Car Loan Rates

catsareniice1 · February 2014

I think?? (I change my mind often) I am officially sold on buying my car when my lease is up in March. I've had it for 22 months and only have 9,900 miles on it. I seem to be averaging about 5,000 miles a year LOL

1. Should I refinance now or closer to my lease expiration date?

2. I know interest rates vary. What is the average or the MOST I should pay on a loan? I am hoping to do a three year one or does the interest rate go down if refinance over a longer period of time (of course I would still try to pay it off in two or three years)?

THANK YOU ALL for your help! There are some smart ladies on these boards!!

catsareniice1 · February 2014

Online it's saying that interest is around 4% in my area, seems high to me.

hoffse · February 2014

Look at credit unions. I just got a 0.99% loan for 36 months through Pentagon Federal Credit Union. That was in Jan. Their rates change every month, so it might be a bit different now. But yeah, I wouldn't pay 4%.

catsareniice1 · February 2014

hoffse said:

Look at credit unions. I just got a 0.99% loan for 36 months through Pentagon Federal Credit Union. That was in Jan. Their rates change every month, so it might be a bit different now. But yeah, I wouldn't pay 4%.

Thanks so much!!! I appreciate all your responses.

brij2006 · February 2014

I would wait to buy out your lease till the end of the contracted date.

We found that we got the best rate on a 5 year loan. So we took that at 2.1% (in August). That was through the dealership and the loan is with Harris Bank.

catsareniice1 · February 2014

brij2006 said:

I would wait to buy out your lease till the end of the contracted date.

We found that we got the best rate on a 5 year loan. So we took that at 2.1% (in August). That was through the dealership and the loan is with Harris Bank.

That's awesome!

hoffse · February 2014

I agree you should definitely see which loan term gives you the best rate. Some places give you a better rate for long term, some for shorter. PenFed seems to give you better rates for shorter terms. With rates being what they are now, I probably wouldn't pay more than 3% for an auto loan. That could change if rates have gone up by the time you are buying.

catsareniice1 · February 2014

They are telling me my last lease payment is 3-22 and that I have the car til 4-22 of 2015. So do I take out a loan after 3-22?

Xstatic3333 · February 2014

catsareniice1 said:
They are telling me my last lease payment is 3-22 and that I have the car til 4-22 of 2015. So do I take out a loan after 3-22?

Nice! A whole year of no payments. I didn't realize that's how leases work. I'd use that year to bank your monthly payment for a big DP on the next car.

hoffse · February 2014

Well we had agreed not to do anything too big this year, and then I noticed a suspicious charge on the credit card from a florist... that's ok, I'm going to pretend to be surprised

H is coming down from school to visit this weekend, and he says he plans on cooking a nice dinner for me. We usually do filet, some veggie as a side, and moderately cheap (rather than crazy cheap) wine for special date nights, so I'm already getting excited about that.

We also have a tradition of getting each other the most outrageous cards we can find.

catsareniice1 · February 2014

Xstatic3333 said:

They are telling me my last lease payment is 3-22 and that I have the car til 4-22 of 2015. So do I take out a loan after 3-22?
Nice! A whole year of no payments. I didn't realize that's how leases work. I'd use that year to bank your monthly payment for a big DP on the next car.

Unfortunately, no. I have the car til 4-22-15 and have to pay through 3-22-15.

Xstatic3333 · February 2014

catsareniice1 said:

Xstatic3333 said:

catsareniice1 said:
They are telling me my last lease payment is 3-22 and that I have the car til 4-22 of 2015. So do I take out a loan after 3-22?
Nice! A whole year of no payments. I didn't realize that's how leases work. I'd use that year to bank your monthly payment for a big DP on the next car.

Unfortunately, no. I have the car til 4-22-15 and have to pay through 3-22-15.

Oops sorry. I thought you meant this year! Yes, I'd start looking at loans and vehicles right after 3/22/15.

Car Loan Rates

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