less. I have a rate from my bank (6% fixed), but my dad is convinced I can get better somewhere else. Any ideas on where I should look and what rate I could get? TIA

Credit unions the way to go with the long-standing advantageous guidelines they enjoy over a bank

 

[blizzisu]

Veridian has auto loans as low as 1.74% APR. https://www.veridiancu.org/

 

[Rabbuk]

I know a nigerian prince...

 

[IcSyU]

The credit union I banked at was only willing to do 3.99% and the dealership was able to get Citizens Bank to take the loan on my vehicle at 1.91%. It all depends on your credit, how much you're trying to borrow, and the payback term.

My personal advice would be to put down enough on your vehicle that you are never under water on the loan and don't stretch it out more than 60 months.

 

[JP4CY]

Community choice offered me 2% on a 60 in Jan of 2014. Second vehicle I've gotten thru them (first one was trade in for this) and also got our house thru them.
Extremely easy to deal with.

 

[Cyclonefan710]

If you need 60 months to pay off a car you can't afford that car.

 

[cdekovic]

This is why good credit is golden and should be treated as such.

 

[Jambalaya]

If you need 60 months to pay off a car you can't afford that car.

*** We have a winner *****

 

[CYme]

If you need 60 months to pay off a car you can't afford that car.

Then gtfo of the thread. If you have to finance at all you can't actually afford it outright, so the point is moot.

It is good to have pre-approval going in as you may be able to take advantage of some cash back/floor planning/dealer incentives. They may be able to beat the rate you have, so go ahead and let them try. With a 700+ credit score you should be able to secure a 3% rate. 730+ I would expect you to be able to get in the 2% range. Credit is super cheap right now.

 

[Mtowncyclone13]

If you need 60 months to pay off a car you can't afford that car.

...Or you can but it doesn't make sense to pay off a 3% loan . The difference in interest in my latest loan between 4 and 5 years is $296. Im betting I can make more than that in the market over 5 years.

 

[00clone]

The credit union I banked at was only willing to do 3.99% and the dealership was able to get Citizens Bank to take the loan on my vehicle at 1.91%. It all depends on your credit, how much you're trying to borrow, and the payback term.

My personal advice would be to put down enough on your vehicle that you are never under water on the loan and don't stretch it out more than 60 months.

This is why I've worked hard to never again borrow money on a depreciating asset. I know some will say to "borrow low interest and invest the difference", but most of the time, they never actually invest the difference. I haven't had a car payment in close to 10 years. Mrs00 drives a 2011 Sienna that we bought new for cash, I drive a 2005 focus that we bought as a cheap replacement for a car she hit with a deer 10 years ago. The depreciation hit us hard the first few years and made it not worth trading/selling, but it hasn't had any problems to justify dumping it and buying something newer. That one only has to get me to work and back.

 

[keepngoal]

If you need 60 months to pay off a car you can't afford that car.

That's why I recommend a 80 month loan for a vehicle.







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