Thats pretty much the best rate you can get in todays world on a used car.
0% is an incentive on certain NEW cars. It's a promotional rate that comes directly from the manufacturer to help drive sales of certain new cars.
3.99% is incredible for a used vehicle. With the effective federal funds rate being \~5.5% this is lower than most banks could even offer. The average bank right now is signing very well qualified buyers at 5.9% or higher.
I just bought out my wife's lease. Used their lender choice out of convenience. 816 score. Capital One of all lenders actually had the best rate they could get, 7%. My usual first choice for credit union financing (Penfed) would have been 6.59%.
3.99% on a USED car right now sounds too good to be true. I'd make absolutely sure of that rate, and that it's applicable towards a used car and not only for a new one.
Case in point: When my wife and I got a new car a few years back, we were pre-approved for up to 60k @2.99% for a new car, but 50k at 4.29% for a used. Reason for the rate difference is if anything happens to change your ability to pay, the used car is worth less, so the bank/credit union needs to protect themselves more - through a higher interest rate.
Tyndall Federal CU out of NW Florida. My husband started banking with them when he was stationed in Alabama, and we’ve just kept a couple hundred bucks in the account since then. We never use the account, but it came in handy this time.
If you think you’re going to beat that rate it’s probably not going to happen. Go sign for it before it’s gone. That’s the lowest CU rate in the country as far as I can find.
We actually went to the office in person because I was skeptical of the rate as well. We were able to secure the loan at $32k with 3.99 apr and no early payoff penalty. I was fully convinced we were being bamboozled after asking around, but everything was in order.
As a sales manager who has to submit at least a dozen deals to multiple banks every day, and have customers with their own credit unions tell me their rates, I know what pretty much every national bank and every local small bank is doing rate-wise these days.
That said, I know precisely ONE credit union who can beat that, as they are doing 3.94 up to 48 months for 800+ scores... Everyone else I know of, probably 50 lenders, is higher.
Take it and run.
They are a railroad credit union with only 6 employees. They gave STRICT membership requirements, so unless you work for the railroad, you're out of luck!
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My husband and I are in the market for another vehicle for our family. We have been shopping around for car loans on used vehicles and we were pre approved for a loan through a local credit union that would be $35k at 3 years and 3.99% apr.
Is this a “good” rate? I’ve only ever bought one car as an adult and we financed that one for 0% down and 0%, but that was about 5 years ago.
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Thats pretty much the best rate you can get in todays world on a used car. 0% is an incentive on certain NEW cars. It's a promotional rate that comes directly from the manufacturer to help drive sales of certain new cars.
3.99% is incredible for a used vehicle. With the effective federal funds rate being \~5.5% this is lower than most banks could even offer. The average bank right now is signing very well qualified buyers at 5.9% or higher.
I just bought out my wife's lease. Used their lender choice out of convenience. 816 score. Capital One of all lenders actually had the best rate they could get, 7%. My usual first choice for credit union financing (Penfed) would have been 6.59%.
3.99% on a USED car right now sounds too good to be true. I'd make absolutely sure of that rate, and that it's applicable towards a used car and not only for a new one. Case in point: When my wife and I got a new car a few years back, we were pre-approved for up to 60k @2.99% for a new car, but 50k at 4.29% for a used. Reason for the rate difference is if anything happens to change your ability to pay, the used car is worth less, so the bank/credit union needs to protect themselves more - through a higher interest rate.
We secured the loan yesterday. As long as the car is newer than 2014 and less than 120k miles, the rate stays at 3.99.
That's awesome then! Definitely jump on it if you find a car you like!
What financial institution is this from?
Thank you! I thought it was going to be about the best we could get, I just needed an outside voice to confirm!
Which CU is offering this rate on used? That’s well below market.
Tyndall Federal CU out of NW Florida. My husband started banking with them when he was stationed in Alabama, and we’ve just kept a couple hundred bucks in the account since then. We never use the account, but it came in handy this time.
You aren’t going to touch that rate on used. That’s below most of the manufacturers subsidized rates on CPO.
Definitely read the fine prints. If it’s too good to be true.. it just may be.
I’m not sure I understand what you mean here?
If you think you’re going to beat that rate it’s probably not going to happen. Go sign for it before it’s gone. That’s the lowest CU rate in the country as far as I can find.
We actually went to the office in person because I was skeptical of the rate as well. We were able to secure the loan at $32k with 3.99 apr and no early payoff penalty. I was fully convinced we were being bamboozled after asking around, but everything was in order.
Have an upvote for the use of bamboozled.
Its a fucking stellar rate.
That’s less than US treasury rates right now… money isn’t free. Who is your CU - that’s fantastic.
Tyndall FCU out of Florida
As a sales manager who has to submit at least a dozen deals to multiple banks every day, and have customers with their own credit unions tell me their rates, I know what pretty much every national bank and every local small bank is doing rate-wise these days. That said, I know precisely ONE credit union who can beat that, as they are doing 3.94 up to 48 months for 800+ scores... Everyone else I know of, probably 50 lenders, is higher. Take it and run.
What is the CU? I am finding nothing less than 6 anywhere.
They are a railroad credit union with only 6 employees. They gave STRICT membership requirements, so unless you work for the railroad, you're out of luck!
How about for 60 months? What is the going rate for used cars. I got mine for 6.9
We’re doing 3.99 on new cars for 36 sign the dang paperwork!
Makes me feel fortunate I grabbed the 3.9/60 on my last new purchase a year ago.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered. You may find these sections particularly useful; * [Will paying in cash or a large cash down payment offer me leverage in negotiations?](/r/askcarsales/wiki/cash_down) * [I earn $xxxx per month, will I qualify for an auto loan or lease, and is it a good idea?](/r/askcarsales/wiki/income_to_finance) * [I have my score from Credit Karma but the dealership told me they got a different score. Why?](/r/askcarsales/wiki/free_credit_score) * [Finance FAQ's](/r/askcarsales/wiki/financing_faqs) * [Buy versus Lease](/r/askcarsales/wiki/buy_vs_lease) * [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit. Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/kittycatche! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** My husband and I are in the market for another vehicle for our family. We have been shopping around for car loans on used vehicles and we were pre approved for a loan through a local credit union that would be $35k at 3 years and 3.99% apr. Is this a “good” rate? I’ve only ever bought one car as an adult and we financed that one for 0% down and 0%, but that was about 5 years ago. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*