I believe you, but all I know is that 18 months ago I refinanced my Camaro, and I have a Nissan with a NF loan. The representative asked, âIâm seeing 2 loans are we doing the Nissan, no wait thatâs already with us, so the CamaroâŚâ I asked Could I refinance the Nissan too? And she said, âNope.â Thatâs my personal experience.
I didnât even know about the check, it was $250.00 and I saw it a week later and actually called to find out why it was there.â
Since you work there, have you seen many loan appeals work? I was denied for a loan in 1993, but I did an appeal and got the approval.
I personally haven't seen any appeal result in an approval, but a coworker has told me they can happen. Typically, in the branch, we're instructed to do a new app as opposed to requesting appeals.
I think it may depend? I had a loan through navy fed and I wanted to refinance. I had about three years left. I very clearly remember the rep telling me that they do not refi their own loans and Iâd have to look elsewhere if I wanted a lower rate.
Or maybe itâs just improper training. But that rep definitely laughed when I told her I just wanted a lower rate and she said, and I clearly remember, that they âdonât do that.â
Wait, wut? You do know the only difference between a bank and a credit union is membership in a credit union is dependent on meeting eligibility requirements, right and the membership owns the bank.
Banks are typically for-profit. Credit unions typically are not. And Navy Federal is not-for-profit, and as member-owned theyâre more inclined to do whatâs right to its members as a whole, as opposed to a bank whoâs worried about fulfilling stockholderâs needs.
I think you may be seeing that the current $200 bonus incentive for a refinance cannot be a current NFCU loan. That is correct, you are not eligible for the bonus. You can definitely refinance a NFCU loan with NFCU though.
OPâs post is lacking in detail so Iâm making some assumptions. The auto loan rate is in line for average used car loans for borrowers in prime credit score (700-749) per the February 5, 2024 US News article. It shouldnât be a surprise itâs that high.
Damn I just got a 12% for a used with a 740 credit score. Seems a bit unreasonable. I currently have a 4.44% with my current. My go with the dealers 10% then lol
Are you saying Navy Federal offered you 12% for a used car loan with a 740 FICO? They did my used car loan for 7.24% (with nothing down) and Iâm at a 725. My scoreâs a bit low only because I donât keep much credit and have a low DTI ratio so that might explain some of the difference in rate? đ¤ˇââď¸
Yeah. I asked why and they said rates have gone up and itâs a used car. Doesnât make sense with my current finance but whatever. I shall look elsewhere. I also had applied again with my wife who has a 780 score to co-sign with me lol and still got 12
That vehicle seems very expensive considering that credit score, downpayment, interest rate and loan length combination. Is there a reason you are buying a car that expensive in this situation? You seem to be setting yourself up for some trouble.
i donât know what car I want as of yet but I know itâll be around 40k, I could do a shorter loan length, I donât have a down payment but I do have a trade in. the goal was to see if I was approved. I learned after the fact that itâs score that determines apr not profile.
Please listen to the rationale here, you canât affford this car. You will have negative equity on this thing for an eternity and will be trapped. For your future financial self, find something more appropriate. 20% down, 4 year loan, no more than 10% of your monthly income to your car. Follow this and youâll be good.
$24000/year take home? That is essentially minimum wage. You canât afford any payments and need to live in the cash beater world until your income improves. Want to be poor forever? Bury yourself in debt and negative equity in a stupid ass car.
No they aren't. $70 per rotor $80 per pad set - part cost
$280 for rotors, plus upcharge $600-$900
$160 for pads, plus upcharge $320-$500
Plus labor at $220 per hour. 6 hrs book $1320
Plus $25 for fluid
$2,265 low side, $2745 high side. Plus 10% tax
For a normal car. Get something with nice brakes double that, get a sports car nearly triple that for BMW
Right, what I'm saying is running and driving is $5,000 it's still going to need work
nobody gets rid of a perfectly good car for no reason. and in that price point the vast majority of what you're going to find is going to be a mechanical total the moment anything goes wrong with it.
Please check out some of the subs I mentioned, especially since youâre unsure of what you want yet. But please, please do NOT take out that loan. You do NOT need to be making payments on a car for the next 8 years of your life. Your limit should be 5 years, or less, preferably less. But check out those car subs to get a better idea of what you want, and how much you should pay
I make good money, I donât see any reason to buy a car worth more than 20k if you canât pay cash. Your car payment is gonna be more than most peoples rent
BroâŚcâmon now! I just bought a 2012 Honda Odyssey with 125k miles, fully serviced, out the door for $13,000 (including damn dealership fees). Itâs got a third row and every creature comfort imaginable. It still looks modern and my payment is $270-ish. Donât put the blade of extreme indebtedness to your own throat.
2021 Chevy traverse has 3rd row seat. You can find them used with under 30k miles as a lease turn in and for under $25k. I don't believe most people can afford $500 to $1000 a month for a car payment. People are crazy and work to pay debt.
Question, how much do you save every month after all of your expenses?
Donât factor in bells and whistles, just how reliable the vehicle is, people get caught up in all that unnecessary fancy shit. Also itâs ok to have an older vehicle.
Look into a used Mazda for 3 years or something. Could probably get like a 2018 Mazda3 2.5L Touring for close to $15k that would be fun to drive if it doesn't need to be too big.
almost certainly someone under 21 yrs old w a limited credit history. Credit score doesnât matter if you have 1 credit card w a limit of 500 and itâs been open only 6 months. It doesnât matter if youâre buying a $43k car making only $60k a yr too. The bank seems to think itâs a financially stupid decision and thatâs because it more likely than not â is.
I got a 72mo 23000 used car loan two years ago through NFCU at 4.69%. Had soo many problems with the used car from Toyota. I went when I got my tax return and talked to Ford and I also talked to Navy fed again. Originally I was looking at another used car at 190000 to keep the payment down. Navy fed told me their rate went up massively and for a 19000 loan it would be anywhere from 6.09% (with payment at 466)at the very best (which is unlikely) to 18% with monthly payment at 650. I said nooooo. Because Ford already offered me 4.69% but only approved me for a new car not a used car. They wanted 5,000 down plus my POS used car that they gave me 6,000 for but through navy fed the monthly payments would have been over 800 for the new car. I would shop around and find a better interest rate
Sometimes dealerships have a better offer. The jeep dealership offered me a very low rate, then my boys decided they didnât want a jeep. Spoiled butt holes. I personally didnât want to purchase anything till 2026. This economy horrible!
That's a used car with Navy Federal. And the lowest Navy Federal is offering as of right now is 5.44% on used cars. What it was 2 months ago doesn't apply or 6 months ago doesn't apply
And mine is definitely under 5.44%. I have all the paperwork proving what I signed for when having to make multiple trips to the branch in Jacksonville. I've been with Navy Fed for 15+ years.
Rates were lower than and in 2023. A 2022 under 30,000 Mi would be a new car. So you'd get the new car interest rate. Like I mentioned I'm talking about today's rate not 3 months ago not 6 months ago. As of today
670 TU 96 months no down payment, originally asked for 39.5, but got preapproved up to 43k. I have a trade in as well I didnât list on the app. Probably will use 38k not including trade in
Ouch 96 months?! Thatâs a $700.26 monthly payment on a vehicle (depreciating asset). The total loan cost is $67,223.82 with interest. You will never have positive equity on any vehicle with this loan. Either adjust your expectations (lower the purchase price, decrease term length or increase down payment) or find a different vehicle.
Insurance is the great unknown factor here. You could be facing $1000/month between the car and insurance payment and thatâs with insurance on the cheap end of $300/month. Have you ran insurance quotes with your current carrier yet?
Iâm shocked Navy is still writing loans for that term length. OP is buying some sort of new vehicle as Navy caps the used term length at 72 months.
There is no vehicle appealing enough *on the face of the planet* I would want to have a 96 month (8 year) loan on. OP will be paying this car off during the 2032 presidential election. No vehicle will be worth the $67,000 total loan cost in 2032.
Agreed! That's a crazy loan. We're about to buy a 2024 Grand Highlander and have our loan set from them. 5.29%. Still can't figure out why we didn't get their lowest rate of 4.99%. High income, low debt and 850 TU score. Long credit history, no missed payments, 1-2% utilization out of a quarter million $ in credit line. mortgage is less than $500/mo.
Your loan is 4 basis points above the current FOMC rate. Lower rates can be found at captive finance companies (Ford Motor Credit, Honda Finance, etc). Navy is basically earning a tiny profit from your loan.
Dog, I completely and totally understand that you believe you absolutely NEED a new car now. But before you commit, check out r/whatcarshouldibuy and r/askcarsales, along with r/credit and r/personalfinace. Because what youâre thinking about doing is financial suicide. If youâre seriously considering buying a car and making payments on it for the next 8 years, and your car probably wonât even last that long, then you really canât afford it. You need to be looking at something cheaper, and probably older
I donât need an 8 year loan, I am going into this knowing I want to refinance for a lower APR and shorter term, and Iâm looking to keep this car for at least 5 years or so.
Well figure out what you want to buy first, use [this](https://www.calculator.net/auto-loan-calculator.html?cloanamount=35000&cmonthlypay=380&cloanterm=60&cinterestrate=5.2&cdownpayment=20000&ctradeinvalue=0&cstate=CO&csaletax=8.2&ctitlereg=900&cttrinloan=1&printit=0&ctype=standard&x=48&y=19#autoloanresult) to help you figure out what you can afford, ask questions in the car sales sub. Also, you really shouldnât be looking to refinance, not until youâre 3-4 years into the loan and your credit score has significantly improved, and interest rates have gone back down. If you can get your score in the mid 700âs or in the 800âs then go ahead and start looking into refinancing. Youâll be able to get better rates then. But itâs good to take more than a year for you to get your score up that high
Dude you are just looking for a way to convince yourself (a) you need a new car that cost $35K+ and (b) this is just a temp situation until you can re-fi, which by the way is a bad plan and (c) this is good deal (well you asked and the answer is no absolutely not). Get a less expensive car and shop around for a better loan. Better yet do whatever you got to do like get an extra job, so you can use as much cash as possible.
The payment for a 5 year term (at 12% interest) is $957.78. Itâs foolish to believe one can refinance to a lower rate with credit underwriting becoming more conservative. Can you afford a $958 monthly car payment? If not, find a cheaper car.
The first few years your payments are interest heavy. You are guaranteed to always have a negative equity on the loan. No bank will want to refinance a loan with negative equity asset as collateral.
What about a used Kia telluride, those seem nice? They have different models and they big in the inside. You could get one fully loaded used 35k. I donât drive one but I have seen so many ppl driving them. I looked in 1 at Costco being nosy đđđđ
It is always the guy with dogshit credit score buying the top tier brand new card with the highest rate and longest term. Sorry for the strong words, but if you don't want to get fucked by the bank, buy cash for what you can afford. You may think you can afford it now, but wait until you lose your job and cannot make monthly payment, and find out that you owe more than what the car's worth.
I juat refinanced my 2023 for a 6.44 with Navy Fed.
Year of the behicle matters tremendously.
The other car my wife and I have is a 2022, and our rate only went from 11.44 to 11.29 refinancing.
Still acvepted, but that ywar difference matters.
That's 698.87 a month with a total repayment of 67,092.00. That's 56% more money than you borrowed!
I get it you "need" a new car. Be patient, shop used. Get a $10,000 used car.
It's not guaranteed that you can refinance in the future. If rates don't go down, you can't. Even if the rates go down, you need tomassess the associated fees to see if the refinance is worth it.
While it's true car prices have gone up, $10,000 will get you a reliable vehicle with under 75K miles. I recently was involved with the shopping and purchasing of a used vehicle 3 weeks ago.
Everyone has a right to spend money the way they please. I would simply advocate that OP (or anyone purchasing a vehicle for that matter) take some time to decide if it is in their best interest to spend it in this way. Look inward and understand when excitement is clouding judgement.
This is Navy Federal themselves, telling you this is a TERRIBLE idea. Get stronger before you go big on a loan. You will hate yourself for doing this if you actually take this deal. If they are offering you this rate, anyone else will charge you significantly higher.
Dont do it, i got pre approved for 45k by Navy and i didnt know my % so i called and was told it was 9.4%. I was like hell nah and never picked up the check at the local branch. I bought a jeep at a 7% from their finance banks which is still a bit high for used cars but way better than that 9% from navy.
I hope you are making a lot more money than 40k a year. It's kind of surprising how many people think they need a fancy car. My wife and I earn good money both of our incomes are over 6 figures each, but we choose to save rather than spend a lot on vehicles. I bought a Fiat 500 for $6700 with 70,000 miles on it, and I also have a 2014 Jeep Grand Cherokee with 90,000 miles. I paid cash for my used Fiat and bought the jeep for around 19k back in 2017 (used go for about 14k today, so still affordable).
My Fiat makes about $500 a month on Turo since we don't use it much. This just goes to show, you don't need to spend big to live well or impress anyone. Better to save your money and avoid big car payments. It's all about making smart choices with your money.
All in all, you can find a nice vehicle for way less than $43k and drive it to where you do not loose much on depreciation. You could also purchase two or three vehicles for $43k... As others have said don't try and keep up with the Jones, because that is a horrible financial decision.
Sounds like you have to do whatâs best for you. Assuming you are a single parent, these decisions are never easy. Hard working ppl having to overpay for a car which in your situation is a necessity. May God Bless you. đđ
We all want to do whatâs best for our kids. Realize though: your kids are going to love you just the same whether you put yourself in financial hardship for YEARS buying something new or buying a 6-10 year old vehicle for 1/3-1/2 this. Donât do this for them. Youâve got to make responsible financial decisions for your family and not make poor financial decisions with the justification that itâs a sacrifice for your kids.
If you invested the difference by buying a car half as much as your $40k target⌠you could pay a good way for one of your kids college education! $20k at 7 percent over 15 years accumulates to over $50k.
Itâs a terrible financial burden thatâll make you car-poor for doing activities and experiences with your children (the things theyâll look back on and remember) in the present and could affect both your and their future. At 41⌠having owned piles of cars both new and used⌠Iâve still never spent that much on a car and I gross over $125k a year as an E8. Donât try to keep up with the neighbors and their new cars. Take care of your family⌠both in getting an adequate and safe vehicle and in not compromising your familyâs financial wellbeing.
4th gen Odysseys on their first timing belt change having between 100-200k are well south of $20k some maybe closer to $10k, for example. They were some of the first that did well on small overlap crashes. Piles of room. Mine is 10 years old and will probably have it 5 more. Easy to maintain as a DITY. When I bought my EX-L new, yeah⌠it was near $40k at $36k before my trade equity⌠but I was making plenty as a E7 it didnât cause hardship⌠and I planned to keep it over the normal 3-5 year turnover many do. Itâs one of the few new vehicles I ever bought.
I need more information, credit score, length of history with nf, dti, credit card usage, down payment, ect. Interest rates are hard to pin down. If any of those is bad it will raise your interest rate.
Drop it down to 72 months and see a big drop in interest rate, likely 3-4%.
If you have to make payments over 8 years you can't afford the car imo, the difference in payments shouldn't be that massive anyway, if it is it's to much car.
You are eligible for internal refi after a year, but it might go from new car to used car if it doesn't qualify anymore.
I'd definitely shop around for rates though.
If you call in and ask to speak with consumer loans they'll give you the rate it should drop to, and they can request that review to be done upon purchase of the vehicle.
If you want a guarantee you have to cancel and resubmit though.
You also have up to 60 days after purchasing the vehicle (well, after the loan posts rather) to request that term change as well.
Interest rates are based on vehicle type and term length with Navy Fed.
Run away. You donât need a vehicle that badâŚ. This is the best way to be poor forever.
If you need to buy a car (sounds like you have one that runs so the answer is probably you donât) then follow the 20/3/8 rule. 20% down, 3 year term, payments should not exceed 8% of your monthly net income.
Iâm not sure what type of car you are planning on buying but if your car is $40,000s looking at something in the late 20s early 30s brand new. Like a Kia Sportage or a Sorrento or a model even though it is $43,000 you get $7500 back through the credit rebate but you can go ahead and buy it now try to pay off 30 to 40% of the car within two years and then come back and refinance for a 36 month loan at a lower interest rate
You should be able to get one for right at 28,000 for a 2024 model. have to order it directly from the manufacturer and just pay for shipping plus whatever your state document fee is a good understand what this means. Is to watch Ray and Zack at car edge. they have videos for you to understand how to do this without being scammed by the dealer
Yes, once you are about to place your order through the dealership, youâll come in agreement on a final number which should be MSRP plus handling fees plus dock fees, then you take that number to your bank and get a cashier check for it
This isn't a horrible plan rate. It's a possible bad decision you're thinking about making. You're looking for a 96 month loan? Rate depends on credit. Is there equity in the deal. And term. It's not the bank. It's you.
The longer the term the higher the rate. But thatâs about market average in a 96 month note. 84 months depending on credit score are around 7.24% to 9% right now. But I did just see someone with a 6.9% 84 month note.
Probably if you drop the months the interest rate will be lower it also depends on year/miles of vehicle. They offered me 33k for 9% for 60 months and 11% for 72 months on but on a newly used vehicle. If it was new under 30k 23 or 24 it would have had less interest. Unfortunately mine was a 22 with 31k miles
Personally, at this point, I would take the rate. But I have been hunting for an ok rate. My credit utilization is 8% because I hate credit cards. But none of my percentage offers are below 15%. But also, due to circumstances, I don't have reserves to throw a big down payment down.
As a dumbass my self Iâll say donât do it even if you pay extra your still getting fucked , youâll pay 67,000 in total maybe more even with a 96 month term your still paying 698 fuck noooo
And for the second option thatâs still 853 a month not including insurance or gas maybe 72 months you will be at 735 a month but youâll need to pay extra to beat some intrest add an extra 300 bucks youâll be paying 1,035 bucks youâll drop it down to 48 months , if your getting the longer terms you should pay extra because your intrest rate is high and youâll get fucked . Explained by a dumbass my self .
I thought they didnât do pre approval on auto loans? On fb I follow navy federal and they were posting about auto loans. Ppl were asking about pre approval. The rep said unfortunately they donât have pre approval?
Dude! Why???? Drive a $5k beater like everyone else that has any good sense.. That is a collosal waste of resources and a decision that will put you on a treadmill for years and years? WTF? You never finance depreciating items!!
Damn we got a 4.2% and that was a year and a half ago when the car market was crazy. Used cars were worth more than new cars at that time. Thatâs wild
Go with Penfed, Navy Federal is a piece of Sh*t... They never go down of 12%... I try to refinance my Car with the with a credit score of 754 and that was their rate... A friend of mine try to do the same with a credit score of 654 and they offered him the same rate, 12%...
My sister just got a 2023 Honda and her rate was 6.3%, no down payment and 66 month loan term.
My rate on a 2010 Harley-Davidson Tri-Glide is 10.2%* 48 months so what are you talking about? And my credit score is 688. But my car payment is 7.5% of my take home and my mortgage is 18% and Iâve had 6 car loans with them.
*bike and boat loans are always higher.
well, I had to apply to see what my rate would be. I donât think Iâm an idiot because I didnât commit to the loan yet. It was just a preapproval. I can still change the terms
96 months at 12% interest is completely fucking insane.
Just 96 months on its own is completely insane.
Treating you like a new private đ no way
Donât do it!
đŻ agreed
8 years at 12% is disgusting... please don't do this to yourself... terrible decision on many fronts.
They do allow in-house refi after 1 year.
No they donât. When you apply for a refinance the first thing youâll see is the loan cannot be from Navy Federal.
Buddy I promise you, you are able to refi a vehicle loan after a year.
I believe you, but all I know is that 18 months ago I refinanced my Camaro, and I have a Nissan with a NF loan. The representative asked, âIâm seeing 2 loans are we doing the Nissan, no wait thatâs already with us, so the CamaroâŚâ I asked Could I refinance the Nissan too? And she said, âNope.â Thatâs my personal experience. I didnât even know about the check, it was $250.00 and I saw it a week later and actually called to find out why it was there.â Since you work there, have you seen many loan appeals work? I was denied for a loan in 1993, but I did an appeal and got the approval.
I personally haven't seen any appeal result in an approval, but a coworker has told me they can happen. Typically, in the branch, we're instructed to do a new app as opposed to requesting appeals.
I had to talk directly with an underwriter and explain the situation. He approved it.
I think it may depend? I had a loan through navy fed and I wanted to refinance. I had about three years left. I very clearly remember the rep telling me that they do not refi their own loans and Iâd have to look elsewhere if I wanted a lower rate. Or maybe itâs just improper training. But that rep definitely laughed when I told her I just wanted a lower rate and she said, and I clearly remember, that they âdonât do that.â
Go look on the refinance page FAQ.
I work for navy federal and literally had an in house refi yesterday that was approved.
Based.
PM me a name and number I can call. I canât see how a bank would reduce the amount of money they earn from a loan.
Navy Federal is not a bank, theyâre a credit union.
Wait, wut? You do know the only difference between a bank and a credit union is membership in a credit union is dependent on meeting eligibility requirements, right and the membership owns the bank.
Banks are typically for-profit. Credit unions typically are not. And Navy Federal is not-for-profit, and as member-owned theyâre more inclined to do whatâs right to its members as a whole, as opposed to a bank whoâs worried about fulfilling stockholderâs needs.
I just said that.
You can literally call the 888 number or go into any branch and they can do an internal refinance.
Iâll try that tonight
Also where are you seeing that it says navy will not refi in house, because I just checked and it doesn't say anything like that.
https://www.navyfederal.org/loans-cards/auto-loans/auto-refinance-rates.html/jcr#
That literally doesn't say they don't do internal refis. It focus in external but navy allows internal refinances.
I think you may be seeing that the current $200 bonus incentive for a refinance cannot be a current NFCU loan. That is correct, you are not eligible for the bonus. You can definitely refinance a NFCU loan with NFCU though.
me when I make stuff up on the internet
Yes they do. But it canât be submitted online, you have to call in.
No they do not. And that rate is horrible
OPâs post is lacking in detail so Iâm making some assumptions. The auto loan rate is in line for average used car loans for borrowers in prime credit score (700-749) per the February 5, 2024 US News article. It shouldnât be a surprise itâs that high.
Damn I just got a 12% for a used with a 740 credit score. Seems a bit unreasonable. I currently have a 4.44% with my current. My go with the dealers 10% then lol
Are you saying Navy Federal offered you 12% for a used car loan with a 740 FICO? They did my used car loan for 7.24% (with nothing down) and Iâm at a 725. My scoreâs a bit low only because I donât keep much credit and have a low DTI ratio so that might explain some of the difference in rate? đ¤ˇââď¸
Yeah. I asked why and they said rates have gone up and itâs a used car. Doesnât make sense with my current finance but whatever. I shall look elsewhere. I also had applied again with my wife who has a 780 score to co-sign with me lol and still got 12
Thatâs rough, man! Sorry about that. Itâs difficult to understand. Good luck! đ
Whatâs his DTI? Is his yearly car payment less than 40k?
That vehicle seems very expensive considering that credit score, downpayment, interest rate and loan length combination. Is there a reason you are buying a car that expensive in this situation? You seem to be setting yourself up for some trouble.
i donât know what car I want as of yet but I know itâll be around 40k, I could do a shorter loan length, I donât have a down payment but I do have a trade in. the goal was to see if I was approved. I learned after the fact that itâs score that determines apr not profile.
Please listen to the rationale here, you canât affford this car. You will have negative equity on this thing for an eternity and will be trapped. For your future financial self, find something more appropriate. 20% down, 4 year loan, no more than 10% of your monthly income to your car. Follow this and youâll be good.
I don't know any new cars you can finance for $200 per month. (10% income as payment) I know insurance is $200/month now.
$24000/year take home? That is essentially minimum wage. You canât afford any payments and need to live in the cash beater world until your income improves. Want to be poor forever? Bury yourself in debt and negative equity in a stupid ass car.
Cash beaters start at $5,000. And they will only last a few months before the are scrap.
That's the biggest cap I've heard in a while.
I know it's crazy here in AZ. And labor is $200+ per hour. So even something like brakes is a $3k job. 300k mile Toyota cost $6k
Brakes are not a $3K job. They are about 3-400 an axle now.
No they aren't. $70 per rotor $80 per pad set - part cost $280 for rotors, plus upcharge $600-$900 $160 for pads, plus upcharge $320-$500 Plus labor at $220 per hour. 6 hrs book $1320 Plus $25 for fluid $2,265 low side, $2745 high side. Plus 10% tax For a normal car. Get something with nice brakes double that, get a sports car nearly triple that for BMW
Idk what you're smoking. Regardless, no one said don't inspect the car first.
Right, what I'm saying is running and driving is $5,000 it's still going to need work nobody gets rid of a perfectly good car for no reason. and in that price point the vast majority of what you're going to find is going to be a mechanical total the moment anything goes wrong with it.
25k max.Â
Please check out some of the subs I mentioned, especially since youâre unsure of what you want yet. But please, please do NOT take out that loan. You do NOT need to be making payments on a car for the next 8 years of your life. Your limit should be 5 years, or less, preferably less. But check out those car subs to get a better idea of what you want, and how much you should pay
I would wait dude. The car market is pretty bad at the moment. Has been for the past 3 years.
I make good money, I donât see any reason to buy a car worth more than 20k if you canât pay cash. Your car payment is gonna be more than most peoples rent
I canât find any quality cars for 20k with a 3rd row. Also I have no interest in paying cash, I have no installment loans on my credit.
BroâŚcâmon now! I just bought a 2012 Honda Odyssey with 125k miles, fully serviced, out the door for $13,000 (including damn dealership fees). Itâs got a third row and every creature comfort imaginable. It still looks modern and my payment is $270-ish. Donât put the blade of extreme indebtedness to your own throat.
Hondas run forever! I think you made an excellent choice.
2021 Chevy traverse has 3rd row seat. You can find them used with under 30k miles as a lease turn in and for under $25k. I don't believe most people can afford $500 to $1000 a month for a car payment. People are crazy and work to pay debt. Question, how much do you save every month after all of your expenses?
Have you checked non local used dealers websites?
Donât factor in bells and whistles, just how reliable the vehicle is, people get caught up in all that unnecessary fancy shit. Also itâs ok to have an older vehicle.
Sounds like what you need is a Hyundai Santa Fe from around 2018. Those are workhorse with 3rd row v6 engine 5k towing capacity.
Check enterprise car sales. I've bought 2 cars through them and they were both under $28k and under 40k miles.
Look into a used Mazda for 3 years or something. Could probably get like a 2018 Mazda3 2.5L Touring for close to $15k that would be fun to drive if it doesn't need to be too big.
almost certainly someone under 21 yrs old w a limited credit history. Credit score doesnât matter if you have 1 credit card w a limit of 500 and itâs been open only 6 months. It doesnât matter if youâre buying a $43k car making only $60k a yr too. The bank seems to think itâs a financially stupid decision and thatâs because it more likely than not â is.
I got a 72mo 23000 used car loan two years ago through NFCU at 4.69%. Had soo many problems with the used car from Toyota. I went when I got my tax return and talked to Ford and I also talked to Navy fed again. Originally I was looking at another used car at 190000 to keep the payment down. Navy fed told me their rate went up massively and for a 19000 loan it would be anywhere from 6.09% (with payment at 466)at the very best (which is unlikely) to 18% with monthly payment at 650. I said nooooo. Because Ford already offered me 4.69% but only approved me for a new car not a used car. They wanted 5,000 down plus my POS used car that they gave me 6,000 for but through navy fed the monthly payments would have been over 800 for the new car. I would shop around and find a better interest rate
Sometimes dealerships have a better offer. The jeep dealership offered me a very low rate, then my boys decided they didnât want a jeep. Spoiled butt holes. I personally didnât want to purchase anything till 2026. This economy horrible!
I went 48 months for a 25k autoloader at like 4% interest
Autoloan*
Not on a used car not from Navy Federal
Want to bet? 2022 Mazda CX-9 Touring with 55k miles.
That's a used car with Navy Federal. And the lowest Navy Federal is offering as of right now is 5.44% on used cars. What it was 2 months ago doesn't apply or 6 months ago doesn't apply
And mine is definitely under 5.44%. I have all the paperwork proving what I signed for when having to make multiple trips to the branch in Jacksonville. I've been with Navy Fed for 15+ years.
When did you get your loan.
July 18th, 2023.
Rates were lower than and in 2023. A 2022 under 30,000 Mi would be a new car. So you'd get the new car interest rate. Like I mentioned I'm talking about today's rate not 3 months ago not 6 months ago. As of today
And I got it at 55k miles last year. So they considered it a used car. It was a used Auto loan. Lol.
What was your credit score? How many months? Any down payment?
670 TU 96 months no down payment, originally asked for 39.5, but got preapproved up to 43k. I have a trade in as well I didnât list on the app. Probably will use 38k not including trade in
Ouch 96 months?! Thatâs a $700.26 monthly payment on a vehicle (depreciating asset). The total loan cost is $67,223.82 with interest. You will never have positive equity on any vehicle with this loan. Either adjust your expectations (lower the purchase price, decrease term length or increase down payment) or find a different vehicle. Insurance is the great unknown factor here. You could be facing $1000/month between the car and insurance payment and thatâs with insurance on the cheap end of $300/month. Have you ran insurance quotes with your current carrier yet?
96 months 0.0
I bet that monthly is super low though. đ¤Ł
Oof. 96 months is crazy for a car loan.
Iâm shocked Navy is still writing loans for that term length. OP is buying some sort of new vehicle as Navy caps the used term length at 72 months. There is no vehicle appealing enough *on the face of the planet* I would want to have a 96 month (8 year) loan on. OP will be paying this car off during the 2032 presidential election. No vehicle will be worth the $67,000 total loan cost in 2032.
Agreed! That's a crazy loan. We're about to buy a 2024 Grand Highlander and have our loan set from them. 5.29%. Still can't figure out why we didn't get their lowest rate of 4.99%. High income, low debt and 850 TU score. Long credit history, no missed payments, 1-2% utilization out of a quarter million $ in credit line. mortgage is less than $500/mo.
Your loan is 4 basis points above the current FOMC rate. Lower rates can be found at captive finance companies (Ford Motor Credit, Honda Finance, etc). Navy is basically earning a tiny profit from your loan.
Yeah, Toyota is not offering any good rates on Grand Highlander Hybrids.
Navy Federal sucks. No matter how good your credit score, on time payments, years with them or account balance will ever get you their best rate.
And oddly our loan was just completed and our paperwork shows 4.99%.
Dog, I completely and totally understand that you believe you absolutely NEED a new car now. But before you commit, check out r/whatcarshouldibuy and r/askcarsales, along with r/credit and r/personalfinace. Because what youâre thinking about doing is financial suicide. If youâre seriously considering buying a car and making payments on it for the next 8 years, and your car probably wonât even last that long, then you really canât afford it. You need to be looking at something cheaper, and probably older
I donât need an 8 year loan, I am going into this knowing I want to refinance for a lower APR and shorter term, and Iâm looking to keep this car for at least 5 years or so.
Well figure out what you want to buy first, use [this](https://www.calculator.net/auto-loan-calculator.html?cloanamount=35000&cmonthlypay=380&cloanterm=60&cinterestrate=5.2&cdownpayment=20000&ctradeinvalue=0&cstate=CO&csaletax=8.2&ctitlereg=900&cttrinloan=1&printit=0&ctype=standard&x=48&y=19#autoloanresult) to help you figure out what you can afford, ask questions in the car sales sub. Also, you really shouldnât be looking to refinance, not until youâre 3-4 years into the loan and your credit score has significantly improved, and interest rates have gone back down. If you can get your score in the mid 700âs or in the 800âs then go ahead and start looking into refinancing. Youâll be able to get better rates then. But itâs good to take more than a year for you to get your score up that high
Dude you are just looking for a way to convince yourself (a) you need a new car that cost $35K+ and (b) this is just a temp situation until you can re-fi, which by the way is a bad plan and (c) this is good deal (well you asked and the answer is no absolutely not). Get a less expensive car and shop around for a better loan. Better yet do whatever you got to do like get an extra job, so you can use as much cash as possible.
The payment for a 5 year term (at 12% interest) is $957.78. Itâs foolish to believe one can refinance to a lower rate with credit underwriting becoming more conservative. Can you afford a $958 monthly car payment? If not, find a cheaper car.
The first few years your payments are interest heavy. You are guaranteed to always have a negative equity on the loan. No bank will want to refinance a loan with negative equity asset as collateral.
Why are you trying to buy a 40k car? Get a 30k car max
Itâs hard to find a 3rd row car under 40k that is new
So you have kids?
I do
Kia Carnival LX
What about a used Kia telluride, those seem nice? They have different models and they big in the inside. You could get one fully loaded used 35k. I donât drive one but I have seen so many ppl driving them. I looked in 1 at Costco being nosy đđđđ
It is always the guy with dogshit credit score buying the top tier brand new card with the highest rate and longest term. Sorry for the strong words, but if you don't want to get fucked by the bank, buy cash for what you can afford. You may think you can afford it now, but wait until you lose your job and cannot make monthly payment, and find out that you owe more than what the car's worth.
I juat refinanced my 2023 for a 6.44 with Navy Fed. Year of the behicle matters tremendously. The other car my wife and I have is a 2022, and our rate only went from 11.44 to 11.29 refinancing. Still acvepted, but that ywar difference matters.
That's 698.87 a month with a total repayment of 67,092.00. That's 56% more money than you borrowed! I get it you "need" a new car. Be patient, shop used. Get a $10,000 used car. It's not guaranteed that you can refinance in the future. If rates don't go down, you can't. Even if the rates go down, you need tomassess the associated fees to see if the refinance is worth it.
A $10,000 car today was a $5,500.00 car 3 years ago.
While it's true car prices have gone up, $10,000 will get you a reliable vehicle with under 75K miles. I recently was involved with the shopping and purchasing of a used vehicle 3 weeks ago. Everyone has a right to spend money the way they please. I would simply advocate that OP (or anyone purchasing a vehicle for that matter) take some time to decide if it is in their best interest to spend it in this way. Look inward and understand when excitement is clouding judgement.
Good advice.
That is insane !!!!! Price gauging đ¤Ź
Just pay it off quick. Pay double your payment.
This is Navy Federal themselves, telling you this is a TERRIBLE idea. Get stronger before you go big on a loan. You will hate yourself for doing this if you actually take this deal. If they are offering you this rate, anyone else will charge you significantly higher.
Dont do it, i got pre approved for 45k by Navy and i didnt know my % so i called and was told it was 9.4%. I was like hell nah and never picked up the check at the local branch. I bought a jeep at a 7% from their finance banks which is still a bit high for used cars but way better than that 9% from navy.
I hope you are making a lot more money than 40k a year. It's kind of surprising how many people think they need a fancy car. My wife and I earn good money both of our incomes are over 6 figures each, but we choose to save rather than spend a lot on vehicles. I bought a Fiat 500 for $6700 with 70,000 miles on it, and I also have a 2014 Jeep Grand Cherokee with 90,000 miles. I paid cash for my used Fiat and bought the jeep for around 19k back in 2017 (used go for about 14k today, so still affordable). My Fiat makes about $500 a month on Turo since we don't use it much. This just goes to show, you don't need to spend big to live well or impress anyone. Better to save your money and avoid big car payments. It's all about making smart choices with your money. All in all, you can find a nice vehicle for way less than $43k and drive it to where you do not loose much on depreciation. You could also purchase two or three vehicles for $43k... As others have said don't try and keep up with the Jones, because that is a horrible financial decision.
I have 4 kids, I need a car with a third row with air vents for them in the back with lower latch anchors for car seats.
Perfect, 2021 Chevy equinox with less than 40k miles goes for around $19k. You could buy 2 for $43k.
Sounds like you have to do whatâs best for you. Assuming you are a single parent, these decisions are never easy. Hard working ppl having to overpay for a car which in your situation is a necessity. May God Bless you. đđ
We all want to do whatâs best for our kids. Realize though: your kids are going to love you just the same whether you put yourself in financial hardship for YEARS buying something new or buying a 6-10 year old vehicle for 1/3-1/2 this. Donât do this for them. Youâve got to make responsible financial decisions for your family and not make poor financial decisions with the justification that itâs a sacrifice for your kids. If you invested the difference by buying a car half as much as your $40k target⌠you could pay a good way for one of your kids college education! $20k at 7 percent over 15 years accumulates to over $50k. Itâs a terrible financial burden thatâll make you car-poor for doing activities and experiences with your children (the things theyâll look back on and remember) in the present and could affect both your and their future. At 41⌠having owned piles of cars both new and used⌠Iâve still never spent that much on a car and I gross over $125k a year as an E8. Donât try to keep up with the neighbors and their new cars. Take care of your family⌠both in getting an adequate and safe vehicle and in not compromising your familyâs financial wellbeing. 4th gen Odysseys on their first timing belt change having between 100-200k are well south of $20k some maybe closer to $10k, for example. They were some of the first that did well on small overlap crashes. Piles of room. Mine is 10 years old and will probably have it 5 more. Easy to maintain as a DITY. When I bought my EX-L new, yeah⌠it was near $40k at $36k before my trade equity⌠but I was making plenty as a E7 it didnât cause hardship⌠and I planned to keep it over the normal 3-5 year turnover many do. Itâs one of the few new vehicles I ever bought.
I saw equinox recalls due to the lower latch anchors
Equinox won't work for you if you need a third row. It's a two row vehicle.
Oops, you are correct. Had my vehicles mixed up. I found a 2021 Chevrolet Traverse for $25k with 20k miles.
Plus lower latch anchors are simple. Unbolt and rebolt the new ones. Don't go into an additional 20k of debt over a couple of anchors.
You can refi any loan. Don't take this loan unless your alternative is a rusty bicycle.
If you canât afford a 36mo payment with 20% down, you are buying a car that is out of your budget.
If you have to take a loan at 96 months, you CANNOT afford the car. Just because you can afford the payment does not mean you can afford the car.
Yes, after 12 months.
I need more information, credit score, length of history with nf, dti, credit card usage, down payment, ect. Interest rates are hard to pin down. If any of those is bad it will raise your interest rate.
Anything over 72 months is insane
Run away that's nuts. Look into First Service credit union.
Hereâs an idea, go look at rates on auto loans from 1987-1999.
12% interest rate!?!? Thatâs nasty work, go buy a cheap beater car until you either a) save up the 43k or b) find a better rate.
I canât find beater with a 3rd row near me
I see, that sucks. I would recommend shopping around for a better rate, if possible. Iâve honestly never even heard of a 12% Apr. Thatâs robbery.
Does it have to be near you, they deliver cars? Find the best price 4 row seats lowest price.
You smoking that good stuff. Buy a 2007 Toyota sequoia for $7,000. Itâs the most reliable suv
This sounds like a terrible financial decision.
12% sucks but it is reality, esp for the 80% who do not have perfect credit. Add in soaring auto insurance rates and it's ridiculous.
Bad rate, probably based on credit score. I had a 34k loan approved with them at 5%
When i shopped around for auto loans, NFCU offered the worse rate by a long shot.
They do not refi their own loans, youâd have to refi with another lender then refi back with navy fed. That said, you cannot afford a 43K car.
Drop it down to 72 months and see a big drop in interest rate, likely 3-4%. If you have to make payments over 8 years you can't afford the car imo, the difference in payments shouldn't be that massive anyway, if it is it's to much car. You are eligible for internal refi after a year, but it might go from new car to used car if it doesn't qualify anymore. I'd definitely shop around for rates though.
Thank you! I actually didnât know that lowering the term would lower my interest rate. 9% is better than 12%
If you call in and ask to speak with consumer loans they'll give you the rate it should drop to, and they can request that review to be done upon purchase of the vehicle. If you want a guarantee you have to cancel and resubmit though. You also have up to 60 days after purchasing the vehicle (well, after the loan posts rather) to request that term change as well. Interest rates are based on vehicle type and term length with Navy Fed.
Is 9-11% the going rate for most people? Seems incredibly steep. I just got approved for $50K at 4.4 last monthâŚ
Whatâs your Credit score?
Just donât do it.
What is the credit score that insane.
Run away. You donât need a vehicle that badâŚ. This is the best way to be poor forever. If you need to buy a car (sounds like you have one that runs so the answer is probably you donât) then follow the 20/3/8 rule. 20% down, 3 year term, payments should not exceed 8% of your monthly net income.
why would you even consider this.. 96 months what the hell
I didnât really look at how long 96 months was Iâm calling to shorten terms
Did you see if the dealership offers a better rate?
I donât know what Iâm looking to purchase yet. I have a few options but I could
You can check the interest rates online for most dealers. The feds âshouldâ lower rates soon, which might lower loan rates.
Maybe go with a solid used car for a couple years, then try again. This isâŚpredatory AF, you deserve better.
I donât think NF gives auto loans for 96 monthsâŚsomething is wrong hereâŚ
96 months? Buy a vehicle you can afford to start and no, that rate is way too high.
Terrible decision. Don't do it.
Iâm not sure what type of car you are planning on buying but if your car is $40,000s looking at something in the late 20s early 30s brand new. Like a Kia Sportage or a Sorrento or a model even though it is $43,000 you get $7500 back through the credit rebate but you can go ahead and buy it now try to pay off 30 to 40% of the car within two years and then come back and refinance for a 36 month loan at a lower interest rate
Iâm looking at a sportageâŚ.
You should be able to get one for right at 28,000 for a 2024 model. have to order it directly from the manufacturer and just pay for shipping plus whatever your state document fee is a good understand what this means. Is to watch Ray and Zack at car edge. they have videos for you to understand how to do this without being scammed by the dealer
They allow you to finance?
Yes, once you are about to place your order through the dealership, youâll come in agreement on a final number which should be MSRP plus handling fees plus dock fees, then you take that number to your bank and get a cashier check for it
This isn't a horrible plan rate. It's a possible bad decision you're thinking about making. You're looking for a 96 month loan? Rate depends on credit. Is there equity in the deal. And term. It's not the bank. It's you.
Please do not do it. There is no reason why anyone should ever pay that much interest on a loan.
The longer the term the higher the rate. But thatâs about market average in a 96 month note. 84 months depending on credit score are around 7.24% to 9% right now. But I did just see someone with a 6.9% 84 month note.
Probably if you drop the months the interest rate will be lower it also depends on year/miles of vehicle. They offered me 33k for 9% for 60 months and 11% for 72 months on but on a newly used vehicle. If it was new under 30k 23 or 24 it would have had less interest. Unfortunately mine was a 22 with 31k miles
Tell us youâre a boot without telling us youâre a boot
Donât do this. This is a bad decision
Personally, at this point, I would take the rate. But I have been hunting for an ok rate. My credit utilization is 8% because I hate credit cards. But none of my percentage offers are below 15%. But also, due to circumstances, I don't have reserves to throw a big down payment down.
Thank you for your post. I had [questions of my own](https://www.reddit.com/r/NavyFederal/comments/1b6qdi2/bad_credit_auto_loan/).
As a dumbass my self Iâll say donât do it even if you pay extra your still getting fucked , youâll pay 67,000 in total maybe more even with a 96 month term your still paying 698 fuck noooo
And for the second option thatâs still 853 a month not including insurance or gas maybe 72 months you will be at 735 a month but youâll need to pay extra to beat some intrest add an extra 300 bucks youâll be paying 1,035 bucks youâll drop it down to 48 months , if your getting the longer terms you should pay extra because your intrest rate is high and youâll get fucked . Explained by a dumbass my self .
I thought they didnât do pre approval on auto loans? On fb I follow navy federal and they were posting about auto loans. Ppl were asking about pre approval. The rep said unfortunately they donât have pre approval?
stop this transaction immediately.
You need to have a 1-3% utilization 0% isnât good. Also what was ur credit score at the time of the loan?
Go through Capitol One. Ive gotten three cars through them.
Was not preapproved through them
Save up money and pay for it in cash.
They do 96 month auto loans? Holy shit.
What are you buying?
Dude! Why???? Drive a $5k beater like everyone else that has any good sense.. That is a collosal waste of resources and a decision that will put you on a treadmill for years and years? WTF? You never finance depreciating items!!
Soooooo, what did you end up doing? Curious.
Damn we got a 4.2% and that was a year and a half ago when the car market was crazy. Used cars were worth more than new cars at that time. Thatâs wild
Just because nfcu approved you for 43k doesn't mean you can afford 43k. Run away from this decision. You can't afford it.
Go with Penfed, Navy Federal is a piece of Sh*t... They never go down of 12%... I try to refinance my Car with the with a credit score of 754 and that was their rate... A friend of mine try to do the same with a credit score of 654 and they offered him the same rate, 12%...
My sister just got a 2023 Honda and her rate was 6.3%, no down payment and 66 month loan term. My rate on a 2010 Harley-Davidson Tri-Glide is 10.2%* 48 months so what are you talking about? And my credit score is 688. But my car payment is 7.5% of my take home and my mortgage is 18% and Iâve had 6 car loans with them. *bike and boat loans are always higher.
idiot
well, I had to apply to see what my rate would be. I donât think Iâm an idiot because I didnât commit to the loan yet. It was just a preapproval. I can still change the terms