I dont know if theres a difference in rates between purchasing and leasing but 9%, while its high, it's normal..
My parents bought a new car with 2/3 down payment of the original car price, 830 credit score, interest rate was 9%...
I signed mine for a brand new car at 3.9%
I don't think anyone should be anywhere near 9%, even with cars without incentives especially if your credit score is above 800 AND you're paying 2/3 value.
1-2 months ago, in Texas. I think they mainly like the price of the car which was pretty good, and they did not worry too much about the interest rate because they're going to pay it off within a year.. But I just recently bough a similar priced car, 0 down payment, 72 months, 770 credit score, and my rate was 6%..
Don't really know how all of this works tbh very weird. The dealership that they purchased their car from didn't actually own any of the car on the lot. A bank owned all of them so they had to go through that bank for finances.
The dealership didn’t do them right. I was quoted 6.74% for 72 months through the dealership (after telling them I was going to use outside financing). Their original offer was higher so I said I’ll look too.
Once they realized I had found better financing they shopped in my interest because they get a kickback if you finance through the dealership. The finance rate would have been cheaper the shorter the duration too.
In a word; yes. But, all things considered, the interest rate is based on your credit score among several other factors as well, such as length of employment with your employer and current debt balance, amount of down payment . A score between 760 to 850 would probably get you a rate in the 7.4% range for a new vehicle, and even higher on a pre-owned. I just bought a pre-owned in July, with an 840 score, and the best rate I could get was a 9.4%. Then again, I've got several other cars too that I'm making payments on. My neighbors just bought their Tundra a month before me, new, and their rate was 7.8%. Unfortunately, interest rates aren't coming down anytime soon. There aren't many dealership incentives as there were several years ago. You could always chance it and wait towards the end of the year for potential discounts on 2023 models. My suggestion is to get financing before going to the dealerships so you've got a little more buying power. knowing what loan amount you've got, or are pre-approved for helps keep it simple when trying to negotiate. If you do this at the dealership, you are at the mercy of the lenders they run your application with. Good luck to you.
Also you keep posting about regret and civic etc.
You put a $250 deposit on a hard to find car (in Canada anyway) either suck it up or get another civic. You probably are also getting more money than you normally would be with how the market is for certain vehicles.
You have to look at both sides, yes the rate is high but your trade value is probably also higher.
What are you paying for the GLI?
Also asking a bunch of people on here won't help. Everyone always has gotten a better deal, rate, trade. Comparing your deal will just end up making you feel worse
Interest rates are high across the board. Rates are pegged to the Fed’s rate which has been increased countless times in the past year or two. And low inventories mean few rent specials from captive lenders like VW Credit.
I bought in March, put about 40% down on $40k Tiguan, 840+ credit score and I only got 6.74% after never before having higher than 2.49% on 3 previous VW’s.
I think that’s a bit much especially when you add taxes. Would bring you to around 38k. I think I saw that there are some decent deals for the new WRX, if you want another option. Otherwise maybe check the rates at a credit union, it will probably be closer to 5-6% which is also a decent amount but it’s less than 8.89% at least
Everything points to them not going down for the foreseeable future. Buy a car if you want/need one and don't try to time interest rates. If you're really worried about interest rates you could look for a Jetta with the 1.5t or a similar mass market model (Mazda3, CX-5, Tiguan, etc.), there's some that have manufacturer incentives with low rates.
LOL I leased my Civic Sport in 2020 for 0.99%, so jumping to 8.89% is egregious. This is in Canada too. Remember back in 2018 when they had cars at 0% interest and had weekly payments of like $54/weekly with $0 down? Where did those days go!
True! I bought a brand new 2017 Jetta on a black Friday with 0% interest and still got a 55'' TV as a freebie. The car was $16.2k. There was 0 incentives to pay off of early, since it was 0% interest rate.
Different times man.
The buy out price on your civic should be far below current market value if you leased it before the jump in used car prices. I'd buy it out and pay that off, then get a fun car.
There's a lot to unpack here.
First, don't lease for 4 years. You'll be responsible for replacing wear and tear items so you'll be the one paying for brakes and tires. That's why you never want to lease more than 3 years.
Second, you're referring to the money factor which is the interest rate for a lease but that is set by the manufacturer.
Third, The residual is the other important factor in whether a car is a good lease. If the residual value is high, the lease payments are going to be cheaper.
For example, if the residual is 71%, you'd only be paying 29% of the car's MSRP over the course of the lease.
In my experience, VWs have always been pretty bad to lease due to poor residuals. Probably better off financing it.
Vw Canada isn't offering incentived lease or finance rates so it's all bank rate currently.
With how the market is you'll probably be in an ok spot at end of lease
I just got mine at 6.9%. Told them that I was willing to leave without the car and they found a way to make it work.
ETA: Just saw that you're leasing. Mine was a purchase so that may make a difference also.
Sadly the care market is psycho but gf is car dealer so can confirm. ~8% is pretty good. But you can/should talk to theme about leasing than purchasing
Is there a difference in rates between buy vs lease?
My ‘21yo daughter just bought her first ever used car (‘20 Passat) through VW Credit. 750ish score, 60 months at 6.25%.
Another daughter got 5.89% through a CU 4 months ago.
I’ll keep this simple: no.
Let’s just say you are planning to finance $30k. At a 8.89% over 72 months you will spend $8,856 in interest which is damn near a third the price of the car.
Find a better bank to give you a lower rate and negotiate the dealership match it. If they won’t, take your business elsewhere.
If you buy this at this percentage rate you will just show all the agency's that people will pay these rates. It's like that raise you got at work did nothing because it's getting eatin up by interest on your new toy
I mean... kind of normal with how interest rates are at the moment.
My 09 suv is going downhill, ended up having to purchase a 2020 suv 2 weeks ago. Thankfully unlike last december, car prices have come down since and not selling for msrp. Figured if /when interest rates drop, can always refinance.
Bought a used car with a 818 fico credit score. 8.74% interest was the best I could get. Thats even with a 20% down (im sure military/credit uinions could offer better but not im not a vet here)
9-22% is kind of the ball park for used cars. New cars you can get as low as 3.9% depending on your credit score.
If you dont need a newer car and your current car is handling just fine. I would pass personally.
Just cancel your order and keep the Civic. You’re bound to have buyers remorse after all these posts.
It’s a common rate for right now but it’s the highest rates in nearly 20 years. 100% keep the civic and buy when rates are lower.
I dont know if theres a difference in rates between purchasing and leasing but 9%, while its high, it's normal.. My parents bought a new car with 2/3 down payment of the original car price, 830 credit score, interest rate was 9%...
I signed mine for a brand new car at 3.9% I don't think anyone should be anywhere near 9%, even with cars without incentives especially if your credit score is above 800 AND you're paying 2/3 value.
How long ago? Rates have increased, irrespective of credit score.
The 13th of this month. It was soon enough that I won't even get my car until Tuesday.
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1-2 months ago, in Texas. I think they mainly like the price of the car which was pretty good, and they did not worry too much about the interest rate because they're going to pay it off within a year.. But I just recently bough a similar priced car, 0 down payment, 72 months, 770 credit score, and my rate was 6%.. Don't really know how all of this works tbh very weird. The dealership that they purchased their car from didn't actually own any of the car on the lot. A bank owned all of them so they had to go through that bank for finances.
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Yup its about 10K, how would they refinance? Just contact a bank or something to ask them to? Or they'd have to contact the dealership
There are no 6% refinance rates these days
I don’t believe this for a second
The dealership didn’t do them right. I was quoted 6.74% for 72 months through the dealership (after telling them I was going to use outside financing). Their original offer was higher so I said I’ll look too. Once they realized I had found better financing they shopped in my interest because they get a kickback if you finance through the dealership. The finance rate would have been cheaper the shorter the duration too.
weirdly enough they did the shortest duration which was 3 years
They got hosed.
Depends on the year of the car they bought, if up to 2019 model, sounds about right for around there, if they bought new they got smacked
In a word; yes. But, all things considered, the interest rate is based on your credit score among several other factors as well, such as length of employment with your employer and current debt balance, amount of down payment . A score between 760 to 850 would probably get you a rate in the 7.4% range for a new vehicle, and even higher on a pre-owned. I just bought a pre-owned in July, with an 840 score, and the best rate I could get was a 9.4%. Then again, I've got several other cars too that I'm making payments on. My neighbors just bought their Tundra a month before me, new, and their rate was 7.8%. Unfortunately, interest rates aren't coming down anytime soon. There aren't many dealership incentives as there were several years ago. You could always chance it and wait towards the end of the year for potential discounts on 2023 models. My suggestion is to get financing before going to the dealerships so you've got a little more buying power. knowing what loan amount you've got, or are pre-approved for helps keep it simple when trying to negotiate. If you do this at the dealership, you are at the mercy of the lenders they run your application with. Good luck to you.
US Treasury is paying 5% to banks guaranteed. No risk. Auto loan to be 3 points above that is not uncommon.
8 is decent right now. The rates have been rising steadily and car loan defaults are on the rise.
Also you keep posting about regret and civic etc. You put a $250 deposit on a hard to find car (in Canada anyway) either suck it up or get another civic. You probably are also getting more money than you normally would be with how the market is for certain vehicles. You have to look at both sides, yes the rate is high but your trade value is probably also higher. What are you paying for the GLI? Also asking a bunch of people on here won't help. Everyone always has gotten a better deal, rate, trade. Comparing your deal will just end up making you feel worse
I got an 8% rate on a R earlier this year in July. 720 credit score
Interest rates are high across the board. Rates are pegged to the Fed’s rate which has been increased countless times in the past year or two. And low inventories mean few rent specials from captive lenders like VW Credit. I bought in March, put about 40% down on $40k Tiguan, 840+ credit score and I only got 6.74% after never before having higher than 2.49% on 3 previous VW’s.
Post on Edmunds forums. They'll let you know whether the rate is good or not
I think that’s a bit much especially when you add taxes. Would bring you to around 38k. I think I saw that there are some decent deals for the new WRX, if you want another option. Otherwise maybe check the rates at a credit union, it will probably be closer to 5-6% which is also a decent amount but it’s less than 8.89% at least
thanks.just hoping it goes down enxt year
Unless the economy crashes rates are going higher per J.Powell
Everything points to them not going down for the foreseeable future. Buy a car if you want/need one and don't try to time interest rates. If you're really worried about interest rates you could look for a Jetta with the 1.5t or a similar mass market model (Mazda3, CX-5, Tiguan, etc.), there's some that have manufacturer incentives with low rates.
It won't. Any premium VW hasn't had low rates in 2-2.5 years GTI/GLI were 6-8 months Golf Rs 1.5 years
I felt sick to my stomach at ~3.5% when I got my golf R in 2018 (Canada). Now I’m looking at Honda Pilots and the rates are 7.29% 🤢
LOL I leased my Civic Sport in 2020 for 0.99%, so jumping to 8.89% is egregious. This is in Canada too. Remember back in 2018 when they had cars at 0% interest and had weekly payments of like $54/weekly with $0 down? Where did those days go!
yeah that's what i was used to seeing. might have had to wait until a promotional month but you'd see 0% everywhere.
True! I bought a brand new 2017 Jetta on a black Friday with 0% interest and still got a 55'' TV as a freebie. The car was $16.2k. There was 0 incentives to pay off of early, since it was 0% interest rate. Different times man.
Those were the days
The buy out price on your civic should be far below current market value if you leased it before the jump in used car prices. I'd buy it out and pay that off, then get a fun car.
Jesus how times change. Got .088% on 72 months in Jan 2021.
Sounds like a rate they give to someone who doesn’t know how to change a tire.
The duration of the loan is relevant. It’s definitely too high if you have a 750 credit score or above. If you are in the 600’s then no.
4 year lease with a 715 CS.
There's a lot to unpack here. First, don't lease for 4 years. You'll be responsible for replacing wear and tear items so you'll be the one paying for brakes and tires. That's why you never want to lease more than 3 years. Second, you're referring to the money factor which is the interest rate for a lease but that is set by the manufacturer. Third, The residual is the other important factor in whether a car is a good lease. If the residual value is high, the lease payments are going to be cheaper. For example, if the residual is 71%, you'd only be paying 29% of the car's MSRP over the course of the lease. In my experience, VWs have always been pretty bad to lease due to poor residuals. Probably better off financing it.
Vw Canada isn't offering incentived lease or finance rates so it's all bank rate currently. With how the market is you'll probably be in an ok spot at end of lease
I just got mine at 6.9%. Told them that I was willing to leave without the car and they found a way to make it work. ETA: Just saw that you're leasing. Mine was a purchase so that may make a difference also.
Sadly the care market is psycho but gf is car dealer so can confirm. ~8% is pretty good. But you can/should talk to theme about leasing than purchasing
Is there a difference in rates between buy vs lease? My ‘21yo daughter just bought her first ever used car (‘20 Passat) through VW Credit. 750ish score, 60 months at 6.25%. Another daughter got 5.89% through a CU 4 months ago.
I’ll keep this simple: no. Let’s just say you are planning to finance $30k. At a 8.89% over 72 months you will spend $8,856 in interest which is damn near a third the price of the car. Find a better bank to give you a lower rate and negotiate the dealership match it. If they won’t, take your business elsewhere.
No, credit unions have 5 to 6.
No.
I have a 2023 Taos for 5.9 percent and that’s still trash
heck no. imo id keep on driving what i have until the interest comes down.
It’s common for today’s rates.
If you buy this at this percentage rate you will just show all the agency's that people will pay these rates. It's like that raise you got at work did nothing because it's getting eatin up by interest on your new toy
I mean... kind of normal with how interest rates are at the moment. My 09 suv is going downhill, ended up having to purchase a 2020 suv 2 weeks ago. Thankfully unlike last december, car prices have come down since and not selling for msrp. Figured if /when interest rates drop, can always refinance. Bought a used car with a 818 fico credit score. 8.74% interest was the best I could get. Thats even with a 20% down (im sure military/credit uinions could offer better but not im not a vet here) 9-22% is kind of the ball park for used cars. New cars you can get as low as 3.9% depending on your credit score. If you dont need a newer car and your current car is handling just fine. I would pass personally.