Hi all,

This is my first time buying a new car and financing it, so I was looking for some advice. First, what is a good interest rate? I can get a 4-year loan for 3.5% through my work credit union becuase there is a discount for vehicles they consider "environment friendly" and the mini qualifies. Is that a good rate? I think it is but am not sure.

Second, how do you deal with the financing. Do I close the deal when I order or when I take delivery?

Thanks!

 

That is actually fantastic!

Others will answer the other part I'm sure.

 

3.5 for 4 years is excellent. Here's a list of the national average: http://autos.yahoo.com/finance/

You must have a excellent credit rating.

Did you or are you planning to order your MINI? Since you're getting financing on your own, ask your credit union how long the loan check is valid once you get approved. When I was shopping around for a loan, Capital One was 30 days.

I believe the time it takes from placing your order to delivery could be anywhere from 1-2 months. So I would start the loan process once I get a production number and production of your car commences.

 

Three point five!!! Wow! I could only dream of getting an interest rate that low, take it and run before the realize they made a mistake...
Ask your credit union how long it takes for them to cut a check once its approved and how long its good for.
My credit union said loan approvals were good for 30 days and once the check is cut the timer is running for your first payment.
If your credit is that good I would wait till the MINI arrives at the VDC then have the credit union cut your check.
Its all about timing and the wait for a MINI doesn't make it easy.

 

Yes 3.5 is fantastic. If you don't feel like 48 months is enough time to finance I would suggest Pentagon Federal Credit Union. They offer at 4.5 (which is still low) and for longer financing lengths.

But if 48 months is good for you I'd say run with it also. That's an execellent rate!

 

Thanks all!

You are all right, the 30 day clock does tick. I guess I will use the pre-authorization to order the car and then just re-apply for the loan just before taking delivery. They said the rate will be the same.

I am lucky(even though I have good credit) -- my credit union doesn't vary the rate by credit score. You either are approved or not for one rate that everyone gets (4.5%). They then take a point off for the "green vehicle" which gets me to 3.5%.

I think I am just fortunate because I work at the World Bank, and the credit union is both limited to employees and really focused on social/environmental goods -- thus the green discount! I'm gonna roll with it and order my Mini next week!

 

Yes 3.5% is the lowest interest rate I have seen and that is a wise decision to go for it

 

0% APR for 60 months.

But you have to buy a Hummer.

3.5% is great!

We got 4.54% in March and thought we'd done well.

 

Nice, that's a great rate. I got 4.99% which is the lowest my CU offers and is lower than anything else around here. I'm happy with it, especially since I'm fresh out of college and I don't have a co-signer.

 

 

I got 3.5% with a credit union as well. Of course, I only did a 36 month term...

Definitely jump on it - every other way I looked it was 5% or higher.

 

I'm pretty sure any of the large SUV manufacturers will give you 0% for life plus gas.