Can’t apply for loan with Chase

[reininop]

You aren’t likely to get a loan less than 6.5% through chase right now. You’re probably wasting your time pursuing it.

With the fed rate at 5.25 - 5.5% range, you aren’t going to see too many sub 5 offers. I don’t know how credit unions are doing it without losing money.

As someone else mentioned there is an entire thread on credit union options. I locked mine in yesterday at 3.99%. The sub 3% loan doesn’t exist unless a dealership is buying down the rate (and charging you for it in the car price).

 

[HitchHiker71]

You aren’t likely to get a loan less than 6.5% through chase right now. You’re probably wasting your time pursuing it.

With the fed rate at 5.25 - 5.5% range, you aren’t going to see too many sub 5 offers. I don’t know how credit unions are doing it without losing money.

As someone else mentioned there is an entire thread on credit union options. I locked mine in yesterday at 3.99%. The sub 3% loan doesn’t exist unless a dealership is buying down the rate (and charging you for it in the car price).

The Fed Funds rate is the rate at which banks can borrow from other banks for overnight loans to meet capital requirements. The discount rate is the rate at which the banks can borrow collateralized monies from the lender of last resort (the Fed itself). While loan rates typically correlate at some rate above the prevalent Fed funds rate - this isn't required really. If the bank has deposits on hand and wishes to lend against those deposits - then the spread between the set deposit rates and the loan rates is what the bank will care most about. This decision has little to nothing to do with the Fed Funds rate in other words.

 

[reininop]

The Fed Funds rate is the rate at which banks can borrow from other banks for overnight loans to meet capital requirements. The discount rate is the rate at which the banks can borrow collateralized monies from the lender of last resort (the Fed itself). While loan rates typically correlate at some rate above the prevalent Fed funds rate - this isn't required really. If the bank has deposits on hand and wishes to lend against those deposits - then the spread between the set deposit rates and the loan rates is what the bank will care most about. This decision has little to nothing to do with the Fed Funds rate in other words.

I get that in theory, but in reality it doesn’t much sense to make 5 year plus car loans at rate less than the 5 year and 10 year treasury notes if you’re a bank outside of doing a service to your members.

Credit unions exist to serve their members so they can more likely get away with looking at their deposit rates vs lending rates and offer lower than the fed fund rates for certain products, but a bank never will. Hence, it’s not in Chase’s best financial interest to ever offer much better than prime rates for any loan that fluctuates with the fed rate.

 

[dgpcolorado]

I got a loan through Tesla for my purchase on Friday, November 3rd, and it was picked up by Chase at 6.69% for 60 months . I put more than half down with cash (redeemed two old Savings Bonds), plus the small trade in value, and have a credit score of about 815. However, my income is low (I can't qualify for any of the federal tax credit, for example) so that might be part of the calculation.

Since even money market funds pay only 5%, I plan to pay off the car loan rapidly. It just gave me the opportunity to buy the car quickly. My previous Tesla car loan in 2016 was also picked up by Chase but, at just 3%, I wanted to keep it for as long as possible, since it is trivial to earn more than that on cash savings.

 

[cwerdna]

With the fed rate at 5.25 - 5.5% range, you aren’t going to see too many sub 5 offers. I don’t know how credit unions are doing it without losing money.

As someone else mentioned there is an entire thread on credit union options. I locked mine in yesterday at 3.99%. The sub 3% loan doesn’t exist unless a dealership is buying down the rate (and charging you for it in the car price).

Indeed. Fed holds rates steady, upgrades assessment of economic growth mentions the Fed funds rate.

Even IncomeDriver Notes | Toyota Financial Services: Income Driver is paying depositors 5.25% APY and Mercedes-Benz Financial Services - First Class Demand Notes is paying 5.5% APY.

 

[240vPlug]

These guys have very competitive rates. USAA is usually competitive too but not as low as USSFCU.

Rates | Washington DC, Capitol Hill, Alexandria - Virginia

USSFCU Finanical Product Rates. Checking/Savings Acoounts, Loans, and Business Accounts.

www.ussfcu.org