Auto Loan

MarkG · December 4, 2002

I am wanting to trade up to a bigger truck that I have been eyeing, but I have to make it appealing to the wife. Most banks I have talked to have quoted 7.24% for 72 months. I did see that PeopleFirst.com is offering 6.20% for 72 months. Any better deals out there?

It is a used truck that I am looking at, 2001 GMC Z71.

Thanks for the help

Mark

December 4, 2002

Check out www.carbuyingtips.com

There's a lot of info on there about loans as well as ggod advice on car buying strategies.

sunnydude · December 4, 2002

I just did a complete changeover of vehicles and checked with peoplefirst and also with Wells Fargo Online. Wells Fargo Online had a 60month at 5.14% and i extended out to 72 for 6.09% with no down (assuming good credit). They blew the doors off my credit union which usually has a better rate. Good luck. It would be nice to take advantage of the rebate that is out there $2000, I sure enjoyed it! Traded in my 00 1500 LT for an 03 2500HD LT.

Good luck

Larry · December 6, 2002

For the fun of it, you might want to run some numbers on a new truck at 0% interest. You may find your payments may be close to the same amount or a tad bit more but you would be the proud owner new GM truck even if they are butt ugly. I believe GMAC still has 0% for 36 months and slightly higher rates for 48, and 60 month terms. Call me a tight wad, but a 72 months term (6 years) on a USED 2001 truck is way out of line in my opinion and you will most likely be financially upside down in it until at least 2006 even at a 5% interest rate. That means you will be stuck with it and will not be able to sell it or trade it without taking it in the shorts.

You will always pay a higher interest rate on used vehicles apposed to new. The down side about the 0% interest rate deal is qualifying. Unfortunately, I have heard many people comment that getting approved for GMAC’s 0% is very difficult. I have a 02’ Taco Z71 at 0% for 60 months through GMAC as well as a 01’ Silverado HD at .9% for 48 months through GMAC. I have always felt that if I had to make payments for more than 4 years on a vehicle, I shouldn’t buy it because I can’t afford it. Granted, I have a Taco on a 5-year term but it is at 0% interest and I bought it under GM employee discount so the payments are slightly north of $500 and I can earn interest on the money I am saving…. not much but better than none. The 0% GMAC interest rate is basically like free money and I am only paying principle with no interest. Just think if you could buy a house at 0% interest. Tttthat would be cool Beavis!