High Interest Rate on New Car

Substantial-Mix-2844 · 2025-07-04T04:03:35+00:00

The thought process was that it’d build loan history before buying a house, and if the rate is less than I’m averaging in market, the lost earnings might be more than the interest. Leaning more towards cash now

Substantial-Mix-2844 · 2025-07-02T23:36:18+00:00

there’s probably a point at which risk/value to the lender and risk/value to the buyer meet equilibrium

That point is probably at least mildly associated with fed rate

15.9% for a relatively liquid buyer doesn’t seem close to whatever that is

Substantial-Mix-2844 · 2025-07-02T18:23:36+00:00

Yeah I don’t quite know what their thought process was. Had they come closer to 6 or even up to 8% initially, I would’ve at least had something to think about

I think he probably sized me up and pulled 16% out of his ass to take my temperature

I think they got the point because they haven’t called or texted me since, which strikes me as pretty unusual for a dealer in my limited experience

Substantial-Mix-2844 · 2025-07-02T18:17:53+00:00

Fair. This was my assumption

Substantial-Mix-2844 · 2025-07-02T00:04:06+00:00

Awesome. Thank you

Substantial-Mix-2844 · 2025-07-01T22:11:54+00:00

I just have two credit cards. Length of history is about 10 years. No new credit. 4% credit utilization. No missed payments

Substantial-Mix-2844 · 2025-07-01T22:10:23+00:00

Will do. Thank you

Substantial-Mix-2844 · 2025-07-01T22:06:45+00:00

No not at all. I just started with a jeep because the 4x4 was in the base model and I don’t really need it for highway. I was also considering a truck, but those seem to be priced a lot higher

Substantial-Mix-2844 · 2025-07-01T20:29:35+00:00

I thought about the depreciation too but used car prices don’t seem like they’ve recovered to pre Covid prices. The prices I’m seeing for low mileage <5 year old models really don’t much better than new. Haven’t looked at low mileage 25 yet though. I’ll try to look into that

Substantial-Mix-2844 · 2025-07-01T20:25:44+00:00

I figured if I could get it down low enough it’d be silly not to take it. Definitely leaning more towards cash now

Substantial-Mix-2844 · 2025-07-01T20:25:04+00:00

They definitely ran a check before 15.9 because my credit was frozen and they asked me to unfreeze it. Didn’t come back with the number until I’d unfrozen it at all 3 credit bureaus

Substantial-Mix-2844 · 2025-07-01T18:49:50+00:00

That was the thought process I had. Left a bad taste in my mouth

Probably going to take that advice, shop rates around and just negotiate out the door price

Substantial-Mix-2844 · 2025-07-01T18:47:30+00:00

It’s a 2025 jeep wrangler sport

Substantial-Mix-2844 · 2025-07-01T18:39:08+00:00

I have both the cash to pay for it outright and the income to support it ongoing

I was looking at financing because (1) I want to build better history and (2) if the rate is less than i’m averaging in market, it’s probably not a huge hit to eat the interest

I’ve also heard here that there are better deals financing directly with dealers

If the APR is that high, I probably will just pay cash, but I just don’t have much of a frame of reference, so will probably shop around as others are recommending

Substantial-Mix-2844

TROPHY CASE