Good deal reached on 22 however..

[FloridaMan655321]

Damn, amazing how rates have changed.
One question, what if you go with a lower month? I would expect if you went with a 32/48 month the rates would be lower.
I was able to get 0% with Chrysler at 32 months, but I'm guessing those days are done for some time....

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[the hiking viking]

Negotiate the deal on the Jeep before even letting them know of your finance intentions or if you have a trade-in. Once you guys agree on the deal, then bring up your finances and trade-in.

Perhaps go try again at a different dealer, that is an awful rate for a 800 score. Good luck

 

[Minty JL]

I financed mine for 36 months back in 2020, only three payments to go. What an amazing feeling!

I vote shorter term if you can swing it. If not, just pay more towards the principal. Pay every two weeks to get an extra payment in per year. No matter what rate you get these days, this will save you $

My plan is to have it paid off in 12 months. If my Bitcoin run holds, it will be sooner

 

[Minty JL]

I love Navy Fed .... they almost always have the best rate and they are about as easy as it gets to work with.

I just don't like NavyFed's fine print......you can pay off early, but you still have to pay all of the interest for the whole term of the loan.

 

[Jefe1018]

I just don't like NavyFed's fine print......you can pay off early, but you still have to pay all of the interest for the whole term of the loan.

The whole term as in the term you held the loan or the interest they would have made on the loan through the installments originally agreed on? I financed a car for a few months while I sold my last one for a few months and paid it off. I don’t think I paid any interest outside of the time I had the loan out.

 

[GHWillys]

Negotiate the deal on the Jeep before even letting them know of your finance intentions or if you have a trade-in. Once you guys agree on the deal, then bring up your finances and trade-in.

Perhaps go try again at a different dealer, that is an awful rate for a 800 score. Good luck

This right here.

I ordered my Jeep so different than buying off the lot, but when it was time to complete the paperwork they completely low balled me on my trade in. I told them I would just sell it on my own (dealers were begging for used cars at the time) and they eventually matched the quotes I received from online dealers. We walked in to pick up the car with financing from our credit union. They tried to get us to finance through them which we would have to help them out, but they couldn't come close to the rate.

 

[Barnaby’sdad]

800 credit score? Walk in the door with pre-approval and a check in-hand. I’ve done that for years and it makes for a low stress buying experience.

My credit union is around 5% for a new vehicle at 72 months. Theirs is usually decent, but nothing to write home about.

Like they said above though. Negotiate the price of the vehicle first. Don’t blend the vehicle price negotiation and financing pieces. That’s how they do folks dry without them even realizing what’s going on.

 

[upnover]

So you are probably getting 5k in rebates and 5k dealer off which none of that should require to finance through FCA.

I had a total of $9250 of mine in Dec. didn’t require dealer financing and they always get close to my credit union rate, but they didn’t care who I financed with-them or my CU which was nice. It was actually the 2d easiest experience I ever had purchasing a vehicle.

I would never wait to refi, it’s business.

 

[Sandevino]

So you are probably getting 5k in rebates and 5k dealer off which none of that should require to finance through FCA.

I had a total of $9250 of mine in Dec. didn’t require dealer financing and they always get close to my credit union rate, but they didn’t care who I financed with-them or my CU which was nice. It was actually the 2d easiest experience I ever had purchasing a vehicle.

I would never wait to refi, it’s business.

I bought a service contract on mine for $4k and the dealer begged me not to cancel it as it’s profit. The LTV had to come up a few bucks to get 0%. Tomorrow I’m going to cancel as it’s been 90 days, there’s nothing binding and it’s business.

 

[ZoMojave]

Tomorrow I’m going to cancel as it’s been 90 days, there’s nothing binding and it’s business.

I did the same on a deal when I purchased a new Ram 8 years ago from the largest CDJR store in Phoenix, Arizona. The only way to get the "best" finance rate was to purchase a service agreement for $3k. They said there was no penalty to cancel, but to wait 90 days before doing so. Went back to the dealership after a few months to cancel. They didn't like it one bit, but this was a dealer I had no prior relationship with and owed them nothing. Like stated, it's business. They dragged their feet through the entire process and acted like they had hurt feelings. Not a good experience at all. Dealer mark-ups, dealer add-ons and high-pressure sales. This is the way 90% of dealers operate in the valley.

Be prepared for a long wait for a refund check. I received it only after many calls directly to the service contract company because they were the one to issue the check.

 

[Lost1wing]

Back in 2020, Chrysler had 0% finance ( for qualified buyers) and I had already negotiated $6k from the window sticker. 830 credit score was too good and a $10k down payment was required. I just blinked my eyes at the finance person. Then I asked her to repeat that.

 

[Sandevino]

I did the same on a deal when I purchased a new Ram 8 years ago from the largest CDJR store in Phoenix, Arizona. The only way to get the "best" finance rate was to purchase a service agreement for $3k. They said there was no penalty to cancel, but to wait 90 days before doing so. Went back to the dealership after a few months to cancel. They didn't like it one bit, but this was a dealer I had no prior relationship with and owed them nothing. Like stated, it's business. They dragged their feet through the entire process and acted like they had hurt feelings. Not a good experience at all. Dealer mark-ups, dealer add-ons and high-pressure sales. This is the way 90% of dealers operate in the valley.

Be prepared for a long wait for a refund check. I received it only after many calls directly to the service contract company because they were the one to issue the check.

It’s business and I expect delays for the same reasons you stated. The refund will go straight to Chrysler Capital as I’ve not paid it off yet.

 

[dcmdon]

So, $11 off MSRP seems like a screaming deal but in order to get there I had to sell my soul to Chrysler Financial it seems. For someone with mid 800 credit you would think CF could do better than 8.3% on a 72 month term. The salesman says what all salesman say. .You can just refinance it in a few months.. Question is can I negotiate the rate given? How can I be sure that is the rate CF provided and not a padded rate the dealer is giving me to make back some of the loss on the vehicle.

I haven't read all the posts, but that rate is ABSOLUTELY not what Chrysler Financial is offering.

I worked as a Finance Manager at a new car dealer. There is a buy rate and a sell rate. My guess is that their buy rate is in the 3% range.

But let's do some math and see how much this terrible financing is eating into your great deal.

Let's assume 50k financed for 6 years.

at 8.3% your payment is $884.04

At 5.0% your payment is $805.24

at 4% your payment is $782.26

So if we assume you could get 4%, which is very low these days, you wold lose about $600 of your savings if you waited 6 months to refinance.

So in summary, you still got a smoking deal.

I'd review the contract with the dealer.

When I got my truck at Gupton they asked me to hold the note for 6 months. But there was nothing in the contract requiring me to hold it for 6 months. I could have screwed them and refinanced immediately.

The thing is that even if a dealer sells at his buy rate, so they don't mark up the interest rate, they get a "spiff" for writing the loan. We would get a $500 spiff on the loan after it ran for 6 months.

So as a courtesy to Gupton, who was WONDERFUL, I kept the loan for 6 months. Of course shortly after I bought the truck interest rates started going up. So I still haven't refinanced 13 months in.

In short. Buy the truck. Read the contract and see if you can IMMEDIATLY refinance the truck.
Don't take the dealer's word. They want the spiff and all the extra money that comes at 6 months.

If you wait6 months, no big deal. It will cost you roughly $500.

I hope this helps.

 

[dcmdon]

The gap is wide on something like my Willys and I'm unsure which model OP is looking at but we do know its a 22. A mildly optioned 23 Rubi is north of 65k. At 65k they'd be at 16% but then turn around and toss out a few k on interest for the initial loan then re-fi charges on the second.

This is wrong. Like I showed above, it's not a few k worth of interest. It's a few hundred. Your comparison should be "how much MORE " are you paying vs a good market rate loan at ~5%. It works out to about $75/month extra.

You are thinking like it's a 360 month mortgage, where most of the payment is interest. This isn't 360 months, it's more like 72 months.

At $50k financed for 72 months at 8.3%, the payment is $884.

$694 of that payment is PRINCIPAL.
$190 of that payment is interest.

 

[staying_tuned]

This is wrong. Like I showed above, it's not a few k worth of interest. It's a few hundred. Your comparison should be how much MORE are you paying vs a good market rate loan at ~5%. It works out to about $75/month extra.

You are thinking like it's a 360 month mortgage, where most of the payment is interest. This isn't 360 months, it's more like 72 months.

At $50k financed for 72 months at 8.3%, the payment is $884.

$694 of that payment is PRINCIPAL.
$190 of that payment is interest.

Makes total sense, ours is more extreme on our 36m term. Interest alone was well over $200 on the first few payments whereas interest on the final payments is in the tens of dollars. If we were to take the same loan at 8.x% versus the 4.99% we got, the interest on the first 3 payments would have totaled close to $1,500. I've never heard of a true fee-free refi so in our case, if we were to refi after 3 months for certain it would be a few k but to your point above, that is pretty much out the window when speaking in 72m terms.

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