Car loan rates.....

[nlgfwdin]

ee credit union ki call chesina 3.99 or 3.74 fro 60 months antunru vayya, ee madhya kalam lo ee bank takkuvalo loans gistunnayi ?

[ekunadam_enkanna]

Right now, Certificate of deposits are paying 3.10% APR. 12 months LIBOR rate is 2.89%.  Add another 75 basis points to 3.10% to get financing. That's normal. If it is Indian rupee, add another 10%, which is the depreciation against dollar per year.

Go with OEM financing deals. Honda has 1.9% APR on some vehicles, etc.

[Original Profile]

16 minutes ago, ekunadam_enkanna said:

Right now, Certificate of deposits are paying 3.10% APR. 12 months LIBOR rate is 2.89%.  Add another 75 basis points to 3.10% to get financing. That's normal. If it is Indian rupee, add another 10%, which is the depreciation against dollar per year.

Go with OEM financing deals. Honda has 1.9% APR on some vehicles, etc.

3.1 apr which bank bro?

[ekunadam_enkanna]

2 minutes ago, Original Profile said:

3.1 apr which bank bro?

Synchrony is offering 3.1 for 60 months CD.  https://www.synchronybank.com/banking/cd/

[Original Profile]

12 hours ago, ekunadam_enkanna said:

Synchrony is offering 3.1 for 60 months CD.  https://www.synchronybank.com/banking/cd/

Good find...but only for citizens and gc holders

[soldier]

Overall ga interest rates ekkuva unyii 

dcu vadu ayithe 4.25 min 

[nlgfwdin]

12 hours ago, ekunadam_enkanna said:

Right now, Certificate of deposits are paying 3.10% APR. 12 months LIBOR rate is 2.89%.  Add another 75 basis points to 3.10% to get financing. That's normal. If it is Indian rupee, add another 10%, which is the depreciation against dollar per year.

Go with OEM financing deals. Honda has 1.9% APR on some vehicles, etc.

Thanks bro... kani complete ga ardam kaledu, CD 3.1% is good, kaani nenu auto loan kosam searching buying new car.... so take a loan and also open CD anena mee ardam? kocham clarity ivvandi bhayya... @ekunadam_enkanna

[nlgfwdin]

12 minutes ago, Original Profile said:

Good find...but only for citizens and gc holders

havnaa... will check...

[Ram30]

lightstream lo teesko takkuva paddaddi 

[ekunadam_enkanna]

1 hour ago, nlgfwdin said:

Thanks bro... kani complete ga ardam kaledu, CD 3.1% is good, kaani nenu auto loan kosam searching buying new car.... so take a loan and also open CD anena mee ardam? kocham clarity ivvandi bhayya... @ekunadam_enkanna

Imagine you want to lend $20K to your friend A. Further imagine that you don't have that money. What would you do? You want to borrow it from another friend B for 3.1% APR, then you lend it to A for 3.85%. That's how interest rates work. If you want banks to lend you money, that interest rate should be at least the interest rate they pay for depositors. That's the story. 

Right now 3.74% is the best rate. A couple of weeks ago, I got a loan for 3.74% from a local cu: basically, 3.99%, but 0.25% is given as discount if i pay the loan using their checking account.

Anyway, Toyota almost matched with that interest rate: they gave me 3.85% and free gap coverage. Toyota doesn't give cash bonus unless it is standard apr 5.59. In this case, I told them I will buy the gap insurance from my credit union for $495. The deal financing guy came back and made a deal: "I will give you $1000 cash back on 3.85% apr, and buy the gap insurance from us for $995".   That's how it goes. Basically, I saved $300 more by going with toyota financing.

Sometimes, manufacturers offer low APRs like 0%, 0.9%, 1.9% just to clean out their inventory. That's when you can get a rate that is cheaper than a CD.  So, look for such deals. For instance, look at hyundai: https://www.hyundaiusa.com/offers.aspx 

http://www.realcartips.com/news/1051-best-finance-deals.shtml

There is no free lunch, man. Don't think too much. If there is a lot of inventory, they will give you 0% apr. No bank will match that rate!!.

In other words, 0% APR on 35k is same as 30k + 3.8% APR.   They also give deals like 0% APR or 3K cash back on 5.5% APR. Lots of people don't have excellent credit in America, so they take 3k cash back on 10% APR.

[nlgfwdin]

42 minutes ago, ekunadam_enkanna said:

Imagine you want to lend $20K to your friend A. Further imagine that you don't have that money. What would you do? You want to borrow it from another friend B for 3.1% APR, then you lend it to A for 3.85%. That's how interest rates work. If you want banks to lend you money, that interest rate should be at least the interest rate they pay for depositors. That's the story. 

Right now 3.74% is the best rate. A couple of weeks ago, I got a loan for 3.74% from a local cu: basically, 3.99%, but 0.25% is given as discount if i pay the loan using their checking account.

Anyway, Toyota almost matched with that interest rate: they gave me 3.85% and free gap coverage. Toyota doesn't give cash bonus unless it is standard apr 5.59. In this case, I told them I will buy the gap insurance from my credit union for $495. The deal financing guy came back and made a deal: "I will give you $1000 cash back on 3.85% apr, and buy the gap insurance from us for $995".   That's how it goes. Basically, I saved $300 more by going with toyota financing.

Sometimes, manufacturers offer low APRs like 0%, 0.9%, 1.9% just to clean out their inventory. That's when you can get a rate that is cheaper than a CD.  So, look for such deals. For instance, look at hyundai: https://www.hyundaiusa.com/offers.aspx 

http://www.realcartips.com/news/1051-best-finance-deals.shtml

There is no free lunch, man. Don't think too much. If there is a lot of inventory, they will give you 0% apr. No bank will match that rate!!.

In other words, 0% APR on 35k is same as 30k + 3.8% APR.   They also give deals like 0% APR or 3K cash back on 5.5% APR. Lots of people don't have excellent credit in America, so they take 3k cash back on 10% APR.

Thanks for the info bro, I think I will go with local credit union. Still negotiating rates...

[ekunadam_enkanna]

5 minutes ago, nlgfwdin said:

Thanks for the info bro, I think I will go with local credit union. Still negotiating rates...

Here are some steps I recommend:

(a) go with something like costco auto program. You get a call from a particular dealer with details like: MSRP,  invoice price, costco price.

Usually, You can get 12% discount off MSRP.  Invoice price = 6 to 7% less than MSP. Lots of times, dealers can discount that by another 6 percent. This is like 6% under the invoice. These invoice prices are the base model: any car on their lot comes with add ons.

(b) get the loan approval letter from ur CU, that says 3.74%

(c) Look for any rebates: rebates for financing, this rebate, that rebate.

(d) don't buy any extra warranty or extra service

(e) Go to the dealership to see whether they have any hidden rebates.

(f) Most of the time, Toyota/honda/hyundai/ford/etc match your 3.75 apr.

(g) you can negotiate down the gap insurance.  I know people who got the gap insurance for toyotas for $300, even tho the listed price is $995. 

You are too focused on interest rates. If you are not fixated on a particular make or model, check with similar brands and see their 0 or 0.9 apr. And try it out.

 

 

[siritptpras]

#car

[nlgfwdin]

7 hours ago, ekunadam_enkanna said:

Here are some steps I recommend:

(a) go with something like costco auto program. You get a call from a particular dealer with details like: MSRP,  invoice price, costco price.

Usually, You can get 12% discount off MSRP.  Invoice price = 6 to 7% less than MSP. Lots of times, dealers can discount that by another 6 percent. This is like 6% under the invoice. These invoice prices are the base model: any car on their lot comes with add ons.

(b) get the loan approval letter from ur CU, that says 3.74%

(c) Look for any rebates: rebates for financing, this rebate, that rebate.

(d) don't buy any extra warranty or extra service

(e) Go to the dealership to see whether they have any hidden rebates.

(f) Most of the time, Toyota/honda/hyundai/ford/etc match your 3.75 apr.

(g) you can negotiate down the gap insurance.  I know people who got the gap insurance for toyotas for $300, even tho the listed price is $995. 

You are too focused on interest rates. If you are not fixated on a particular make or model, check with similar brands and see their 0 or 0.9 apr. And try it out.

 

 

thanks for the info bro, definitely helpful  👍, no idea about GAP insurance before... 

[ekunadam_enkanna]

Dealerships make money in many ways: whenever they process loans through OEM (toyota finance/honda finance/etc), they get paid. They make money on extended warranties, extended service plans, gap insurance, add ons. Everything is negotiable, if you know the real numbers.  You don't need to buy extended warranty right away; you can buy it 40% cheap elsewhere . Again, you dont need to buy it right away, since some cars have bumper to bumper warranty for 50K.

Dealerships also make money if they are a high volume dealer. Basically, manufacturers send them monthly checks based on whatever they did: volume, oem finance, profits on warranties and extended service plans, hidden rebates, etc. That's why, never ever trust MSRP and invoice prices. They are just for suckers. Never enter the dealership without knowing all details.