Used auto loan rates?

Moose1234 · #1 07-13-2020, 08:53 PM

Hey everyone. I am wondering what the interest rate is currently for a used truck? It will be in the 2016-2019 year range. My credit is very good high 800s. I don’t want to run a credit check just to get a idea of the rates available. I am selling my current truck which is paid off but would like to use that money and buy some stocks with a higher yield hopefully then the auto loan interest rates

teledogs · #2 07-13-2020, 08:54 PM

I think they are about 7%, well that's what a Toyota dealer offered me

AndrewM · #3 07-13-2020, 08:56 PM

Quote:

Originally Posted by Moose1234

Hey everyone. I am wondering what the interest rate is currently for a used truck? It will be in the 2016-2019 year range. My credit is very good high 800s. I don’t want to run a credit check just to get a idea of the rates available. I am selling my current truck which is paid off but would like to use that money and buy some stocks with a higher yield hopefully then the auto loan interest rates

I have had lines of credit rates outdo my truck secured loan before but last time my truck rate was lower. 5 years ago so wouldn’t help much as should have dropped a bit since then.

roper1 · #4 07-13-2020, 08:57 PM

Deal direct with your own bank. If you truly have some equity, prime plus 1 probably very doable, should be under 4%.

Create a solid relationship with your own banker, instead of a nameless faceless person that might never get your business again.

summit151 · #5 07-13-2020, 08:59 PM

Quote:

Originally Posted by roper1

Deal direct with your own bank. If you truly have some equity, prime plus 1 probably very doable, should be under 4%.

Create a solid relationship with your own banker, instead of a nameless faceless person that might never get your business again.

I know when I tried to deal with my own bank they suggested to go to a dealer and finance. A dealership can get multiple banks competing with lower interest rates

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roper1 · #6 07-13-2020, 09:14 PM

[QUOTE=summit151;4202327]I know when I tried to deal with my own bank they suggested to go to a dealer and finance. A dealership can get multiple banks competing with lower interest rates

Understood. My bank must be one of the ones that would compete. I haven't had a vehicle loan in years, but my banker would try very hard to receive their share of my interest payments.

HuyFishin · #7 07-13-2020, 09:31 PM

Many dealers have 0% interest on NEW vehicles right now. Not on used unfortunately. Lots of rebates due to covid.

1shotwade · #8 07-13-2020, 11:26 PM

I just went threw this and I have really good credit and 6% was best I could do. So just paid cash!

1shotwade · #9 07-13-2020, 11:32 PM

I just went threw this and I have really good credit and 6% was best I could do. So just paid cash!

Pikeonafly · #10 07-14-2020, 02:34 AM

We got 5.29% or something on our 2018 accord ex-l. Had about 22,000km and 1 previous owner. White on black leather. Very beautiful!

Keep in mind that the “0% apr and pay x month later” does not apply to everyone. Gotta have the best credit score ever or know someone up high in the dealership. Basically just bait to get you to visit.

CMichaud · #11 07-14-2020, 08:01 AM

Quote:

Originally Posted by HuyFishin

Many dealers have 0% interest on NEW vehicles right now. Not on used unfortunately. Lots of rebates due to covid.

When they offer 0% I always suspect that this just means that they will not lower the sale price by the commensurate amount when compared to a cash/external finance deal.

Maybe I just have trust issues though

Bergerboy · #12 07-14-2020, 08:12 AM

Quote:

Originally Posted by Moose1234

Hey everyone. I am wondering what the interest rate is currently for a used truck? It will be in the 2016-2019 year range. My credit is very good high 800s. I don’t want to run a credit check just to get a idea of the rates available. I am selling my current truck which is paid off but would like to use that money and buy some stocks with a higher yield hopefully then the auto loan interest rates

Do yourself a favor and do not do this. Use the money to pay the new truck off. Do not put it in the markets as there is a good chance you will lose money as well as have a truck payment. Treat the markets like a casino, only take in what you are willing to lose.

HuyFishin · #13 07-14-2020, 09:11 AM

Quote:

Originally Posted by CMichaud

When they offer 0% I always suspect that this just means that they will not lower the sale price by the commensurate amount when compared to a cash/external finance deal.

Maybe I just have trust issues though

One of the biggest mistakes is saying you will pay cash in the dealership.

They make alot more money financing you a vehicle. Many people think cash is king at a new dealer but once you throw that word out they dont budge on the cost after.

Having trust issues is ok because some car dealerships do get sneaky with parperwork in the finance office.
You may be right about the 0% deal but i'm not certain about this part. It is very difficult to say since the financing is done from a bank and the rebates are usually done from the auto manufacturer. Not sure where they make money.

Big Grey Wolf · #14 07-14-2020, 09:19 AM

Banks generally do not like to finance used vehicles even quite new models. They feel more secure when lend money on New. Best to have a line of credit, then you can buy what you want. I too do not like idea of playing stock market with your cash, your vehicle loan is sure thing to get you at least 6% return on your money.

kinwahkly · #15 07-14-2020, 09:53 AM

Anywhere from 5 to 7 %

Sooner · #16 07-14-2020, 10:03 AM

Quote:

Originally Posted by kinwahkly

Anywhere from 5 to 7 %

My 22 yr old son just went through the buying process and these were the rates quoted when looking for a used truck in the 2012 to 2015 range.

schleprock · #17 07-14-2020, 10:45 AM

The dealerships will either give you: 0% interest and no discount or a big discount and a 3-5% interest rate. It works out to be pretty much the same either way. As far as investing your money, it is ultimately your decision but the guys that are advising you not to play the markets are giving you some good advice.

Dean2 · #18 07-14-2020, 10:45 AM

Pay cash for the truck. Borrow the same amount and buy a high quality stock that pays a dividend, and that you are preapred to hold for 5-10 years. Something along the lines of Royal Bank or TD Bank stock, TransCanada Pipe, Utility company etc. Never borrow to buy speculative stocks. This makes the interest on the loan tax deductible. You will earn 5-6% dividend on the stock plus capital appreciation. Until your dividend income hits over $40,000 a year it is effectively tax free, so you get to write off the interest against your other income. The gain on the stock is not taxed until you sell the stock and even then it is only on 50% of the gain.

Never borrow money where you can't write off the interest if you have any choice in the matter. If you borrow money to earn income, the interest is tax deductible, if you use it to buy cars, your own home etc it is not deductible.

buckbrush · #19 07-14-2020, 12:07 PM

Quote:

Originally Posted by CMichaud

When they offer 0% I always suspect that this just means that they will not lower the sale price by the commensurate amount when compared to a cash/external finance deal.

Maybe I just have trust issues though

This. If you offer cash on the same vehicle they will give you a huge discount over their "bottom price" with the 0% finance. In my experience anyhow.

Like Dean said, don't take a truck loan to invest your "vehicle equity".