I picked up a flyer at my office yesterday for a credit union that some of my partners are members of. I know they used to offer 5.25% for up to 84 months for type of vehicle that you wanted to buy. Now their offer is 3.99% for up to 84 months. But at the bottom it says "rates may be adjusted at any time by board of directors" I went on their website any it says that if they raise your rates they will tack the interest on in extra payments and your payment will remain the same. Has anyone heard of this?

This CU seems to be big on adjustable rates. I had been approached a while ago by them about re-financing my partnership loan but I feel rates will be going up sooner than later.

http://www.riverlandcu.org/new/autos.htm

 

 

don't do it.

 

Wouldn't do it, not gonna do it. Not even in the market for a vehicle right now. First of all, I always finance for 5 yrs max and pay it off early. I paid my $22k frontier off in 10 mos. We have 3 fairly new vehicles and the only one financed is at 2.9%. But 7 yrs. adjustable? WOW! I was just curious if this was becoming the norm.

 

82 months? Crazy.

 

84 months = can't afford it, buy something less expensive imho
adjustable auto loan = FAIL

 

84 months!?

 

I agree. 84 months means you'll be buried in that car and you'd better hope it lasts for 7 years. Fat chance on both.

 

Id run the other way of that place

 

84 months!? Just for comparison, I know some people who have 15 year mortgages.

 

Rats... payments for a new Gallardo are still over $2300/month with $10K down and an 84-month loan.


Maybe I should just get a red Corvette convertible?

 

IMO, any auto loan term > 60mos = fail... but I am not gonna judge - you may just be fine with it. However, adjustable rate auto loan = EPIC fail... as in 'F-' Coming from a credit union, that's a low blow

 

I've never understood adjustable rate loans. What is to stop them from offering the low introductory rate and then just jacking it up the next month? Screw that!

 

Predatory lending.

ARMs were arguably one of the causes for the demise of the US real estate market, hence the collapse of the US economy/market.

This CU is hoping someone has been sleeping for the past few years, and naive enough to be suckered into a shark loan, and on top of that, carried onto a depreciating asset. This CU should not be considered a CU, and should be reported to the BBB and Attorney General.

 

Whiskey Tango Foxtrot? Never heard of an ARM for an AUTO loan? I don't wanna finance cars no mo.. I'd rather pay myself each month.