Went shopping yesterday - holy interest rates Batman

[Sandevino]

Long story short my daughter is looking to sell her 2022 Grand Cherokee and pick up a Gladiator as her needs and wants have changed. She’s in the hospitality business (catering and event planning) and is looking at buying a truck or getting a hitch installed and buying an enclosed trailer.

We went shopping and found a 2023 Rubicon (overkill for her) with nearly $10k in discounts and rebates coming in around $55k out the door. After all was said and done the BEST APR we found at our bank and through the finance department was 8.9% equating to a whopping $14k in finance charges over 60 months and a $1200 monthly payment.

She looked the finance manager in the eye and laughed saying no way is she paying $1200 a month and $14k in interest. So, we are now looking at trailers and hitches.

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[Jefe1018]

Yeah it’s amazing how the climate has changed, my 2.25% on an 84, yes 84, month term is so crazy that every time I consider getting into a full size pick up I realize I should have just done that to begin with in ‘21.

My minimum payment is under $700 a month for a vehicle that was OTD about the same as you are describing. There are some factors to consider in there like 6 months of payments at the inflated rate the volume dealer sold me to pay less OTD, money down, etc.

Not to mention, the price of the vehicle bloated by a couple thousand too since then.

It is a horrible time to buy anything financed today.

 

[Viper501]

Depending on her credit USAA has 5.39 for new and 5.69 for used. Of course you have to be a member to get there. Another option is credit unions.

 

[WILDHOBO]

Long story short my daughter is looking to sell her 2022 Grand Cherokee and pick up a Gladiator as her needs and wants have changed. She’s in the hospitality business (catering and event planning) and is looking at buying a truck or getting a hitch installed and buying an enclosed trailer.

We went shopping and found a 2023 Rubicon (overkill for her) with nearly $10k in discounts and rebates coming in around $55k out the door. After all was said and done the BEST APR we found at our bank and through the finance department was 8.9% equating to a whopping $14k in finance charges over 60 months and a $1200 monthly payment.

She looked the finance manager in the eye and laughed saying no way is she paying $1200 a month and $14k in interest. So, we are now looking at trailers and hitches.

Yeah. We had ridiculously low rates for a decade. It’ll be a while before that happens again. I’m glad to have gotten mine in ‘21. I wouldn’t be able to buy one now.

 

[GladLad]

Ugh, the thing I'm not looking forward to. Will be checking some credit unions and my bank, but I really wish there was an easy "see all the rates based on your score" type site. Would certainly create competition too.

 

[Minty JL]

I went through NavyFed back in October and got 4.9% for 36 mos

 

[Sandevino]

The rate we got was through the EECU credit union. The days of subsidized or low rates are gone for the next 12 - 18 months talking with friends in the business.

For reference, the dealer we looked at is the same dealer, finance and sales guy I bought four vehicles from last year and all were under 2.9% APR. My Overland Diesel is at 0% through Chrysler Capital and now 0% is just a pipe dream.

 

[Jefe1018]

I went through NavyFed back in October and got 4.9% for 36 mos

I love NavyFed, especially since they are one of the only banks that posts their interest rates, albeit the published numbers are for those well qualified, but still so easy to deal with.

 

[Sandevino]

I love NavyFed, especially since they are one of the only banks that posts their interest rates, albeit the published numbers are for those well qualified, but still so easy to deal with.

I'm well qualified and co-signing with her which brought the rate up. What gets me is when we bought her GC, same credit scores, we got 1.9% with her being the higher risk. Now is not the time to buy anything.

 

[WILDHOBO]

The rate we got was through the EECU credit union. The days of subsidized or low rates are gone for the next 12 - 18 months talking with friends in the business.

For reference, the dealer we looked at is the same dealer, finance and sales guy I bought four vehicles from last year and all were under 2.9% APR. My Overland Diesel is at 0% through Chrysler Capital and now 0% is just a pipe dream.

Mine is 0% as well. It’ll be a while before those options return, and it’ll only be for excellent credit I’d expect. I think that’s mostly been the case historically though.

 

[Lunentucker]

I didn't like 4% on mine 18 months ago. Now it's looking pretty good.

 

[Mojave Nunzio]

I didn't like 4% on mine 18 months ago. Now it's looking pretty good.

That is the same rate I got my 2022 for, that being said I refuse to buy another new one until the wheels FALL off of my Mojave. lol

 

[redriderjf87]

Good call. Don't be dependent on credit and debt.

 

[Sandevino]

Good call. Don't be dependent on credit and debt.

It was a proud dad moment for sure.

 

[bd100]

2022 Grand Cherokee — we are now looking at trailers and hitches.

For what it's worth, our 3.6L 8-speed WK2 Grand did a fine job pulling a 2000lb folding trailer across the country. A larger, heavier, enclosed trailer and cargo is probably fine for local stuff but maybe not so good for interstate speeds.

Trailers can be a problem maneuvering around parking lots and gas stations and such. Maybe after you get a hitch just rent a trailer for a day and see if everyone can handle it well before investing in purchasing one.

How about a used cargo van?

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