What type of interest rate can I expect?

[1M2NV]

I'm upgrading to the FX50 and will negotiate the APR. i have excellent credit (over 700) and want to know what type of APR I should expect on a Certified Pre-Owned Infiniti. I was looking towards 1.9% (which is what Nissan is offering for Certified Pre owned.) When i asked the General manager to get a ballpark, I was told "with excellent credit, you should expect around 4.19-4.29.

What should i expect? And how low can I negotiate?

[FNAWSM]

When I bought my m45 infiniti was offering the 1.9% on CPO vehicles for those that qualified. I qualified for this as my credit score is around 780 but I didnt want to buy the car as a CPO but instead i bought the exact same car non-CPO and added my own extended elite warranty. I did this because if you buy it as a CPO they add extra money onto the car, for me it was around $1300 and all it got me was a lower interest rate and only 1 year of extra coverage. By not taking it as a CPO i was getting the exact same car but for $1300 less which I then took and bought a 5 year elite warranty with. I would ask them what the price diff. is between going the CPO route and then going my route. One thing to consider is that if you go non-CPO then they wont be able to give you the 1.9% promotion. They offered me something around 6% and I laughed and told them i would get my own financing elsewhere bc I knew my score would get me a better rate then that. I researched it online to see what I could get an auto loan for and found that right around 4-4.5% was about the best for a used car, you can get much better if the car is new vs used. I called back the dealership and gave them a chance to match or i would still buy the car just not finance it with them. Within 10 minutes they called me back and could magically do 4% for me. I later found out that dealerships send out to several banks to see what rates they can get in at and then try to tack on a few % for added profit. So it pays to be prepared and know your exact score and what other banks will give you a loan for. If you find a bank that will give a 4.5% loan then tell the dealership you found a 3.5% loan and then negotiate from there. Bargaining for an interest rate is just like going back and forth about the overall price, as 1 or 2 % could add up to $1000's over the length of the loan. Hope this helps and let me know if you have other questions about my situation.

Also this was about 2 years ago so Im guessing even better rates are out there today. I wouldnt think that 3-3.5% would be all that unrealistic.

[Eikon]

go through www.penfed.org. You can become a member by making a $15 donation. Then you can get 1.99 for up to 48 months or 2.49 for 60 months. Then you can ask the dealership to match the rate that you can already get.. If they can't, then go through Penfed.

[1M2NV]

Great info! I just looked on infiniti's website and they're stating 1.9 for 36 months and 2.9 for 60 months. I also just double checked my credit score and it's excellent. So I'll print out both and go for the 1.9 for 36 months. As for price of the car, I've negotiated 4k off the car and below what I wanted to spend. Now I'll just need to make sure I get the rate that is listed by Infiniti.

[1M2NV]

go through http://www.penfed.org. You can become a member by making a $15 donation. Then you can get 1.99 for up to 48 months or 2.49 for 60 months. Then you can ask the dealership to match the rate that you can already get.. If they can't, then go through Penfed.

how quick did you get your loan approved from there? Is this something I can do on the spot at the dealership if need be?

[FNAWSM]

You should be able to get that rate unless its just for new cars or you decide not to buy it as CPO like I did. It would be worth asking the price .diff between CPO and not

[Eikon]

go through http://www.penfed.org. You can become a member by making a $15 donation. Then you can get 1.99 for up to 48 months or 2.49 for 60 months. Then you can ask the dealership to match the rate that you can already get.. If they can't, then go through Penfed.

how quick did you get your loan approved from there? Is this something I can do on the spot at the dealership if need be?

I haven't run a loan approval yet. I did sign up for the credit union and opened an account. I'm looking at a car tomorrow in fact.. So I can report back in a day or two.

But, if you are cool with 1.9 for 36 from your dealer.. just go for it.

[Modeler]

go through http://www.penfed.org. You can become a member by making a $15 donation. Then you can get 1.99 for up to 48 months or 2.49 for 60 months. Then you can ask the dealership to match the rate that you can already get.. If they can't, then go through Penfed.

how quick did you get your loan approved from there? Is this something I can do on the spot at the dealership if need be?

You need to do this in advance.

[sunoco]

i got 2.59 on my cpo/ 60 months. they were offering 1.99 for 48. credit score is like 740

[1M2NV]

i got 2.59 on my cpo/ 60 months. they were offering 1.99 for 48. credit score is like 740

Good rate. Infiniti is offering 1.9 36/months and 2.9 60/months

[TDot]

I just got 3.5 w/ 760 score from Chase w/ a chase account. I would have gotten 3.81 w/o.

[myother45isalesbaer]

As a retired financial guy for 35 years I am a little shocked at the answers you got. Interest rates vary by the borrower and lender depending on many factors.

What is your credit score. How much debt are you carrying. Used cars are always higher in interest than new ones. How many years are you looking to finance. How much down payment do you have. What is the car worth vs. what the wholesale value is. It is not that easy to just ask for a rate and not know the above. Do you own or rent. How old are you. Married or single. What is you accident history.

My advice, stay away from dealer financing. They get a commission on selling you on a finance company. Go to a bank and tell them what you are trying to buy and give them all the details. Dealers are notorious for offering low rates and then changing them for whatever reasons they can come up with. You are better off getting a non-dealer loan and then you have cash on hand. You can then go back and get the financing off the table and just talk price. Its none of their business where the money comes from.

Good luck, but I would walk on any dealer financed program. They love to finance you, but all they are doing is acting as front men for a finance company. You don't need them in the middle taking a cut of your money. My OP.

[1M2NV]

great reply, myother. The Certified Pre Owned rate for infiniti righhst now is 1.9 36 months and 2.9 60 months, which is pretty low for pre owned. I've checked out some local banks and they all fall around the same rate.

[Eikon]

As a retired financial guy for 35 years I am a little shocked at the answers you got. Interest rates vary by the borrower and lender depending on many factors.

What is your credit score. How much debt are you carrying. Used cars are always higher in interest than new ones. How many years are you looking to finance. How much down payment do you have. What is the car worth vs. what the wholesale value is. It is not that easy to just ask for a rate and not know the above. Do you own or rent. How old are you. Married or single. What is you accident history.

My advice, stay away from dealer financing. They get a commission on selling you on a finance company. Go to a bank and tell them what you are trying to buy and give them all the details. Dealers are notorious for offering low rates and then changing them for whatever reasons they can come up with. You are better off getting a non-dealer loan and then you have cash on hand. You can then go back and get the financing off the table and just talk price. Its none of their business where the money comes from.

Good luck, but I would walk on any dealer financed program. They love to finance you, but all they are doing is acting as front men for a finance company. You don't need them in the middle taking a cut of your money. My OP.

For a retired finance guy, I'm surprised at the answer you are giving. Credit score does matter, with debt ratio also being highly important. Down payment usually matters, but it depends on the price of the car compared to book value... as you said. However, used cars are not always doomed to higher interest than new.. case in point.. www.penfed.org. I just got approved for 1.9% for 48 months.. my check is in the mail. This is on a 2005 Subaru Outback. It's the very same rate as they have published on new cars. Age doesn't matter unless you are not old enough to have established credit. Marital status doesn't matter unless you don't have enough income and need a spouse's income. Accident history also doesn't matter because you are required to carry full insurance coverage.

So we have a few minor disagreements.

However, the major issue I take with your post is regarding the idea that a person should automatically rule out financing through a dealership. This is just poor advice.. plain and simple.
Of course the finance manager at the dealership will make some money by writing a loan. But so does the guy at the bank. What matters to the consumer is the end product. You go with the lower rate unless there are extenuating circumstances like prepayment penalties or upfront fees.. but these are rare in the world of auto finance. Many times the dealership gets better rates than a local bank because they work specifically through wholesale auto lending relationships.

You are correct about rates depending upon the borrower.. I think that goes without saying nowadays.

The bottom line is.. Shop around and get the best deal you can. The dealership may or may not be able to offer the best rate.. but it is possible, especially if they are backed by Infiniti finance offering a promotional rate. Don't forget about how convenient it can be to just go through the dealer.. that is worth something to some people.

[myother45isalesbaer]

great reply, myother. The Certified Pre Owned rate for infiniti righhst now is 1.9 36 months and 2.9 60 months, which is pretty low for pre owned. I've checked out some local banks and they all fall around the same rate.

Those are some pretty low rates. Eikon has also made some very good points about financing. I just hate financing a car. But that's me. Good luck. I hope you get your car at the rate you want.

[myother45isalesbaer]

As a retired financial guy for 35 years I am a little shocked at the answers you got. Interest rates vary by the borrower and lender depending on many factors.

What is your credit score. How much debt are you carrying. Used cars are always higher in interest than new ones. How many years are you looking to finance. How much down payment do you have. What is the car worth vs. what the wholesale value is. It is not that easy to just ask for a rate and not know the above. Do you own or rent. How old are you. Married or single. What is you accident history.

My advice, stay away from dealer financing. They get a commission on selling you on a finance company. Go to a bank and tell them what you are trying to buy and give them all the details. Dealers are notorious for offering low rates and then changing them for whatever reasons they can come up with. You are better off getting a non-dealer loan and then you have cash on hand. You can then go back and get the financing off the table and just talk price. Its none of their business where the money comes from.

Good luck, but I would walk on any dealer financed program. They love to finance you, but all they are doing is acting as front men for a finance company. You don't need them in the middle taking a cut of your money. My OP.

For a retired finance guy, I'm surprised at the answer you are giving. Credit score does matter, with debt ratio also being highly important. Down payment usually matters, but it depends on the price of the car compared to book value... as you said. However, used cars are not always doomed to higher interest than new.. case in point.. http://www.penfed.org. I just got approved for 1.9% for 48 months.. my check is in the mail. This is on a 2005 Subaru Outback. It's the very same rate as they have published on new cars. Age doesn't matter unless you are not old enough to have established credit. Marital status doesn't matter unless you don't have enough income and need a spouse's income. Accident history also doesn't matter because you are required to carry full insurance coverage.

So we have a few minor disagreements.

However, the major issue I take with your post is regarding the idea that a person should automatically rule out financing through a dealership. This is just poor advice.. plain and simple.
Of course the finance manager at the dealership will make some money by writing a loan. But so does the guy at the bank. What matters to the consumer is the end product. You go with the lower rate unless there are extenuating circumstances like prepayment penalties or upfront fees.. but these are rare in the world of auto finance. Many times the dealership gets better rates than a local bank because they work specifically through wholesale auto lending relationships.

You are correct about rates depending upon the borrower.. I think that goes without saying nowadays.

The bottom line is.. Shop around and get the best deal you can. The dealership may or may not be able to offer the best rate.. but it is possible, especially if they are backed by Infiniti finance offering a promotional rate. Don't forget about how convenient it can be to just go through the dealer.. that is worth something to some people.

Just a fewpoints I disagree on. Dealer financing is how they make more money. When you dealer finance they should cut the cost of the car down. They are making money on the car and on the financing. Regardless of the rate, you are paying more for the car than the wholesale or retail value over time. Cash on hand is always better and dealers hate that.

Generally used cars are always subject to higher rates. Special dealer incentive rates often contain small print that bank loans do not. Its better to finance via a bank as bump-ups for late payments, etc. are not as steep as bank loans. It also takes one more card away from the dealer to play with, putting the odds more on your side with cash in hand to negociate the bottom line price of the car.

Men who are not married are charged higher insurance rates, which adds extra to the cost of the car. In addition, owning a home vs. renting also effects insurance rates. Driver history is another factor that can greatly influence insurance costs. Location of the car and if its garaged or not will factor in to.

Overall, I agree with "shop around". But the devil as always is in the details. I personally do not care for dealer financing as they sell those agreements ASAP. Banks tend to hold the loans and don't make as much on commission. So, even though I agree with alot of your points just getting a cheap rate may not be the best thing to focus on. You need to dig deeper and remember dealers are out to maximize their gains and will do so via the car or financing. Show me a truly honest dealer and I will show you a business that won't last.

Cash talks and BS walks. If you want to get the best price on a car stay away from dealer financing. Stay away from all financing if you can. If you need to sell it the hassle of paying off the loan, getting the title is enormous. I like to have my titles so I do not need to buy full coverage insurance and I can sell the car anytime I want to and not worry about how much I still owe on the car.

Just my opinion.

[Eikon]

I agree with 95% of what you just said. The only point that I still differ on is the fact that often a dealership is able to extend terms that originate with the manufacturer.. These are very common on the "certified used" programs. In this case, many times those rates on those used cars are better than a banks rates. Outside of this.. you are spot on.

If a person is able to pay cash for a car.. that is absolutely the best way.. no doubt about it!

[myother45isalesbaer]

I think we are on the same page. I agree with you. Just trying to explain to the OP the in's and out's of financing and I think both of us did a good job. I hope he gets his car and learned a little from our posts. You seem to know alot about this matter. But I guess we will have to agree to disagree about dealer financing. My opinion about dealers is different than yours. I think they are all flim-flam shisters, but that is my OP. They will try to make a buck anyway possible.

Anyway. Thanks for a nice and pleasant discussion of this topic. We should teach a class on auto financing.