Car Loan Rates

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Topic Author
mrtiger
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Joined: Sun Nov 13, 2016 8:35 pm

Car Loan Rates

Post by mrtiger »

Hello fellow bogleheads. I'm in a market for a new car (unfortunately paying cash is out of the question). I found a "decent" rate with Navy Federal Credit union at 4.99% for 60 months. Does anyone know better options?

Thanks in advance .
pizzy
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Re: Car Loan Rates

Post by pizzy »

What is the dealer/manufacturer offering? What make and model?
Vanguard/Fidelity | 76% US Stock | 16% Int'l Stock | 8% Cash
cmr79
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Joined: Mon Dec 02, 2013 3:25 pm

Re: Car Loan Rates

Post by cmr79 »

I've seen dealer financing advertised on TV for below 3%. How good of a rate you can get probably depends on how flexible you are with your choice of your next vehicle than anything else.
Topic Author
mrtiger
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Joined: Sun Nov 13, 2016 8:35 pm

Re: Car Loan Rates

Post by mrtiger »

pizzy wrote: Mon Nov 20, 2023 4:15 pm What is the dealer/manufacturer offering? What make and model?
Dealer options are limited. Lowest they can get too is 6.29% It is BMW-M2
pizzy
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Re: Car Loan Rates

Post by pizzy »

mrtiger wrote: Mon Nov 20, 2023 4:17 pm
pizzy wrote: Mon Nov 20, 2023 4:15 pm What is the dealer/manufacturer offering? What make and model?
Dealer options are limited. Lowest they can get too is 6.29% It is BMW-M2
I want to bite my tongue, but I can't...

Why on earth would buy an M2 if you can't afford it without a 5%+ loan? ~$70,000
Vanguard/Fidelity | 76% US Stock | 16% Int'l Stock | 8% Cash
Topic Author
mrtiger
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Joined: Sun Nov 13, 2016 8:35 pm

Re: Car Loan Rates

Post by mrtiger »

pizzy wrote: Mon Nov 20, 2023 4:19 pm
mrtiger wrote: Mon Nov 20, 2023 4:17 pm
pizzy wrote: Mon Nov 20, 2023 4:15 pm What is the dealer/manufacturer offering? What make and model?
Dealer options are limited. Lowest they can get too is 6.29% It is BMW-M2
I want to bite my tongue, but I can't...

Why on earth would buy an M2 if you can't afford it without a 5%+ loan? ~$70,000
Ahhh got to love the Bogleheads and their judgmental approach . Who said I cant afford it? if you cant provide answer to my question please move on.
pizzy
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Joined: Tue Jun 02, 2020 6:59 pm

Re: Car Loan Rates

Post by pizzy »

mrtiger wrote: Mon Nov 20, 2023 4:22 pm
pizzy wrote: Mon Nov 20, 2023 4:19 pm
mrtiger wrote: Mon Nov 20, 2023 4:17 pm
pizzy wrote: Mon Nov 20, 2023 4:15 pm What is the dealer/manufacturer offering? What make and model?
Dealer options are limited. Lowest they can get too is 6.29% It is BMW-M2
I want to bite my tongue, but I can't...

Why on earth would buy an M2 if you can't afford it without a 5%+ loan? ~$70,000
Ahhh got to love the Bogleheads and their judgmental approach . Who said I cant afford it? if you cant provide answer to my question please move on.
You did.

"unfortunately paying cash is out of the question" --> "4.99% for 60 months"

Enjoy the new car.
Vanguard/Fidelity | 76% US Stock | 16% Int'l Stock | 8% Cash
Topic Author
mrtiger
Posts: 59
Joined: Sun Nov 13, 2016 8:35 pm

Re: Car Loan Rates

Post by mrtiger »

pizzy wrote: Mon Nov 20, 2023 4:27 pm
mrtiger wrote: Mon Nov 20, 2023 4:22 pm
pizzy wrote: Mon Nov 20, 2023 4:19 pm
mrtiger wrote: Mon Nov 20, 2023 4:17 pm
pizzy wrote: Mon Nov 20, 2023 4:15 pm What is the dealer/manufacturer offering? What make and model?
Dealer options are limited. Lowest they can get too is 6.29% It is BMW-M2
I want to bite my tongue, but I can't...

Why on earth would buy an M2 if you can't afford it without a 5%+ loan? ~$70,000
Ahhh got to love the Bogleheads and their judgmental approach . Who said I cant afford it? if you cant provide answer to my question please move on.
You did.

"unfortunately paying cash is out of the question" --> "4.99% for 60 months"

Enjoy the new car.
I did not please read with understanding. It is a choice!
pizzy
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Re: Car Loan Rates

Post by pizzy »

mrtiger wrote: Mon Nov 20, 2023 4:29 pm
pizzy wrote: Mon Nov 20, 2023 4:27 pm
mrtiger wrote: Mon Nov 20, 2023 4:22 pm
pizzy wrote: Mon Nov 20, 2023 4:19 pm
mrtiger wrote: Mon Nov 20, 2023 4:17 pm

Dealer options are limited. Lowest they can get too is 6.29% It is BMW-M2
I want to bite my tongue, but I can't...

Why on earth would buy an M2 if you can't afford it without a 5%+ loan? ~$70,000
Ahhh got to love the Bogleheads and their judgmental approach . Who said I cant afford it? if you cant provide answer to my question please move on.
You did.

"unfortunately paying cash is out of the question" --> "4.99% for 60 months"

Enjoy the new car.
I did not please read with understanding. It is a choice!
Then it is not unfortunate.

Apologies for the misunderstanding.

Enjoy the new car!
Vanguard/Fidelity | 76% US Stock | 16% Int'l Stock | 8% Cash
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TSquare
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Re: Car Loan Rates

Post by TSquare »

Just going to save everyone the time and recommend OP buy an 8 to 10 year old corolla or accord with cash.

Now with that out of the way, we can get back to OP’s real question.
Topic Author
mrtiger
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Joined: Sun Nov 13, 2016 8:35 pm

Re: Car Loan Rates

Post by mrtiger »

TSquare wrote: Mon Nov 20, 2023 4:39 pm Just going to save everyone the time and recommend OP buy an 8 to 10 year old corolla or accord with cash.

Now with that out of the way, we can get back to OP’s real question.
Thank you good sir :D
Last edited by mrtiger on Mon Nov 20, 2023 8:01 pm, edited 1 time in total.
bloom2708
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Re: Car Loan Rates

Post by bloom2708 »

+1 for a Subaru Outback

:D
cmr79
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Re: Car Loan Rates

Post by cmr79 »

You probably can't beat that rate by more than 0.5% right now for your particular choice in vehicle, and likely not by even that much even if you shop around extensively.
Topic Author
mrtiger
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Joined: Sun Nov 13, 2016 8:35 pm

Re: Car Loan Rates

Post by mrtiger »

bloom2708 wrote: Mon Nov 20, 2023 4:51 pm +1 for a Subaru Outback

:D
I'm surprised Subaru is still popular among Bogleheads. Few members of my family own Subaru's from 2015 upwards and their vehicles are not aging particularly well compared to Toyota / Lexus. Most complains are related to infotainment / electronics, cheap materials and CV transmission that is not enjoyable and noisy.
andypanda
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Location: Richmond, Virginia

Re: Car Loan Rates

Post by andypanda »

I know a BMW mechanic.

Will that model still be under warranty when the loan is paid off in five years? Don't they come with a 4-year warranty?
MH2
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Re: Car Loan Rates

Post by MH2 »

mrtiger wrote: Mon Nov 20, 2023 4:17 pm
pizzy wrote: Mon Nov 20, 2023 4:15 pm What is the dealer/manufacturer offering? What make and model?
Dealer options are limited. Lowest they can get too is 6.29% It is BMW-M2
Pay cash and get any of the used BMWs with a B58 engine. A simple ECU update gets you as much torque - and almost as much horsepower - as the G87 for a third of the cost of ownership.

Besides, current generation BMW styling is :shock:
Flashes1
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Re: Car Loan Rates

Post by Flashes1 »

There's not any magical place to borrow at low interest rates unless the manufacturer is subsidizing it. Not when the 10 year treasury rate is ~4.4% and 1 month SOFR is ~5.3%.

And note to the OP.....NEVER say the name of a car you're looking at if it's a European car company. You could be 40 years old and have $5 million in your 401k and you'll be told you can't afford a European car if you don't have $70k laying around to pay for it. :beer
lazydavid
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Re: Car Loan Rates

Post by lazydavid »

mrtiger wrote: Mon Nov 20, 2023 4:17 pm
pizzy wrote: Mon Nov 20, 2023 4:15 pm What is the dealer/manufacturer offering? What make and model?
Dealer options are limited. Lowest they can get too is 6.29% It is BMW-M2
That's not the lowest they can get. BMWFS rate for November is 5.29%. Your dealer is choosing to mark up the rate by 1% (which they are allowed to do). There are other dealers that do not, you could buy from one of them. Or wait until December to see if the rate comes down.

But yeah, these elevated rates are exactly why I paid cash for my M3 in June--I think the BMWFS rate at that time was 5.99%. Now had it been this time last year, I would have absolutely jumped at the 0.9% they were offering then.
MH2 wrote: Tue Nov 21, 2023 7:09 am Pay cash and get any of the used BMWs with a B58 engine. A simple ECU update gets you as much torque - and almost as much horsepower - as the G87 for a third of the cost of ownership.
Will still never be an M car. If you're just chasing numbers, this is a great strategy. Don't get me wrong, the B58 is a great motor. But a car is more than just an engine, and there are no (even with a tune) B58-powered cars that can give me a driving experience anywhere close to my M3, except for the A91 Supra. And I can't wedge myself into one of those.
MH2
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Re: Car Loan Rates

Post by MH2 »

lazydavid wrote: Tue Nov 21, 2023 7:51 am
MH2 wrote: Tue Nov 21, 2023 7:09 am Pay cash and get any of the used BMWs with a B58 engine. A simple ECU update gets you as much torque - and almost as much horsepower - as the G87 for a third of the cost of ownership.
Will still never be an M car. If you're just chasing numbers, this is a great strategy. Don't get me wrong, the B58 is a great motor. But a car is more than just an engine, and there are no (even with a tune) B58-powered cars that can give me a driving experience anywhere close to my M3, except for the A91 Supra. And I can't wedge myself into one of those.
A paid for car, at one third of the price, will never be the same as a 70K car financed over 60 months at 6.29%.

If OP wants a track car, he should get a Miata. If he wants a street car, he should get one he can actually afford - which isn't an M2.
lazydavid
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Re: Car Loan Rates

Post by lazydavid »

MH2 wrote: Tue Nov 21, 2023 8:07 am A paid for car, at one third of the price, will never be the same as a 70K car financed over 60 months at 6.29%.

If OP wants a track car, he should get a Miata. If he wants a street car, he should get one he can actually afford - which isn't an M2.
I won't disagree with either of these statements. :mrgreen: Except for the Miata thing if he's a genetic mutant like me. :(
bloom2708
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Re: Car Loan Rates

Post by bloom2708 »

mrtiger wrote: Mon Nov 20, 2023 8:01 pm
bloom2708 wrote: Mon Nov 20, 2023 4:51 pm +1 for a Subaru Outback

:D
I'm surprised Subaru is still popular among Bogleheads. Few members of my family own Subaru's from 2015 upwards and their vehicles are not aging particularly well compared to Toyota / Lexus. Most complains are related to infotainment / electronics, cheap materials and CV transmission that is not enjoyable and noisy.
I was piling on the "advice you didn't ask for or want". :o

I have never owned a Subaru and can't see myself owning one unless I won it or something like that.

I want to like them. They do have a good AWD system. But the interior and driving characteristics are just not good.

Good luck on your BMW purchase.
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