TheRevJosh

Same here. Had no problems whatsoever getting the 0% for 60.

TruckLarry

Dealers and banks don't use the blue book. They use the Black book. And it's never good for consumers. When they pull that puppy out its Bohica Ruta.

Earlsays

iTrader: (1)

My truck is financed through FMC for 72 MONTHS at 8.25%


My 2013 Mustang was financed through FMC for 72 MONTHS at 10%


My credit wasn't great when I bought the mustang. I made seven payments on it and traded for the truck with a better credit rating.


Now my credit rating is better still, five months into owning the F150


I am going down to the local bank today to sign loan documents for 2.99% for 60 MONTHS.


This lowers my payment by 20 dollars a month, eliminates 7 payments from the loan, AND drops the interest rate by 5.26%


Not too bad, assuming everything goes through smoothly.

Zax

I refinanced my last truck 2 yrs into the loan, my banks won't even touch it if the loan is younger than 6 months. I luckily got a 2.7% interest on my new one

LiquidA45

For everyone talking about what banks/credit unions do and do not use to value a vehicle for loans I can tell you that they use NADA. I do loan review for banks primarily in Oklahoma, Texas, Kansas, and a few other states. I have yet to see an auto loan where NADA was not used, unless it was a new vehicle in which case the purchase price is what they use for value.

Also, value of the vehicle and your credit score is not the only determining factor when determining an interest rate. The lender is going to look at your debt/income ratio to determine your repayment ability. Basically total up your monthly payments (mortgage, credit cards, student loans, auto loans, etc) and divide my your gross monthly income. Example: Mortgage (1000) + monthly credit card bill (100) + student loans (200) + your wifes vehicle (350) = 1,650. The add your payment on the new truck (500) and you get a monthly debt service of 2150. Lets say you and your spouse bring home 6000 a month before taxes. 2150/6000= .36

Lenders are going to want to see a d/i ratio below .4 in most cases.

Edited because I noticed the original post date.

MynameisMatt09

iTrader: (-1)

It amazes me the amount of people who finance their trucks for so long...

LiquidA45

With rates as low as they are now it can make sense for those who are financially savvy. If you do a 6 or 7 year term but pay like it s a 4 or 5 then it gives you flexibility should something come up and you need some extra cash. Obviously the majority of people do not do this and instead term out the auto loan over 84 months so that they can get in a vehicle they normally couldn't afford. It really isn't that difficult to get the low auto rates right now, I was pre-approved for 3% and $35,000 and my credit score is a tad below 700. Of course where you live will play a small role in that as well.

modru2004

really? why?

take $50000 at 1.75% for 6 years.

thats $2700 in interest paid over the life of the loan. payment $732.

take $50000 at 1.75% for 3 years. $1360 interest paid over the life of the loan. payment of $1426.

so for less than one of the 3 year term payments, $1340 you can extend the term out to 6 years and drop the payment amount in half.

and this amazes you that people choose this option? you also have the option of paying the loan down early and paying less interest.

so if you take the 6 year term and pay $1426 a month instead of 732 you can get the interest of the 3 year term but your not locked into the payment of the 3 year term.

LiquidA45

It's amazing because these days you can finance 100% of the vehicle without any down payment, then stretch that out over 6 or 7 years and you find yourself upside down o your vehicle. Obviously you understand the benefit when utilized responsibly. If the average consumer does it though they, more than likely, are not going to pay it down quickly. This will result in them trading in the vehicle and rolling over what they owe into their new note. Money is cheap right now and they are giving it away in sums that exceed peoples repayment capacity.

crabio

Same here. Made 1 payment. Went to my credit union. Refinanced for 1.99. Done and done. I live in Washington state.