BuyHackrs? Financing rates are outrageous


My 2010 Rav4 is starting to show its age. The engine is still going strong, but everything else is slowly starting to break. I’d like to trade it in for a more recent used SUV (2020 Mazda CX-5 or similar). Browsing around I see interest rates to the tune of 8-10% for financing, even with credit unions. Aside ftom waiting for better rates, what’s the consensus on the most cost-effective way to buy a used vehicle right now? Or should I just get an Ariya for 18 months (here in NJ prices are still quite competitive) and then see how things are going next year?

Some new vehicles have low interest rates such as the 2024 CX30 and CX50 for 0%

It might be better for you go that route than a 4 yr old car at 9%


Where are you seeing 8-10%? Rates have been going down since Q4 of last year

New or CPO if you want a better rate


Lightstream was 7.99 for new and 8.24 for Used last week.

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Does anyone use Lightstream though?

It was the goto place for Hakrs here. And they are the discount lender so it must be worse at the big banks.

Except for the captives?

Yes, when captives are not an option, (such as buying a used car off a non dealer lot), then Lightstream is one of the better alternatives. But I am curious what a captive gives on a used non CPO car these days.

Ironically the most cost effective late-model ICE car is a brand new car financed at a low APR, rather than a used car at relatively astronomical rates plus the other expenses of either paying some repairs out of pocket or paying for a warranty.

EV is not a bad call either if you’re comfortable with the long term horizon of repetitive 18-36 month leases.


Shop local credit unions. Mine has annual spring and fall auto loan promos for 1 to 3% depending on the current rates.

Rates for used cars are in the low 5s to mid 6s/7s range.
@coolmann - I would finance a new car if you can swing it.


Man, there are a lot of superprime folks participating in this thread… Experian reported last month these actual new originated interest rates (probably Q4 2023). Sure rates have come down a bit, but it’ll only impact things by like 25 to 50 bps. A ton of people are still going to get quoted 10% or more on a used car right now.

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I don’t know how Ford is buying 580s at 0% or 1.9%

You can get a Ford eTransit 0% financing for 84 months right now. But the trade off is then you’re not eligible for $5,000 in rebates on a cash purchase. Lame.

Look here for best rates from credit unions


Last time I checked around 3 weeks ago, they had 5.49%/72 used loan with autopay discount

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Pay cash.

Having sufficient cash on hand is prudent for expenses that can be anticipated, like a car needing to be replaced as it approaches the end of its useful life… a process that begins the day it becomes yours. :slight_smile:


Yep, save up and pash cash for used.