Financing

[Stevef3287]

Recently ordered a Truck what type of interest rates are you guys seeing in HD trucks. 72-84 months .Thank you !!

 

[Godzilla]

I just got financing for mine. I went through Navy Federal Credit Union and got 2.19% for 60mos. 61-72mos was 2.29%, for 72-84mos the rate jumped to 4.69%. I'm still waiting on my 'In Transit' truck but went ahead and secured my financing - it's a locked rate for 90 days. You might consider getting yours arranged soon as the FED plans to meet in mid-March and all signs point to a rate increase to try to curb the inflation; I've read .75% to the prime. I don't know if that 3/4 % (if that is what it ends up being) translates across the board as a 3/4% rise to all rates or if the banks can adjust however much they want. Either way, it looks to go up so you might consider investigating your options soon.

 

[jadmt]

my local credit union is 2.74. I have seen less. just shop your local credit unions.

 

[mcarey]

Kind of not worth gathering anecdotal data on this, considering the rate one gets is dependent on a ton of independent and personal factors.

I'd just check Google for current ballpark rates (keeping in mind that you'll likely only see rates for top tier applicants), and then check with your bank or CU to see what theyll actually give you. Then just go and see if the dealer can beat what you've been approved for.

I know I've seen a handful of threads here with guys bashing banks, dealers, etc because they expected rates they aren't actually eligible for.

 

[Stevef3287]

I just got financing for mine. I went through Navy Federal Credit Union and got 2.19% for 60mos. 61-72mos was 2.29%, for 72-84mos the rate jumped to 4.69%. I'm still waiting on my 'In Transit' truck but went ahead and secured my financing - it's a locked rate for 90 days. You might consider getting yours arranged soon as the FED plans to meet in mid-March and all signs point to a rate increase to try to curb the inflation; I've read .75% to the prime. I don't know if that 3/4 % (if that is what it ends up being) translates across the board as a 3/4% rise to all rates or if the banks can adjust however much they want. Either way, it looks to go up so you might consider investigating your options soon.

Yea the rate hike that’s coming has me concerned I’ll try and rate lock if possible right before their meeting — I didn’t know if Chrysler financial was doing anything work looking at.

 

[Redfour5]

With March coming up and few incentives off MSRP expected, I'm thinking that we MIGHT see some rates as incentives through Chrysler Capital. But...it's likely too late to get an ordered one and any incentives so it would be on the lot deals only. But that's lots of what ifs.

 

[iflyskyhigh]

Back in December USAA Had the best rates going.

1.89% for 63 months.

I know rates have already gone up since then, but I’m guessing they still have the best new car rates.

 

[Godzilla]

Back in December USAA Had the best rates going.

1.89% for 63 months.

I know rates have already gone up since then, but I’m guessing they still have the best new car rates.

No, they didn't as of 2 weeks ago... I checked with them and while I cannot remember exactly what their rates were, they were significantly higher than what I got elsewhere. I was really kind of surprised by it - I've been with them for 30 years.

 

[Godzilla]

Kind of not worth gathering anecdotal data on this, considering the rate one gets is dependent on a ton of independent and personal factors.

I'd just check Google for current ballpark rates (keeping in mind that you'll likely only see rates for top tier applicants), and then check with your bank or CU to see what theyll actually give you. Then just go and see if the dealer can beat what you've been approved for.

I know I've seen a handful of threads here with guys bashing banks, dealers, etc because they expected rates they aren't actually eligible for.

Agree that each person's rate will be determined by those factors. It isn't a bad question to ask when you are in the info gathering stage though... I asked that question of a number of folks. I was looking for best case scenario interest rate because I stay on top of my finances pretty well; I know what my FICO score is and I know what my debt to income ratio is, etc. Best case scenario info helps me out. Some lending institutions will post, online, their rates while others won't... so I can understand why he was asking.

 

[mkmsr]

USAA is currently 2.25% for 60
PenFed is 1.99% for 60

I'll finance about $30k so I don't think $4.00 a month is worth the hassle of not having USAA but I need to make a decision as the truck should be arriving in the next 2 or 3 weeks.

Sent from my Pixel 3a using Tapatalk

 

[iflyskyhigh]

Agree that each person's rate will be determined by those factors. It isn't a bad question to ask when you are in the info gathering stage though... I asked that question of a number of folks. I was looking for best case scenario interest rate because I stay on top of my finances pretty well; I know what my FICO score is and I know what my debt to income ratio is, etc. Best case scenario info helps me out. Some lending institutions will post, online, their rates while others won't... so I can understand why he was asking.

Agreed I don’t think it’s a bad idea to ask around.

I think everyone understands at this point it depends on your personal credit, and I think most people have a pretty good grasp of their personal credit worthiness. At least in the segment of the market that is shopping for this these trucks I would imagine they do?

Someone might make a suggestion for someplace that you’ve never heard of thought of.

 

[iflyskyhigh]

USAA is currently 2.25% for 60
PenFed is 1.99% for 60

I'll finance about $30k so I don't think $4.00 a month is worth the hassle of not having USAA but I need to make a decision as the truck should be arriving in the next 2 or 3 weeks.

Sent from my Pixel 3a using Tapatalk

That’s interesting. It was the exact inverse when I was rate shopping in December.

Not that it makes any difference in the scheme of things, but I wonder what criteria the banks use when setting their current rates?

I understand what the interest rates as a whole are based on, but the big banks are all borrowing money at about the same rate so I wonder what they are thinking when turn around and lend it to us?

That’s also a rhetorical question. I know there are several factors they look at. It’s just interesting how one bank looks at the market one day and sees one thing, and another bank sees something else. Then a couple months later they reverse positions and see it the other way.

I mean we can’t really know what they’re thinking, but the interest rates their charging us gives us some idea.

Probably a long answer for a different thread.

Carry on.

 

[mcarey]

Agree that each person's rate will be determined by those factors. It isn't a bad question to ask when you are in the info gathering stage though... I asked that question of a number of folks. I was looking for best case scenario interest rate because I stay on top of my finances pretty well; I know what my FICO score is and I know what my debt to income ratio is, etc. Best case scenario info helps me out. Some lending institutions will post, online, their rates while others won't... so I can understand why he was asking.

Fair enough. Personally, I'd rather just Google to see current rates of the day directly from the source than get a bunch of replies from internet users purchasing things from who knows when. But I suppose that said, I don't necessarily thinks it's a terrible thread in and of itself.

I think everyone understands at this point it depends on your personal credit, and I think most people have a pretty good grasp of their personal credit worthiness. At least in the segment of the market that is shopping for this these trucks I would imagine they do?

You'd be surprised, lol. For example, when I got my truck, there was a user on here who went nuts bad mouthing the dealer I (and a few others) at the time were actively using about some bait and switch nonsense because he was expecting rates he was very obviously not eligible for. Of course, he claimed to have perfect credit, low DtE, etc. But myself and at least one other still active user here experienced nothing but the opposite of this guy's claims a week or later. Long story short, he was expecting the rock bottom rates everyone seemingly shares, but they simply weren't available to him.

End of the day I don't really care at all. Just don't want to see peoples expectations get busted or whatever, when push actually comes to shove.

 

[Thisnthat]

All about how many basis points the dealership is willing to give up…toss in a warranty and ”they can get you a better rate“. Credit unions are tough to beat and usually they can do better than what they advertise…just have to ask. Anything around 2% give or take a quarter would be good.

week ago I got 1.72 at 72 months through capital one (via the dealer) with a warranty after going back and forth…other option was 2.25 without a warranty. Chase either isn’t as competitive or the other companies are just undercutting them or giving the dealers extra incentives to use…last two vehicles prior to this one have been through TD Bank and capital one - both last year after 15 years of using Chase.

 

[mcarey]

All about how many basis points the dealership is willing to give up…toss in a warranty and ”they can get you a better rate“. Credit unions are tough to beat and usually they can do better than what they advertise…just have to ask. Anything around 2% give or take a quarter would be good.

week ago I got 1.72 at 72 months through capital one (via the dealer) with a warranty after going back and forth…other option was 2.25 without a warranty. Chase either isn’t as competitive or the other companies are just undercutting them or giving the dealers extra incentives to use…last two vehicles prior to this one have been through TD Bank and capital one - both last year after 15 years of using Chase.

My tip is usually to get your own financing before you step foot in the money man's office. That way you know what you'll be paying, at most. Then I'll usually tell the dealer, "I've got this. If you guys can beat it, with the same terms, I'm happy to go through you. Otherwise this will be what I'm using."

Between the 4 vehicles I've purchased in the last 7 years, they've either beat it (well, offered me things in turn for using their financing at the same rate) or said something along the lines of "that is as good as it gets right now" - which is apparent based on advertised rates, in my case.

For guys who may have credit issues or what have you, not suggesting that's anyone here of course this just avoids that uncertainty through and through and often does get one a slightly better rate if that wiggle room exists since the dealer wants that bank kickback.

 

[AJ608]

Hypothetical question, in a lenders eyes what's better ?

On a new $90k vehicle, good credit with a really large down payment say 45% or excellent credit but zero down?

We were talking about this at lunch today and I thought it was the excellent credit score, my friend said with that much down it would be better because it would be less of a loan...

 

[franko]

Hypothetical question, in a lenders eyes what's better ?

On a new $90k vehicle, good credit with a really large down payment say 45% or excellent credit but zero down?

We were talking about this at lunch today and I thought it was the excellent credit score, my friend said with that much down it would be better because it would be less of a loan...

It's not an either or question. What is the definition of "better"? The lender doesn't really care either way. Either their underwriting practices enable them to offer you a loan or they don't. Ironically both would probably impact your credit score the same.
However, the more you finance, the more you debt to income ratio is affected. While not a part of your credit score, its definitely something any lender wants to know before extending credit. So having a smaller loan would keep that ratio lower.

 

[AJ608]

It's not an either or question. What is the definition of "better"? The lender doesn't really care either way. Either their underwriting practices enable them to offer you a loan or they don't. Ironically both would probably impact your credit score the same.
However, the more you finance, the more you debt to income ratio is affected. While not a part of your credit score, its definitely something any lender wants to know before extending credit. So having a smaller loan would keep that ratio lower.

We were talking about total interest paid on the length of the loan

 

[franko]

We were talking about total interest paid on the length of the loan

Ah, got it!
In that case, it's totally dependent on the rate and amount financed. The difference in rates between a good and great credit score is usually not gigantic, so without doing the math I'd agree with your friend. The smaller amount financed would result in less interest paid unless the rate difference was unusually large.
The obvious exception to this would be a zero percent financing offer. That's just free money right there.

 

[AJ608]

Ah, got it!
In that case, it's totally dependent on the rate and amount financed. The difference in rates between a good and great credit score is usually not gigantic, so without doing the math I'd agree with your friend. The smaller amount financed would result in less interest paid unless the rate difference was unusually large.
The obvious exception to this would be a zero percent financing offer. That's just free money right there.

When we work all day together we come up with all kinds of random things to compare or what's better. I just saw this thread and though about it.