What APR did the dealer offer you?

[shiftdown]

On my previous C8, I went through the dealer initially to finance. I ended up with a 3.7% rate they farmed out to US Bank. I'm sure that includes .5% or so dealer add on. I've heard people have obtained some killer rates through GM Financial on other models.

My car is at 4B00 now, so I'm starting to look around for what's going go be the best bet. Inclined to put about 50% down for now. My own credit union has offered me 2.59% which is livable should nothing better come up.

Purchasing through Sewell, so if you have direct experience, that would be awesome. Not applicable to Military type credit unions or anything that would take special requirements. Just your regular jackass off the street

So, if you financed, what did you end up with for an interest rate?

 

[Seth]

I did $23k down and went for a LONG loan per my wife's mental issue to have a payment UNDER $600 a month lol. We got a high rate of 4.25 or 4.5 and I will refince to get a sub 3.0 soon enough. I also paid $800 out of pocket for 3yrd wheel and tire, the only upsell worth it. With Metro Detroit roads, every ATS/CTS/CT4 has bent/fractured wheels and killed tires to pay for the insurance in the first year.

It was a THIRD car for me that she couldn't drive, so a deferred to her and her comfort level. Pick your battles.

I actually got $350 OFF the car thanks to them honoring MyCadillac Rewards points. I am now in the Platinum tier hehe. All it took was getting 6 Caddy's since 2018 lol.

I could do the calculations but I'm lazy, how long is that loan?!

 

[Jameson's Viggen]

I could do the calculations but I'm lazy, how long is that loan?!

Long. Again, not my choice. I deferred to my wife on that one.

 

[strohw]

This post is about to take a turn considering the interest rate bump the Fed is going to announce today.

 

[strohw]

.75 bump today and they implied next month will see the same. I'm curious to see what loan rates look like in August.

 

[Snowwolfe]

My guess is auto rates will be averaging 9-12% within 3 months. Exceptions will be rates offered by car companies on slow selling vehicles. Shouldn’t be a surprise to anyone. Since the lower 1970’s for the next 25-30 years that’s about where rates were.

 

[DomeDepot]

My guess is auto rates will be averaging 9-12% within 3 months. Exceptions will be rates offered by car companies on slow selling vehicles. Shouldn’t be a surprise to anyone. Since the lower 1970’s for the next 25-30 years that’s about where rates were.

9-12% sounds a little aggressive don't you think?

 

[Seth]

Anyone know if long term rate locks exist in the automotive world? My dealership says best they can do is 30 day lock. Anyone know of a more extended option? My car is built with EDD of 7/15 but we know how that goes.

 

[GT325]

My CU does a 90 day lock.

 

[jumpmanjay]

9-12% sounds a little aggressive don't you think?

I bonds are currently yielding almost 10%, so it's not as crazy as you might think.

 

[Snowwolfe]

9-12% sounds a little aggressive don't you think?

This is a tough one to predict. Right now there are waiting lists and long time periods to buy most vehicles so manufactures have little incentive to offer low in house financing.

Years ago the rule was to take the prime rate and add 3%. That would equate to roughly 6.5% today. Mortgage rates are already in the 6% range for 30 year loans.
Fed raised rates 75 points yesterday and another rate is predicted in the near future.

If people are not borrowing money for vehicles or homes then banks are in serious trouble. Maybe this will cause the banks to keep their profit margins slim.

Not a good time to need a loan with a mediocre credit score.

 

[DomeDepot]

This is a tough one to predict. Right now there are waiting lists and long time periods to buy most vehicles so manufactures have little incentive to offer low in house financing.

Years ago the rule was to take the prime rate and add 3%. That would equate to roughly 6.5% today. Mortgage rates are already in the 6% range for 30 year loans.
Fed raised rates 75 points yesterday and another rate is predicted in the near future.

If people are not borrowing money for vehicles or homes then banks are in serious trouble. Maybe this will cause the banks to keep their profit margins slim.

Not a good time to need a loan with a mediocre credit score.

Yea saw the fed raise rates, def hurts to see that. I'm just hoping % doesn't get too ridiculous before I need to finance my car. Credit is pretty solid in the 800s but still, even baseline I'm already expecting 4-5% which is higher than I anticipated when putting in the order.

 

[buzzyng]

hopefu

Yea saw the fed raise rates, def hurts to see that. I'm just hoping % doesn't get too ridiculous before I need to finance my car. Credit is pretty solid in the 800s but still, even baseline I'm already expecting 4-5% which is higher than I anticipated when putting in the order.

hopefully not too high by the time your car arrives. In the past 90 days, mine has increased from 1.5 to 2.5 so it will likely keep going but maybe not more than another point. Thankfully I wont be buying any new cars for probably another several years (except I have a z06 slot that will hopefully not be year 1)

 

[rubberduck]

Also, while everyone's situation is different, if you can borrow sub 3% and inflation is close to 10%, might make sense to put as little down as possible. Pay off the loan with dollars that are worth a lot less in a few years.

One of the aspects of inflation is that it brings down real wages. It also increases the amount of taxes a person pays. Therefore, a persons real spending power is decreased. Unless one expects their wages to increase at the same rate as inflation (this hardly ever happens), it’s better not to take on more debt. That debt will become an anchor and as time goes on represent a larger percentage of net disposable income.

As you say everybody’s situation is different, for some this may not matter as they’re willing to cut back in other areas of their lifestyle, like travel vacations or other expensive purchases. For others, it will mean selling the car, boat, or RV. A recession is a good buying opportunity for these items. The best rule, never buy something you can’t afford. I would never consider buying a car with anything less than 50% down and preferably 75%.

Disclosure: I am not an economist, therefore I wouldn’t take this as advice. Always consult with ones financial planner or accountant before making financial decisions.

 

[Carguyshu]

One of the aspects of inflation is that it brings down real wages. It also increases the amount of taxes a person pays. Therefore, a persons real spending power is decreased. Unless one expects their wages to increase at the same rate as inflation (this hardly ever happens), it’s better not to take on more debt. That debt will become an anchor and as time goes on represent a larger percentage of net disposable income.

As you say everybody’s situation is different, for some this may not matter as they’re willing to cut back in other areas of their lifestyle, like travel vacations or other expensive purchases. For others, it will mean selling the car, boat, or RV. A recession is a good buying opportunity for these items. The best rule, never buy something you can’t afford. I would never consider buying a car with anything less than 50% down and preferably 75%.

Disclosure: I am not an economist, therefore I wouldn’t take this as advice. Always consult with ones financial planner or accountant before making financial decisions.

Most (certainly not all) tax rates adjust up for inflation each year.

Revolving debt is up 28% in the last 30 days. People aren’t tightening their belt to deal with higher prices they’re putting it on the card.

 

[rubberduck]

Most (certainly not all) tax rates adjust up for inflation each year.

Some do. But tax rates don’t need to go up to pay more taxes. The price of goods goes up and therefore the amount of tax paid goes up. Property tax (amount paid) can go up if based on home value.

 

[Motorin Mark]

Revolving debt is up 28% in the last 30 days. People aren’t tightening their belt to deal with higher prices they’re putting it on the card.

Absolutely true, I am in retail sales and folks are still spending just like they have been, just financing or credit carding everything. Crazy!

 

[Finally-a-V]

Absolutely true, I am in retail sales and folks are still spending just like they have been, just financing or credit carding everything. Crazy!

^^^This! And this is also why I laugh at $6.00 gas. Hell, make it 10 bucks and get it over with. Every time my wife and I go out I laugh. Inflation, jobs, high gas....nobody cares. Just put it on plastic an pay 50 bucks a month. Restaurants are busy, stores are busy. Just as much traffic on the roads as a year ago...and NO ONE drives any slower or tries to save fuel. Followed a young girl in an Escort yesterday, an Escort! I could hardly keep up. She floored that thing.

The people I do feel bad for are the true poor. They are struggling and need help.

 

[jumpmanjay]

^^^This! And this is also why I laugh at $6.00 gas. Hell, make it 10 bucks and get it over with. Every time my wife and I go out I laugh. Inflation, jobs, high gas....nobody cares. Just put it on plastic an pay 50 bucks a month. Restaurants are busy, stores are busy. Just as much traffic on the roads as a year ago...and NO ONE drives any slower or tries to save fuel. Followed a young girl in an Escort yesterday, an Escort! I could hardly keep up. She floored that thing.

The people I do feel bad for are the true poor. They are struggling and need help.

They're just following the government's lead. If they can run up an endless deficit...

 

[SIX 40]

Disclosure: I am not an economist, therefore I wouldn’t take this as advice. Always consult with ones financial planner or accountant before making financial decisions.

“But honey, rubberduck on the internet said…!”

Seriously, sound advice though. Thank you for crushing my dream of owning a Blackwing, however. lol

 

[sethsquire]

Question: I have an EDD now of 6/26. Looks like rates for my credit union start at 2.49, but I don't imagine it will stay that low much longer. I was told by the CU that if I applied now my rate would be locked in for 60 days, but I obviously wouldn't want to waste a credit check applying if it might expire.

Now that I have an EDD, is there still a possibility that I'll be plunged into purgatory and that I won't get the car in the next 60 days?