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Looking for Auto loan on 1999 light truck


Menta33
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My daughter wants to get a loan secured by a 1999 light truck worth about $8K.  So far, best she can find is NFCU collateral loan (not an auto loan) at 7.5%.

 

Are there any credit unions that will do auto loans on vehicles that old at a better rate?

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On something of that vintage, you are going to do best to check with the small local bank with whom you SHOULD be doing at least some business. 

 

Personal loan is usually the expected option simply because resale at auction tends to make loans on 20+ year old vehicles a less than profitable proposition.  If it had something other than beater value, then there ARE some specialty lenders but they are tending to focus on rare or collectible vehicles.  A 23 year old mass produced truck is not usually in their wheelhouse. 

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the problem is this is a high risk loan for a low amount (i.e., little profit). IMHO 7.5% isn't a bad rate (assuming the term is 36 months or less) given 1) it is a non-collectable >20 year old vehicle that if reposed will probably sell for less than owed and 2) the lender has overhead and opportunity cost.

Edited by hegemony
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I suggest snapping this loan up.  Say we're talking 3 years.  The difference in payments @ 7.5% vs 4% comes to a difference in monthly payment of just $12/mo.  With that nominal difference, I'd be more concerned about lender reputation (easy to work with, etc.) than I would be the rate.

 

Just out of curiosity, are we talking about something snazzier than a F-150?  I'm feeling very ignorant just now because I can't imagine dropping more than $4k on a 23 y.o. "light truck". 

 

I'm not being "down" on your daughter when I suggest that a vehicle of that vintage ideally should be purchased for cash.  Of course, maybe she's keeping the cash in reserve for the inevitable maintenance/repairs/parts for the truck.

 

Wish her the very best in her endeavor!!

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22 minutes ago, hdporter said:

I suggest snapping this loan up.  Say we're talking 3 years.  The difference in payments @ 7.5% vs 4% comes to a difference in monthly payment of just $12/mo.  With that nominal difference, I'd be more concerned about lender reputation (easy to work with, etc.) than I would be the rate.

 

Just out of curiosity, are we talking about something snazzier than a F-150?  I'm feeling very ignorant just now because I can't imagine dropping more than $4k on a 23 y.o. "light truck". 

 

At that valuation, my guess would be Tacoma...and they are generally bullet-proof provided it didn't have the frame issues, and I believe that was something that came a few years later.  There are some Rangers in that era that are also still commanding decent prices in parts of the country.  I still miss my 1998 4x4 4.0L manual tranny that had the payload package.  Alas, the ex got that and I kept the F350 PSD 4x4 (also spec'ed to order).

 

As to the loan term...for that amount, pay it off inside of a year at less than $600/mo.  Zero reason to drag it out for three years.  This makes the interest differential even LESS of a factor...

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