Honda Finance Rates for the CTR

JW0914

Banned
Banned
First Name
JW
Joined
Jul 8, 2017
Threads
1
Messages
202
Reaction score
98
Location
Somewhere
Vehicle(s)
00 Orion Nebula
Country flag
He already said it’s 60 month loan. You can call the bank directly to confirm if you’re really that curious.

Just because majority of the banks don’t charge below prime, doesn’t mean that’s the rule. Unless there’s some regulation that says banks much charge auto loan interest above prime for x months, then the bank can do whatever they wish even if it may seem counterintuitive.

There are many ways a bank can generate revenue as you already know, e.g., requiring the customer to open/deposit cash into a savings account.
I'm not going to argue with you, so best of luck to you =]
Sponsored

 

ayau

Senior Member
Joined
Aug 14, 2016
Threads
47
Messages
1,715
Reaction score
1,300
Location
USA
Vehicle(s)
Subaru
Country flag
This is the most critical piece of information, as rates are correlated to the length of financing, as well as the amount financed. ~1.99% is common for <36 month loans, but not anything over, so I'd be seriously surprised if they offer 2% on a 48+ month loan since that would be well below the Prime rate set by the Fed.
Prime rate is not set by the Fed.

The Fed controls the Fed Funds Rate.

Thanks for the link. I'll just copy a few important facts.

What is the Prime Rate
The prime rate is the interest rate that commercial banks charge their most creditworthy customers. Generally, a bank's best customers consist of large corporations. The prime interest rate, or prime lending rate, is largely determined by the federal funds rate.

Determining the Prime Rate
The prime rate is not set by a particular legal entity, and the prime rate used by one institution may be different from the prime rate in use by another. While changes to the Federal Reserve’s prime rate are commonly noted by other U.S. institutions, and may be used to justify changes in the institution’s prime rate, it is not a requirement for the institution to raise its prime rate accordingly

Prime Rate and Best-Qualified Customers
Even if the prime rate is set at a particular percentage, such as 5%, that does not mean a lender cannot offer rates below that amount to well-qualified customers. The prime rate is considered a benchmark only, and though it is likely to be the lowest announced rate available, it should not be considered a mandatory minimum.
I'm not exactly sure you understand how interest rates (prime, fed funds rate) all work.
 

Jonno426

Member
First Name
Jon
Joined
Feb 23, 2019
Threads
8
Messages
49
Reaction score
23
Location
Bellevue, NE
Vehicle(s)
2019 Sonic Gray Type R
Country flag
22 Feb rates:

Navy Federal CU - 3.69% for 60 months
Honda financial - 3.3% for 60 months
Sponsored

 


 


Top