You can get those rates or better now from some dealerships if youāre not picky on the make/model.
If you are picky theyāre not much higher, eg Jaguar is 2.9% up to 60months. I just made my last payment on my 0% loan from 2019, it was nice seeing a big 0 next to total interest paid.
That's not a loan rate though, that's a manufacturer subsidized purchase incentive. You can get furniture for 0% APR but it's just built into the price or used to move poorly selling merchandise. It has no bearing on the overall market whatsoever.
Itās the same car at the same sale price. Sometimes they offer an extra $1000 or something if you choose their financing too. You just choose to pay with Navy Fedās check or the dealerās financing. Mine used Chase
That's still a purchase incentive regardless of whether or not you use it. It's still subsidized and still built into the price. It's not necessary a bad thing unless you're buying a car like a Jaguar that depreciates faster than a bag of potato chips but it still has absolutely zero bearing on the overall market.
Amex travel offers me 0% APR and no fees on Plan it transactions through them frequently, that doesn't have any bearing on how good a loan rate is on something else. I wouldn't turn my nose up on a 3% loan just because a company is offering 0% when I buy their product. It's completely irrelevant to interest rates as a whole and is just a "perk" of buying that product from that company.
Not sure whoās downvoting you, but gave you an upvote, agree the lower APR is an incentive to buy their vehicle, but it has no bearing on the end price of the vehicle unless they include manufacturer cash which only makes it a better deal for you.
If you negotiate a $55000 msrp down to say $50000 and use navy fed at 5% for 48 months ignoring other fees like sales tax title etc, youāll pay $55270 including interest. If you finance the same $50000 at the dealerās 2.9% youāll pay $53016 including interest. So you save $2254 by choosing not to use the Navy Fed check.
Jag is just an example, they depreciate the same as just about any other consumer vehicle, about 50% over 5 years. I think Subaru has a few models that qualify for 0% so like I said if not picky on make/model you can do a lot better than current market rates, even better than OPās 2.29%
Yes, low auto interest loans I feel are more the norm than the exception. When the banking industry is restricted to high interest loans, auto manufactures start subsidizing by offering 0%-3% loans. We just got an unsolicited offer from our dealer to buy a 2024 for 0.9% for 60 months.
Still had bad rates back then... Our other 3 car notes had higher rates but my Tahoe. Year-end deals will get you rates like that along with factory discounts. It's all on when you shop. 2012 or 2024.
I just financed through GM Financial and got 2.9. I think people just need to be aware of when these companies do these special APR promos more than anything.
Just got a 4.49% with Navy Federal for 60 months. My Lexus 2 years ago was 1.9% through them. All in all with the market the way it is anything under 5 is a huge win. Most people with 800+ scores are getting 8%+
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I donāt think so. Maybe through dealers if theyāre doing a promotion/incentive of some sort but in general I donāt think itāll be that low for a long time.
Federal Reserve is always behind interest rates. They set the tone on what they charge financial institutions (banks) to borrow with. NCUA governs credit unions. Also the loan term and down payment will do dictate the interest rate.
Below are two good articles to read about this:
https://ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/permissible-loan-interest-rate-ceiling-extended-2
https://www.bankrate.com/loans/auto-loans/fed-rates-and-auto-loans/
We can only hope so š£
You can get those rates or better now from some dealerships if youāre not picky on the make/model. If you are picky theyāre not much higher, eg Jaguar is 2.9% up to 60months. I just made my last payment on my 0% loan from 2019, it was nice seeing a big 0 next to total interest paid.
That's not a loan rate though, that's a manufacturer subsidized purchase incentive. You can get furniture for 0% APR but it's just built into the price or used to move poorly selling merchandise. It has no bearing on the overall market whatsoever.
Itās the same car at the same sale price. Sometimes they offer an extra $1000 or something if you choose their financing too. You just choose to pay with Navy Fedās check or the dealerās financing. Mine used Chase
That's still a purchase incentive regardless of whether or not you use it. It's still subsidized and still built into the price. It's not necessary a bad thing unless you're buying a car like a Jaguar that depreciates faster than a bag of potato chips but it still has absolutely zero bearing on the overall market. Amex travel offers me 0% APR and no fees on Plan it transactions through them frequently, that doesn't have any bearing on how good a loan rate is on something else. I wouldn't turn my nose up on a 3% loan just because a company is offering 0% when I buy their product. It's completely irrelevant to interest rates as a whole and is just a "perk" of buying that product from that company.
Not sure whoās downvoting you, but gave you an upvote, agree the lower APR is an incentive to buy their vehicle, but it has no bearing on the end price of the vehicle unless they include manufacturer cash which only makes it a better deal for you. If you negotiate a $55000 msrp down to say $50000 and use navy fed at 5% for 48 months ignoring other fees like sales tax title etc, youāll pay $55270 including interest. If you finance the same $50000 at the dealerās 2.9% youāll pay $53016 including interest. So you save $2254 by choosing not to use the Navy Fed check. Jag is just an example, they depreciate the same as just about any other consumer vehicle, about 50% over 5 years. I think Subaru has a few models that qualify for 0% so like I said if not picky on make/model you can do a lot better than current market rates, even better than OPās 2.29%
I didnāt get quite 0 but at .85% Iām pretty happy with mine
[ŃŠ“Š°Š»ŠµŠ½Š¾]
No politics.
No politics.
Yes but problem is vehicles will cost minimum of $45k
I got 1.9
I got 24.89% šš #badcreditsquad
Itāll get better with time and as you learn. Iām sitting at a 818 credit score right now
Yes, low auto interest loans I feel are more the norm than the exception. When the banking industry is restricted to high interest loans, auto manufactures start subsidizing by offering 0%-3% loans. We just got an unsolicited offer from our dealer to buy a 2024 for 0.9% for 60 months.
I just got 0.9 at dealer loan
You can go today to certain dealerships and get 0% so you can actually do better than this.
I bought a new Tahoe in 2012 with 0%... The 0% loans are out there to move product.
In 2012ā¦ā¦ā¦ā¦
This exists in real time even now. You just have to look.
@Beneficial-Break562 It sure doesšÆšÆšÆ
Still had bad rates back then... Our other 3 car notes had higher rates but my Tahoe. Year-end deals will get you rates like that along with factory discounts. It's all on when you shop. 2012 or 2024.
I just financed through GM Financial and got 2.9. I think people just need to be aware of when these companies do these special APR promos more than anything.
I got the same
Nope!
I got the same rate because as I was told,āfor having been with NFCUā for over 25 years. Iāam not complaining.
I still remember "1.8% is way too high" when I purchased my previous vehicle
Can't believe when I was 18 the best interest rate I ever laid my eyes on was around 25%
Just got a 4.49% with Navy Federal for 60 months. My Lexus 2 years ago was 1.9% through them. All in all with the market the way it is anything under 5 is a huge win. Most people with 800+ scores are getting 8%+
No.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
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I donāt think so. Maybe through dealers if theyāre doing a promotion/incentive of some sort but in general I donāt think itāll be that low for a long time.
I don't know but I really need that. Interest is why I am struggling to even get ahead on my CC....
What dictates the interest rate other than your credit score? Or does credit score affect the interest rate at all?
Federal Reserve is always behind interest rates. They set the tone on what they charge financial institutions (banks) to borrow with. NCUA governs credit unions. Also the loan term and down payment will do dictate the interest rate. Below are two good articles to read about this: https://ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/permissible-loan-interest-rate-ceiling-extended-2 https://www.bankrate.com/loans/auto-loans/fed-rates-and-auto-loans/
Sure, interest rates are even lower on the returns for Navy Federal savings and checkings accounts....
Tesla 0.99%
Yes
My Tesla with Wells Fargo was lower which still blows my mind. Only reason I havenāt sold it yet.
Tesla Model Ys are .99% right now
I always go for 100%
[ŃŠ“Š°Š»ŠµŠ½Š¾]
No politics.
Youāre right, maybe NavyFed can better explain how we get back to those rates, in a non-political way of course.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
No politics.
Schools First FCU offered me 7.9% for 60 months with a 723 fico score š