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Old 10-20-2011, 07:18 AM   #1
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What interest rate to shoot for?

Going to pick up my new JK tomorrow afternoon. I am putting a lot of money down on this vehicle, in fact over 50%.

After the trade and everything I will probably only be financing around $11K or so, so this is a secured loan.

My question is what rate should I try to get from the dealership? My credit union will do 2.49% but I feel like I should be able to do better than that.

Any feedback on what kind of rates you guys have been getting on new car purchases? I want to have a good idea before I go in there to negotiate on it. Thanks.

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Old 10-20-2011, 07:36 AM   #2
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I got 2.29% from my dealer through Chase. I called them when my Jeep came in and said I got 2.49% from my credit union and if they could beat it, I would go with them. It was easy and no negotiation or extra fees. I've seen some guys on here go with Digital Credit Union and get 1.99% or something like that. Good luck!

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Old 10-20-2011, 07:39 AM   #3
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The 2.49% sounds pretty good, if you calculate the difference between your rate and one point lower you are talking about $100 over a three year term, barely worth running all over town to find a lower rate for. Your first month interest payment will be $22.83 and will decline monthly for the term of the loan. One point makes a big difference in a home loan, not so much on an $11k loan.
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Old 10-20-2011, 07:45 AM   #4
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Obviously you want to "shoot for" zero.
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Old 10-20-2011, 07:51 AM   #5
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Depends on your FICO score of course. Anyone with a score of near 800 or higher should easily be able to get below 2%. I got 1.89%/60 from Bank of SCAMerica. Neither of my credit unions could match that at 2.49% each. I believe both of my credit unions now are below 2% though but a month ago when I bought my jeep they weren't.
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Old 10-20-2011, 07:54 AM   #6
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Originally Posted by j0nx View Post
Depends on your FICO score of course. Anyone with a score of near 800 or higher should easily be able to get below 2%. I got 1.89%/60 from Bank of SCAMerica. Neither of my credit unions could match that at 2.49% each. I believe both of my credit unions now are below 2% though but a month ago when I bought my jeep they weren't.
I'm over 800, but my credit union is firm on their price. They don't lower it based on credit rating. As the poster above said however, with only borrowing 11 grand maybe not worth running all over the place to get a loan. Thinking maybe I will ask (demand) 1.9% from the dealer and see what happens. Worst they can do is tell me no I guess.
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Old 10-20-2011, 08:06 AM   #7
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if you calculate the difference between your rate and one point lower you are talking about $100 over a three year term, barely worth running all over town to find a lower rate for.
Very good point. I went over to bankrate.com and calculate 2.49% vs 1.99% and the difference was about $2.50/month. Not worth killing myself over .5%. If they will beat the credit union I will just go with them, overwise 2.49% from my credit union sounds pretty good and I like that they will deduct it from my paycheck rather than getting a bill every month from a bank
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Old 10-20-2011, 10:50 AM   #8
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If you go with the higher interest, pay them an extra $20.00 per month, and that will take away any profit from interest they would otherwise make.
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Old 10-20-2011, 10:58 AM   #9
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I have 2.9 through my local bank. I started out last year with a 5.9 which at the time was good.
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Old 10-20-2011, 11:03 AM   #10
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Quote:
Originally Posted by ShoreWrangler View Post
I'm over 800, but my credit union is firm on their price. They don't lower it based on credit rating. As the poster above said however, with only borrowing 11 grand maybe not worth running all over the place to get a loan. Thinking maybe I will ask (demand) 1.9% from the dealer and see what happens. Worst they can do is tell me no I guess.

I got 1.99% from the dealer. 2.99% from the bank
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Old 10-20-2011, 11:06 AM   #11
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Great info everyone, thanks. I will stay firm at nothing higher than 1.9% from the dealer and we will see what happens!
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Old 10-20-2011, 12:07 PM   #12
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Good Luck!
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Old 10-20-2011, 12:19 PM   #13
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Quote:
Originally Posted by ShoreWrangler View Post
Going to pick up my new JK tomorrow afternoon. I am putting a lot of money down on this vehicle, in fact over 50%.

After the trade and everything I will probably only be financing around $11K or so, so this is a secured loan.

My question is what rate should I try to get from the dealership? My credit union will do 2.49% but I feel like I should be able to do better than that.

Any feedback on what kind of rates you guys have been getting on new car purchases? I want to have a good idea before I go in there to negotiate on it. Thanks.
I just signed the papers for 1.74% for 72 months. Picking up the Jeep today. PM me if you want contact details.
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Old 10-20-2011, 12:44 PM   #14
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Wow these are better than I was expecting. I got 2.39% for 60 mths and thought I did really well. Sub-2% for 72 months is amazing....I probably would've gone with a shorter term loan and lowered it further though.
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Old 10-20-2011, 12:54 PM   #15
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I got 0% for 60 months through the dealer! Would have not bought otherwise.
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Old 10-20-2011, 02:24 PM   #16
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I got 0% for 60 months through the dealer! Would have not bought otherwise.
Wasn't the 0% the standard incentive they were offering on the 11's?
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Old 10-20-2011, 02:59 PM   #17
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Originally Posted by TommyT
I got 0% for 60 months through the dealer! Would have not bought otherwise.
On a 2011 I assume, no way they gave that on a 2012.
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Old 10-20-2011, 03:01 PM   #18
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tell them 0% or you walk. some one will bite. dont feel loyal to any dealer.
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Old 10-20-2011, 03:39 PM   #19
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No. Noone will bite for 0% on a '12. You will be walking away from a lot of dealers that way. Even credit unions won't do less than 2% now. 1.9% is the best you will find for a '12 jeep, particularly if you get dealer financing.
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Old 10-20-2011, 04:07 PM   #20
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Was originally going to go with DCU at 2.49% but my dealer was able to do better at 2.04% through Wells Fargo. Going through a dealer makes the whole process simpler since they do all the (paper) work....
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Old 10-20-2011, 05:18 PM   #21
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Old 10-20-2011, 06:59 PM   #22
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Originally Posted by Duffyc04 View Post
On a 2011 I assume, no way they gave that on a 2012.
Yes, it was a 2011, I was looking for a used JK, while at the dealership I noticed they were offering 0% and just for the heck of it I asked the salesman if I qualified, he checked, I qualified and wound up with a new 2011. Very happy with my puchase by the way!
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Old 10-20-2011, 07:06 PM   #23
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2.04% was the best I could do. USAA could only do 3%, and they usually out do anyone. Wells Fargo had the best rate in So Cal. My FICO score averaged 868. If you can get a 2%, you're golden. I did 50% down, so it would seem that this is about the absolute best you can do on a '12 before having to do anything too extreme to go lower.
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Old 10-24-2011, 06:40 AM   #24
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Well here is how it played out. The guy starts at 3.48%. I say a polite "hell no" and explain that I can get 2.24% from my credit union before I even negotiate. He then proceeds to go to 2.99 "no", 2.72 "no", and then his "best offer" according to him 2.48%. I again politely say I am more than happy to go the my credit union, no problem, I will bring a check on Monday.

We go through all the crap with the warranty (I did not buy), shakes hand, ready to leave. Then he says hold on, starts punching keys into the keyboard. Then he turns the monitor to me and says, "ok, will you do this?"

1.74% - "yep, I will do that"

He says this business about not making any money off the loan, they will accept the rate only because he sends them $10mil in loans every year, and other stuff like that. I don't believe for a second he's not making anything on that loan. what a load of horse crap. he's not in business to lose money. Is he making a lot on it? probably not, but he's getting some sort of incentive from the bank I am sure.

Anyway, stick to your guns, be prepared to walk out, and they will most likely come around. I was shooting for 1.9%, would have settled for 2.24%, ended up with 1.74%
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Old 10-24-2011, 06:47 AM   #25
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Nice! I was shooting for 2.49% myself from the dealer which is the lowest that my CUs would go and his first result back from the computer was 1.89% from BoA. I was like umm ok yeah that's fine I'll take that then - without emotion.

My dealer was painless and it was the absolute least cheesy experience I have ever had buying a vehicle. They tried to jip me on the USAA price at first but I just simply opened my iPad up and showed them the link on the website to how much the USAA price was supposed to be and they immediately changed it to that for me. Other than that and having to wait 1.5 hours for the finance guy to get to me the dealer delivered everything just as expected.

Congrats!
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Old 10-24-2011, 07:29 AM   #26
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Quote:
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1.74% - "yep, I will do that"
We are the 1.74ers!

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