[javi_ID4]

I am not a financial advisor, the research below is for informational purposes only. If you want to learn How To Pay No More Than MSRP, see my post here.

Always look for local credit unions around you first.

Avoid credit hard pulls if possible.

Just for fun I decided to check what is the Volkswagen US National interest rate for loans. Looks like up to 48 months the interest rate is 6.39% and up to 60 months 6.39%. Searching the "internets" I found:

1. Interior Federal Credit Union offering 5.00% for loans up to 36 months and 5.25% up to 60 months. The Credit Union has an open membership for anyone who join the New Mexico Wildlife Federation.

2. Fort Financial Credit Union offering "as low as" 5.49%. The Credit Union has an open membership for anyone who joins the Financial Fitness Association with an $8.00 donation. Rates are based on credit qualifications, including credit score, minimum amount financed and term, and includes Premier relationship discount of 0.25% APR.

3. Park Community Credit Union offering 3.25% up to 48 months and 3.50% up to 60 months. The Credit Union has an open membership for anyone who joins the Financial Fitness Association with an $8.00 donation. They are not accepting virtual applications at this time. You need to visit a local branch.

4. SRI Federal Credit Union offering 4.99% up to 72 months. Possible 0.26% rate discount on Zero Emission. The Credit Union has an open membership for anyone who joins the Financial Fitness Association with an $8.00 donation.

5. Tower Federal Credit Union offering 5.74% up to 36 months, 6.49% up to 60 months and 6.99% up to 72 months. The Credit Union has an open membership for anyone who becomes a member of the TowerCares Foundation with a $35 donation. Receive a 0.25% APR autodraft discount when you autodraft your payment from your existing checking account

6. Insight Credit Union offering 4.49% - 17.45% up to 84 months (Receive a 0.25% APR autodraft discount when you autodraft your payment from your existing Insight Credit Union checking account). The Cedit Union has an open membership with a $5.00 donation to the Insight Community Foundation.

7. United States Senate Federal Credit Union offering 2.99% up to 36 months, 3.24% up to 48 months and 3.49% up to 60 months (rates include 0.25% rate discount for automatic payment from a USSFCU account). Membership is open to anyone through a contribution to the US Capitol Historical Society (USCHS).

8. CommonWealth One Federal Credit Union offering 2.74% up to 36, 3.99% up to 48 months, 4.49% up to 60 months and 4.99% up to 72 months. You can join CommonWealth One FCU by becoming a lifetime member of the non-profit, consumer education organization, Virginia Consumer Council (VACC).

9. Gold Coast Federal Credit Union as low as 3.49%. You can become a member by making a contribution to $5.00 to the New Horizons Elementary School PTA. GCFCU is no longer accepting out of state applications. See post here.

11. Taleris Credit Union rates as low as 3.49%. You can become a member by making a $5.00 contribution to either the Public Animal Welfare Society (PAWS) or Seven Hills Historical Society. Loan Rate Discounts: Fuel Efficient, Electric, or Hybrid vehicle purchase = 0.10% discount Fuel Efficient Autos, which are five years old or less, and get 30 mpg Hwy or more, and have less than 75,000 mile

12. Digital Federal Credit Union (DCU) with rates as low as 5.74% up to 65 months. Published rate includes a 0.50% discount given when you maintain electronic payments and Plus or Relationship benefits on your DCU checking account. You can get an additional .25% off if you finance an energy efficient vehicle. You can become a member by following this referral link for a chance to get $20 with qualifying account with qualifying activities.

Non-Traditional Car Lending

1. Carputty a revolving line of credit is designed to seamlessly finance all of the vehicles in your garage – new or used, present or future. You’ll never have to apply for an auto loan again! A Carputty line of credit is tied to you—not a specific car.

2. First Republic Personal Line of Credit offering 6.95% – 8.45%. You can use your line of credit for whatever you want. Per their FAQs "First Republic Bank has a limited service area for retail banking. Personal Line of Credit applicants must be located within close proximity to our offices in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland (Oregon), Bellevue (Washington), Jackson (Wyoming), Boston, Palm Beach (Florida), Greenwich or New York City."

More info here https://www.bogleheads.org/forum/viewtopic.php?t=342046

Did any of you get a lower interest rate recently? If so, what bank or Credit Union?

 

[drsifu]

pretty decent rates.

I didn't find as good of rates back two weeks ago. Went with dealership financing (they outsource to Cal Coast Credit Union). 5.08% for 75mths. My credit score is >800.

 

[javi_ID4]

pretty decent rates.

I didn't find as good of rates back two weeks ago. Went with dealership financing (they outsource to Cal Coast Credit Union). 5.08% for 75mths. My credit score is >800.

I have a '23 reserve that is in status 15-2 with a VIN and already showing as "In Transit" on my dealership website. I decided to research my local Credit Unions because I am not letting the dealer pull my credit and soil my credit reports with unnecessary hard inquiries. Then I had the idea of start looking for Credit Unions nationwide that are open to outside members. The rates are great. I just wanted to share in the forum. Some of these Credit Unions have great rates if you refinance. Maybe you can look into that.

By the way. It is possible to remove hard inquiries from your credit reports. But I'm not going to discuss that here.

 

[vorschlaghammer]

Tower Federal Credit Union has super low rates at the moment. I nabbed 2.99% for 60 months. If you don’t fit the criteria of membership, you can donate $35 to their foundation to gain membership.

 

[javi_ID4]

Tower Federal Credit Union has super low rates at the moment. I nabbed 2.99% for 60 months. If you don’t fit the criteria of membership, you can donate $35 to their foundation to gain membership.

Excellent!!! I added to the list above. Keep 'em coming.

 

[GoodOmens]

Just signed up for tower today - how long does the membership application take?

Dealer is making us finance through them so will be doing a refinance...

 

[tochi312]

Just signed up for tower today - how long does the membership application take?

Dealer is making us finance through them so will be doing a refinance...

Can they do that? That sounds like bad business.

 

[vorschlaghammer]

Just signed up for tower today - how long does the membership application take?

I had a freeze on my credit that I had to lift, so it’s hard to say. I think the start to finish would be a week normally.

 

[notspeedy]

The issue with credit unions that don't have agreements with dealer

Can they do that? That sounds like bad business.

no they can not. HOWEVER, the dealer doesn't have to hold the vehicle while you work out financing. Working with a credit union is great, with exceptions. They usually only have agreements with local dealer, and often are not available on Saturdays. Unless there is an agreement in place, the dealer wont let you take delivery without funds.
If the dealer is able to hold the vehicle for you during this time, then you'll be good. Given the market, supply, and demand for the id.4, they likely have others waiting behind you and have little motivation to hold the vehicle for a week.

 

[javi_ID4]

The issue with credit unions that don't have agreements with dealer

no they can not. HOWEVER, the dealer doesn't have to hold the vehicle while you work out financing. Working with a credit union is great, with exceptions. They usually only have agreements with local dealer, and often are not available on Saturdays. Unless there is an agreement in place, the dealer wont let you take delivery without funds.
If the dealer is able to hold the vehicle for you during this time, then you'll be good. Given the market, supply, and demand for the id.4, they likely have others waiting behind you and have little motivation to hold the vehicle for a week.

I recommend calling the Credit Union first and find out the details of the loan application process. If you apply, try to get a number from someone who you can call directly. Also, schedule your appointment at the dealer first thing in the morning on a non-holiday weekday so you can have all day to make phone calls. Try to put down a $1k to hold the car until you can work getting finance. And NEVER tell the dealer how you are planning to pay for the car.

 

[tochi312]

The issue with credit unions that don't have agreements with dealer

no they can not. HOWEVER, the dealer doesn't have to hold the vehicle while you work out financing. Working with a credit union is great, with exceptions. They usually only have agreements with local dealer, and often are not available on Saturdays. Unless there is an agreement in place, the dealer wont let you take delivery without funds.
If the dealer is able to hold the vehicle for you during this time, then you'll be good. Given the market, supply, and demand for the id.4, they likely have others waiting behind you and have little motivation to hold the vehicle for a week.

The car is reserved through VW on a name. The dealer should not be allowed to sell the car to someone else just because one has to figure out the money. The dealer does not have any extra work because the car sits on their lot. They are the middle men trying to scalp buyers if they force to use their finance system and I would report them to VW and BBB.

 

[tochi312]

Just signed up for tower today - how long does the membership application take?

Dealer is making us finance through them so will be doing a refinance...

There are many bad reviews for Tower. Well there are generally mostly bad reviews for banks

They have a bunch of requirements:

• Tower Federal Credit Union must be listed as “loss payee” on the insurance policy
• Tower Federal Credit Union must be listed as the “lien holder” on the title
• Insurance coverage must include fire, theft, comprehensive loss-by-collision (with maximum deductibles of $500.00 for Collision and $500.00 for Comprehensive), and liability protection.

My car is older and I do not recall to have to do this back then with my credit union. Just sent the title to them I think. Are their requirements common?

 

[SunWizard]

Are their requirements common?

Yes, very standard.

 

[IslandLarry]

There are many bad reviews for Tower. Well there are generally mostly bad reviews for banks

They have a bunch of requirements:

• Tower Federal Credit Union must be listed as “loss payee” on the insurance policy
• Tower Federal Credit Union must be listed as the “lien holder” on the title
• Insurance coverage must include fire, theft, comprehensive loss-by-collision (with maximum deductibles of $500.00 for Collision and $500.00 for Comprehensive), and liability protection.

My car is older and I do not recall to have to do this back then with my credit union. Just sent the title to them I think. Are their requirements common?

Those requirements are pretty standard.

 

[GoodOmens]

There are many bad reviews for Tower. Well there are generally mostly bad reviews for banks

They have a bunch of requirements:

• Tower Federal Credit Union must be listed as “loss payee” on the insurance policy
• Tower Federal Credit Union must be listed as the “lien holder” on the title
• Insurance coverage must include fire, theft, comprehensive loss-by-collision (with maximum deductibles of $500.00 for Collision and $500.00 for Comprehensive), and liability protection.

My car is older and I do not recall to have to do this back then with my credit union. Just sent the title to them I think. Are their requirements common?

That doesn't sound too bad. I remember when I had renters insurance the apartment had us put like three different companies on the loss payee lol - themselves, their parent company, and like their grand parent company or something. I have a million dollar umbrella policy so not worried on the insurance front. I did get quotes and it's coming in a lot more then our Tesla

 

[drsifu]

In the process of submitting a application for SRI Credit Union.

Day 1
1) Join - Financial Fitness Association (FFA) for $8. Not really sure this is even needed as joining does not generate an account number. When you apply for an account with SRI, it's just a dropdown menu where you say you are a member of FFA. Not sure if there is back end verification, but something to consider if you want to save $8
2) Open an account with SRI. I just signed up for a checking acct. Completed an application online. They send you an email with a link to download an app called ID-Pal. Through that app, you use your phone camera to take a picture of the front and back of your driver license. Then you take a picture of proof of address. I used my utility bill.

"
Thank you for your application.
Please click HERE to download ID-Pal and follow the instructions to verify your identity. If you applied with a joint applicant, they will also need to download ID-Pal and follow the instructions.
Once you are authenticated, we will contact you to complete the account opening process.
"

3) Complete two paper documents that are sent to you via email. 1. Signature application and 2. FFA application form and email to SRI
4) Re-upload previously uploaded documents because the picture was blurry.
5) Account gets opened
6) Submit quick application for auto loan refinance. Wait.
7) Not required, but I setup an external transfer to allow me to transfer funds into SRI

Day 2
8) Received email on Monday asking to upload two recent paystubs, copy of vehicle purchase order, and copy of vehicle registration.
9) Got approved for a rate of 3.49% for 72 months!!!!
10) Request 10 day payoff statement and mailing address of previous loan provider and submitted to SRI

Day 3
11) Loan docs sent, signed, approved

Overall, a fairly straight forward process. No games played. Actually got a lower rate than advertised, 3.49 vs 3.73. Excellent communication from SRI. Would recommend. Also got 1% back deposited directly into my new SRI checking account the day the load was approved.

If you are interested in joining, they have referral program where both you and I get $50. Message me if you are interested.


OLD INFO: Based on advertised rate, my "refinance" falls under used car. The rate is 3.99%. You get a 0.26% discount for EV cars, so 72 month term will be 3.73%. Tower offers 3.49% on refinance (this rate includes a 0.25% discount for automatic monthly payments). So their rate is cheaper, but SRI offers a 1% cash back for refinance. That will amount to $480 for me. The difference in interest rate over the life of the loan is $400, so I still come out ahead with SRI.

 

[javi_ID4]

I added to the list Insight Credit Union at 3.29% (3.04% with auto pay) up to 84 months.

 

[Neptune]

Does anyone have experience with Interior Credit Union? 1.99% for 36 months sounds excellent.

 

[tochi312]

Looking birdseye rating but not all showed up. Tower (2.3), Insight (2.6), Fort (3.4), Federal (3.9), Interior (4.7), Park (4.9)

 

[christibeana]

So if you're current car is already paid off could you just open up an account and apply for a loan to pay for the new car?