Good morning everyone! As most of you may know by now I am seriously considering upgrading to an IS500 but one of the main things holding me back is these damn interest rates. I have a 2.49% APR for 48 months through Lexus Financial Services (LFS) for my 2022 IS350 and even that I considered high. The current market has new car rates higher than used car rates pre-COVID. Last I heard, LFS was right around 8% for an IS500 which is absurd. The lowest I've been able to find is 2.99% for 48 months through my credit union but it's a bit suspicious because the next closest rate I've found is upwards of 5%, so I fear it's a bait and switch. Ideally I'd prefer LFS so I can use my $1000 grad discount and since their payment portal is a breeze, but I won't let them stick it to me over convenience. Therefore, I would love to hear your experiences on what you guys have managed to secure. I understand not everyone is comfortable posting financial aspects of their deals so please only post if you're comfortable.

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Following.

 

OP - Another thing to keep in mind is if your Credit Union changes the 48 months rate, try and get them to commit to 24 months. I know you make aggressive payments so even 24 months may not be fully required

 

I would take 2.99% and throw the cash you could've spent to pay it off (if you have a lot) into a CD or high yield savings which is anywhere from 3.5-5%. You'd be beating your own car loan. Rates are great for savers right now.

 

That is not as ideal when you only have the cash available as you go along. I agree that if one has cash available, one could potentially make a but more. I just like don't dealing with loans and debt so I just take from my savind repay myself but everyone is different. I has some cash in a low yielding saving account as a slush fund so that was not giving me much

 

Mine was pretty bad. I think if you get it under 7% you are doing well. I'll just leave it at that because I am not exactly a finance guru and don't know how it all works. But I even asked in another thread what the lease and finance rates looked like, and 7% for a new car is sadly pretty common.

 

When I picked up my loan (Nov 22), my extremely local CU blew everyone out of the water, with 2.5% of up to 60 months. Lexus/Toyota was offering over double %, with NFCU coming in just below Lexus/Toyota. For context, they're (my CU) offering 4% of up to 60 months now. Rates suck now for everyone, but you may save via overall price now, as you've found out recently.

Either way, BUY THE DAMN CAR. DO IT, YOU WON'T

 

I would grab a local credit union account and see where they are at. Chase has some aggresive rates i just got 5.76 on mine but you would have to make sure the dealer works with chase. Anything under 7% currently is a very good rate.

 

Hello TipsyTonio!!

Love reading your posts, hope this helps for you to make a decision as I know your 90% ready to make that Jump.

The Rates are DRASTICALLY Different than they were just 2 years ago, I'm Executive Lending Officer for a Mortgage Bank, so rates (although not AUTO Loan Rates) are my business and what I deal with on a Daily Basis.

If you're able to get sub 3% in Today's Market for anything over 3 Years that's pretty damn solid. Bankrate.com is a Aggregator Site where Top Lenders will advertise their BEST Rate/Offer for A tier qualified clients (Obviously this doesn't include all local Credit Unions, Brokers etc) but if you can get a offer that is matching or beating the best rates advertised here, you're doing better than the market on your Auto Loan.

https://www.bankrate.com/loans/auto-loans/rates/

I purchased my LE in 12/2021 and got 1.94% for 6 Years w/ my Lender based upon my Banking Relationship, but this is 2 years ago before the Fed Started raising rates.

All the Best!

 

lol don't forget, it's still just a car. And as much as we would hate to admit it, these will be for sale as used cars imminently. So my advice would be to be reasonable and recognize that buying an IS 500 is not the end-all-be-all. Point taken, it's a better time to buy one now than it was just a few months ago.

 

Lol of course. From everything I can gather from his posts, he is very well informed financially and won't let my childish taunting affect his decision, even if it is the right one 😈

 

I see you’re from NJ, mind messaging me the CU you used to purchase your car? Trying to find the best rate possible.

 

You know me all too well lol. In 2 months I will have finished my 48 month loan on the 350 in under a year and a half, so I would hit the 500 equally as hard. They do have a 36 month loan at 2.49% but I like the flexibility of not being able to skip a payment because I'm so far ahead, on months that my expenses are higher because I went on vacation. I fear that a lower term would essentially force me to make the payment.
I agree with the mentality and it makes total sense. Unfortunately as wthrman pointed out, I have savings, but not enough to pay the car outright. So money for the car would constantly be flowing in and out of the HYSA.
I'm trying man! But I can't let the Finance Manager get my from behind without lube!
Thanks for the compliment and the feedback. You got a great loan back in 2021. Half a percent loan than me with a 2 year longer term. If only we were still in those times lol.

Bingo, this is what my mind is fighting my heart on. My heart would've bought the car months ago. But my financially educated side can't justify high rates, taking the L on my trade, and a higher MSRP all costing me just shy of $30k in debt when I will be debt free in 2 months. Plus an extra $800 in insurance every 6 months (f*** you Allstate). Plus I keep telling myself that once my car payment is done I can start dumping money into mods. First on the list: the carbon fiber mirror caps.
Aww you're making me all warm and fuzzy inside lmao

 

You know what would really make you feel warm and fuzzy inside? A V8

 

*Cries in poor*