topic Re: Is 2.74% a good rate? in Auto Loans

Is 2.74% a good rate?

youdontkillmoney — Thu, 11 May 2017 14:36:43 GMT

Interested in a new car at the dealership. No sure which make or model yet.

Applied for a PenFed auto loan online. Selecting the option where I don't know make or model or amount of car.

Put in income information.

I inputted $20,000 for what I will put down.

I inputted $25,000 auto loan.

First time auto loan application, ever.

System in a few seconds spit out I was approved for $25,000.

PenFed will now send me paperwork in mail and a "draft" which I spoke to rep said is a like a check I can write for an amount up to $25,000 (I can use less than $25,000 if I don't want to use the whole amount).

I may just use my own $20,000 cash to buy a new car, but wanted to have the option of a tapping into an auto loan ($25,000 approved credit)

Anyway, I see BOA's website has 2.74%. Wells Fargo is 3%+.

I did not want to get stuck with applying at deader since I heard they do multiple hard pulls.

Now with this approval I don't have to rely on dealer finnaicng.

1. So is 2.74% PenFed auto loan rate a good rate for someone like me with excellent credit, never missed a payment and htis is my 1st auto loan if I choose to use it?

2. Is it worth comparing what the dealer can finance at dealership or likely they cannot beat 2.74%?

3. Should I try other banks for a lower than 2.74% rate or leave well enough alone and hard pulls, and stick with this 2.74%?

Thanks

Re: Is 2.74% a good rate?

Anonymous — Thu, 11 May 2017 15:18:40 GMT

That is a good rate, but if you have excellent credit the dealer might be able to beat. I would rather know what I have going in, but you could use it to help negotiate at the dealership

Re: Is 2.74% a good rate?

youdontkillmoney — Thu, 11 May 2017 15:27:22 GMT

@Anonymous wrote:
That is a good rate, but if you have excellent credit the dealer might be able to beat. I would rather know what I have going in, but you could use it to help negotiate at the dealership

^^^^

Thanks for your advice

Re: Is 2.74% a good rate?

Anonymous — Thu, 11 May 2017 16:21:09 GMT

Only thing I would add, if you know your scores going in, talk with the dealership about if they think they can get a better rate, and bring in your pre-approval. Make sure you don't agree to them pulling your reports until you talk a little with them; may save you a few pulls.

When I bought last year they had me fill out an app and I already had financing. I told them I didn't want my credit pulled and wrote at the top of the form as well. If you're not worried about inquiries, that part may not matter to you

Re: Is 2.74% a good rate?

youdontkillmoney — Thu, 11 May 2017 18:54:36 GMT

@Anonymous wrote:
Only thing I would add, if you know your scores going in, talk with the dealership about if they think they can get a better rate, and bring in your pre-approval. Make sure you don't agree to them pulling your reports until you talk a little with them; may save you a few pulls.

When I bought last year they had me fill out an app and I already had financing. I told them I didn't want my credit pulled and wrote at the top of the form as well. If you're not worried about inquiries, that part may not matter to you

****

Thanks. I am worried about inquires. I will do as you say and come prepared knowing my auto scores etc

Re: Is 2.74% a good rate?

Anonymous — Fri, 12 May 2017 00:54:09 GMT

Having a pre-approval will help you negotiate. You can let the dealer try for one chance to beat it, but at least you can save them from shotgunning your credit will tons of pulls. Inquiries won't effect the car loan, but could add a bunch if you went in blind from the dealership

Re: Is 2.74% a good rate?

youdontkillmoney — Mon, 15 May 2017 05:10:47 GMT

Ended up with a 1.90% rate through Lexus Financial Services. Dealer beat PenFed's 2.74%.

Re: Is 2.74% a good rate?

Anonymous — Mon, 15 May 2017 05:19:57 GMT

@youdontkillmoney wrote:
Ended up with a 1.90% rate through Lexus Financial Services. Dealer beat PenFed's 2.74%.

Congrats, I was going to mention that the only lenders that would beat that rate would be a captive lender because factories will subsize the rate to move inventory. Having that preapproval in hand before you buy is a great way to keep the dealer from marking up your rate so well done.

Re: Is 2.74% a good rate? Lexus

youdontkillmoney — Mon, 15 May 2017 13:41:12 GMT

Bought the 2017 Lexus IS 200T with Navigation package for $43,000 exact Out the Door (taxes, DMV fees, etc etc all rolled in).Sticker price was $43,923 before taxes and fees so they started of offering me $49,000 out the door. Brought it down to $43,000 and then I asked to add in (1) all season mats, (2) 2 lexus key chains, and (3) 2 Lexus pens for the glove compartment, full tank of gas of course and a car wash. This is Los Angeles, CA area.

Re: Is 2.74% a good rate? Lexus

Anonymous — Mon, 15 May 2017 15:45:39 GMT

@youdontkillmoney wrote:
Bought the 2017 Lexus IS 200T with Navigation package for $43,000 exact Out the Door (taxes, DMV fees, etc etc all rolled in).Sticker price was $43,923 before taxes and fees so they started of offering me $49,000 out the door. Brought it down to $43,000 and then I asked to add in (1) all season mats, (2) 2 lexus key chains, and (3) 2 Lexus pens for the glove compartment, full tank of gas of course and a car wash. This is Los Angeles, CA area.

Well done

Re: Is 2.74% a good rate? Lexus

youdontkillmoney — Thu, 18 May 2017 14:59:45 GMT

By the way, I also shopped around for other luxury cars --ended up getting Lexus since it gives more bang for the buck for features whereas other luxury makers like Mercedes and BMW give you less features for the same price but you pay for the "brand" --

In case anyone is in the market for a Mercedes C300, I offered $42,000 - $43,000 but a coulple of mercedes dealerships in Los Angeles wanted $48,000 OTD (all taxes and fees rolled in and remained fairly firm on that price), one may have gone down to $45,000 OTD. Anyway, Lexus IS 200t was loaded with features (warm seats, fanned seats, navigation etc) for $43,000 OTD and was a better deal than Mercdes or BMW value wise.