Used car loans

[BWillie]

I have 829 credit score. Only had one used car loan years ago for 8k. Going to buy at a non affiliated dealership. Best rate I can get is 5.09%. WTF? Ive heard of ppl getting 2.5% on used cars. Went into my bank and they only gave me 5.3%.

Anybody online any good? Looks like you usuallly get a shitty rate if you buy private party or unless its specific dealerships

[Shaid]

I use Signature FCU. They used to only be for Postmasters and their families but recently rebranded and I believe have opened up to everyone. I just called and "added" a 2011 vehicle to my existing 2012 vehicle loan (basically just took my equity on the 2012 loan so I could buy the 2011 with cash). I got 1.99%. The 2011 was a private party buy, the 2012 went through a dealership. They only are advertising a 2.49% so I'm not sure if I got that rate because of my good credit or if it's because I was already at a low rate before refinancing. In any event, I've had then since the early 90s and it's literally just a phone call to them and my loan is in place. Easy as hell. I'd give them a try if I were you. Just be warned, they do keep "bankers hours" so you need to talk to them during the day. For me it's worth it since I just transfer money around with their app or online and it's so easy to get a loan. Good luck.

http://www.signaturefcu.org/

[Shaid]

Originally Posted by Jewish Rabbi

Why get a loan?

I could have got my 2011 with cash pretty easily but if I instead invest that cash and get a standard rate of return of 8%(I generally do better) and I'm only borrowing at a rate of less the 2%, I'm coming out ahead. I do only like having one loan at a time though which is why I just refinanced my loan.

[TribalElder]

Originally Posted by hometeam

This is whack. You need to check different banks and especially local credit unions.

You can get a rate around 2.9% right now from a strong lender.

Credit unions are a great recommendation but watch it because some will refuse to allow you to make principal payments. This happened to me and I moved the loan to my bank so I could accelerate payoff


I always get asked occupation when getting a loan. Seems like they labeled me a higher risk when I was 1099

[BWillie]

Originally Posted by TribalElder

Credit unions are a great recommendation but watch it because some will refuse to allow you to make principal payments. This happened to me and I moved the loan to my bank so I could accelerate payoff


I always get asked occupation when getting a loan. Seems like they labeled me a higher risk when I was 1099

Yeah, it is a must to have a loan that does not have an early pay off penalty. I'm likely going to pay the loan off in about a year by paying more each month to principal .

[BWillie]

Anybody know exactly how vehicle sales tax works if you buy out of state? If I buy from a private seller in Pennsylvania or Arizona, would I pay sales tax there or sales tax in Kansas? Some guy in Arizona says on his ad "Private Seller, no taxes"

I've never bought a vehicle worth more than $6,500 myself before.

[prhom]

Originally Posted by BWillie

Anybody know exactly how vehicle sales tax works if you buy out of state? If I buy from a private seller in Pennsylvania or Arizona, would I pay sales tax there or sales tax in Kansas? Some guy in Arizona says on his ad "Private Seller, no taxes"

I've never bought a vehicle worth more than $6,500 myself before.

I bought a vehicle in Colorado knowing I was moving to Arizona in the next week. I paid tax in Arizona when I registered the vehicle. It was a little odd and I had to get extra info from the dealer. Probably my fault for not knowing the process better.

One reason your rate may be higher is the quantity financed. Used cars with a loan value less than around $15k are higher than used cars that are more expensive and the same age. Could have something to do with the fact that the costs of processing and administering the loan are high compared to the amount of interest earned. It’s odd but I’ve noticed the same thing.

[BWillie]

Originally Posted by prhom

I bought a vehicle in Colorado knowing I was moving to Arizona in the next week. I paid tax in Arizona when I registered the vehicle. It was a little odd and I had to get extra info from the dealer. Probably my fault for not knowing the process better.

One reason your rate may be higher is the quantity financed. Used cars with a loan value less than around $15k are higher than used cars that are more expensive and the same age. Could have something to do with the fact that the costs of processing and administering the loan are high compared to the amount of interest earned. It’s odd but I’ve noticed the same thing.

I actually found a loan at the University of Iowa credit union for 2.5%. Up to 50k. No down payment needed even though I'm voluntarily going to put one down. Credit unions are for sure the way to go. Thanks for the advice on that guys.

[BWillie]

Sorry to bump this thread, but does anybody know how sales tax is calculated on a lease? I get the vehicle sales tax is just 9.6% or whatever it is by the purchase price of the vehicle, but when you lease or take over someone elses lease there is no purchase price that I know of?

[DaneMcCloud]

Originally Posted by BWillie

Sorry to bump this thread, but does anybody know how sales tax is calculated on a lease? I get the vehicle sales tax is just 9.6% or whatever it is by the purchase price of the vehicle, but when you lease or take over someone elses lease there is no purchase price that I know of?

The college you attended should be paying you each week