Intrest Rates Hike after your Order?

[Nalls]

Hey everyone. I'm hoping to get some help with a big concern of mine. If this comes off as a stupid question I apologize but I've never ordered a new vehicle like this before.

I've saved up 15k & I have my paid off Wrangler JK for trade in. I'm ready to place my order but a few things is holding me back.....intrest rate hike.

Is it possible to lock in your intrest rates when you place your order with a dealer? Without getting political I don't see how an intrest rate increase isn't going to happen from now until my Bronco is ready.

Also I fully expect my wait to get mine to be extremely long what happens if you place an order on a 22 but say it's now 2023 are they going to honor the 22 price & give you a 23?

Thank you all for your insight. This has been a really stressful ordeal.

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[ChompSticks]

Your dealer isn’t usually going to beat a credit union as far as interests rates. I’m unsure of rates can be locked in. I’m financing with DCU and applied for a loan at 1.99% but the rate has now been hiked up to 2.49% after I filled out the preapproval. The fine print was, “rates may change after applying”

 

[telenerd]

Howdy, I was told by local credit union I cant lock in the rates until the vehicle arrives. They said I could do a personal loan but the rate was actually higher then a car loan. I tried another credit union and they said the same thing. Hope that helps.

 

[BlueBronco]

Most lending institutions only lock a rate for 30days after approval. Some CU's may do a 60 day but they are few and probably less willing in todays financial climate.

Read past the dealer specific info and here is a good primer on price protection. So far, price protection only exists for the early res holders/orders and no mention of MY23 just yet.

 

[shieldsy]

Order banks are closed for now.

 

[mcinfantry]

Navy federal will do 90 days lock
2.29 72 months
As soon as I get a build date, I’ll apply

 

[Fuzion2Bronco]

Your dealer isn’t usually going to beat a credit union as far as interests rates. I’m unsure of rates can be locked in. I’m financing with DCU and applied for a loan at 1.99% but the rate has now been hiked up to 2.49% after I filled out the preapproval. The fine print was, “rates may change after applying”

Is this in MA or NH?

 

[GETSCHWIFTY]

Dealer offered me 7.89%

2 weeks later my bank let me refinance for 2.29%

 

[ChompSticks]

Is this in MA or NH?

I think DCU is based in MD. I think I’m gonna try Penfed next month and see where rates are in a couple weeks. Their rates are a little lower than DCU at the moment. But it’s possible they havent updated yet.

 

[Bonnie6G]

Dealer offered me 7.89%

2 weeks later my bank let me refinance for 2.29%

Dafuq???! What was their reasoning for almost 8%???

 

[M&M Beer]

Keep saving your cash you may have enough to pay cash when you get your Bronco. I have saved enough to pay twice now because I have waited so long.

 

[M&M Beer]

Dafuq???! What was their reasoning for almost 8%???

and his next born too

 

[MtnBronc]

My dealer won't talk financing until my Bronco gets in their inventory, which it was delivered yesterday so I'm expecting that call today. We'll see what rates they can offer, I'm preapproved through PenFed for 72 month 2.39%.

That said, your dealer may be able to talk financing beforehand, but only they can tell you how long an offer would be good for. Doubt any dealer would lock you in at a rate now when you don't have an order, which you won't be able to place until the MY23 order banks open sometime in Q4.

 

[TheWoo]

It would be a special situation that would allow you to lock in now. And if you can find it, might require you to start paying now.

Best strategy (imo)? Start adding to your $15k you've got set aside by making what you estimate your monthly payment would be. If you do that from now until the vehicle arrives, you'll have a much larger down payment that will more than offset the likely 1.5-2% higher rates we'll see next year.

 

[Kos]

Auto loans are like mortgage's. You can get preapproved, but you can only lock in interest rates once you are actually in the process of making the purchase.

A few people have mentioned a personal loan which would be an option. The rates might be higher now compared to a car loan, but you're hedging against the future interest rates. If you were to go that route, and you ended up able to get a cheaper rate on an auto loan at time of purchase you could pay off the personal loan and you'd only be out the cost of interest between now and then.

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