bulkychipmonk

Same for me and will have made 3 payments by the time I pick my car up.

Navy Federal give you 90 days to make the purchase, because they want the title details within that timeframe. If you don’t, they can default you to a higher rate. I was very worried about this, so I called them and explained the delays with the car coming from Europe. They were very understanding and told me not to worry until I get the third mail notice, at which point I should call them again and it shouldn’t be an issue. I did receive my second notice a few weeks ago, which stated that I have another 60 days from the notice date (Essentially November 8). Given that I got my loan in July, you can see that the 90 days isn’t actually accurate (it’s a lot more). I completed all the paperwork on my car last week, so everything should be in good order before I even get the third notice, which I assume would give me even more time.

YMMV, and other institutions work differently I’m sure, but if you can, be proactive and apply sooner rather than later.

Chonson

I just refinanced with a local credit union at 2.49% for 60 months. They could have done 2.19%, but that would have required jumping through some hoops (opening a credit card, setting up a direct deposit etc) and would have been a 36 month term.

Xxyion

what credit union? Lowest i've found is 3.99% for 60 months,

Chonson

Member's Choice in Houston.

TXRubicon

Their new car rates are higher than refinance rates. I just checked and closed with Wellby here in Houston

https://www.mccu.com/access/consumer-loan-rates

Chonson

They beat my existing rate of 3.49% by 1% - that's how I was able to get 2.49% for 60 months.

usctrojanGT3

Can someone out of state join too?

Chonson

I'm not sure how loose they are with the membership criteria, but their website says you can join as long as you "live, work, go to school, worship, or do business" in one of their serviced zip codes.

Quadcammer

1.9% without buying down the rate? That is very hard to believe

MaddMike

Well, believe what you will. No buy down but I did finance 15 years instead of 30 which came to about $1000 more per month but house will be paid off by the time my baby is in college.

DreiPedals

I just applied for 3.8% for 72 mos at Affinity, for what its worth. Doesn't seem much better than that quickly available.

Xxyion

So i've seen some people say that sometimes the dealership will throw in some benefit if you finance with Porsche Financing. Whats the reason behind this? Do dealerships make money if Porsche does the financing? I'm curious what the incentive is for Dealerships to get someone to finance with PFS.

DreiPedals

There are perks (read; kick-backs, or favoritism in future) for dealerships that get customers to sign up for in-house financing. Think about this, even if a separate bank underwrites the PFS loans, there is interest (i.e., MONEY) to be made on car notes. So PFS gets additional 'profit' on the sale, the dealership looks good to Big-P for steering clients towards yet another internal profit center, and the customer still pays interest on a car loan. To the customer, if rates are identical, it makes no difference. But the dealer likely gets volumetric incentives based on how many take the in-house loan. So it can be beneficial to the dealer to get you to take it, if rates match it costs you nothing; and might make dealership happier to put closer to the the top of a future orders list.

If dealer will match Affinity for me at pickup, I'll likely take their loan simply for relationship purposes.

Xxyion

Ah that makes sense. I was going to see if my dealership would be willing to reduce the ADM if i both go with PFS as well as buy their extended warranty package. And then the plan is to re-finance within 6 months to get a lower rate elsewhere. If they reduce my ADM by 10k it would be totally worth it for me.

DreiPedals

That would seem to be a smart approach. If they can come close to your bank rate at all, the savings would be well worth it, if the rates are far apart you may have more math to be done (will get to this later). I'm on a very favorable purchase deal, so I don't think that taking the PFS loan will move the needle at all for my specifics, but again, if they'll match my rate I'll gladly take their loan.

I'm normally in line with you on the 'take the dealer rate for a short term, whether for ADM or relationship preservation reasons, then re-fi through my preferred institution in a few months' plan. But right now I'm a bit cold-feet on that. Just think what your rate to refinance an auto loan would have looked like 6 months ago when compared to today. If you take the dealers financing, there's a chance that rates just keep climbing and climbing and in 6 months you're not able to beat it on a re-fi note. Just food for thought, and everyones case and appetite will be different for the gamesmanship that needs to be played. Find the terms that work best for you and be happy if they're workable. Good luck!