What did you pay for your FL5?

[Jflorio]

Utilize a credit union for your auto loan. Cheaper rates almost 100% of the time. You have to be a member but it cost like $25 to open a checking or savings account.

I originally had 60 month terms locked in at 2.3% but it jumped to 3.3% 1 December. Still better than any bank or Honda financing.

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[Geezer]

How do you have 3% The lowest rate is like 5% lol

Credit union rates

 

[Rhorn]

Credit union rates

I don't think thats how it works. Now Im not saying Im an expert on this, however when I was looking at the local credit union the lowest was 5% which is the same rate as my other two banks (Bank of America and USAA). My FICO credit score has been 798 consistently so its not like I have bad credit. So I honestly have no idea how you are able to get such a low rate, am I doing something wrong?

Is there a website that you can view which banks/credit unions have the lowest rates? I thought the interest rate was the same for all loans, like homebuying/auto loan etc.. so its whatever that is set by the Federal Reserve.

 

[HustedDrums]

I don't think thats how it works. Now Im not saying Im an expert on this, however when I was looking at the local credit union the lowest was 5% which is the same rate as my other two banks (Bank of America and USAA). My FICO credit score has been 798 consistently so its not like I have bad credit. So I honestly have no idea how you are able to get such a low rate, am I doing something wrong?

Is there a website that you can view which banks/credit unions have the lowest rates? I thought the interest rate was the same for all loans, like homebuying/auto loan etc.. so its whatever that is set by the Federal Reserve.

I work for a dealer selling cars. Even with 800 credit score, you are still looking at a 4-6% interest rate due to inflation and FEDs raising the rates to slow down spending. 4 percent would assume a credit union, or if you are buying a car from a manufacturer that offers low financing rates. You'll never find anything below 4% with the market conditions we are in right now. Unfortunately, that's just how the story goes until next year.

 

[Clark_Kent]

I don't think thats how it works. Now Im not saying Im an expert on this, however when I was looking at the local credit union the lowest was 5% which is the same rate as my other two banks (Bank of America and USAA). My FICO credit score has been 798 consistently so its not like I have bad credit. So I honestly have no idea how you are able to get such a low rate, am I doing something wrong?

Is there a website that you can view which banks/credit unions have the lowest rates? I thought the interest rate was the same for all loans, like homebuying/auto loan etc.. so its whatever that is set by the Federal Reserve.

Yes, you're doing something wrong. Not all credit unions are created equal, just like all banks are not the same. The rates, products, services, and fee schedules differ by institution. There are credit unions all over the country with excellent rates, you simply have to seek them out. Some have strict membership requirements, some do not. Even in the current environment, if you're paying >5% for an auto loan and you have Tier 1 credit you're getting hosed.

 

[Clark_Kent]

Here's a freebie. Happy Holidays!

https://www.towerfcu.org/borrow/loan-rates/#auto-loan-rates

 

[HustedDrums]

A few things I just wanted to note on before I talk about the subject, I work for a dealer selling cars. To keep a very long story short, I had and then sold my 2021 Type-R in Championship White. I loved that car and I made lots of memories with it. Some good, some bad. The timing just seemed right to sell it. I purchased this car honestly - just to get it out of my system. I was a fanboy of this car even once it was just released. I studied this cars resale value, and I just knew that I could get out whenever I wanted to and not lose my head. That is the only way it was justifiable for me to purchase this car.

My finances are very important to me. I used to struggle with credit card debt years ago. Years later, I am credit card debt free now. I pay off my balance immediately and only use it to get points/cash back. It is very hard for me now to have a high car payment, and to justify if it is worth it. I strongly disliked how the FL5 looked upon release - after seeing a boost blue in person, I really like it. Looks very mature now.

I have always wanted the boost blue color. I honestly settled on the white. I knew white would be easy to keep clean, but it is not and was not my first choice. It was the perfect storm. Chip shortage, Paid on it for a little over a year and a half, Equity just kept building up fast...I drove the car every single day, 22k miles on it, and I sold it for more than I bought it new. I just couldn't pass it up. Winter was coming, and I didn't want to continue to drive it in the winter. It is too risky for me and I did not really WANT to drive this car in the winter.

It was slowly just becoming a car to me over time. There were certain things that bothered me about the car...2nd gear grind, the way it had less power when it was really hot in the summer. My brembo brakes clear coat started peeling. Honda replaced them and covered the cost of that though, which was very nice of them.

I am not a homeowner, I rent an apartment because it is so cheap and the housing market is a mess. I hated that I had to leave this car outside in the elements. It was time for me to be an adult (29 years young). I thought I would miss the car more than I do. I still do not regret my decision to do what was best for me and my finances. Financial stability makes me happier than that car did.

I realized that I love the Type-R, but there were certain things going into it that I did not know at the time that made me not like driving it. Boy, overall, the car was very fun to drive. Handled well, took whatever corner you throw it at. I did not like the attention from strangers. I could not go to the gas station without someone striking up a conversation about the car. Which, isn't a bad thing. But I am an introvert - mostly. I am always on the go, have things going on. I couldn't stop and talk about the car for 20 minutes when there are people waiting for me.

I also found out that I do not like the car community- as a whole. Maybe it's just my area, but everything is so toxic anymore. Everyone just talks crap about everyone else's car instead of just enjoying what's in front of you. Going to car shows was not fun for me. I love cars, always have and always will. But you know what they say, sometimes it's best to not meet your heroes.

I know I got off track, but some of your guys comments reminded me why I got rid of my car. At the end of the day, whatever someone wants to spend their money on - who cares man. It's not my place to tell someone how to spend their money. If you're buying a Type-R over list price, odds are, you only want that car. You are not cross shopping other cars, other brands. I don't want a BMW for $70k, I want the Type-R. I don't wanna be told what I can buy, can have. Trust me, people know what they want and what they are getting for the money.

I will not pay 15-20k over what a car is worth and listed at - and that's okay. Everyone has their threshold of what's acceptable, and what's not. All things considering, thanks for the read and I wish you all the best of luck on securing a FL5. It really is a pretty car once you see it in person.

 

[Geezer]

Couple CUs in my area:

 

[Geezer]

I work for a dealer selling cars. Even with 800 credit score, you are still looking at a 4-6% interest rate due to inflation and FEDs raising the rates to slow down spending. 4 percent would assume a credit union, or if you are buying a car from a manufacturer that offers low financing rates. You'll never find anything below 4% with the market conditions we are in right now. Unfortunately, that's just how the story goes until next year.

Things are different on the indirect lending side you see where big banks have to contend with higher cost of funds. Independent credit unions don't have to pay the taxes of the big banks/don't have the expenses/don't have the need to make share holders happy through profitability. All of the above usually lead to lower rates.

 

[Jaferm]

Things are different on the indirect lending side you see where big banks have to contend with higher cost of funds. Independent credit unions don't have to pay the taxes of the big banks/don't have the expenses/don't have the need to make share holders happy through profitability. All of the above usually lead to lower rates.

Yep, exactly. Some Honda dealers are not accepting outside financing to increase the amount they make on these cars. If you have a dealer that does not mind I would 100% shop around. I'm locked in at 2.875 and thankfully my local CU keeps you pre-approved for 90 days. These are the current rates they have (increased about .5% a few days ago)

 

[Clark_Kent]

Yep, exactly. Some Honda dealers are not accepting outside financing to increase the amount they make on these cars. If you have a dealer that does not mind I would 100% shop around. I'm locked in at 2.875 and thankfully my local CU keeps you pre-approved for 90 days. These are the current rates they have (increased about .5% a few days ago)

A 90-day preapproval is incredibly generous (for you) and risky (for them). A financial institution I'm working with provided their preapproval timeline; however, after probing on what that means, they mentioned the rate could change (re: increase) if the loan is funded after month end. They change rates on the first of every month so the current interest rate on the preapproval will revert to the prevailing rate. It may be worth asking more about what the preapproval means with respect to rate and term. At worst there's too much interest rate risk exposure for them to allow for a 90 day preapproval in this environment or sub optimal balance sheet management at the very least. FYI - The next FOMC meeting is on December 13-14 and I expect another rate hike.

 

[Rhorn]

Here's a freebie. Happy Holidays!

https://www.towerfcu.org/borrow/loan-rates/#auto-loan-rates

Hmm. I just applied so we'll see what happens.

Im not a member and it looks like it'll cost me a total of $60 to open up an account. My current interest rate is 5.01% with Bank of America and its pretty much the lowest you can get unless you are a preferred rewards member (which I was until I got my Mustang ?) So we will see

 

[CTR39322]

I’ve always used my job‘s credit union for my car purchases. Currently my 21 CTR is at 1.49%, I went in for a pre approval for a FL5, they will only finance based on MSRP. When I told this lady that there were people paying 20k over MSRP for this car, she almost fell off her chair.

 

[CyberCTR]

Just secured a RR for 60k OTD without accessories. Not extremely happy about the price, but it was the highest I would go. I plan to have it for a long long time so it’s easier to swallow. They wanted more initially but I got it marked down 5k.

I do have to have it transported to me because I got it from a dealer in upstate New York. So that will add another 1500$ most likely.

Glad to finally have one locked down. Hopefully it gets here soon!

 

[Jflorio]

I work for a dealer selling cars. Even with 800 credit score, you are still looking at a 4-6% interest rate due to inflation and FEDs raising the rates to slow down spending. 4 percent would assume a credit union, or if you are buying a car from a manufacturer that offers low financing rates. You'll never find anything below 4% with the market conditions we are in right now. Unfortunately, that's just how the story goes until next year.

Guess it depends on the part of the country. I’m in SC and I was locked at 2.3 until 1 December. Currently at 3.3, so under 4% is definitely possible. If you live in a metropolitan area I’m sure the rates will be higher.

Additionally, my sales tax is capped at $500 and I don’t pay personal property tax on vehicles because I’m military. Makes paying a $10k ADM tolerable ?

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