Average auto loan now over $30k
- Thread starter Goothrey
- Start date
Where on earth are people getting 0% auto loans?
JFC, I qualified for a 1.9% loan and I was stoked... until I had to walk away when I couldn't find a decent USED vehicle under $18k, and went back to the same 2002 Honda Civic I've had since high school.
JFC, I qualified for a 1.9% loan and I was stoked... until I had to walk away when I couldn't find a decent USED vehicle under $18k, and went back to the same 2002 Honda Civic I've had since high school.
Exactly, if it is zero percent financing take what you can get.
Take the money you would have shelled out and put it towards other debt or a conservative investment you come out ahead.
I think the problem is many of those people who borrow 30K on a car don't have the credit rating to get 0% interest.
I wouldn't sweat it. On a $20k car that's like $800. Most of the car companies will be happy to give you a 0% loan if you buy a new car that immediately loses 20% of it's value.
i have an 800 credit score and never missed a payment on anything in my life and can only get like 2.9% on my latest car loan. yeah, it's like $20 bucks/month in interest. but you're right - where are "most people" getting these rates?
did you finance through the dealer? I tend to buy one brand of car/suv all the time, and I always finance through the car company and have gotten 0% a couple of times now. (and they still threw in all the cash backs etc)
I do think car companies do give you some "special" consideration if you keep buying that same brand over time.
Also if you are buying during end of year close outs, they are looking for ways to to seal the deal to clear their lot so 0% might be more available then.
With that credit score, you should not be paying 2.9%..
Is there a way to do that though? It was possible to short the subprime mortgage market because subprime mortgages were bundled and traded as a fund. I don't think there is anything similar going on with auto loans. The only way to short auto loans would be to maybe short the stock of a company that specializes only in auto loans, I think. I'm no financial expert though.
From the auto manufactures. No bank is going to do 0% unless they want to go broke.
**** find a credit union. Just got a used loan for 1.9%, I have good credit but it isn't 800. Although somewhere over 720 - 750 it stops mattering how high you are. Also got a new car loan a few years ago for 1.49%. Credit unions always have better pricing, except for the car companies when they are offering 0%. But anymore that is getting harder to find.
Mine is a little over 800 and I got 1.91% from Citizens Bank on a 2009 Edge in 2013. I did put down enough to make sure I was never under water on the loan so that probably didn't hurt.
Now I'm looking at F150s and probably going to finance about $20k so I'm interested to see what rate I can get it at.
Just got a 2008 F250 on the used market for $10.5k with 106k miles
I think i got lucky. If i have to put a tranny in it, thats ok, I am not scared anymore of 100k+ vehicles.
Also roll down windows, no CD player, I am lucky it has A/C.. but hey, it can pull 10,000lbs so thats all I care about.
I think i got lucky. If i have to put a tranny in it, thats ok, I am not scared anymore of 100k+ vehicles.
Also roll down windows, no CD player, I am lucky it has A/C.. but hey, it can pull 10,000lbs so thats all I care about.
I wonder if any of these people taking out $30K car loans have the gall to turn their noses up at individuals who take out pay day loans?
Are either a great financial decision? Not generally however I would tend to bet that at least the pay day loaners are desperate and really lack choices and are just trying to get out of some difficult situation.
The $30K car loan guy is making a poor financial decision when they don't have to...no desperation, just lack of willpower (knowledge?) to make better choices.
Just speaking in general terms. We all know there are exceptions.
Are either a great financial decision? Not generally however I would tend to bet that at least the pay day loaners are desperate and really lack choices and are just trying to get out of some difficult situation.
The $30K car loan guy is making a poor financial decision when they don't have to...no desperation, just lack of willpower (knowledge?) to make better choices.
Just speaking in general terms. We all know there are exceptions.
Looks like the Russian brides ads that used to be on CF weren't a complete waste of space.
My last 2 auto loans with my bank I have negotiated down the published interest rate. I never get them down to the Credit Union rates but usually fairly close.
I'll readily admit, I wasn't much better when I was age 30 either...
http://www.mrmoneymustache.com/2011/10/06/the-true-cost-of-commuting/
http://www.mrmoneymustache.com/2011/10/06/the-true-cost-of-commuting/