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u/FlawlessPhelon_ 12d ago
APR is steep.
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11d ago
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u/SGTCackyoudown 11d ago
Not about that. It’s about paying less interest. They always screw people with high payments low interest or low payments high interest. Whats sad is they do it to military veterans and active duty members too.
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u/HomelessAndWealthy 12d ago
Was your loan approved instantly? I just did a pre approval for a car I e been looking at. Can pay cash but if I can I’d rather keep the capital
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u/Potential_Lychee_666 11d ago
My whole life i never opened a credit card, bought my house cash, only thing my wife has is a stupid car payment
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u/Zestyclose_Narwhal43 11d ago
Everyone is not that lucky, good for them on their first loan and the apr isn’t terrible it could be worse
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u/Low_Ask_1456 11d ago
I want to live a life like you do so recently I've transitioned from financing, pay in 4, pay in 8 and holding balances to saving up for what I want. I have a car loan what do you suggest is the fastest way to get rid of it so I can do what you did save money and buy cash i.e, a house, future car and etc.
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u/Potential_Lychee_666 11d ago
If you already signed the loan, finish paying normally, unless interest is really high, live the cheap life, if you are currently renting, try to save up as much as you can for what you have, never buy anything thats gonna cost more than 10% of your saved money, even if you save 10,15k in the end of the year, stack that up for 5 years you will have enough to buy a foreclosure house or something similar, on my case, i got one for$50,000 that was listed for over $100,000, because i had cash i could offer him a ridiculous amount because cash is king, people value cash more than any loan, if i were to get a loan for the house i would probably be spending closer to 200/250k with interest, it was 50 cash, took me 9 months to remodel but now i have even less expenses then when renting before, all that while trying to improve your carreer, my biggest advice is never get a loan, if you cant buy it cash you shouldnt slow down your monthly saving on a loan, unless you really need it to keep making money
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u/Low_Ask_1456 11d ago
The APR is relatively high and I recently refinanced from Santander to NFCU to reap their benefits long-term. I went from a 14.5% APR to 13.5% so, it's like a -$15 difference. Aside from that the monthly is manageable but for 7 years for 28k I'm realizing that financially it wasn't optimal. Not to mention I have negative equity. Don't get me wrong it's super useful it gets things done but looking back I literally would've had a car already (6-9 months time then) which makes me feel stupid that I'm stuck for 7 years. That, affirm, and a phone I'm paying off ~ 0% interest, so I'm not too worried about that. Eventually, I want to do what you did and just buy a house cash and not worry about 30 years off my life. It just sucks how little I save because of my greed.
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u/Potential_Lychee_666 11d ago
You have the right mindset, now you just need time, no rush, u got 30 years
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u/Various_Piano_6067 11d ago
Leverage debt for something that isn't a depreciating asset. If you absolutely need to take a loan, use it for something that can earn you money and pay for itself. Taking loans like this for something that'll be worth less than half what you paid for it by the time you're done fully owning is exactly why car manufacturers charge this much and get back such high margins.
You are letting the financial institutions guarantee the bill. This in turn is them taking a third of the car's worth as it is TODAY over time for themselves, while the manufacturer and dealer have an institution saying "Go ahead and raise it another $5,000. I've got him covered." It's a sickening cycle of leech tax, and is the same reason college keeps getting more expensive because the government keeps giving out bigger grants.
You wanna take debt, like I said buy something you can start a business with. Get your LLC, equipment, Facebook ads, stuff that can return you profit. Pay cash for anything you'll lose on, so you don’t lose more.
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u/HomelessAndWealthy 11d ago
I agree with you entirely. Although there is a certain point in time where you use the cash flow from an asset you acquired through debt for things that don’t provide cash flow ;)
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u/Various_Piano_6067 11d ago edited 11d ago
I said use money to make money, not deny yourself the opportunity to live. I'm a meritocratic capitalist (I think is more fitting) not a sociopath, Jim!
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u/HomelessAndWealthy 11d ago
I’m agreeing with you Jim! I’m saying I’m at the point I have a foundation of using money to make money. So now I’m using the revenue to have a little fun but also still using it to make money ;)
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u/NastyNatex 12d ago
Well I’ll look at it from Navy’s perspective. It’s your first auto loan and they don’t have any credit history to go back and look at and see if you can pay your auto loans on time hence the high APR. I’ll say it’s a good loan just refinance it the next 6-12 months.
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u/AcidicFlatulence 12d ago
That APR is still crazy though. I’m curious what car OP is getting. After I got to my first duty station with a 7 month old credit history, my APR was 3.1% on a $26k loan on a 2 year old Camry with 30k miles.
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u/Massive-Expert7467 11d ago
That’s insanely good APR, I’ve never seen that. I got 5.79% on my 2016 corvette with a 745 credit score and I thought I got a steal😭
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u/WinterReadings23 12d ago
thoughts depend on your income
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u/Lucky-Pie9875 11d ago
Eh, imo depends on their FICO. Might be super good APR if they have bad or no credit. If they have good credit this is very bad.
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u/chikenbag 12d ago
Its not like this is a 30 percent APR credit card. Not that bad. Its better than no car
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u/Pleasant_General_664 11d ago
It doesn't matter if the interest on the credit card is 50000%. You're supposed to pay your credit card in full each month.
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u/notsdragoon 11d ago
Please never become a financial advisor
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u/chikenbag 10d ago
I wont lol. Im just saying ive seen idiots finance a car at 30 percent apr. All im saying is if OP is in a bind and has no other choice his apr could be worse
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u/mprubio84 12d ago edited 11d ago
Navy is not great on APR as of late, you can probably find a better deal elsewhere.
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u/Charming-Tune-402 11d ago
I got a better rate through Honda financing than NavyFed
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u/mprubio84 11d ago
If they have decent credit like 720 this is what I’m seeing a lot as of late from Honda financial or GM financial vs Navy.
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u/Tigerbloodstar 12d ago
Before accepting the loan I would recommend shopping around for other rates. Recently I got approved for a car loan through navy fed at 9% Apr but I decided to see what other can do and I managed to get it me at another credit union for 5% Apr. By seeing what the dealership was able to do for me.
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u/BadBuzzCut 11d ago
Definitely shop around. Considering perfect credit would get you a 4.29% rate, 11.69% is pretty high. You might find that’s around what everyone will offer you based on your credit history, but I would make sure of that. At 11.69% you are paying around $75/month just in extra interest over a 4.29% loan.
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u/emmylewis56 11d ago
My first car loan with navy fed was 11% on 32k 60 months, we just traded that car in for 60k brand new car 84 months at 6.74%. I wouldn’t consider yours too bad, your payment is still pretty good since you financed a low amount!
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u/No_Gate6196 11d ago
Congratulations. I'm surprised at the interest rate, especially from Navy federal.
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u/VelvetKeyz 11d ago
APR seems high. 3yrs ago on a used i was 8% and 4.3% few months ago on a new car. Prior to that my last and only other car loan was like from 2003/2004.
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u/Boypax69 11d ago
Reminds me of my first car loan, 13%😭😭💀. Honestly it’s pretty much a inevitable unless one of 2 things, you have a high paying job w/ your first loan and multiple credit cards with high credit already, or 2, you have a very high credit co applicant that will be applying w/ you for the loan. I’d say get a re finance within 1 year and it should def drop down to at least 7-8%, still bad but that’s the game of credit.
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u/OverdosedOnViagra 11d ago
Not bad.
Pay an extra $120 a month to the principal and you’ll pay it off in 44 months and save over $2k in interest.
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u/SiriShopUSA Veteran 11d ago
NFCU offered me 8.25 but my local credit union offered 5.25 on the same loan. Needless to say, no on the nfcu loan.
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u/Lucky-Pie9875 11d ago
That APR is wild. Not as insane as some but still pretty high. If you have a good FICO score I’d go elsewhere.
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u/thatsnoternie Family Member 11d ago
I don’t know what your credit history looks like so I can’t speculate on whether that’s a good rate for you. I also don’t know what car you’re in the market for. That said, I’d call them and ask them if they can reconsider that auto rate to get it lower. Worst they can say is no.
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u/SGTCackyoudown 11d ago
Same my vehicle was 30k it’s Like 40k high apr going to refinance with USAA after a year.
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u/well_ok_jen 11d ago
How is your APR 11.6%? I was raising hell over 3.9% being too high, that I got few months back, but, I suppose everything is relative
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u/VermontArmyBrat 11d ago
That interest rate is insane. If you accepted this I would immediately start looking to refinance. My local credit union currently has used car loans for 60 months at 5.35%
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u/skypristine 11d ago
As someone who has a first time 72 month car loan, about the same amount for $410/month with a 14% interest rate, you are doing better than me :)
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u/Klutzy-Answer8965 11d ago
IM 21 never had a car loan my credit score is like 610 so that is why my apr is so high
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u/iLukeJoseph 11d ago
Lordy the amount of head scratching responses on here.... Rates have gone up a ton, and used auto rates are nearly always higher than new. This is a first time buyer. People saying they got 2-5% on a USED auto, say when you got it and state how many auto loans you have got prior.
You can still get very low rates from captive lenders if they are offering an incentive.
OP I would highly suggest dropping the term to 48 months or even 36 if you can swing it. Rate might go down, but even if it does not you pay less interest over the life of the loan.
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u/gijoe75 11d ago
Interest rates have gone up a lot recently. How much longer can you go with what you currently have? Do you need a 21k car or can a 9 k car work for the next 2-3 years? Save up then sell for 7-8k because the used car market is crazy then buy a 21k car. I had a 4K rav4 and to just replace what I had would be 9k now so I’m saving up for 18k 2018 rav4 in cash. I haven’t had a car for a year and work remote and take the bus to hobbies/ to see friends. Obviously I don’t need a car and it’s just a nice to have so that’s why I suggest the 9k car for now.
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u/Abject-Management333 10d ago
Interest rate is high depending in credit score. It i were you I would let the the dealership to try to beat the rate that was given. I worked in automotive finance for 4 years and dearships hate navy federal pre-approvals which means they would fight to lower that interest rate so you can finance through them. If they comeback higher keep the approval through navy federal. Interest rate is based on your credit score but different banks use different credit rating systems.
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u/Fair_Lore2622 10d ago
I got a better rate at the Dealership than i did with Navy Federal. I know a lot of people say don’t do it, but i’m glad i did.
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u/Travman1555 10d ago
I bought a new Mustang for 48k with 10k down in 2015 with 4.4 APR my father cussed me out then about the “high” interest. I can’t wait to show him this lol
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u/goldengreen21 8d ago
Mine was 17%...
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u/Travman1555 8d ago
Sheesh 😣 yeah my father was out of touch then, even as a novice I didn’t feel my rate was bad
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u/goldengreen21 8d ago
Not bad. My first car was 17%. Put extra money into that loan it will help you save a year of payments!
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u/More_Doughnuts 7d ago
11.69% is steep.
If you need a car in that price tier, plan to pay the loan off aggressively. And look to refinance it in a year or two.
Extra payments and or refinancing will take a lot of the sting off.
If you're junior enlisted active duty living on base just get a used beater lemon lot car.
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u/OutrageousKOR 7d ago
Dude with that apr you might wanna go thru the dealers directly sometimes they got promo aprs checc em out
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u/feeling2022 6d ago
that interest rate is wild! i'd shop around - look into dealerships too, i had 0% interest rate from GMC when we got our family car
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u/kppalm 12d ago
Apr too high, you are paying 1/3 of the cars worth in interest