[Wasabi]

Honda has 1.9%-2.9% on the 2022s but the dealer is telling me 6.09%-6.39% is the best they are getting on 2023s. I'm trying to decide how much I'll be putting down on a 2023 to lighten my interest hit or just keep my money working on my end if the rate is low enough. My credit is high 700s.

 

[Hogan773]

Honda has 1.9%-2.9% on the 2022s but the dealer is telling me 6.09%-6.39% is the best they are getting on 2023s. I'm trying to decide how much I'll be putting down on a 2023 to lighten my interest hit or just keep my money working on my end if the rate is low enough. My credit is high 700s.

Financing is a personal decision but I don't think one can earn 6.09-6.39% risk free return after taxes right now. First priority is having an emergency fund, second priority is making sure to max out tax advantaged investing like 401Ks and IRAs, and then past that it becomes a personal decision about whether you have additional money to invest vs paying more (or all) down on a car. Don't want to be "car poor" for sure with no other liquidity but on the other end I personally wouldn't go take out a 6% loan just to invest it in the markets, which is one way of looking at the decision on whether the finance a car or not if you have some other meaningful savings and investments beyond the IRA and 401K etc

 

[WalterDog]

I got 5.4% with Bank of America two weeks ago. Looks like their advertised rate is up to 5.5% now. >800 credit score.

 

[SkyeHack]

Navy Federal Credit Union
3.54% (36 months)
Credit Score: 800+

 

[Hogan773]

Navy Federal Credit Union
3.54% (36 months)
Credit Score: 800+

Nice rate!

 

[devmechster]

Rates are not cheap these days and are hovering over 5%. Your best bet is maybe to have a higher down payment between 20% to 30% and then getting a 36 month or max 48 month loan.

 

[xGS]

Honda has 1.9%-2.9% on the 2022s but the dealer is telling me 6.09%-6.39% is the best they are getting on 2023s. I'm trying to decide how much I'll be putting down on a 2023 to lighten my interest hit or just keep my money working on my end if the rate is low enough. My credit is high 700s.

Try mentioning to the Honda dealer that Toyota is presently offering a 2.9% rate for 36 months on the 2023 Highlander.

 

[johnb87]

4.69% for 48 months through Honda Financial on January 30th. They initially told me a higher rate, then I referred them to the lease/financing calculation page on Honda's website for the 2023 Pilot (which, at the time, was saying 4.94% for 48 months and 5.04% for 60 months).

Credit score is somewhere around 750.

 

[TexAg91]

NFCU vs USAA (See post #11 below)

48 & 60 month loan: NFCU beats USAA -- 4.74% vs 4.89%/4.94%
72 month loan: -- same at 5.04%
84 month Loan: USAA beats NFCU hands down -- 6.94% vs 5.39%

I don't see the 3.54% (36 months) rate on NFCU's website.

NFCU New & Used Car Loan Rates:

 

[TexAg91]

Here are the lowest rates according to Lending Tree -- no idea how accurate this is, but the NFCU rate checks.

 

[TexAg91]

USAA New Car Loan Rates for a $50,00 loan for 48/60/72/84 months with autopayment -0.25% rate reduction. (You have to use a rate calculator on their webstie)

 

[Ruturaj]

Man, those rates are crazy. My wife's car she got before marriage (in July 2019) was financed at 2% and mine which I got in September was financed at 2.9%. I would pay cash instead of paying that high interest (> 6%) over time.

 

[Cousin Itt]

And people wonder why I won't consider getting new, even with employee/retiree discount.

 

[Wasabi]

Yeah, these rates are terrible, especially when I see Toyota sticking in that 2.9% range. I'll probably just go cash for the whole thing if I can even find a deal. Buying a car is always a horrible experience and the dealers in my area don't make it any easier. I may punt and wait 6 months or so. I don't see overall interest rates getting better but maybe at least these dealers will loosen up a bit on pricing as supply comes back around. That may help with some better rate offers too. Wish I could just throw the thing in my Amazon cart and be done with it. I don't need a test drive, window switch training, free donuts, blah, blah, blah. Just take my cash, lets fill out the required paperwork and I drive it home.

 

[SkyeHack]

NFCU vs USAA (See post #11 below)

48 & 60 month loan: NFCU beats USAA -- 4.54%/4.74% vs 4.89%/4.94%
72 month loan: -- same at 5.04%
84 month Loan: USAA beats NFCU hands down -- 6.94% vs 5.39%

I don't see the 3.54% (36 months) rate on NFCU's website.

NFCU New & Used Car Loan Rates:

View attachment 165489

If you are a senior enlisted (E7 and above) they give an additional 1.0% off. So it went down from 4.54% to 3.54%.

 

[Hogan773]

If you are a senior enlisted (E6 and above) they give an additional 1.0% off. So it went down from 4.54% to 3.54%.

Thank you for your service!

 

[blairellis]

800+ score. I did $25k @ 4.99% for 60. $47X /mo (I don’t remember exactly and don’t have the paperwork handy).

Important: Come with a pre approval letter to make them match or beat your rate in your hand. They have a buy rate and the spread from that to the rate they give you is what they pocket.

 

[TexAg91]

If you are a senior enlisted (E6 and above) they give an additional 1.0% off. So it went down from 4.54% to 3.54%.

I did not know that—thanks! Is that discount only for active duty, or does it also apply retirees? I joined NFCU after I retired and have never bothered to inquire about a car loan with them. I’ve either financed with USAA or the dealer if they can beat USAA’s rate.

 

[SkyeHack]

I did not know that—thanks! Is that discount only for active duty, or does it also apply retirees? I joined NFCU after I retired and have never bothered to inquire about a car loan with them. I’ve either financed with USAA or the dealer if they can beat USAA’s rate.

According to their website it says: "Exclusively for Active Duty, National Guard and Reserves E-7 Through E-9"

Senior Enlisted Reward Program

We want you to enjoy the great benefits of our exclusive Senior Enlisted Reward Program. Learn more about what it has to offer.

www.navyfederal.org

I would ask anyways.

 

[prix03gt]

Tower Federal credit union is offering 2.99% on new and used car loans for 60 months. You have to be a member, but it's open to federal employees, contractors, military... I believe