Financing a new Gladiator

[MPMB]

You can get a longer term loan with lower payments and lower interest usually. Just realize those are the minimum payments and you can always pay more to pay it off early. Just make sure they put the extra money towards the principle payment, not interest as some will try to do.

Incorrect.

The lowest APR% is for shorter term loans. Longer term loans equates more risk, hence, higher APR%.

If the OP is comfortable with the payments, the best bet is to take the lowest APR% and the 10% down payment. The rest of the money is best served being invested, stuck in a 401k/IRA or orange futures.

With rates being so low right now, there's not a huge difference over the term of the loan in paid interest.

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[MPMB]

1.99% is a great rate. My score was 824 when I purchased and the best rate I could get was 3% smh.

You know you can refinance vehicle loans, right?

 

[SelfmodJT]

You know you can refinance vehicle loans, right?

Yes, but I dont see a substantial diff since it's been a yr now and I'm not a member of a credit union. Lowest refinance % I see in PA is 2.99% from citadel, lol.

 

[Sazabi19]

Incorrect.

The lowest APR% is for shorter term loans. Longer term loans equates more risk, hence, higher APR%.

If the OP is comfortable with the payments, the best bet is to take the lowest APR% and the 10% down payment. The rest of the money is best served being invested, stuck in a 401k/IRA or orange futures.

With rates being so low right now, there's not a huge difference over the term of the loan in paid interest.

In some circumstances yes. But getting a lower % over a longer term usually nets them more money in the long run. Or maybe mine was a special case? Dunno.

 

[EddyArnold]

I have good credit and paid about 50% down (but not sure if that mattered too much). Went in with rates from my bank (1.9% @60mo) they first came in at (i don't remember exactly but around) 4% but if I would purchase their over priced service plan (6y extended warranty AND tire warranty) they could drop the rate to 1.7% @72mo (@WellsFargo) so I took it... stopped by 3 or 4 days later and said I change my mind on both service plans and they said the ~$2800 would come off the loan!
YMMV ¯\_(ツ)_/¯
Good luck!

Oh forgot... I got the extra $1k off for using their finance too!

 

[RalphTuttle]

I traded in my one year old Gladiator Overland on a new Mojave on the last day of March of this year. I think all the stars aligned for me on that day as I got more $$ on my trade-in than I paid for it, I got the new truck at about 5% below dealer invoice, and I got a loan through Chrysler Capital at 0%. I was going to just pay cash on the difference between my trade and the Mojave, but I figured at 0% interest, I would use their money for a few years!! I am sure I would not get nearly as good a deal now with the current car shortage situation.

 

[Tokolosh]

Thanks for all the good info everyone. I'll wait until I hear from my dealership on a definitive date before getting approved. The jeep is custom ordered so I talked to my CU 2 months ago when I ordered it. Their pre-approval is good for 30 days so I knew it had to be some time within a month of taking delivery. The only incentive I had to finance through Jeep is the extra 1% below invoice, about $420 in my case. I ordered a Sport S so the current $1000 rebate doesn't apply to me.

As far as benefits from my CU, The last rate I got there was the lowest rate they advertised, (7 years ago) and my credit score has only gone up since then, so I should be around 2% there. I'm an AT&T employee and they started as the CU just for AT&T employees, but have since opened up to everyone. Opened my account 20 years ago and I do really like everything being in one place.

Honestly, even with the extra 1%, if the dealership just matched my CU Rate, the convenience really has be considering just going with my CU. I know there is no early payoff, the loan appears in my online portal just like my accounts and I can transfer money to the loan just like my normal accounts.

Talk to your CU and see if they'll extend the application without a re-pull if that's a concern. Long time membership, having your other finances there, and good credit will sometimes afford you exceptions to the rules. It is especially likely if you have your VIN already and can tell them you are just waiting for delivery to finalize everything.

 

[Panthers65]

1.99% is a great rate. My score was 824 when I purchased and the best rate I could get was 3% smh.

That's right around where mine is too, CreditKarma shows 815-820, Transunion through my credit card shows 835.

my local CU actually has a deal where they'll give 1.75 if you use their car shopping deal, but I didn't do that. 7 years ago I financed a van through them, it was used and I still got 1.9.

I have been qualified for 1.9 for 66 months from our CU. In our area, one of the incintives is 0% for 36 months. will probably go this route as I hate paying interest.

I think I"m going to go ahead and do my CU, get that rate locked in, and then let the dealership offer if they think they can get close. I doubt they would give me the 1% off if I got 0% through them. As close as it is just the convenience of letting my CU carry it seems to make it worthwhile.

 

[Panthers65]

Talk to your CU and see if they'll extend the application without a re-pull if that's a concern. Long time membership, having your other finances there, and good credit will sometimes afford you exceptions to the rules. It is especially likely if you have your VIN already and can tell them you are just waiting for delivery to finalize everything.

I don't think I would need to extend my load, my CU said the offer was good for 30 days and my Jeep is supposed to be here in the next 2 weeks, I"m more worried about having the one ding on my credit from my CU, and then having the dealership pull my credit again 2 weeks later and it dinging me again.

 

[Panthers65]

Incorrect.

The lowest APR% is for shorter term loans. Longer term loans equates more risk, hence, higher APR%.

If the OP is comfortable with the payments, the best bet is to take the lowest APR% and the 10% down payment. The rest of the money is best served being invested, stuck in a 401k/IRA or orange futures.

With rates being so low right now, there's not a huge difference over the term of the loan in paid interest.

Thanks, I'm comfortable with most anything, I could actually buy it outright right now, but don't want to completely clean out my nest egg. If financing only costs me a few $$ and provides that big safety net, I'm all for that.

That being said, is 10% sufficient to get the lowest rate? would 20%, 30%, ar 50% net me better?

 

[MPMB]

Thanks, I'm comfortable with most anything, I could actually buy it outright right now, but don't want to completely clean out my nest egg. If financing only costs me a few $$ and provides that big safety net, I'm all for that.

That being said, is 10% sufficient to get the lowest rate? would 20%, 30%, ar 50% net me better?

Not really. The lower the amount borrowed is the lower amount of interest earned by the financial institution. So there's no incentive to sell you a smaller loan. To find the cheapest alternative, you'd have to crunch the numbers. When dealing, get the breakdown for each alternative they are offering.

The dealers usually have a chart of rates for credit scores, it's not a big issue on down payment size.

Interest charged is based on the outstanding balance. So if I were in your position, I'd get the lowest rate possible with 10% down, then double the monthly payoffs for the first year. That would be the happiest medium if you don't want a long-term loan and minimize interest payments. Ideally, loan payments should be doubled... but we don't live in an ideal world.

Interest is just the cost of doing business. I would rather have money in the bank (or portfolio) than sink a lot of it into a depreciating asset.

We're in a strange supply/demand period, but it will pass. You'll likely never get the money out of a used car unless you keep it for 30+ years with low miles. Most people go from car payment to car payment.

 

[kevman65]

Your credit score and loan term are what nets you the lowest rate. Cash down just decreases your monthly payment and your cash reserves.

In the case of an extra 1% off the deal with a higher interest rate through the dealer, that is a lose situation. 1% of a $45,000 deal is $450 dollars. Whereas a 1% higher interest rate is much more than that over the life of the loan.

Now, for a clarification on another thing said in this thread. Loan term does not always lower your interest rate if you go for a shorter period. Sorry but my wife and I have realized 0% interest loans several times on 60 and 72 month loans. Have to look for the bargains and special deals.

 

[Panthers65]

Not really. The lower the amount borrowed is the lower amount of interest earned by the financial institution. So there's no incentive to sell you a smaller loan. To find the cheapest alternative, you'd have to crunch the numbers. When dealing, get the breakdown for each alternative they are offering.

The dealers usually have a chart of rates for credit scores, it's not a big issue on down payment size.

Interest charged is based on the outstanding balance. So if I were in your position, I'd get the lowest rate possible with 10% down, then double the monthly payoffs for the first year. That would be the happiest medium if you don't want a long-term loan and minimize interest payments. Ideally, loan payments should be doubled... but we don't live in an ideal world.

Interest is just the cost of doing business. I would rather have money in the bank (or portfolio) than sink a lot of it into a depreciating asset.

We're in a strange supply/demand period, but it will pass. You'll likely never get the money out of a used car unless you keep it for 30+ years with low miles. Most people go from car payment to car payment.

Thanks for this! I'll stick with a lower DP unless my CU advises differently. Unless I get a substantial amount off I would plan to have the Jeep paid off in the next 6 months-1 year regardless.

That's the mentality I'm fighting right now, Just got 100% Debt free and just love being able to say that. I have never kept a personal vehicle less than 10 years, I tend to drive them until the wheels fall off. to avoid a payment.

Your credit score and loan term are what nets you the lowest rate. Cash down just decreases your monthly payment and your cash reserves.

In the case of an extra 1% off the deal with a higher interest rate through the dealer, that is a lose situation. 1% of a $45,000 deal is $450 dollars. Whereas a 1% higher interest rate is much more than that over the life of the loan.

Now, for a clarification on another thing said in this thread. Loan term does not always lower your interest rate if you go for a shorter period. Sorry but my wife and I have realized 0% interest loans several times on 60 and 72 month loans. Have to look for the bargains and special deals.

Thanks, That confirms above, I'll stick to a smaller DP, and then pay the loan off faster once I open it. Unless Jeep gets a ridiculously low rate, the convenience of my CU will probably push me to go with them.

 

[clickb8]

I was able to get 0% from Chrysler Capital in August. $0 down, 36 months.

 

[jeepers29]

I was able to get 0% from Chrysler Capital in August. $0 down, 36 months.

This is what I will be doing in about an hour.

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