What Insurance Rates and Loan APR % is everyone getting ?

[ShirtlessCubsFan]

You credit union doesn't post their auto loan rates? Ours does, and it's determined by year of the vehicle + length of the term. It doesn't matter which type of vehicle, except if it's an EV and then there's a .25% reduction in APR.

Example, here's the rates for 2019+ vehicles:

Term	APR* as low as
Up to 36 Months	2.35%
37 – 66 Months	2.49%
67 – 72 Months	2.74%
73 – 84 Months	3.24%

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[jac04]

Why would I pay for a whole car at once?

That's the mentality of most people. That's why I said IMO - it's my opinion that if you can't pay for your vehicle up front then you can't afford it. I know I just can't bring myself to drive around in a vehicle owned by a bank.

 

[NachoRuby]

That's the mentality of most people. That's why I said IMO - it's my opinion that if you can't pay for your vehicle up front then you can't afford it. I know I just can't bring myself to drive around in a vehicle owned by a bank.

I can't drive myself to invest the full sum into something that's worthless if it gets totaled, and constantly depreciates, no matter what you do.

 

[869 KPH]

And, I've seen where you can now get a car loan for 84 months. That's insane. I've never had a car loan and never will. IMO, if you can't pay for it, you can't afford it.

Has nothing to do with 'affording' it. Even if your loan rate was 5% your money would work harder for you in the market than sunk on the car. Same reason I still have a mortgage - do the math and after a certain amount of equity it makes zero sense to pay it off early.

 

[jac04]

I can't drive myself to invest a full payment into something that's worthless if it gets totaled

Then everything you buy should be financed. No thanks.

 

[NachoRuby]

I can't drive myself to invest a full payment into something that's worthless if it gets totaled

Then everything you buy should be financed. No thanks.

Sort of, except most things I buy aren't $40k plus, and most things I purchase don't have a risk of being totaled, and most things I buy don't lose 15% a year in value. There are better things money can be doing. I mean besides a car and a house (which appreciates), the most expensive thing I buy is maybe like a laptop or something. Considerably less risk.

 

[jac04]

Has nothing to do with 'affording' it. Even if your loan rate was 5% your money would work harder for you in the market than sunk on the car. Same reason I still have a mortgage - do the math and after a certain amount of equity it makes zero sense to pay it off early.

Seriously, if having an extra $50-60k to invest is making a significant difference for you, then you shouldn't be buying a $50k vehicle in the first place. I guess 'affording' means something different to me. If you can reason owing money to a bank for a vehicle or a house, then that's fine. You'll never convince me to do it.

I'll bow out now and let this thread get back on track.

 

[NachoRuby]

Seriously, if having an extra $50-60k to invest is making a significant difference for you, then you shouldn't be buying a $50k vehicle in the first place. I guess 'affording' means something different to me.

it definitely does. I personally can't imagine having enough cash at one time to buy a house at once, and especially to not immediately regret it and wonder why I did it. $50-60k is a huge investment also. I think it is for most people. Interest rates are near 0. Down payments are low. And disposable cash is free to do literally anything else with, should an emergency occur. Also, my "bank" is a credit union, so I own them too.

 

[ShadowsPapa]

I agree, many variables. City/ state, miles driven, pleasure or for work, etc...

Like everything in cali, we pay more ?

Yeah, but according to The Eagles, you live in paradise!

Interest rates are low, so why I see no reason to pay for a whole car at once. Then if it gets hit, I'm out of all my money, minus whatever insurance decides it's worth. Now, I have gap insurance. If I get hit, the jeep gets paid off, I'm out nothing but what I paid so far. Also, interest rates are low enough that I see no reason to buy a vehicle in cash. Many times the deals are better with a loan too, since the dealerships these days want their kickback. Someone hit my 2 year old car a few years back. Insurance decided it was with 27000. It cost 45000. Thanks to gap insurance, I lost nothing, Other than the minimal amount of interest I'd paid so far. I'm in no hurry to quickly invest in something that depreciates, when my money could be better spent elsewhere. Interest rates with even decent credit are so low that I personally see no reason to pay for it at once. Low down payments and low interest rates mean my current funds are better saved or spent elsewhere.

But bank interest is even lower. Our trades are quite often more than half the cost of a new vehicle - case in point - my wife traded her 2018 WK2 and we paid only 14K cash - tell me there's enough difference in interest vs. what could be made on only 14K? Right now most banks are paying less than 1% unless you have mega-bucks. Yeah if it's invested in the markets long term you get a whole lot more but I'm talking a few thousand so it's not a big deal. Not a lot of money over a few years' time for 14K
If you are looking to squeeze every last penny out of that money, yeah - but then you'd likely not be spending a premium for a Jeep anyway. I've wasted more money than the interest difference in the past so I don't sweat the $100 stuff.
For my truck, I sold my Silverado, sold one of my Javelins and came up with a bit of cash to make up the difference. The hassle of a loan just wasn't worth it. I had to come up with less than 10K. Not worth a loan, IMO.

If you paid for it and get hit vs. a loan and getting hit? I see no difference. Insurance would pay the same amount so either the bank gets the money to pay off the loan or you get the money to pay for the loss. Sorry, that one makes little sense to me. I get the insurance payout or the bank does. I'd not be out anything if I've already paid for it and insurance pays me back. Besides, for the first few years we are covered for replacement cost. So, if I paid 50K for a vehicle, it gets totaled and it now costs 55K to replace it, I get 55K. How am I out.

 

[NachoRuby]

Yeah, but according to The Eagles, you live in paradise!




But bank interest is even lower. Our trades are quite often more than half the cost of a new vehicle - case in point - my wife traded her 2018 WK2 and we paid only 14K cash - tell me there's enough difference in interest vs. what could be made on only 14K? Right now most banks are paying less than 1% unless you have mega-bucks. Yeah if it's invested in the markets long term you get a whole lot more but I'm talking a few thousand so it's not a big deal. Not a lot of money over a few years' time for 14K
If you are looking to squeeze every last penny out of that money, yeah - but then you'd likely not be spending a premium for a Jeep anyway. I've wasted more money than the interest difference in the past so I don't sweat the $100 stuff.
For my truck, I sold my Silverado, sold one of my Javelins and came up with a bit of cash to make up the difference. The hassle of a loan just wasn't worth it. I had to come up with less than 10K. Not worth a loan, IMO.

If you paid for it and get hit vs. a loan and getting hit? I see no difference. Insurance would pay the same amount so either the bank gets the money to pay off the loan or you get the money to pay for the loss. Sorry, that one makes little sense to me. I get the insurance payout or the bank does. I'd not be out anything if I've already paid for it and insurance pays me back. Besides, for the first few years we are covered for replacement cost. So, if I paid 50K for a vehicle, it gets totaled and it now costs 55K to replace it, I get 55K. How am I out.

The difference is depreciation. Right now, If my jeep gets totaled, I'm out whatever I've spent so far. That's it. Depreciation doesn't matter because gap insurance covers the gap between depreciation and what I paid so far. If I paid in cash, all I get is the insurance value, and that's it. I lose the depreciation.

I'm not talking about having all the money sit in the bank. I'm 32. I'm talking about having the money go into my 401k and pension plan. And yes, just having some extra on hand for a rainy day. Trades will work the same way as in your example, because since I didn't spend all the money at once, when I trade, I can put down a bigger down payment, if I want. Or not. A car depreciates at a higher rate than the apr of a loan. Also, by financing, you don't magically lose the option to buy outright, if you choose. There is no penalty for paying it off early. So if at any point, I decide I'd rather spend my money paying off the jeep, I could, but I really don't see a reason to. Fairly little interest means I'm not losing anything compared to what the money is doing (long-term) in pension and 401k.

For me, it largely comes down to flexibility. By financing, I can do whatever is best for my money at any time.

 

[869 KPH]

Seriously, if having an extra $50-60k to invest is making a significant difference for you, then you shouldn't be buying a $50k vehicle in the first place. I guess 'affording' means something different to me. If you can reason owing money to a bank for a vehicle or a house, then that's fine. You'll never convince me to do it.

I'll bow out now and let this thread get back on track.

That you, Dave?

 

[LWBrew]

Had to go through Chrysler capital to get the rebates when I picked up mine, 3.9 was the low rate for 72mo at the time. Going to refi to a lower rate though after a payment or two as someone else stated.

 

[RalphTuttle]

Insurance ~ $500/year in Raleigh, NC area.

I bought my '21 Mojave in March of this year (traded in a one year old '20 JT Overland).

I was able to get a 0% interest rate loan through Chrysler Capital! So, rather than just paying cash for the new truck up front, I went ahead and got the loan. I figured I could just use their money for a few years...

 

[f33d]

2021 mojave paid in cash yearly premium full coverage with 300k liability is $1600 a year or 133 M/ in NY

 

[869 KPH]

Oh yeah.... to answer the original question:

My credit union does the exact same thing as yours, @SargeDiesel - they won't quote a rate until I am about to take delivery. But they did tell me the best rate they have right now is 1.75%. I'll probably stretch to 72 and expect to end up somewhere around 2.5%.

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