cancel
Showing results for 
Search instead for 
Did you mean: 

Credit Union Auto Loan Rates?

tag
Anonymous
Not applicable

Credit Union Auto Loan Rates?

A local credit union in my area, SE Florida, quoted me by phone that an auto loan with them is 8.99 for credit scores ranging from 520 to 580. 

I find this hard to believe. Anyone ever see credit union int rates this low for the above credit score range? Also with them the process is slow since their daytime hours are limited. I am approved, all docs verifed with Springboard at 13.76% is the next best I can do given my situation. 

Message 1 of 13
12 REPLIES 12
Anonymous
Not applicable

Re: Credit Union Auto Loan Rates?

I managed to talk to a loan officer there, rate would be 8.99 but max LTV is 100% max which I would need a 2k DP for since I will be at 110%, since MSRP is 20k on car I am attempting to purchase.
Message 2 of 13
Appleman
Valued Contributor

Re: Credit Union Auto Loan Rates?

Looking at cost - 

13.76% APR on $22,000 for 60 months is a total of $8550.09 in interest in 5 years (110% LTV)

8.99% APR on $20,000 for 60 months is a total of $4904.21 in interest in 5 years (100% LTV)

 

So, $2,000 today saves you $3,645.88 in interest over 5 years. OR not paying the $2,000 costs you $3,645.88 extra over the next 5 years (same thing just stated differently).

 

 

 

 

 

Message 3 of 13
Anonymous
Not applicable

Re: Credit Union Auto Loan Rates?

I should of been more clear, they also do not allow neg equity roll in so I would have to pay about 4k out of pocket which I do not have.
Message 4 of 13
Anonymous
Not applicable

Re: Credit Union Auto Loan Rates?

Without trying to be mean here, I am going to give you my honest advice.

I have noticed/read your multiple threads in the auto loan's section regarding you trying to purchase a new vehicle.

I would STRONGLY urge you to keep the vehicle you have now which you state is in perfect running order, just need's some routine maintnance. Instead of trying to trade out of your upside down situation into a new KIA, I would suggest holding off until you pay off your vehicle and boost your credit scores.

 

A couple of reason's for my response:

if you are in fact looking at buying a new KIA and rolling in inequity, this is a terrible idea as buying a new vehicle will create a situation in which you will be even farther up side down, in addition KIA's abosulutely do not hold their value over time. KIA's and Hyundai's are two brands that just don't hold their value as well as other makes.

Also, the interest rates you have been stating are not good and will attribute to even more inequity over time. Work on your Credit scores and overall situation with inequity before putting yourself in a worse situation.

 

I understand your vehicle isn't necessarily comfortable, but to potentially cost yourself THOUSAND's more in interest, and be at a even higher disadvantage in terms of inequity, it just isn't worth it from a financial stand point.

 

Obviously this is just my take on the situation and my two cent's, so take it as you will, I would just hate to see you dig yourself into a deeper hole.

Message 5 of 13
Anonymous
Not applicable

Re: Credit Union Auto Loan Rates?


@Anonymous wrote:

Without trying to be mean here, I am going to give you my honest advice.

I have noticed/read your multiple threads in the auto loan's section regarding you trying to purchase a new vehicle.

I would STRONGLY urge you to keep the vehicle you have now which you state is in perfect running order, just need's some routine maintnance. Instead of trying to trade out of your upside down situation into a new KIA, I would suggest holding off until you pay off your vehicle and boost your credit scores.

 

A couple of reason's for my response:

if you are in fact looking at buying a new KIA and rolling in inequity, this is a terrible idea as buying a new vehicle will create a situation in which you will be even farther up side down, in addition KIA's abosulutely do not hold their value over time. KIA's and Hyundai's are two brands that just don't hold their value as well as other makes.

Also, the interest rates you have been stating are not good and will attribute to even more inequity over time. Work on your Credit scores and overall situation with inequity before putting yourself in a worse situation.

 

I understand your vehicle isn't necessarily comfortable, but to potentially cost yourself THOUSAND's more in interest, and be at a even higher disadvantage in terms of inequity, it just isn't worth it from a financial stand point.

 

Obviously this is just my take on the situation and my two cent's, so take it as you will, I would just hate to see you dig yourself into a deeper hole.


I would be buying a new Nissan Sentra and trading in a Kia. I will have my trusted mechanic inspect my car tomorrow am and make my final decision. Thanks. 

 

 

Message 6 of 13
Anonymous
Not applicable

Re: Credit Union Auto Loan Rates?

See my comment on this older post.

 

Based on simple interest math, someone who upgrades to a new car every 6 years and needs a loan to do it will be $300,000-700,000 poorer in 30 years.  Car loans when you're already poor are senseless because in almost every case, the car is part of the reason why a poor person continues to be poor the rest of their lives.

 

If you want $300,000-$700,000 in 30 years, don't get a car loan.  Drive your current car until it can't be repaired, and then buy another beater that you can drive for 3-4 years and repeat.  Even if you're only buying a new $20,000 car every 6 years, in 30 years if you invest the money you'd spend on a car payment, you'll have $200,000-300,000 more in your retirement fund.

Message 7 of 13
Anonymous
Not applicable

Re: Credit Union Auto Loan Rates?

Nissan would definately be a better option than a Kia or Hyundai, however financing 20k on a new Sentra will still create a huge amount of inequity just within one year. For Instance, I can buy a 2016 Nissan Sentra for ~11k-13k depending on options. While a 17 may have a MSRP of 20k. In one year's time you will be even farther upside down than you are now.

 

I would definately compare the cost's of having your vehicle fixed (nothing you stated that it needs, is a huge expense or out of the ordinary, the thing's you listed are just routine maintnance items) and the cost of the new loan over the course of it's term. I think you will find that holding onto your current vehicle and paying it off while working on your credit, THEN purchasing a lightly used vehicle in the future, will be your best option financially.

Message 8 of 13
marty56
Super Contributor

Re: Credit Union Auto Loan Rates?

FBFCU as low as 1.95% if you apply online although I was approved for that rate as when I converted a CC to a different type of CC.

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 9 of 13
Anonymous
Not applicable

Re: Credit Union Auto Loan Rates?


@Anonymous wrote:

Nissan would definately be a better option than a Kia or Hyundai, however financing 20k on a new Sentra will still create a huge amount of inequity just within one year. For Instance, I can buy a 2016 Nissan Sentra for ~11k-13k depending on options. While a 17 may have a MSRP of 20k. In one year's time you will be even farther upside down than you are now.

 

I would definately compare the cost's of having your vehicle fixed (nothing you stated that it needs, is a huge expense or out of the ordinary, the thing's you listed are just routine maintnance items) and the cost of the new loan over the course of it's term. I think you will find that holding onto your current vehicle and paying it off while working on your credit, THEN purchasing a lightly used vehicle in the future, will be your best option financially.


I am going to take my car into the shop in the am, see what my mechanic says. If he deems car safe I will keep it and work on the scores.  

 

 

Message 10 of 13
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.