Banks/credit union promotional auto loan rates

jtvang125

Diamond Member
Nov 10, 2004
5,399
51
91
I joined a CU a few years ago and was approved for their promotional rate of 1.49%. Since then I have not seen them offer it or anything similar. I think their lowest rate right now is 4.24% which from what I've seen is around what the market is. Another CU had 3.29% and looks to be the lowest from my search. Are sub 2% auto loans a thing of the past?
 

mdram

Golden Member
Jan 2, 2014
1,512
208
106
they still exist. depends on your credit rating

i bought a car in may, my cr was 10 points from a 1.99% rate with the cu
 

repoman0

Diamond Member
Jun 17, 2010
5,156
4,496
136
Interest rates are up. I have an auto loan from 3.5 years ago that I don't bother paying off because it's free money at 2.25%. I got a mortgage last October and would be paying another 1% if I got the same one now.

DCU has 2.74% auto loans right now. They're local to me but you can open an account anywhere ... I think they require a small donation to a local organization to open your account
 

Jimzz

Diamond Member
Oct 23, 2012
4,399
190
106
As said rates are up and they will be going up more in the future.

The Fed was almost giving out free money for a while in the past. That is why you saw those 1% rates for a little time.
 

Viper GTS

Lifer
Oct 13, 1999
38,107
433
136
Sub 2% is still doable, but only barely. Penfed has new auto via their car buying service @ 1.99% for 36 months. Compare that to my most recent car purchase 18 months ago when I got 1.74% for 60 months through the buying service.

Rates go up, rates go down. Near/at the bottom of the rate cycle in late 2011 I bought a 10 year old used car for IIRC 1.49% for 60 months. You won't be doing that again any time soon.

Viper GTS
 

Elganja

Platinum Member
May 21, 2007
2,143
24
81
www.lfcu.org -- by far the best rates if your credit is 750+ (another 0.25% off if you do a direct deposit and auto pay)

Term New Auto APR* Used Auto APR*
36 Months 2.375% 2.375†
48 Months 2.375% 2.375%†
60 Months 2.875% 2.875%†
72 Months 2.875% 2.875%†
84 Months** 3.625% 3.625%††
 

JaneRoss

Banned
Dec 13, 2019
2
0
6
My local bank does 1.49%.

htp/www.logixbanking.com/loans/vehicle-loans

Unfortunately, they wouldn't do my last loan since it was for over $100K, so I ended up with 3.39% from BOA. :(

I guess it's worthless to take a loan in amount more than $100 K as the interest rate is increased
 

Scarpozzi

Lifer
Jun 13, 2000
26,391
1,780
126
I guess it's worthless to take a loan in amount more than $100 K as the interest rate is increased
I'm sure the terms of that loan have expired by now since it was 2018. Chances are, if this was an auto-loan, the bank knows that the vehicle could depreciate below its value quickly when it's over $100k and perhaps they're hedging bets against insurance if the loan can't be repaid for some reason. This is why they charge more interest...the risk is higher for the bank/CU.

Promotional rates are really just advertised rates. They're not really anything special, but a way to drum up business.

Credit unions typically operate by assessing the market rates, rates of competitors and adjust their interest rates accordingly. They often are cheaper than banks because they're non-profits...but they still have to cover their expenses. I was able to get 2 loans at 1.49% in 2018, refinancing vehicles without any issues. The market rate is up, so 3.5%+ is probably more accurate nowadays. I think my primary CU is offering 3.75%.
 

jlee

Lifer
Sep 12, 2001
48,518
223
106
 

nOOky

Diamond Member
Aug 17, 2004
3,205
2,251
136
I bought my car at 0.0% however I lost out on a couple factory rebates that would have required their 2.9% effective rate so I just put a few extra grand down and left the rest of the money I was going to use sit there at 2.15% in case I need a chunk of cash in the next couple of years. It was still cheaper to go 0.0% than to get the extra rebates and pay 2.9%, I just can't pay it off early without penalty.