Anybody know the current interest rates from Chrysler? - JeepForum.com
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post #1 of 22 Old 07-13-2020, 09:09 PM Thread Starter
ceb1
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Anybody know the current interest rates from Chrysler?

The dealers won't give you a rate unless to submit an application - and I have no interest in taking a credit hit just to find out what their rates are. 800+ FICO score

If I take the 0% for 72months, then there is no additional discounts - including no military discounts and the like.

If I bring my own financing or pay cash, I get an addl. $1000 off

If I use their financing, I get about $5250 off

It is hard to determine what the best options until I know what the rates from Chrysler are.

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post #2 of 22 Old 07-14-2020, 06:53 AM
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Originally Posted by ceb1 View Post
The dealers won't give you a rate unless to submit an application - and I have no interest in taking a credit hit just to find out what their rates are. 800+ FICO score

If I take the 0% for 72months, then there is no additional discounts - including no military discounts and the like.

If I bring my own financing or pay cash, I get an addl. $1000 off

If I use their financing, I get about $5250 off

It is hard to determine what the best options until I know what the rates from Chrysler are.
Get the best deal you can, then re-finance.
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post #3 of 22 Old 07-14-2020, 07:25 AM
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Yeah the dealer may be able to run one credit check and provide both their favorite bank(s) and Chrysler's rate, or at least give you an estimate. If you don't like any of it, then the current advice is as WK2Overland4x4's posted. Your bank or credit union should be able to give you a rate estimate without running a check. The rate also varies with equity, so like 20% down+ will probably get you into the best rates.

A credit check isn't going to hurt your credit rating under normal circumstances. Start doing a bunch of them is a red flag.

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post #4 of 22 Old 07-14-2020, 09:10 AM
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Website is advertising 3.9/60 mos.

I'm curious about this too. Looking at pulling the trigger on a 2020/2021 WK2 North Edition vs waiting 3-4 years for a bugs ironed out WL or even a Bronco.

I keep my vehicles quite a while so would like something reliable.
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post #5 of 22 Old 07-14-2020, 09:17 AM
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You can bring your own FICO score and show them your number. One hit shouldn't hurt anyway. They should be able to quote from at least 1-2 sources. Find another dealer if they won't quote you with your score in hand.

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post #6 of 22 Old 07-14-2020, 11:27 AM Thread Starter
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Originally Posted by sabre364 View Post
Website is advertising 3.9/60 mos.

I'm curious about this too. Looking at pulling the trigger on a 2020/2021 WK2 North Edition vs waiting 3-4 years for a bugs ironed out WL or even a Bronco.

I keep my vehicles quite a while so would like something reliable.
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You can bring your own FICO score and show them your number. One hit shouldn't hurt anyway. They should be able to quote from at least 1-2 sources. Find another dealer if they won't quote you with your score in hand.
OK, so let's do a couple of calculations - all round numbers:

Assume with tax and fees $55k - the 0% for 72 price
With your own financing that is $54k - I can get 2% for 60 so interest is $2650 or total price $57650
With Chrysler financing it is $50k - 3.9 for 60 is $5100 - or $55.1k - roughly the same as the 0% but less time

One could, of course, take the Chrysler financing and refinance 3 months later. Those three months will cost you roughly $150 in interest. Refi rates are generally a half point more than the regular rates.

That half point will cost you $600 over the life of the loan, so $2650 plus 750 is $3400, so the cost of the 4th option is $53.4k - so a savings of $1600

Assuming that one puts the $55k into a CD for 72 months (current 5 year rate is about 1.65%), that comes out to about $6k in interest.

The point is that one needs to have all of the options worked out before one steps into the dealership.

It actually sounds like the 0% for 72% costs about $700 more than playing the refi game (the $1600 from the calculation above minus the extra $900 from an extra year of your money in a CD)
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post #7 of 22 Old 07-14-2020, 12:55 PM
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Yeah, good point, be prepared. When I was buying four years ago terms were different such that taking the 0% and some rebates was less money in the long term than taking all the rebates and financing at 3%, even without considering a CD investment, or paying cash. It was like free money to play with. The finance guy went over all the bank and third party loan options, I asked the simple question, and he said thats right, 0% saves me a ton of money in the long term over any of the options, all things considered.

Its nice to have choices, not all of us do.

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post #8 of 22 Old 07-14-2020, 01:34 PM
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Absolutely. Having an 800+ score opens up options that a lot of people don't have. Good luck.

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post #9 of 22 Old 07-14-2020, 02:39 PM Thread Starter
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Originally Posted by ColdCase View Post
Yeah, good point, be prepared. When I was buying four years ago terms were different such that taking the 0% and some rebates was less money in the long term than taking all the rebates and financing at 3%, even without considering a CD investment, or paying cash. It was like free money to play with. The finance guy went over all the bank and third party loan options, I asked the simple question, and he said thats right, 0% saves me a ton of money in the long term over any of the options, all things considered.

Its nice to have choices, not all of us do.
I'm always amazed at the people that go car shopping with no idea how they are going to pay for it. Unless a manufacturer has a widely advertised low APR offer, it is unlikely that the rates from the dealer are going to be competitive as the dealer will mark up the interest rate by a half point or so because they make their money in the F&I office - on financing and crap add-ons.

Almost everyone that can qualify for a "real" car loan (not a "buy here, pay here" lot loan) can get a better rate from a credit union or bank. The problem is two fold:

Many buyers are buying by monthly payments, and

Many buyers go in to a dealership expecting that low teaser rate, find out they don't qualify then get upsold to a far higher rate. Often times, the "you don't qualify" is a flat out lie, but they will try to get more from you anyway. About 10 years ago I was buying an Audi and they were advertising .9% interest. The salesguy goes off to the back with my paperwork and says "we ran your credit, you don't qualify for the .9%, but we can do 2.9" Since I knew what my credit score was, I grabbed my paperwork and walked out. I wasn't more than a block away that I got a call telling me that "they mixed up my scores with somebody else's and that I - of course - qualified for the lower rate"

I ended up buying a car from a different dealer the next day, but that dealer counted on me not knowing my score and making money from the bank.
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post #10 of 22 Old 07-14-2020, 03:09 PM
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My credit union is offering 0.5 off your current rate if you refi, so the deals are out there.
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post #11 of 22 Old 07-14-2020, 03:16 PM
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I just went through this game last week when I bought my new GC.

I ask what their interest rate was, and like you said they won’t give you a rate until you’re going through the application process. The rate they offered me for an 800+ score was 4.74%. The person doing the application was surprised it was that high, but then he said they probably know everyone is going to prepay or refi after 3-months so they’re trying to get as much as they can...

Being prepared and going through the different possibilities as you have is definitely helpful before you go to the dealership. I did the same thing and ran different scenarios assuming their interest rate was 3% to 5%.

Not sure if their interest rate varies by location (I’m in California), or how much you’re financing (I had a trade-in), or phase of the moon, but anyway here’s one data point from last week: 4.74% for an 800+ score...
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post #12 of 22 Old 07-14-2020, 03:37 PM Thread Starter
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Originally Posted by lardo1 View Post
I just went through this game last week when I bought my new GC.

I ask what their interest rate was, and like you said they won’t give you a rate until you’re going through the application process. The rate they offered me for an 800+ score was 4.74%. The person doing the application was surprised it was that high, but then he said they probably know everyone is going to prepay or refi after 3-months so they’re trying to get as much as they can...

Being prepared and going through the different possibilities as you have is definitely helpful before you go to the dealership. I did the same thing and ran different scenarios assuming their interest rate was 3% to 5%.

Not sure if their interest rate varies by location (I’m in California), or how much you’re financing (I had a trade-in), or phase of the moon, but anyway here’s one data point from last week: 4.74% for an 800+ score...
I'm convinced that the phase of the moon has everything to do with the quoted rate, but at 4.74%, the 0% is a better deal.

As an aside, I do know that how you look and your trade in looks (more the condition than what it is), determines how much they think they can milk you for. You come in wearing sweats and driving a dirty beat up car, then you'll get offered a high rate.
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post #13 of 22 Old 07-15-2020, 06:30 AM
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Originally Posted by DRKRED12 View Post
My credit union is offering 0.5 off your current rate if you refi, so the deals are out there.
So if you are at the 0% rate.....
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post #14 of 22 Old 07-15-2020, 07:23 AM
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I have several family members that work in finance at dealerships, yeah, they can make a LOT of money off of getting their cut on finance rates. Both the dealership, and the actual person trying to help YOU out!
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post #15 of 22 Old 07-15-2020, 08:35 AM
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Quote:
Originally Posted by ceb1 View Post
I'm always amazed at the people that go car shopping with no idea how they are going to pay for it. Unless a manufacturer has a widely advertised low APR offer, it is unlikely that the rates from the dealer are going to be competitive as the dealer will mark up the interest rate by a half point or so because they make their money in the F&I office - on financing and crap add-ons.

Almost everyone that can qualify for a "real" car loan (not a "buy here, pay here" lot loan) can get a better rate from a credit union or bank. The problem is two fold:

Many buyers are buying by monthly payments, and

Many buyers go in to a dealership expecting that low teaser rate, find out they don't qualify then get upsold to a far higher rate. Often times, the "you don't qualify" is a flat out lie, but they will try to get more from you anyway. About 10 years ago I was buying an Audi and they were advertising .9% interest. The salesguy goes off to the back with my paperwork and says "we ran your credit, you don't qualify for the .9%, but we can do 2.9" Since I knew what my credit score was, I grabbed my paperwork and walked out. I wasn't more than a block away that I got a call telling me that "they mixed up my scores with somebody else's and that I - of course - qualified for the lower rate"

I ended up buying a car from a different dealer the next day, but that dealer counted on me not knowing my score and making money from the bank.

^ This. Never fall into the "what monthly payment can you afford" trap. The cost and financing will always expand to this maximum number or close to it. I know, I sold cars as a kid. While much has changed in 30 years, especially because of the internet, this hasn't. You negotiate purchase price, offers/rebates, and finally financing. This determines the payment. The best deals are rarely if ever available through the dealer. Allowing the dealership to work this backwards earns you a title. It's called "Salesman's Dream".

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