Finding best loan rates? Best pay off method?

[GladLad]

I paid cash for my last truck 17 years ago, and still driving it into the ground, so I'm a loan virgin.

Other than just going with the dealer or my bank, is there a good way to see who has the best loan rates?

Specifically without having a bunch of places pulling my credit and lowering my score considering I'll be buying soon. Score is currently excellent, and all frozen to prevent theft until I'm ready to apply.

A quick search suggests higher down payments can lower rates. Is that generally true, or is it better to go moderate and pay off sooner with extra payments, or have any other loan saving tips?

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[Lunentucker]

Typically the best rates will be on the shorter term loans. 3 years and under for used and five and under for new.
Check with your preferred local bank before going through the dealership.
The best rates I've gotten have been through special financing events offered by the dealerships, but getting the good rates on popular vehicles can prove to be challenging. They usually offer incentives to unload less popular inventory.

 

[Jefe1018]

That’s a loaded question really.

My recommendation is to just shop around for the best rate. When I re-fied mine, it took several credit unions until I found a 1.99.

In terms of best overall deal on a JT, the common agreement by many of us is to order from a dealer along side the Tread Lightly Affiliate program. There are some stores on the forum that will require to finance with them at a bloated rate with the assumption you’ll keep the loan open for 6 months, but the discount on the vehicle is so significant that even with an excessive interest rate after 6 months you are still saving several thousand dollars. I think this is the way to go because 1) you get the exact vehicle you want and 2) absolute best price up front and dealers don’t mess with pricing or interest rate to inflate their bottom line.

After 6 months, that’s when you shop around for the best rate. Typically if you have multiple pulls on within a few weeks of each other for the same credit type, it’ll consolidate on your report as “shopping for a rate” and although it’ll show up, it won’t adversely affect your score.

Anyways, happy shopping!

 

[Camaroboi13]

Find the dealership you want to work with and go there. Do it on a weekday during business hours when all banks are open. Make them do all the work and shop for rates, and don’t say yes until you’re satisfied. I spend hours at dealerships when buying cars because I have the patience to get what I want. 710 is the magic number for tier one financing. If you’re above that then you’ve got em by the balls. Let them work for your money, and don’t be afraid to walk away, they will call you back.

 

[Panthers65]

Nov '21 I got 1.74% from my credit union, Today that rate is 7.04%. Best you can do is shop around, but without fail my local Credit Union has had the best offer every time we needed it.

I asked all the questions last time too, my CU said the only thing that greatly affected the rate was the term and age of the vehicle. Changing the down payment didn't have any affect on the rate. the newer the vehicle and the shorter the term, the lower the rate.

 

[GladLad]

Typically the best rates will be on the shorter term loans. 3 years and under for used and five and under for new.
Check with your preferred local bank before going through the dealership.
The best rates I've gotten have been through special financing events offered by the dealerships, but getting the good rates on popular vehicles can prove to be challenging. They usually offer incentives to unload less popular inventory.

Thanks. It'll be new, special ordered, and likely 5 year term. Unless I find a great lot deal without sacrificing some of the must haves I talked myself into as some aftermarket options would be less ideal.

That’s a loaded question really.

My recommendation is to just shop around for the best rate. When I re-fied mine, it took several credit unions until I found a 1.99.

In terms of best overall deal on a JT, the common agreement by many of us is to order from a dealer along side the Tread Lightly Affiliate program. There are some stores on the forum that will require to finance with them at a bloated rate with the assumption you’ll keep the loan open for 6 months, but the discount on the vehicle is so significant that even with an excessive interest rate after 6 months you are still saving several thousand dollars. I think this is the way to go because 1) you get the exact vehicle you want and 2) absolute best price up front and dealers don’t mess with pricing or interest rate to inflate their bottom line.

After 6 months, that’s when you shop around for the best rate. Typically if you have multiple pulls on within a few weeks of each other for the same credit type, it’ll consolidate on your report as “shopping for a rate” and although it’ll show up, it won’t adversely affect your score.

Anyways, happy shopping!

Thank you. I expect to be ordering with one of the X% under invoice dealers found on the forum. And yes, some require financing, or at least to get a little more. Such as Gupton giving an extra 1% if financed through them. That extra may only be about $500, so I guess depends on rate or costs to refinance later. With rates still going up I may not want to take a bad rate today to refinance later in the year. It going down remains to be seen.

You gave me something to Google, and at least one source says any pulls in 45 days could count as one rate shopping inquiry.

Find the dealership you want to work with and go there. Do it on a weekday during business hours when all banks are open. Make them do all the work and shop for rates, and don’t say yes until you’re satisfied. I spend hours at dealerships when buying cars because I have the patience to get what I want. 710 is the magic number for tier one financing. If you’re above that then you’ve got em by the balls. Let them work for your money, and don’t be afraid to walk away, they will call you back.

The local dealers I've talked to so far seem unwilling/incapable of giving deals. I haven't pressed as I was mostly just wanting to get some in-person views/tests of the Jeeps, but did ask pricing and I may be in MSRP dealer region. None talked about anything beyond me having family/friend discount.

So I expect to be ordering out of state, and likely want rate/loan lined up or go with their financing if part of the deal. But it's good to know the dealers can do the rate shopping for me. I'm well above 710.

I just searched that pre-approval lasts 30-60 days, so may want to order before rate shopping in case there are delays.

Nov '21 I got 1.74% from my credit union, Today that rate is 7.04%. Best you can do is shop around, but without fail my local Credit Union has had the best offer every time we needed it.

I asked all the questions last time too, my CU said the only thing that greatly affected the rate was the term and age of the vehicle. Changing the down payment didn't have any affect on the rate. the newer the vehicle and the shorter the term, the lower the rate.

Likely 5 year term, new vehicle. I checked my bank and a couple CUs online, about the same posted rate. Who knows when actually applying.

But if the down payment won't affect it, I can at least just choose based on how I want to reduce the loan size. I can pay more later to reduce interest payments even more and not regret not putting more down to have a better rate.

 

[Sandevino]

when a dealer pulls your credit it will drop you two points. Any credit pulls for the next 20-30 days will not affect your credit as it’s the same inquiry type. When (if) you make a deal your credit will recover.

 

[shikamaroxu]

Higher down payments can indeed help lower rates, but it's often a good idea to strike a balance with a moderate down payment if it means you can pay off sooner with extra payments. That way, you can save on interest in the long run. As for finding the best rates, you can check out credit unions and online lenders in addition to your bank and the dealer. Personally, when I was in search of the best loan rates, I reached out to a Mortgage Broker in Sunderland. They were incredibly helpful in guiding me through the process and helped me choose loan terms that were perfectly aligned with my financial situation. It made repaying the loan a breeze and saved me a lot of financial stress.

 

[Deleted member 57233]

when a dealer pulls your credit it will drop you two points. Any credit pulls for the next 20-30 days will not affect your credit as it’s the same inquiry type. When (if) you make a deal your credit will recover.

I've never even had the two point drop when they pull my credit.

 

[Windstone]

Pursuing your dream of buying a boat is exciting, and having a solid credit score is a big plus. Shopping around for financing options and comparing rates is a smart move to make sure you're getting the best deal.

If you ever need financial guidance beyond your boat loan, especially in Southport, consider reaching out to a Mortgage Broker in Shrewsbury. They can provide expert insights tailored to your specific needs and goals.

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