Auto loan finance recommendations

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2quiker
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Joined: Sun May 10, 2020 12:39 pm

Auto loan finance recommendations

Post by 2quiker »

Looking for a new car but was wondering what financial institution people are using with the best interest rates?
I know there is a big mortgage refi but I don't see anything for auto loans.

Thanks.
mervinj7
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Re: Auto loan finance recommendations

Post by mervinj7 »

2quiker wrote: Fri Jun 12, 2020 5:39 pm Looking for a new car but was wondering what financial institution people are using with the best interest rates?
I know there is a big mortgage refi but I don't see anything for auto loans.

Thanks.
Last time, I got an auto loan, I used my local credit union. Rates were lower than the dealer at the time.
TropikThunder
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Re: Auto loan finance recommendations

Post by TropikThunder »

2quiker wrote: Fri Jun 12, 2020 5:39 pm Looking for a new car but was wondering what financial institution people are using with the best interest rates?
I know there is a big mortgage refi but I don't see anything for auto loans.

Thanks.
Sorry, this is Bogleheads. You’re only allowed to buy a gently used base Camry or Accord, and you can only do that every 10-15 years.

I’ve found the best finance rate is actually through the dealer a lot of the time since it’s part of the overall negotiation. For example, Mazda has a 0% up to 60 months special, Honda has 0.9% for 24 months, etc.
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whodidntante
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Re: Auto loan finance recommendations

Post by whodidntante »

Some manufacturers are offering 0% loans on top of incentives. All things being equal, it would make sense to accept that offer.

My current auto loan was 1.89% for five years at a credit union. It wouldn't be too hard to find a similar deal today.

If you want to save money, though, focus on how much you're paying for the car. I drove hoopties purchased from private parties for most of my life, purchasing my first new car four years ago. You'll never drive that cheap and you can get some pretty nice cars like that. I might go back to my roots after this one.
UnLearnYourself
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Re: Auto loan finance recommendations

Post by UnLearnYourself »

DCU has as low as 2.49%
Topic Author
2quiker
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Re: Auto loan finance recommendations

Post by 2quiker »

UnLearnYourself wrote: Fri Jun 12, 2020 10:22 pm DCU has as low as 2.49%
Do you have any experience with them?
Topic Author
2quiker
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Re: Auto loan finance recommendations

Post by 2quiker »

whodidntante wrote: Fri Jun 12, 2020 10:19 pm Some manufacturers are offering 0% loans on top of incentives. All things being equal, it would make sense to accept that offer.

My current auto loan was 1.89% for five years at a credit union. It wouldn't be too hard to find a similar deal today.

If you want to save money, though, focus on how much you're paying for the car. I drove hoopties purchased from private parties for most of my life, purchasing my first new car four years ago. You'll never drive that cheap and you can get some pretty nice cars like that. I might go back to my roots after this one.
Damn 1.89% really. None of the credit unions here have anything below 3%
jbuzolich
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Re: Auto loan finance recommendations

Post by jbuzolich »

Seems like any car company I've looked at in recent months is offering 0% financing. Subaru 0% for 63 months offered so far in May and June.
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whodidntante
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Re: Auto loan finance recommendations

Post by whodidntante »

2quiker wrote: Sat Jun 13, 2020 11:42 am
whodidntante wrote: Fri Jun 12, 2020 10:19 pm Some manufacturers are offering 0% loans on top of incentives. All things being equal, it would make sense to accept that offer.

My current auto loan was 1.89% for five years at a credit union. It wouldn't be too hard to find a similar deal today.

If you want to save money, though, focus on how much you're paying for the car. I drove hoopties purchased from private parties for most of my life, purchasing my first new car four years ago. You'll never drive that cheap and you can get some pretty nice cars like that. I might go back to my roots after this one.
Damn 1.89% really. None of the credit unions here have anything below 3%
It's possible that rates are lower where I live, but you can absolutely beat 3% no matter where you are. The first national credit union I checked, Penfed, has 2.14% for 3 years.
UnLearnYourself
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Re: Auto loan finance recommendations

Post by UnLearnYourself »

2quiker wrote: Sat Jun 13, 2020 11:39 am
UnLearnYourself wrote: Fri Jun 12, 2020 10:22 pm DCU has as low as 2.49%
Do you have any experience with them?

Yes I have my loan with them. Good reputable credit union in MA.
Perkunas
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Re: Auto loan finance recommendations

Post by Perkunas »

Most lenders offer better rates for a "new" car vs a "used" car. What make/year are you looking to buy?

Some dealerships are offering 0% financing if you're buying a brand new vehicle.

If you're buying a used vehicle from a dealership, the dealer financing might still be as good/better than anything you'll find from a bank/CU. Used auto loan interest rates are not that great right now considering how low mortgage rates have dropped.

MyConsumer's Credit Union has some good rates if you open a checking account with them, somewhere around 2.69% for up to 60 months. My wife financed a car through MyConsumer's back in 2018 at 1.99% and since that time mortgage rates have dropped considerably but auto loan rates seem to have increased.
jello_nailer
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Re: Auto loan finance recommendations

Post by jello_nailer »

I'm paying off a Lightstream 0.99% car loan.
It was so cheap I had to grab it. Want to pay it off but it's free money. Try them, not sure what rates are now.
Last edited by jello_nailer on Tue Jun 16, 2020 5:18 pm, edited 1 time in total.
02nz
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Re: Auto loan finance recommendations

Post by 02nz »

Financially it makes sense to take 0% financing if there's not a cash incentive offered in lieu of it. But it sounds like you need the financing to be able to afford the car, which means you really can't afford the car.
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peetsperk
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Re: Auto loan finance recommendations

Post by peetsperk »

We’re weird, but we don’t borrow money to purchase a depreciating asset. Sorry.
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whodidntante
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Re: Auto loan finance recommendations

Post by whodidntante »

peetsperk wrote: Mon Jun 15, 2020 10:48 pm We’re weird, but we don’t borrow money to purchase a depreciating asset. Sorry.
Is that because you prefer paying a higher rate to borrow money to purchase an asset that only depreciates sometimes, and then saving up lots of cash while carrying that more expensive debt, then paying it all towards the car instead of the more expensive debt? And if things go wrong, that you would you rather lose your house than your car? :twisted:
RocketShipTech
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Re: Auto loan finance recommendations

Post by RocketShipTech »

peetsperk wrote: Mon Jun 15, 2020 10:48 pm We’re weird, but we don’t borrow money to purchase a depreciating asset. Sorry.
You’re right, that is weird.
fishnhunt
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Re: Auto loan finance recommendations

Post by fishnhunt »

All of the major car brand dealers are offering 0% financing right now for new vehicles. Local car dealers in my area were offering 0% 36 month financing on all used cars for two weeks at the end of May. DW and I were planning on buying a SUV this summer, plan was to pay cash for something around $13k. We decided to spend $19.5k and bought one slightly used with much lower miles due to the 0% financing.
jbmitt
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Re: Auto loan finance recommendations

Post by jbmitt »

We refinanced our 2020 model year vehicle with PenFed. I was happy with the process. It looks like they also offer a new car purchasing program with TrueCar that can further reduce their rates.
wfrobinette
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Re: Auto loan finance recommendations

Post by wfrobinette »

jello_nailer wrote: Mon Jun 15, 2020 10:24 pm I'm paying of a Lightstream 0.99% car loan.
It was so cheap I had to grab it. Want to pay it off but it's free money. Try them, not sure what rates are now.
Lightstream is great. Plus you hold the title.
jello_nailer
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Re: Auto loan finance recommendations

Post by jello_nailer »

Correct I forgot about that, no liens.
It's basically a signature loan. I can't imagine how the "honor system" works when you simply tell them what the loan is for and there are different rates for different uses. Seems like you could simply lie to get the lowest rate and use the "car loan" for that "home improvement loan".
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