Financing rates on a 2022?

[frankie9011]

Hey all,

I've been talking with a few dealers in my local area (SW Florida) and have managed to find one willing to work with me on ordering a 3.0 Premium for MSRP. However, they say the best they can do financing wise is 4%. Was wondering if that sounds high to you (I have 780+credit with plenty of income and a spotless credit record). I've not worked with a credit union but I assume I could find a better rate through one or a bank. Any feedback is appreciated - thank you!

edit- planning on 20-25k down at purchase and the 4% was the quote for 72 mo.

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[XtremeMaC]

4% for how long? how much money down, if any..

 

[frankie9011]

4% for how long? how much money down, if any..

Oh right, duh. I'll add that to my main post, sorry. 20-25k down, anywhere from 48-72 mo but preferably 60 or 72. 4% rate was for 72 mo.

 

[MisterSkiz]

Go Credit Union - lots of folks use Penn Fed

https://www.penfed.org/auto/new-auto-loans

RATES

APR as low as*	TERM	LOAN AMOUNT	APPROX LOAN PMT.1
1.79%	36 mos	$500 - $150,000	$571.46
1.99%	48 mos	$7,500 - $150,000	$434.19
1.99%	60 mos	$10,000 - $150,000	$350.78
2.39%	72 mos	$15,000 - $150,000	$298.76
3.99%	84 mos	$20,000 - $150,000	$273.77

 

[XtremeMaC]

the powers that be always suggest 0 down. but I'm no expert, do your research. Unless you have a specific reason to...
Things are different now, but I was at 1.99% when I got the Supra. Now same CU offers
66mo 2.24, 72mo 2.92, 84mo 3.62 in Michigan.

Looking at FL https://www.flcu.org/Loan-rates
very similar. 4% is super high for 72 mo..

Bunch of people from BMW forums go through Pen Fed [edit]: beat me to it MisterSkiz

FYI, some offer 90day no pay, some offer slightly lower rate with direct deposit....

 

[frankie9011]

the powers that be always suggest 0 down. but I'm no expert, do your research. Unless you have a specific reason to...
Things are different now, but I was at 1.99% when I got the Supra. Now same CU offers
66mo 2.24, 72mo 2.92, 84mo 3.62 in Michigan.

Looking at FL https://www.flcu.org/Loan-rates
very similar. 4% is super high for 72 mo..

Bunch of people from BMW forums through Pen Fed [edit]: beat me to it MisterSkiz

FYI, some offer 90day no pay, some offer slightly lower rate with direct deposit....

Yes, I totally understand 0 down, this would mostly just be to ease the monthly hit, I know in the long run I'd be better off putting the down payment in an index fund in the meantime but I guess my risk tolerance is low and hedging a decent chunk off the loan feels better. Still haven't really decided.

Will look into Penn. Those rates are certainly attractive. Very valuable information, thanks so much. And thank you @MisterSkiz.

 

[32bitsofGil]

Yeah we used a local credit union and pre financed the purchase minus our down payment (value of trade in)

2.25% so not bad at all, 4% maybe if you were financed directly from Toyota.

 

[hotsaucewizard]

Spent the last year in Finance and although this is blasphemy...

Wells Fargo sends all of their callbacks with 2% built in and are usually low as hell

Aside from that your best bet is to go with a credit union

 

[hotsaucewizard]

TFS cannot compete with other lenders ATM and we had a few meetings with TFS reps about it but again this is regional. WF or Credit Union. Pen Fed was a bitch to fight along with USAA and DCU

 

[Troystoy]

my local credit union is at 1.99% for 72 months no money down needed.

 

[zrk]

my local credit union is at 1.99% for 72 months no money down needed.

This seems about in line with what I'd expect. Anything more than that it's almost worth it to just buy the car outright these days.

 

[Kmj442]

I went in there with a BoA pre approval for mine last year and toyota fought to lower their rate to match BoA. They said they said do the same rate for 72 mo vs the 60 I had targeted with BoA. For me the term didn't matter since it'll be paid off MUCH sooner than that but its nice to have the ability for an easier mo should I need it.

 

[XtremeMaC]

@60k 72mo
0.87% $856 $1602 interest
1.99% $885 $3703
2.39% $895 $4464
4.00% $939 $7587
1.99 vs 4.00 $54/mo difference...
0.87 vs 4.00 $87/mo

 

[SoDakMk5]

Go credit union. I caught a special they had for 0.87% for 72 month. 87th anniversary special

 

[xBidlexxey]

I was in a similar situation not too long ago, looking for financing rates on a car. I gotta say, 4% doesn't sound too bad, but with your stellar credit score and solid income, I think you can definitely aim for better rates. Credit unions can be a great option for lower interest rates, and since you've never worked with one before, it's worth giving it a shot! But before you jump into anything, let me share my experience. I was about to go with a dealership's financing deal, but a friend recommended Mortgage Broker in Shrewsbury. I went to them, and they managed to find me a fantastic rate through a credit union. It was smooth sailing from there! Considering your substantial down payment, I bet you'll have even more leverage in negotiating a better rate.

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