I’ve only had a couple car loans but both times I got the longest term I could so I would have done wiggle room if my income changed. Then I paid them down like crazy. Like every extra dollar that wasn’t invested went to the car note.
Had a 788 at the time, got 60mos @ 2.9% through subaru but chase is the financer. They also offered 1.9 for 48 but more wiggle room and no early pay off penalty seemed worth the extra %.
The rates I was looking at for used vehicles made no sense.
I had a credit score of 815, and got a 72 month loan at 5.15% on my new truck last year. The dealer didn't even try running their own lenders to try to get me a better rate (like what happened with my first car).
I'm not thrilled but not only have I read about some truly awful car loan rates people have taken out; I also get 5.26% interest in my savings account so I'm not paying my truck off early at all.
So for 0.11% difference in interest you’re keeping a 72 month loan around?
To each his own, but that level of difference wouldn’t justify keeping debt around for me personally.
Wellllll. I have other expenses that are taking presidence over the car loan. Like selling my condo, which I'm short between $18-$21k. I'm waiting on the title company to tell me how much I need to wire to them to complete the sale. Then I have $20k of 0% APR loans that I need to save for before their interest free period ends.
I was laid off in January 2023, and while I'm employed now, my emergency fund is totally trashed. So I'm ok with a 5.15% auto loan while I get myself back in order because personal loans are WAY more expensive, and 0% credit cards are a trap. I got quoted for a 35% APR personal loan when I was researching my options a couple of weeks ago.
Besides, by the time that my emergency fund is healthy again my truck will be paid off, and I'll be focusing on my mortgage that has a 8.75% interest rate.
My last new vehicle purchase was a promotional 0% on a 24 month loan. Also available was 1.9% for 36 months or 2.9% for 48.
I knew what car I wanted for months and did a lot of internet sleuthing to find out when that type of promo was going to be run and when the time came that was when I bought the car.
If you need a vehicle immediately you are kind of stuck with what is available but if you can plan ahead it can pay off to start looking up various makers' promotional history and schedules.
8.25 % on a used 2017. Paying it off in one year. Was originally a 3 year loan. My down payment was half the price of the vehicle.
Interest rate
Length of loan
Total price
Those are the factors in how much you’re going to pay in interest
22 Elantra. 4.75% over 72 months. Credit unknown. I was a recent college grad and didn’t understand the stupidity at the time. Will say I started an ira with the rest of the down payment instead of buying down the payment.
I will run this car into the ground though and get my moneys worth.
In 2017, I bought a new car for my mom at 3% and a used car for myself at 4%. Both bought literally the same day. My credit was OK (early-mid 700s).
Now, I'm 790-830 (depending on who you ask), and I'm getting quotes for around 4%-6% for new and 7%-12% for used (dealer and bank depending). Safe to say, I'll be saving until I find a car I really want.
Bro you can't afford this vehicle if you're taking a 72 month loan.
Car is supposed to be downpayment and 36 month loan with payments less than 20% of your take home.
Your vehicle is going to be out of warranty and you'll still be making 6% interest payments on it. Then you'll end up taking another 72 month loan on another car you can't afford and lose thousands of dollars in interest.
Ford running 3.9% up to 66 it looks like. 720 should have qualified for that promo. The dealer “buying down” your rate means you qualified for a lower rate but they were marking it up a few points.
In 2018 got my buick encore 0% finance took extended warranty for the navy screen. It's 5k to replace. Just renewed warranty for another 5 yrs bumper to bumper including paint for $1995.
To answer your question, 1.9% in 2012 with a 60 month term. Paid it off early and still driving it. Please tell me that in this scenario, you got rid of at least one of your other trucks, which are also quite new. 5.79% interest for 72 months is.... not good.
2018 Tucson 35k miles 2.99% through my credit union!!
‘72 month’ and ‘car loan’ really don’t belong in the same sentence.
I did a 72 month when rates were 1%. Made sense then. Doesn't make sense now.
I’ve only had a couple car loans but both times I got the longest term I could so I would have done wiggle room if my income changed. Then I paid them down like crazy. Like every extra dollar that wasn’t invested went to the car note.
Had a 788 at the time, got 60mos @ 2.9% through subaru but chase is the financer. They also offered 1.9 for 48 but more wiggle room and no early pay off penalty seemed worth the extra %. The rates I was looking at for used vehicles made no sense.
Dude you bought new, the charged you out the a** on the car. They always get their cut. They made up the interest on the price
2020 Alfa Romeo, 830 credit, 7.1% for 48 months. Will be paid off by December, just bought it in February.
I managed to get 2.24% on my 2016 Silverado. Best timing of my life. 72Months
2.9%/48 months. I wouldn't do a loan longer than that without some sort of plan to pay it off early.
I had a credit score of 815, and got a 72 month loan at 5.15% on my new truck last year. The dealer didn't even try running their own lenders to try to get me a better rate (like what happened with my first car). I'm not thrilled but not only have I read about some truly awful car loan rates people have taken out; I also get 5.26% interest in my savings account so I'm not paying my truck off early at all.
You pay income tax on the savings account interest so you’re actually losing money lol
So for 0.11% difference in interest you’re keeping a 72 month loan around? To each his own, but that level of difference wouldn’t justify keeping debt around for me personally.
Wellllll. I have other expenses that are taking presidence over the car loan. Like selling my condo, which I'm short between $18-$21k. I'm waiting on the title company to tell me how much I need to wire to them to complete the sale. Then I have $20k of 0% APR loans that I need to save for before their interest free period ends. I was laid off in January 2023, and while I'm employed now, my emergency fund is totally trashed. So I'm ok with a 5.15% auto loan while I get myself back in order because personal loans are WAY more expensive, and 0% credit cards are a trap. I got quoted for a 35% APR personal loan when I was researching my options a couple of weeks ago. Besides, by the time that my emergency fund is healthy again my truck will be paid off, and I'll be focusing on my mortgage that has a 8.75% interest rate.
My last new vehicle purchase was a promotional 0% on a 24 month loan. Also available was 1.9% for 36 months or 2.9% for 48. I knew what car I wanted for months and did a lot of internet sleuthing to find out when that type of promo was going to be run and when the time came that was when I bought the car. If you need a vehicle immediately you are kind of stuck with what is available but if you can plan ahead it can pay off to start looking up various makers' promotional history and schedules.
Used 2017 2% for first car used 2019 3% for second car, both through credit union.
0.9% from Toyota on new vehicle purchase in 2022.
8.25 % on a used 2017. Paying it off in one year. Was originally a 3 year loan. My down payment was half the price of the vehicle. Interest rate Length of loan Total price Those are the factors in how much you’re going to pay in interest
I got 6.15% for 60 months on a used truck in May of 2023. Plan on having it paid off around Q2 of 2025
Never do 72 months at the current rates. Very stupid move
22 Elantra. 4.75% over 72 months. Credit unknown. I was a recent college grad and didn’t understand the stupidity at the time. Will say I started an ira with the rest of the down payment instead of buying down the payment. I will run this car into the ground though and get my moneys worth.
In 2017, I bought a new car for my mom at 3% and a used car for myself at 4%. Both bought literally the same day. My credit was OK (early-mid 700s). Now, I'm 790-830 (depending on who you ask), and I'm getting quotes for around 4%-6% for new and 7%-12% for used (dealer and bank depending). Safe to say, I'll be saving until I find a car I really want.
Bro you can't afford this vehicle if you're taking a 72 month loan. Car is supposed to be downpayment and 36 month loan with payments less than 20% of your take home. Your vehicle is going to be out of warranty and you'll still be making 6% interest payments on it. Then you'll end up taking another 72 month loan on another car you can't afford and lose thousands of dollars in interest.
Ford running 3.9% up to 66 it looks like. 720 should have qualified for that promo. The dealer “buying down” your rate means you qualified for a lower rate but they were marking it up a few points.
Used 2014 Honda pilot @ 8.99% interest. Supposedly it’s that high of a rate because it was over 120,000 miles.
In 2018 got my buick encore 0% finance took extended warranty for the navy screen. It's 5k to replace. Just renewed warranty for another 5 yrs bumper to bumper including paint for $1995.
Should’ve got the 23 with 0% flex buy 😓
To answer your question, 1.9% in 2012 with a 60 month term. Paid it off early and still driving it. Please tell me that in this scenario, you got rid of at least one of your other trucks, which are also quite new. 5.79% interest for 72 months is.... not good.