Does anyone have a rough idea what a reasonable lease buyout loan interest rate should be?
Thanks in advance
Honest question: how would this be different than shopping for a used car loan?
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Should be similar
A better question should be, why would you take a long out on a car you’ve already rented for three years? What’s the current value in relation to the buyout? Is it worth more than the buyout?
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Maybe you really like the car and it’s worth more than the buyout plus you have benefit of knowing cars full history.
I’d guess the more common scenario is that someone is way over mileage, has no equity and it makes more sense to buy it out then pay huge mileage penalty on turn in.
You can’t get a loan to pay mileage overage penalty so the only way to finance the penalty is trading the car into the place you buy a new vehicle from and rolling negative over. This puts you at a big disadvantage cause you can’t shop for quotes, you have to trade the car into the dealership that is selling you the new vehicle.
Because I like the car better than anything else out there right now that’s within my budget, I am under mileage, It is a good buy as compared to what I would pay for a similar car from a dealer or private seller.
Shop used car rates. It would be the same. Check credit unions as well.
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Best I can find is 3.5% for 4 years.
About same as any used auto loan. Credit unions may be your friend here as they’re usually the nicest in these terms and most flexible.
If the “Used Car (Dealer)” rate applies here, Bank of America has 3.24% with Platinum Honors relationship ($100k or more combined between Merrill Lynch and Bank of America account balances). They have smaller discounts for lower relationship tiers.
Last time we used them for vehicle financing they went another 1/4% below their best published rate when I added my spouse to the app (not sure why… my income is a lot higher but we both have scores in the 800s).
It all depends on in which country you take a loan and for how long you take it. For example, there are companies or banks that offer loans with Loan Rates 95 percent. This usually happens when you take a loan for a very short time, for example 2 weeks. In fact, taking a loan is completely unprofitable. Five years ago I needed about 3,000 euros in order to build a new warehouse for my online store and I started reading reviews about various companies and at https://credit-10.com/se/monetti-logga-in/ I found out about one bank and it turned out that they had an interest rate of 89 percent. It was a lot, but this bank was pretty reliable, and other banks refused to give a loan for 30 days, so I had no choice. As a result, I had to pay about 5800 euros and it was very unprofitable. So take loans only in a hopeless case.
This is an old thread. Shop your rates