[MineralGreyMetallic]

Originally Posted by matty_f

+1, but I will fight purely out of spite.

And yes I’m a total ass, but $1000 is a denomination of money that I’m poor enough to count in.

But more importantly, when are we hitting the ACH after our cars come in.

I respect it 100%. Let us know how it goes!

There's a nice little group on this board from SoCal, so we gotta do a meet once we all have our cars.

[two_three_two]

Originally Posted by MrTiger

You will be able to refi to lower rate IF rates drop and that is a big IF. Navy Federal Credit Union has a rate of 4.59%

not to toot my own horn here but... beep beep

https://www.cnbc.com/2023/12/13/fed-...mber-2023.html

[xtougher]

Originally Posted by AZG87

I had something similar they were waiting on parts for HAS install at VPC and so delivery got bumped from end of Sept into first week of Oct. Rate increased .3%. Will refi as soon as possible.

I'm a little late to the party, but just a super, over-simplified thought:

At a loan amount of $50,000 as a baseline, a 0.3% difference in rate ends up equating to a little less than $7/mo difference.

This means it's $84/year, and $420 over 60 months.

Obviously, I don't know the details of the terms, nor does it require sharing.

But the point is, I don't think we always look to see what the difference is in dollars, but get more upset over the principle of the rate being higher than we would like or expect.

So an over-simplified response, would be that 0.3% would not be a reason to refinance for many people, especially when considering you are starting the loan terms again (60 month clock, in this case, would start over).

Just a thought.

[AZG87]

Originally Posted by xtougher

I'm a little late to the party, but just a super, over-simplified thought:

At a loan amount of $50,000 as a baseline, a 0.3% difference in rate ends up equating to a little less than $7/mo difference.

This means it's $84/year, and $420 over 60 months.

Obviously, I don't know the details of the terms, nor does it require sharing.

But the point is, I don't think we always look to see what the difference is in dollars, but get more upset over the principle of the rate being higher than we would like or expect.

So an over-simplified response, would be that 0.3% would not be a reason to refinance for many people, especially when considering you are starting the loan terms again (60 month clock, in this case, would start over).

Just a thought.

That is fair. And you're right it is principal of them jacking it up. But you can also do a shorter term on the refi if you've paid it down and hopefully when you do refi it is at a bigger delta as well.

[MrTiger]

Originally Posted by two_three_two

not to toot my own horn here but... beep beep

https://www.cnbc.com/2023/12/13/fed-...mber-2023.html

Cuts to keep them stable. 2% -3% rates are long go and not coming back. They were set in stone to keep the economy moving after the recession in 2008 . No one can predict the future but chances of lower rates are slim to none

[two_three_two]

Originally Posted by MrTiger

Cuts to keep them stable. 2% -3% rates are long go and not coming back. They were set in stone to keep the economy moving after the recession in 2008 . No one can predict the future but chances of lower rates are slim to none

Headline: Fed holds rates steady, indicates three cuts coming in 2024

[xtougher]

Originally Posted by AZG87

That is fair. And you're right it is principal of them jacking it up. But you can also do a shorter term on the refi if you've paid it down and hopefully when you do refi it is at a bigger delta as well.

That's true...shorter term can help wash out the re-start of the loan.

I'm probably a few months away from having to deal with this stuff, but it's still good to see what's out there.

I definitely wouldn't complain if it's a bit lower than now!

*also, I wrote "principle" and you wrote "principal". I'm leaning towards me being wrong. HA. oops.

[JABCAT]

Originally Posted by AZG87

That is fair. And you're right it is principal of them jacking it up. But you can also do a shorter term on the refi if you've paid it down and hopefully when you do refi it is at a bigger delta as well.

I don't know why anybody relies on the dealer for financing? If you don't know they pad the rate, where have you been. My financing is done before I even talk to the dealer. I then allow the dealer to beat it. If they can, I finance through them, if they can't, I don't. It's really not that difficult.

[anthemavm]

Originally Posted by two_three_two

Headline: Fed holds rates steady, indicates three cuts coming in 2024

The 10 year yield took a nice drop today, but we won't see that in retail loans anytime soon.

[KevinC]

Originally Posted by two_three_two

Headline: Fed holds rates steady, indicates three cuts coming in 2024

And 30-yr mortgage average dropped a whopping 27 basis points today. I'd hold out for some better car rates, perhaps this will have a downward effect on the car loan market as well.

[MineralGreyMetallic]

Originally Posted by JABCAT

I don't know why anybody relies on the dealer for financing? If you don't know they pad the rate, where have you been. My financing is done before I even talk to the dealer. I then allow the dealer to beat it. If they can, I finance through them, if they can't, I don't. It's really not that difficult.

I think that's the correct strategy, and it's what I've done in the past.

The problem right now is that it's hard to find a bank providing significantly better rates.

[JABCAT]

Originally Posted by MineralGreyMetallic

I think that's the correct strategy, and it's what I've done in the past.

The problem right now is that it's hard to find a bank providing significantly better rates.

At least with getting options ahead of time you know what to expect from the dealer, and it takes their leverage away to pad the rate.

[J-RO]

If you live in the US and can wait until next year the rates will drop. Its an election year.

[two_three_two]

Originally Posted by anthemavm

The 10 year yield took a nice drop today, but we won't see that in retail loans anytime soon.

the fed funds rate are hand in hand with the prime lending rate. I dont think this needs to be explained. heres a graph:

[two_three_two]

Originally Posted by JABCAT

I don't know why anybody relies on the dealer for financing? If you don't know they pad the rate, where have you been. My financing is done before I even talk to the dealer. I then allow the dealer to beat it. If they can, I finance through them, if they can't, I don't. It's really not that difficult.

this is always the strategy. come in with bank or CU pre approval. slap it on the table and say "beat this" and they either will or wont. its simple and the best easy piece of car buying advice you can give someone

[JABCAT]

Originally Posted by two_three_two

this is always the strategy. come in with bank or CU pre approval. slap it on the table and say "beat this" and they either will or wont. its simple and the best easy piece of car buying advice you can give someone

It'll always work in your favor. Sometimes the dealer has pull and can beat the rate offered by the banks by a lot. Case in point, I helped my brother-in-law buy his first car earlier this year. He was 25, no credit, steady job with a really good income. When he applied on is own, the best rate he received was 8.9%. The manufacturer was offering promotional financing at 3.9% and the dealer got him approved.

I knew that was the promotion going into the dealership, and we had purchased a vehicle for my daughter from the same sales guy. This dealership was no haggle, no-b.s., sales guy came in on his day off to show my BIL some vehicles. 30 min in & out. They even gave my BIL $500 off because I purchased from them previously. They didn't have to as they literally had 2 vehicles on the lot as this was prior to inventory filling back up. That's how it should be, but rarely is. The more you can arm yourself before stepping foot inside, the better off you'll be.

[two_three_two]

Originally Posted by JABCAT

It'll always work in your favor. Sometimes the dealer has pull and can beat the rate offered by the banks by a lot. Case in point, I helped my brother-in-law buy his first car earlier this year. He was 25, no credit, steady job with a really good income. When he applied on is own, the best rate he received was 8.9%. The manufacturer was offering promotional financing at 3.9% and the dealer got him approved.

I knew that was the promotion going into the dealership, and we had purchased a vehicle for my daughter from the same sales guy. This dealership was no haggle, no-b.s., sales guy came in on his day off to show my BIL some vehicles. 30 min in & out. They even gave my BIL $500 off because I purchased from them previously. They didn't have to as they literally had 2 vehicles on the lot as this was prior to inventory filling back up. That's how it should be, but rarely is. The more you can arm yourself before stepping foot inside, the better off you'll be.

you're a stand up fellow. I had to have someone do this for me at 22 with my WRX and it taught me a lot. I would be a customer for life if a dealer did me a solid for a young relative like this.

[Endz24]

Originally Posted by JABCAT

I don't know why anybody relies on the dealer for financing? If you don't know they pad the rate, where have you been. My financing is done before I even talk to the dealer. I then allow the dealer to beat it. If they can, I finance through them, if they can't, I don't. It's really not that difficult.

Agreed. Dealer was offering 6.29. Went to a local credit union and got 4.74 for 60 mo. Simple game.

[JABCAT]

Originally Posted by two_three_two

you're a stand up fellow. I had to have someone do this for me at 22 with my WRX and it taught me a lot. I would be a customer for life if a dealer did me a solid for a young relative like this.

I learned a lot the hard way when I was younger. The more educated I became, the less impulsive I became, the better deals I was able to get. I think my M2 is my 45th vehicle purchase, and I'm only 47. There are good dealers out there who understand the value of referral business. They're hard to find, but they're there.

I also taught him about interest, and how making payments every 2 weeks instead of once per month significantly cuts down the interest. He was over for T-Giving and was so appreciative that I had helped him out and gave him some lessons. He actually takes his monthly payment and makes a payment every week. He was excited to tell me he's paid off more than 50% of the car (he purchased in March). A $33k purchase was a scary thing for him, and not getting screwed over by a dealership drastically lessoned that purchase fear.

He's got a brand new '23 vehicle, full warranty, doesn't have to worry about maintenance for the first 3 years, and learned how to purchase a vehicle on his own in the future.

Sadly, many dealerships count on an uneducated customer walking through the doors. I can't tell you the last vehicle I purchased by going to a dealership. I do all my purchases online, including negotiating the trade-in. The only time I go into the dealership is to pick the vehicle up.

[NJbaitshop]

I'm not really able to qualify for any of the credit unions that offer any decent APR's (state employee, military, etc.).

I was offered 6.29% by BMW, but I just filled out an application at Bank of America and with my info I just got approved for 5.64%.

Going to see what chase has to offer.

[MineralGreyMetallic]

Originally Posted by NJbaitshop

I'm not really able to qualify for any of the credit unions that offer any decent APR's (state employee, military, etc.).

I was offered 6.29% by BMW, but I just filled out an application at Bank of America and with my info I just got approved for 5.64%.

Going to see what chase has to offer.

That is really helpful, thanks!

I always just assume what is listed on the website is the lowest possible APR the bank will offer. Today BoA says 5.99%. Yesterday, just as a data point that things are getting better, it was 6.14%.

Great to know they may offer lower than what is listed.

[NJbaitshop]

Originally Posted by MineralGreyMetallic

That is really helpful, thanks!

I always just assume what is listed on the website is the lowest possible APR the bank will offer. Today BoA says 5.99%. Yesterday, just as a data point that things are getting better, it was 6.14%.

Great to know they may offer lower than what is listed.

I had the same thought, but my car is now officially in transit, so I decided to put in an actual application, and as you noted it was almost a half point lower than the lowest listed on the site.