[evanseric21]

Hey,

I've seen interest rates mentioned in some of the other threads but couldn't find a recent one dedicated specifically to interest rates. What are you guys seeing out there?

BMW offered 6.29% for 60 months. Navy Federal is promoting 4.99% for 37-60 months and 5.29% for 61-72 months.

I was able to lock in a rate of 5.94% at 72 months with Navy Federal. They use TransUnion, and my score is 808 with minimal debt and only 1% credit utilization. Apparently, your credit score is taken into consideration, but they also have an internal scoring system and value your banking relationship. I only recently opened my account.

My wife also applied, and with her 849 TransUnion score and no debt, she received the same rate.

Before anyone comments on the 72-month term, I always make large down payments of $60k-$90k and finance for 72 months to have a lower car payment on the books. I paid off my last two vehicles in 48 months and saved on the interest.

[LDT]

evanseric21 In my experience last August Navy Federal had the best rates for sure. I could not find any better rate.

[Brendan///M]

Originally Posted by evanseric21

Hey,

I've seen interest rates mentioned in some of the other threads but couldn't find a recent one dedicated specifically to interest rates. What are you guys seeing out there?

BMW offered 6.29% for 60 months. Navy Federal is promoting 4.99% for 37-60 months and 5.29% for 61-72 months.

I was able to lock in a rate of 5.94% at 72 months with Navy Federal. They use TransUnion, and my score is 808 with minimal debt and only 1% credit utilization. Apparently, your credit score is taken into consideration, but they also have an internal scoring system and value your banking relationship. I only recently opened my account.

My wife also applied, and with her 849 TransUnion score and no debt, she received the same rate.

Before anyone comments on the 72-month term, I always make large down payments of $60k-$90k and finance for 72 months to have a lower car payment on the books. I paid off my last two vehicles in 48 months and saved on the interest.

Even with an 808 credit score, you are considered top tier, and would qualify for the same rates as someone with a perfect 850. Usually they consider anything over like 780 “excellent.” Did they say why you were not able to get the 5.29% advertised rate for that term? I am probably leasing mine again with BMWFS, locked at at .0021 money factor, equivalent to 5.04% APR.

[TurtleBoy]

Originally Posted by Brendan///M

Did they say why you were not able to get the 5.29% advertised rate for that term?.

Many, if not most, dealers mark up the buy rate 1%. Some you able to negotiate that away but others stick to it. Same for dealers marking up the MF.

[Brendan///M]

Originally Posted by TurtleBoy

Many, if not most, dealers make up the buy rate 1%.

Right, but he’s getting his own loan from Navy Federal.

[TurtleBoy]

Originally Posted by Brendan///M

Right, but he’s getting his own loan from Navy Federal.

BMW's is also 5.29% so thought your were referring to that.

[BobsM3Coupe]

Originally Posted by Brendan///M

Did they say why you were not able to get the 5.29% advertised rate for that term?

In order to get THE lowest finance rate with Navy Federal, you need to have been a member with them for a while with a banking history. And not just have the $5.00 deposit to open an account with them as history.
Otherwise they tack on another 0.5% or more onto their lowest rate.

[evanseric21]

Originally Posted by TurtleBoy

Many, if not most, dealers mark up the buy rate 1%. Some you able to negotiate that away but others stick to it. Same for dealers marking up the MF.

I forgot about that mark up. I'll run some numbers to see if it's worth trying to get them offer the 5.29% at 60 months.

[evanseric21]

Originally Posted by Brendan///M

Even with an 808 credit score, you are considered top tier, and would qualify for the same rates as someone with a perfect 850. Usually they consider anything over like 780 “excellent.” Did they say why you were not able to get the 5.29% advertised rate for that term? I am probably leasing mine again with BMWFS, locked at at .0021 money factor, equivalent to 5.04% APR.

Originally Posted by BobsM3Coupe

In order to get THE lowest finance rate with Navy Federal, you need to have been a member with them for a while with a banking history. And not just have the $5.00 deposit to open an account with them as history.
Otherwise they tack on another 0.5% or more onto their lowest rate.

Bob is right. Navy Federal wouldn't acknowledge this but did admit they have an internal score. I was told that only the underwriter has access to that internal score. When I went to pick up the check, the representative showed me how to pull up my score on the mobile app. Upon showing her my credit score and low utilization, she was surprised I didn't receive the advertised rate. I did some research and found that several folks on Reddit with good credit received the same 5.94% rate and were newer members.

Additionally, typically a score of 740-760 will qualify for the best advertised auto rates, and 760-780 will qualify you for the best mortgage rates. In the last 8 years, I have always received the lowest advertised rate, so I was initially surprised. We are buying my wife a GLE that should be here this week, and I had her apply as well. When she got the same rate, I knew there had to be more to it.

[swainbmw]

Originally Posted by Brendan///M

Even with an 808 credit score, you are considered top tier, and would qualify for the same rates as someone with a perfect 850. Usually they consider anything over like 780 “excellent.” Did they say why you were not able to get the 5.29% advertised rate for that term? I am probably leasing mine again with BMWFS, locked at at .0021 money factor, equivalent to 5.04% APR.

If you wanna know you’re getting a good deal on the lease take the purchase price times 1.5% if the payments under that with no money down that’s a great deal if it’s over that you’re paying too much

[TurtleBoy]

Originally Posted by swainbmw

If you wanna know you’re getting a good deal on the lease take the purchase price times 1.5% if the payments under that with no money down that’s a great deal if it’s over that you’re paying too much

That is a meaningless rule of thumb just the the 1% one. The only way to judge a lease is how you did to market in regards to the discount, MF, add-ons, etc.

[MADBMWX5MC]

Originally Posted by BobsM3Coupe

In order to get THE lowest finance rate with Navy Federal, you need to have been a member with them for a while with a banking history. And not just have the $5.00 deposit to open an account with them as history.
Otherwise they tack on another 0.5% or more onto their lowest rate.

Interesting comment, in Nov 23 I got their lowest rate by just opening a savings account with $10. How do I know? I asked them if would be penalized as a new member, which they stated "no". Maybe a 1 time exception? Who knows....I do have an exellent credit score and was not asking full price of vehicle, but about 50% in loan. Maybe that had something to do with it...

[evanseric21]

Originally Posted by MADBMWX5MC

Interesting comment, in Nov 23 I got their lowest rate by just opening a savings account with $10. How do I know? I asked them if would be penalized as a new member, which they stated "no". Maybe a 1 time exception? Who knows....I do have an exellent credit score and was not asking full price of vehicle, but about 50% in loan. Maybe that had something to do with it...

I set up a checking and savings account with them and financed only $46k on a $140k vehicle, and my credit score is over 800.

My wife also set up a checking and savings account and financed only $23k on a $90k vehicle, and her credit score is over 800.

Also, when applying for a car loan through Navy Federal, they don't ask for the vehicle's price, only the amount you are financing. During pre-approval, you don't even need to specify which vehicle you are purchasing; you only select whether it's new or used. Based on your credit score, the amount financed, and their internal scoring, they quote you a rate.

[MADBMWX5MC]

Yup, so this is a headscratcher, but it worked out for me. Thx

[TurtleBoy]

Originally Posted by MADBMWX5MC

Yup, so this is a headscratcher, but it worked out for me. Thx

Keep in mind, you only think you got the lowest rate because they told you that. Did you verify against the published rates?

[MADBMWX5MC]

^Yup sure did. Verified.

[TurtleBoy]

Originally Posted by MADBMWX5MC

^Yup sure did. Verified.

Okay, that is how you knew and not what you posted before.

Originally Posted by MADBMWX5MC

How do I know? I asked them if would be penalized as a new member, which they stated "no".

[MADBMWX5MC]

Sorry, I was not clear, after the loan officer stated I would not be penalized, I went back to their website to double check the loan rate, then asked to speak with the loan manager to confirm. All seems to track, so I executed the loan.

[SteVTEC]

Was offered 6.29% by BMWFS on a used/CPO MY22. I think I was offered 5.89% through USAA, but the dealership threw in a $500 rebate if we went through BMWFS, so went for that and pocketed the cash, as we're going to pay off the loan in the near term anyways. (did 50% DP)

[BobsM3Coupe]

Originally Posted by MADBMWX5MC

Interesting comment, in Nov 23 I got their lowest rate by just opening a savings account with $10. How do I know? I asked them if would be penalized as a new member, which they stated "no". Maybe a 1 time exception? Who knows....I do have an exellent credit score and was not asking full price of vehicle, but about 50% in loan. Maybe that had something to do with it...

NF's best loan rate back in 11/2023 was 5.19%. Amount and length didn't matter. If that's what you got, you did well.

[MADBMWX5MC]

Originally Posted by BobsM3Coupe

NF's best loan rate back in 11/2023 was 5.19%. Amount and length didn't matter. If that's what you got, you did well.

I do not know about 5.19%, I can only speak for what I got which was 4.99%...see screenshot below:

[evanseric21]

Originally Posted by MADBMWX5MC

I do not know about 5.19%, I can only speak for what I got which was 4.99%...see screenshot below:

Great rate for the current market, for sure! I plan to pay off the vehicle in a few years, as I always do, to save on interest. However, I would have loved to have a 4.99% rate. That 5.19% that Bob quoted might have been for a longer term. I see yours is for 60 months.