Update, looking elsewhere from the builders preferred lender puts me at 4.375 with 3.5k less closing costs. So the little bonus is only 1.5 which will quickly be made up.
Ridiculous they even tried that number
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My credit union offered me a 96 month auto loan finance at 2.5% with $4 month gap insurance. Is there any reason why I shouldn’t snap take this if I am in the market for a new car? There is no penalty for prepayment either. That seems ridiculously cheap.
Dealership just told me they were adding an extra 18% market adjustment on top of the MSRP. LOFUCKINGL.
I have good credit and financed a used car last month at the dealer and got 5.1% so yeah 2.5% is a great deal. I probably should have gone to a credit union like you did but the loan was only 15k and i probably end up paying it off within the next year or two anyways.
Lol car dealers
This is the one thing Tesla is 100% right about
Financing rates on used cars are higher than for new cars, fwiw.
On new inventory dealers can do special financing terms than they can’t do for used cars, so 2.5% new vs 5.1% used isn’t an apples to apples comparison
Wife’s lease is up in Nov so we went looking at cars this weekend and all of the places said people are paying well over MSRP.
You might want to look at your lease to see if there’s a set amount you can just buy your lease car for. It might be less than what you can sell it for. My dad was leasing a stupid ass f150 and was able to make ~5k by buying the truck via the lease terms and selling it on carvana.
So in loloanaments, I’m being quoted a lower rate if I put 20% down instead of 30%.
yeah we’re going to buy it out it’s worth way more than the buy out price.
Yeah, I just can’t stomach doing this. So I’m probably going buy from Tesla or one of it’s newer competitors (Lucid, Rivian). I’m sure they’ve jacked it up a little too, but I’ve got a couple of pre-orders locked in at fall 2021 prices with fully refundable deposits (in the fine print, they say they could raise the price, but I think the PR hit wouldn’t make it worth it). Unfortunately, there is no clear ETA on delivery, so it could be a long wait.
I’m not in that much of a hurry, which helps.
The 25% price increase from a few months ago doesn’t make me feel great either. Also not $7,500 tax credit.
Yeah, that’s why Tesla is at the bottom of my list. I actually considered ordering a Tesla as a stop gap while I was waiting for the car I really wanted (Lucid Air, although the Rivian SUV is intriguing). Especially with all the reports of people selling used Teslas for as much as new Teslas. But I didn’t pull the trigger and spent some money fixing my car enough that it should last another 1-2 yrs. If I could go back, I’d have bought the Tesla. I could have ordered in Oct for a January delivery.
I’m going with the Ioniq 5 assuming I can ever find one.
I guess you could always have a dealer order you one. That takes a while these days though. In the before times, normally you could be pretty confident it was less than 12 wks. However, last year we ordered a new minivan and that took 24 weeks. So if you’re not in a good position to wait, then it’s not a great option.
If you can wait, then it’s the way to go, imo. I can’t see myself buying a new car any other way.
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Never giving musk money
I’m not quite at never. I’m more like “try to avoid it”.
So I can get 4.375% at 20% down (with a 1k credit towards closing costs) or 4.5% at 30% down (which I was planning on doing because of an incentive I get for moving from my employer). Payment is ~10% higher per month at the first option. Over the entire 30 year period, not having the extra down payment costs ~1.55x the down payment. Assuming 3% return on the 10% of the down payment, that’s ~2.37x the down payment.
The right thing to do is the 20% down right? I get the employer benefit either way.
Less down, lower interest rate is as far as your analysis needs to go.
I mean, you should have the option to put 20% down to lock in that lower rate, and then overpay on your payments if you really want to go that way, right? Maybe it manifests as fewer total payments instead of a lower monthly payment, but you still essentially get the 4.375% risk-free return.
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