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

[Cheshire]

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?

If you can get a zero percent loan, then I'd do that all day long and get the longest term the lender will give you. Sadly, a zero percent rate on a Bronco doesn't exist in this universe.. Put it this way, get the shortest term loan you can afford. If that term is >60 months, don't buy.

Sponsored

 

[DasQball]

If you can get a zero percent loan, then I'd do that all day long and get the longest term the lender will give you. Sadly, a zero percent rate on a Bronco doesn't exist in this universe.. Put it this way, get the shortest term loan you can afford. If that term is >60 months, don't buy.

I typically follow your rationale here when I buy, but I got a 2020 Explorer ST with 0% so I pushed it out as far as I could. Just wondered if you would have done it too since we seem to think similar.

I did get a decent rate for my 2022 Wildtrak, but not 0%

 

[Cheshire]

I typically follow your rationale here when I buy, but I got a 2020 Explorer ST with 0% so I pushed it out as far as I could. Just wondered if you would have done it too since we seem to think similar.

I did get a decent rate for my 2022 Wildtrak, but not 0%

Of course 0% is free money. I'll take free money anytime. I'd have done exactly what you'd do with the Explorer. Sounds like you could afford that.
With the WT, even if the rate is decent, I wouldn't recommend buying if you can't afford the payment over 60 months. 48 months would be better.

 

[qiyuanhu813]

It all depends. I went with 3.49% for 72months this week, 3.49% is the “Free money ” nowadays, given the regular saving is 4.5% now, why I pay my money for saving the 3.49% when I can get 1% more just by putting in my savings.

 

[JetG]

It all depends. I went with 3.49% for 72months this week, 3.49% is the “Free money ” nowadays, given the regular saving is 4.5% now, why I pay my money for saving the 3.49% when I can get 1% more just by putting in my savings.

What bank?

 

[Lilj4425]

I got mine for 72 months at 2.50% interest through Truist. I am not ashamed to do 72 months either. I am planning to keep the vehicle for a long time and don’t have $55,000 lying around that I can pay up front.

 

[DrewBronc21]

Dealership will secure a loan for however many months you want but they will also go with one of “their” banks and take a cut of the interest so you might not pay as low as you could by getting your own financing. Suggest securing your own financing prior to going to dealership.

With interest rates as high as they are now, 5-6%, it makes most financial sense to get a short loan term with more cash down, but when interest rates are 2%, I always put next to nothing down and get the longest possible loan because you can generally make much more than 2% on your cash.

 

[DrewBronc21]

I got mine for 72 months at 2.50% interest through Truist. I am not ashamed to do 72 months either. I am planning to keep the vehicle for a long time and don’t have $55,000 lying around that I can pay up front.

at 2.5%, nothing wrong with a 72 month loan. You're paying less interest than a 36 month loan @ 5%.…it’s about $4k over 6 years.

Don’t be fooled by the “I pay Cash only” Crew. In most cases if you can get very low interest rate, it will make sense to keep your cash working for you.

 

[JPNC]

at 2.5%, nothing wrong with a 72 month loan. You're paying less interest than a 36 month loan @ 5%.…it’s about $4k over 6 years.

Don’t be fooled by the “I pay Cash only” Crew. In most cases if you can get very low interest rate, it will make sense to keep your cash working for you.

How long ago did you get 2.5% through Truist? I just checked and their lowest rate is 5.69%.

 

[DrewBronc21]

How long ago did you get 2.5% through Truist? I just checked and their lowest rate is 5.69%.

Wasn’t me.…was the poster before me that I quoted.

2.5% seems too good currently.

 

[Lilj4425]

How long ago did you get 2.5% through Truist? I just checked and their lowest rate is 5.69%.

October 2021. I lucked out and got my Bronco before the Fed decided to raise interest rates left and right.

 

[JPNC]

October 2021. I lucked out and got my Bronco before the Fed decided to raise interest rates left and right.

Ahh. Makes sense.

 

[qiyuanhu813]

What bank?

Local CU

 

[Woivod]

While securing a zero percent loan would be fantastic, it's important to keep in mind that such rates may not always be available, especially for certain vehicles like the Bronco. It's always a good idea to explore different financing options and evaluate the terms and interest rates offered.

If you're looking for guidance in finding the most suitable loan term for your situation, it might be beneficial to consult a Mortgage Broker in Swansea. Although they primarily specialize in mortgages, they can offer insights and advice on loan options and terms that may be applicable to your vehicle purchase as well.

 

[Johnny Mo]

Couldn't stomach the 7+% rate even with mid 800's credit score - sold off some stock and glad I did as it cratered 18% a week later...so the way I figure it I'm up 25% on this endeavour

Sponsored