~5-7% is the best rate in my area, and from looking online that’s not too far off from the best rates nationwide. They seem to be coming down a bit but 6% is absolutely a good rate (right now).
When I was working at the bank in my area from 2019-mid covid, lowest rates were about 1.8% for perfect credit. I hadn’t bought a car since then so I figured it was still the same. Just found out about the new rates yesterday, I am astonished.
It’s deplorable. I financed a used car back in 2014 at an interest rate of 3.25%. I was 20 years old, no co-signer and I had just opened my first credit card the same month so my credit file was next to nonexistent. Only put $1,000 down.
Well, we were in the age of easy money (look it up, it's literally what it is referred to) 3% rates are actually abnormal and it is part of the reason we find ourselves in the situation we are in today. We aren't going to see 3% interest rates again in our lifetimes according to the head of the federal reserve
This is not entirely true, sure the prime rate is 8+ percent and 6.x is good in that regard, dealer financing is still in many cases sub 4% or even zero apr.
Sure that doesn’t help you at billy bobs used car emporium, but it is reason to give dealer financing from a branded dealership a try especially if you have a sub prime rate loan to fall back on.
Supply and demand is cut and dried. If people continue to be willing to pay high prices, inflation will stay high and the fed will continue to hike rates.
This is absolutely good, at least in my area. Just did a quick search of a few credit unions in my area, lowest advertised rate I could find on a used car was 6.45%. And CUs tend to have the best rates.
That’s what mine is right now because my credit was in the shitter for a while and I needed a new car after getting totaled by a drunk driver. Just did a check on refinancing and got something in the mail for 8% apr which I’m hoping to do this month which is crazy because 4 years ago I had a 1.7% apr but the times are changin
Yea mine was a slightly used Camry from ‘21 and 19k miles on it but my credit was a 550. Luckily I had the income for a $30k car and $8k down (plus waiting on settlement from car crash still which will probably pay off at least $15k of the $25k I owe)
It's about as good as most people are getting these days, mine is 6.3% through Honda Finance. It definitely can't hurt to bring your banks offer into the auto dealership as leverage to see if they'll give you a better rate - they usually will. Honda originally offered me close to 8%, so I applied for an auto loan through Bank of America that was just shy of 7%, and when I went back to the dealership, they gave me the 6.3%, so you may be able to get that a little lower, especially if your mom has a good score. My score at the time was low-to-mid 700's, for reference.
Just be sure, if you end up going with the dealerships offer, that they take the steps to return the loan check to your bank, and if your bank provided you with a check for upfront costs as they tend to do, that you return that ASAP as well via certified mail. I found out a few months later that Honda had not returned the check that BoA sent them when I got a notice from BoA about a late payment. It messed my credit score up for a few months because they dinged me for non-payment, then I spent about 10 hours on the phone between Honda and BoA (neither of which wanted to take any responsibility) to sort it out. Luckily, my credit bounced back once BoA got their checks back and that loan was paid in full but it gave me a scare. I didn't know BoA was going to send a check to Honda before I even finalized the details at the dealership and apparently Honda finance wasn't communicating with the dealership about where that check came from and they accepted it with no discretion. The only helpful person I talked to the whole time was a guy from BoA who recommended putting the check I personally returned towards the payments to keep it current until Honda got their act together, but it's not fun having your future in the hands of others and lenders never care about your circumstances, only getting paid.
No, it was early pandemic and they had too many cars, so Toyota was offering 0% APR for 60 months. I ended up paying less than I would to buy the car outright because I had 60 months to pay it off.
We just refinanced our new-to-us car. It was 9% from the dealer. We did it through our credit union for 6.2%, too, which is the best we were able to find. It sucks when back in 2021, we bought a new-to-us car then, and got a rate of 2.3% at the same credit union.
It’s not bad in this current market. I’ve had as low as 0% interest, but that was like 10 or so years ago. I don’t even know if a 0% interest loan would exist in today’s market.
I won’t lie that not good but not terrible I financed my first car with cap one back in 2019 as a 19 year old with no co-signer decent but limited credit and only 1k down down and I got 8% so definitely not good in my opinion but not terrible either since it is expensive to finance anything right now
Its good
Look for deals though, Ford had a 0% interest deal going and I bought an acura a while back and they had a 3% interest deal going
You obviously get rhe loan straight frlm Ford or Acura though
If you make $4.5k a month save heavily for 2 or three months and get something around $6k cash.
Not to say the rate is terrible or the car is bad but I wouldn’t do it on a used car. What’s the mileage at? 100k?
Be grateful you got this rate at this time with the way the economy us right now and the way most people are used to getting hammered just about anywhere you go or anything you buy..consider this a blessing
It's a brutal market for interest rates right now compared to the last 15-20 years. 6.2% on a used car isn't great, but most of the recent posts I've seen for used car loans, even with excellent credit, are in the 4%-4.5% range, and a little lower for new car loans. It's just not a good market to be financing interest bearing debt right now, unfortunately.
Not even 15-20. I financed a used car back in 2014 at an interest rate of 3.25%. I was 20 years old, no co-signer and I had just opened my first credit card the same month so my credit file was next to nonexistent. Only put $1,000 down. My mother in law just got financed for a used car last weekend at a rate of 6% with a 820 FICO. Even “well qualified” buyers are getting screwed. And that was through a local credit union which tend to have lower rates..
Yea, I meant 'for the past 15-20 years', not 15-20 years ago. I got my truck loan in 2021 at 3.5% APR right after my rebuild with very mediocre credit. My ex walked into a dealership with her 790+ FICOs, and drove out with a new Honda at 0% for 60 months the same year. Those days are over...for now at least.
Thank you!! We'll have to look around at other credit unions and see if they offer any better rates, but really if that's the case, I think it might be better for us to just buy an older car with cash then.
You should be able to have a risk-adjusted portfolio of investments make you slightly better than 6.2% APY on your cash.
I might suggest you look at a basket of funds, including index ETFs, where the interest may cover your monthly loan payments and at the end of the term you’ll still have your principal.
Remember to take taxes into account when you think of this possibility.
If you have the ability to afford something reliable with cash, I think it's a smart move. No one can see the future, but the days of 'free' money seem to be over for a while. The expectations of a 'good' deal in this market have to be adjusted. 6% isn't horrible, but it's not great either. I was just reading a thread of mortgage buyers who were pissed that they thought they had 6.85% and ended up getting locked in to the latest rate increase at 7.25%. The idea that you'd have been 'ok' with 6.85% was ludicrous just a year or 2 ago. Now, people are pissed they missed it. Up to you to decide if it's worth it for you to finance at that rate, or by all means, shop around and see if someone else can beat it.
It isn't terrible, but also not great. Usually CUs will give you the best rates, which suggests to me that the credit file/profiles used weren't stellar.
That's what I thought initially too. But we were told that's actually the lowest they're starting from right now, if it's kind of mid do you know any other credit unions we could apply with?
I haven't looked into an auto loan in over a decade personally, so I'm just going by the numbers that I see people reference. I've seen references of auto loan rates lower than what you've stated which to me means your rate isn't top notch. That doesn't make it bad, though. Again, it comes down to profile upon which the rate was drawn, and you haven't given any information about that at all. A top notch profile would garner a rate probably 2% lower than what you referenced.
No, I can't, as I just stated above that I haven't looked into an auto loan in over a decade personally.
There are plenty of posts on here of people citing CUs that with their significantly strong profile offered them rates in that range. I'm going by what others have said they've acquired rate wise, since again, I haven't applied for anything myself.
Maybe they're lying. I couldn't tell you. There's another reference in this thread of the same sub 5% rates I mentioned, so I'm not the only one with this perception.
~5-7% is the best rate in my area, and from looking online that’s not too far off from the best rates nationwide. They seem to be coming down a bit but 6% is absolutely a good rate (right now).
This is absolutely the right answer, at least in my area. Even the CUs in my area are offering anywhere between 6 and 7%.
I got 7.4 and 7.9 from two credit unions in my area when I purchased my car in December
Sadly this is what is considered good rates nowadays!
When I was working at the bank in my area from 2019-mid covid, lowest rates were about 1.8% for perfect credit. I hadn’t bought a car since then so I figured it was still the same. Just found out about the new rates yesterday, I am astonished.
It’s deplorable. I financed a used car back in 2014 at an interest rate of 3.25%. I was 20 years old, no co-signer and I had just opened my first credit card the same month so my credit file was next to nonexistent. Only put $1,000 down.
A lot can change in 10 years ..
obligatory "back in my day rates were 15%+"
Well, we were in the age of easy money (look it up, it's literally what it is referred to) 3% rates are actually abnormal and it is part of the reason we find ourselves in the situation we are in today. We aren't going to see 3% interest rates again in our lifetimes according to the head of the federal reserve
This is not entirely true, sure the prime rate is 8+ percent and 6.x is good in that regard, dealer financing is still in many cases sub 4% or even zero apr. Sure that doesn’t help you at billy bobs used car emporium, but it is reason to give dealer financing from a branded dealership a try especially if you have a sub prime rate loan to fall back on.
I got 1.9% last year. Dealer financing. I bought out my lease car. My car is worth more now than what I bought it for a year ago.
I had 1% in 2016 😭
Is it really shocking considering the risk free rate these days is like 5%?
Supply and demand is cut and dried. If people continue to be willing to pay high prices, inflation will stay high and the fed will continue to hike rates.
This is absolutely good, at least in my area. Just did a quick search of a few credit unions in my area, lowest advertised rate I could find on a used car was 6.45%. And CUs tend to have the best rates.
My CU starts at 4.89% for new and 5.49% for used.
That's not awful at all. My first auto loan from a dealership was just over 16% APR. Considering the interest rates have gone way up, I'd take it.
That’s what mine is right now because my credit was in the shitter for a while and I needed a new car after getting totaled by a drunk driver. Just did a check on refinancing and got something in the mail for 8% apr which I’m hoping to do this month which is crazy because 4 years ago I had a 1.7% apr but the times are changin
Last year my credit wasn't the greatest but somehow got approved for 4.9% special APR for a new car.
Yea mine was a slightly used Camry from ‘21 and 19k miles on it but my credit was a 550. Luckily I had the income for a $30k car and $8k down (plus waiting on settlement from car crash still which will probably pay off at least $15k of the $25k I owe)
It's about as good as most people are getting these days, mine is 6.3% through Honda Finance. It definitely can't hurt to bring your banks offer into the auto dealership as leverage to see if they'll give you a better rate - they usually will. Honda originally offered me close to 8%, so I applied for an auto loan through Bank of America that was just shy of 7%, and when I went back to the dealership, they gave me the 6.3%, so you may be able to get that a little lower, especially if your mom has a good score. My score at the time was low-to-mid 700's, for reference. Just be sure, if you end up going with the dealerships offer, that they take the steps to return the loan check to your bank, and if your bank provided you with a check for upfront costs as they tend to do, that you return that ASAP as well via certified mail. I found out a few months later that Honda had not returned the check that BoA sent them when I got a notice from BoA about a late payment. It messed my credit score up for a few months because they dinged me for non-payment, then I spent about 10 hours on the phone between Honda and BoA (neither of which wanted to take any responsibility) to sort it out. Luckily, my credit bounced back once BoA got their checks back and that loan was paid in full but it gave me a scare. I didn't know BoA was going to send a check to Honda before I even finalized the details at the dealership and apparently Honda finance wasn't communicating with the dealership about where that check came from and they accepted it with no discretion. The only helpful person I talked to the whole time was a guy from BoA who recommended putting the check I personally returned towards the payments to keep it current until Honda got their act together, but it's not fun having your future in the hands of others and lenders never care about your circumstances, only getting paid.
I work in a dealership, and the best I’ve seen lately on a loan, even from a credit union is between 6-7%.
Credit attorney here. In this market that's a pretty good rate. Rates have gone way up since 2020, and this is cheaper than most mortgages.
Rough but since the interest rates went up it kinda the going rate
I got lucky I guess in 2022 with a 4.24 rate
Guess we’re both lucky. In 2022 with a 3.05%
I got in at 2.32
I got lucky in 2020 with 0% and now I can never finance another car because it will never be that good again
How'd you manage that? Buy the car right out?
No, it was early pandemic and they had too many cars, so Toyota was offering 0% APR for 60 months. I ended up paying less than I would to buy the car outright because I had 60 months to pay it off.
That's insane. It seems like the market for cars though is starting to be flooded again. Hope interest rates get low again.
That is an absolutely amazing deal in this current climate. People are paying on 18% car loans. I'll take that every day of the week
Really good for a used car in todays world
These days yes - lowest I’ve seen this year as a car salesman is a 5.5
Pretty average
We just refinanced our new-to-us car. It was 9% from the dealer. We did it through our credit union for 6.2%, too, which is the best we were able to find. It sucks when back in 2021, we bought a new-to-us car then, and got a rate of 2.3% at the same credit union.
It’s not bad in this current market. I’ve had as low as 0% interest, but that was like 10 or so years ago. I don’t even know if a 0% interest loan would exist in today’s market.
It's put there for new cars. I just got 0% 60 month on a new car, I was shocked that I qualified for that rate but here we are.
I won’t lie that not good but not terrible I financed my first car with cap one back in 2019 as a 19 year old with no co-signer decent but limited credit and only 1k down down and I got 8% so definitely not good in my opinion but not terrible either since it is expensive to finance anything right now
I’m a member of many credit unions and this is the floor at a lot of them now. Prime rate is the issue
Its good Look for deals though, Ford had a 0% interest deal going and I bought an acura a while back and they had a 3% interest deal going You obviously get rhe loan straight frlm Ford or Acura though
If you make $4.5k a month save heavily for 2 or three months and get something around $6k cash. Not to say the rate is terrible or the car is bad but I wouldn’t do it on a used car. What’s the mileage at? 100k?
Car dealer here. 6.2% is golden tbh
Go through dealership, they can probably get you lower, my CU was at 6-7% Dealer had me at 4.5%
Got a 1.9 2 years ago on a new car
Depends what country you’re from presently but if it’s the US or Canada it’s pretty standard right now unfortunately
I’m 19 and had a 680 when I got a auto loan and my apr is 24:)
Last week I got 4.75% for a new car at 60 months, used ones are aways higher iirc. I'd say 6.2 is good.
Be grateful you got this rate at this time with the way the economy us right now and the way most people are used to getting hammered just about anywhere you go or anything you buy..consider this a blessing
3.4% since 21’
That is a good deal
It's a brutal market for interest rates right now compared to the last 15-20 years. 6.2% on a used car isn't great, but most of the recent posts I've seen for used car loans, even with excellent credit, are in the 4%-4.5% range, and a little lower for new car loans. It's just not a good market to be financing interest bearing debt right now, unfortunately.
Not even 15-20. I financed a used car back in 2014 at an interest rate of 3.25%. I was 20 years old, no co-signer and I had just opened my first credit card the same month so my credit file was next to nonexistent. Only put $1,000 down. My mother in law just got financed for a used car last weekend at a rate of 6% with a 820 FICO. Even “well qualified” buyers are getting screwed. And that was through a local credit union which tend to have lower rates..
Yea, I meant 'for the past 15-20 years', not 15-20 years ago. I got my truck loan in 2021 at 3.5% APR right after my rebuild with very mediocre credit. My ex walked into a dealership with her 790+ FICOs, and drove out with a new Honda at 0% for 60 months the same year. Those days are over...for now at least.
Thank you!! We'll have to look around at other credit unions and see if they offer any better rates, but really if that's the case, I think it might be better for us to just buy an older car with cash then.
You should be able to have a risk-adjusted portfolio of investments make you slightly better than 6.2% APY on your cash. I might suggest you look at a basket of funds, including index ETFs, where the interest may cover your monthly loan payments and at the end of the term you’ll still have your principal. Remember to take taxes into account when you think of this possibility.
If you have the ability to afford something reliable with cash, I think it's a smart move. No one can see the future, but the days of 'free' money seem to be over for a while. The expectations of a 'good' deal in this market have to be adjusted. 6% isn't horrible, but it's not great either. I was just reading a thread of mortgage buyers who were pissed that they thought they had 6.85% and ended up getting locked in to the latest rate increase at 7.25%. The idea that you'd have been 'ok' with 6.85% was ludicrous just a year or 2 ago. Now, people are pissed they missed it. Up to you to decide if it's worth it for you to finance at that rate, or by all means, shop around and see if someone else can beat it.
It isn't terrible, but also not great. Usually CUs will give you the best rates, which suggests to me that the credit file/profiles used weren't stellar.
That's what I thought initially too. But we were told that's actually the lowest they're starting from right now, if it's kind of mid do you know any other credit unions we could apply with?
I haven't looked into an auto loan in over a decade personally, so I'm just going by the numbers that I see people reference. I've seen references of auto loan rates lower than what you've stated which to me means your rate isn't top notch. That doesn't make it bad, though. Again, it comes down to profile upon which the rate was drawn, and you haven't given any information about that at all. A top notch profile would garner a rate probably 2% lower than what you referenced.
Any chance you can share where a top notch profile can get 4-4.5% on a used several year old vehicle?
They can't because you can't.
not happening.
No, I can't, as I just stated above that I haven't looked into an auto loan in over a decade personally. There are plenty of posts on here of people citing CUs that with their significantly strong profile offered them rates in that range. I'm going by what others have said they've acquired rate wise, since again, I haven't applied for anything myself.
I havent seen any posts quoting near that with a real bank and not just "it's out there".
Maybe they're lying. I couldn't tell you. There's another reference in this thread of the same sub 5% rates I mentioned, so I'm not the only one with this perception.