Finance question -- what length of loans are you getting through dealership?

[Bushwhacker]

I used one of my credit unions. (2023 - 2 door badlands, Sas, Lux, & Tow). When my dealership asked me about financing and I stated that I had that taken care of, they tried everything to get me to finance through them. However, they couldn’t beat the 2% interest rate for 60 months. And if I had done 48 months with my credit union, it would have been 1.5%.

If you don't mind me asking, where are you getting 60 months for 2%??? I have 800+ credit score and can't find anything under the 6 here in Georgia and I'm member of a private CU

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[FLSTFI Dave]

If you don't mind me asking, where are you getting 60 months for 2%??? I have 800+ credit score and can't find anything under the 6 here in Georgia and I'm member of a private CU

I got 60 months in October at Bowater Federal Credit Union, 1.99%. Was shocked as Navy Federal where I usually go was 3.19 and USAA was 3.25.

 

[Roostracing]

Ford wanted 5.99% so i went with a local credit union and was able to get 3.99% for 72 mths.

 

[vrtical]

I just did a private CU [email protected] 4 weeks ago based on a lock before Dec rate changes, prior to that it was 3.3 and the 60 was at 3.09. Before Nov rates were still fairly low. Dealer was 7.0%@72 padded as hell. I am most likely paying it off by 60 months so not too worried.

 

[rd50078]

Not looking for details, but curious for those of you who are financing through the dealership, what length of loans are you getting? Thank you.

 

[rd50078]

Not looking for details, but curious for those of you who are financing through the dealership, what length of loans are you getting? Thank you.

Most marriages don't last as long as some of the terms being offered out on the market. I would not go beyond 48 months. You could set it up with longer terms with a balloon payment at 48 months. This would save you alot of interest expense down the road and keep your monthly payment affordable at the get go.

 

[Rspayde]

If you don't mind me asking, where are you getting 60 months for 2%??? I have 800+ credit score and can't find anything under the 6 here in Georgia and I'm member of a private CU

I think you may of missed the boat unfortunately. I got a 60 month @ 2.51% from GA Community back in late October and was able to close one day before the rate lapsed. If it lapsed the new rate would have been in the mid fours. Now it looks like mid 5's with them

Looks like LGE is offering a 4.75 for 48 and 5.25 for 60

 

[hozer]

Say what you will about financing.

I got 84 Months at .9 % last October. Pretty much free money so I took it. Worth noting I could have done much much shorter, but why would I.

Stretching your financing is only a shite idea if you're doing it to afford the payments.

 

[Markopromo]

At .9 is literally free money.

 

[KirchTX]

You can always pay more than the minimum payment on a longer term but I don’t think many people do that. Early payment penalties don’t really exist anymore but you should always ask and be sure before signing.

All our car loans have always been at or below 2.9% and it looks like when/if a bronco is delivered to me this one will be much higher than that :/

 

[Rspayde]

Say what you will about financing.

I got 84 Months at .9 % last October. Pretty much free money so I took it. Worth noting I could have done much much shorter, but why would I.

Stretching your financing is only a shite idea if you're doing it to afford the payments.

Yeah this was me on my Ranger when Ford offered me 0% for 84 months on one of those Oh Shit Covid is going to end us deals. Still came out in the black when I traded it up for the Bronco. Of course that jump to my payment was real tough to swallow.

 

[TallDude]

84 months loan here.
I usually pay off early or sell or trade in my vehicles after a year or so (vehicular ADD, it’s a thing!) so I don’t end up paying all that much in interest. If I decide I do want to keep the vehicle I focus on paying it off more promptly.

 

[jaruss01]

Term doesn't always have to do with affordability, but preference on monthly. Personally, I just like low lease-like payments, and do whatever it takes to back into a $499/mo payment on both my vehicles for $1,000/mo all-in. So for my two ~$60k vehicles, it was ~$30k down, financed at 72 month terms to back into $499/mo. Although that was before rates went crazy and they were ~3%. I would probably have a slightly different view today and shorten up the term and increase the down payment.

 

[DasQball]

A better question to ask is what length of loan should you get. My strong opinion is

never get a loan longer than 60 months

If the payment at 60 months is too high for you, then you probably shouldn't buy the vehicle. I'd recommend doing 48 months or less if you can swing it. You should also get a lower rate, the shorter the loan duration.

What if it's 0% for 72 months, 60 months, or 48 months? Do you change this opinion based on rate or just by the payment amount?

 

[SilverSurfer]

I got 2% for 36 months through a credit union that my dealer does all their loans through last April.

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