New and used car loan rates through the roof (pay, rate, financing)

[Goog Game Well Played]

I’m looking for a new truck, used it new and can’t, for the life of me find one that’s worth buying.

Used cars are super expensive with astronomical rates....4%+!!! I got 0% on one of my trucks maybe 5 years back and those are almost non existent now.

Prices of vehicles have increased dramatically as well. Not only do you have to pay a premium for a used car now but rates are insane.


Why are mortgage rates so much lower than car notes! I feel like it never used to be like this.

[oneasterisk]

My credit union is doing 3.49% on new, and 3.74% on used for a 60m loan. Half a percent lower if you use their truecar buying service.

Last March I bought a used vehicle and got a 3.24% loan when the dealer matched my CU. It was less paperwork at the dealer so I went with them.

[Lowexpectations]

4% on used cars is far from astronomical. Getting 0% a few times here and there doesn’t change historical norms

[MSgtMike]

I find the 100% down method works best. More leverage, no stupid payments and I never care what the interest rate is.

[Lowexpectations]

Originally Posted by MSgtMike

I find the 100% down method works best. More leverage, no stupid payments and I never care what the interest rate is.

This is a falsehood in today’s car market. You don’t get any extra leverage by paying 100% cash

[somebodyfromnc]

I got 3.99% for 72 months back in 2019.

I qualified for 0% with GM Financial, but I would have lost a ton of rebates. I don't keep vehicles long, so it made more sense to take the rebates and a little higher interest rate with my CU.

[westcoastforme]

Originally Posted by Lowexpectations

This is a falsehood in today’s car market. You don’t get any extra leverage by paying 100% cash

Wrong.

Have to play the long game and bring cash out at the 11th hour.

[westcoastforme]

Great video on bringing cash/check out only after OTD price has been negotiated.

https://youtu.be/gLxVyeFmod8

Exactly what I did. Msrp was 52,000 on a 19 Ram and OTD was about 42,000 (so price of truck before tax title fees) was about 38500-39000.

Traded in a paid off car and got a check for the rest. Had I financed over 72 to 84 months i would have been hosed and spent something like 59,000 with interest if I remember the ridiculous payment amounts they brought out


The finance guy was rude short and mad he made no money off of me

[Lowexpectations]

Originally Posted by westcoastforme

Wrong.

Have to play the long game and bring cash out at the 11th hour.

Bringing in the all cash deal upfront doesn’t give you more leverage. Zero. You aren’t getting any extra rebates from the manufacturer in an all cash deal, you aren’t getting any cash back from the financing arm etc. you don’t have extra leverage in all cash. Bringing it in during the 11th hour doesn’t change your leverage either

[westcoastforme]

Originally Posted by Lowexpectations

Bringing in the all cash deal upfront doesn’t give you more leverage. Zero. You aren’t getting any extra rebates from the manufacturer in an all cash deal, you aren’t getting any cash back from the financing arm etc. you don’t have extra leverage in all cash. Bringing it in during the 11th hour doesn’t change your leverage either

Wrong again.

I talked them down an extra 2500 after pitting them against another dealer. Had they known i was essentially paying 42000 cash i can pretty much guarantee I wouldn't have gotten that deal.

Plus i saved 12,000 plus in interest