How long for a rate cut to hit auto loans?

[StihlBilly]

I'm in the market for a 2024 Wagoneer L and could purchase now but I'm hoping to hit the sweet spot between a Fed rate cut (supposedly September?) and year end closeout sales in late November early December.  I'm planning to finance through a local credit union that has favorable rates already for new car financing.

[pizzadude]

If you're buying new(ish) then you might look at manufacturer promos / financing first as generally it'll be better than what most others can offer. 

[cashorcharge]

With rates cuts "anticipated" later this year...that will certain give you some relief....however if it equates to 1/2 point or something....the money you'll save in interest on the loan may not be substantial enough and if Jeep doesn't contribute to a cut/promo interest rate....then there's an alternative.

That would be to wait until the last week of DEC.  Reason being, the rate may be static, but the pricing from the dealer would potentially be more aggresive and you can save on the purchase price.  The only drawback to waiting is...today's selection of models/colors/options to your liking may be lessened.  Good luck!

[dunn2500]

promo rates are smoking the banks right now so for sure see if you can lock that in with a dealer discount on the car....dealer discounts dont interfere with financing promos like rebates do usually

[IsambardPrince]

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@pizzadude wrote:

If you're buying new(ish) then you might look at manufacturer promos / financing first as generally it'll be better than what most others can offer. 

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To do that, you usually have to give up an immediate cash rebate of $3,000-$4,000.

These manufacturer loans only run for 36 months or so, then you have to give up an instant rebate. You should check out the lowest offer from someone else and figure out how much interest you'll pay either way and then add the amount of cash you gave up at the dealership for taking manufacturer financing. A cheap loan can really cost you a lot of money.

Taking financing from a bank means financing $3,000-$4,000 less on the car at that rate. So it may not even be worth doing manufacturer finance.

Manufacturer finance rates are advertising, and advertising is set up to make it look like you got a good deal even if you got royally screwed.

[dunn2500]

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@IsambardPrince wrote:

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@pizzadude wrote:

If you're buying new(ish) then you might look at manufacturer promos / financing first as generally it'll be better than what most others can offer. 

---

To do that, you usually have to give up an immediate cash rebate of $3,000-$4,000.

These manufacturer loans only run for 36 months or so, then you have to give up an instant rebate. You should check out the lowest offer from someone else and figure out how much interest you'll pay either way and then add the amount of cash you gave up at the dealership for taking manufacturer financing. A cheap loan can really cost you a lot of money.

Taking financing from a bank means financing $3,000-$4,000 less on the car at that rate. So it may not even be worth doing manufacturer finance.

Manufacturer finance rates are advertising, and advertising is set up to make it look like you got a good deal even if you got royally screwed.

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sometimes you can stack, if dealer is giving their own discount it shouldnt effect the financing.....but yeah you have to get down in the dirt and see, just depends how bad they want to sell.....seen them do crazy and shady things to sell cars....both to get the car sold and to screw the customer.........depends on the buyer and their skills to negotiate

the math never lies, so just stick to the numbers and see what works best