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Auto loan rates differ on 2500 vs 3500?

cc1999

cc1999

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With my 2022 RAM 3500 now built and in transit. I emailed my banker to see where the rates were these days.
They were under 2% the last time I checked back in late August.
She asked me if it was a 1500-2500 or if it was a 3500 or larger that rates were different.
Turned out the rate jumped about 2 points between the lighter duty trucks -2500 vs the 3500+.
2500=2.5 on 72 vs 3500=4.5 on 60.

I am in hopes that is not the case with all lenders. Normally dealers can never beat my bank rates, but with this deal they might unless all lenders treat the 3500 poorly in loan terms.

What sort of rates is everyone getting on 3500s these days?
 
I can see the rates being different if you’re using the truck as a business vehicle vs personal. Maybe that’s what they were getting at?
 
it is possible that statistically more people have defaulted on 3500's then 1500/2500's. hard to say why but certainly shop around and might find a CU that has a better rate.
 
The 1500s, 2500s and 3500s are at 3.49% for 96 months through Ram (scotiabank) financing here thats the highest interest rate out of all the terms…. Banks are at 8-10% for personal/ vehicle loans here due to the incredibly low mortgage rates going on right now (i just renewed at 1.49% lol)
 
I just signed paperwork for my loan yesterday on my 2022 ram 3500.

60 months at 1.88% with USAA (with auto pay). I have heard of Mark Dodge beating that rate so maybe your dealer can as well? I didn't check with them since I am also house shopping next year amd didn't want another hit on my credit.
 
Third one here with USAA 1.89% for 63 months on a 21 3500 back in June. Dealer couldn’t believe it and didn’t even try to beat it.
 
IndyRamDRW said:
Shouldn't matter what you're buying.... a car loan is for the amount not the vehicle type...weird...
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That was what I thought too.
I was sort of taken back by this when my Banker told me about it.
 
ramblinChet said:
If you borrow the money from yourself you can decide on the interest rate :)
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That is true, and if and when this truck comes in sometime later this month, if that is all I find are 4-5% rates, that is what I will do.

I don't typically like tying up a lot of cash with vehicles, especially when the borrow rates I have typically gotten over the past decade or so have all been under 3% many times under 2%.
Making it hard to pull investment cash out of investments that tend to make me in a range of 5-15% returns. If the vehicle loans are going to be coming in under 3% as they had for years now, IMO that is just cheap money why not take it, when I can make more than that leaving my money invested.
 
Overall sound like that USAA is worth looking into.
That RAM 3.49 on 96 is not all that bad either.
All a heck of a lot better than 4.5 on 60 I was quoted for this 3500 penalty rate from my regular Bank.
 
jadmt said:
it is possible that statistically more people have defaulted on 3500's then 1500/2500's. hard to say why but certainly shop around and might find a CU that has a better rate.
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That is sort of my guess too, that maybe when the oil prices fell hard a couple years ago they ended up having to repo a lot of 1 ton oil field trucks which could have been a lot of custom cab and chassis type trucks with specialty type beds on them or Ag is also big here in KS/OK area where I live, those 3500 quite often end up with custom hay beds or the likes on them.
That is about the only way I can see any added risk being associated with loaning on 3500s vs 1500-2500s. That being the somewhat specific customization many 3500-5500 trucks receive could make them riskier loans.
 
cc1999 said:
Overall sound like that USAA is worth looking into.
That RAM 3.49 on 96 is not all that bad either.
All a heck of a lot better than 4.5 on 60 I was quoted for this 3500 penalty rate from my regular Bank.
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Jesus, financing for 8 years, ouch... In the end you'll be paying slightly more in interest on the lower rate over 96 months vs the higher rate at 60.

USAA has always been great to deal with. Have to be military of course (current, prior, family member etc)

.
 
USAA is great. I got approved by Cal Coast Credit Union online and had the dealer beat it. It was quick and easy to do online.

Their current rates for good credit. https://www.calcoastcu.org/auto-loans-rates/ If the dealer can't beat it all you need to do is open an account with Cal Coast and pay their one time $5 membership fee. You don't need to visit a branch or office.
 
MtnRider said:
Jesus, financing for 8 years, ouch... In the end you'll be paying slightly more in interest on the lower rate over 96 months vs the higher rate at 60.

USAA has always been great to deal with. Have to be military of course (current, prior, family member etc)

.
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I did not even know they went that far out on vehicle loans. I remember in 1977 telling my dad i was going to borrow $6000 and take out a 3 year loan..he slapped me upside the head and said not if you have a lick of sense you won't. lol.
 
jadmt said:
I did not even know they went that far out on vehicle loans. I remember in 1977 telling my dad i was going to borrow $6000 and take out a 3 year loan..he slapped me upside the head and said not if you have a lick of sense you won't. lol.
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In 1977 the average home loan was 8-10% or more. Im sure a personal loan was much worse. Smart dad.

Boy times have changed though.. money is cheap now.
 
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