Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Dealers aren't allowed by manufacturers to mark up an incentivized rate by more than a certain amount, 2 points at the most. So they were 1) giving you cash instead of rate (not all cash rebates are disclosed), or 2) they weren't quoting you a rate from Subaru Financial and were using a different bank instead.
It's impossible to generalize. Your score may be good, but if you've had no previous auto loans, then the rate could be pretty high. Used cars depends on age, mileage, value-to-loan, etc.
There are simply too many factors to consider.
But 0%-4% isn't happening. Those are new car special rates that the auto makers buy down. Typically, used cars will be minimum 4.5%-5%.
In September, I received a loan at 2.9% from my credit union for a used car.
And my credit score is probably less than 700.
OP.. Do you have a Credit Union that you use? If so, I would check with them, they may be able to offer you a competitive rate, especially if you have been banking for a long time with them.
In September, I received a loan at 2.9% from my credit union for a used car.
And my credit score is probably less than 700.
OP.. Do you have a Credit Union that you use? If so, I would check with them, they may be able to offer you a competitive rate, especially if you have been banking for a long time with them.
Actually I do bank with a credit union and have been with them since 2004! I'm pretty certain my credit score is over 750 as well. This is def something I am going to explore. Thx !
NYChris, if you are a member of a Credit Union then your likely to get the best intrest rates through them, we just bought a 2011 Jeep, the dealers lending company wanted 7% interest we went through our Credit Union an got it at 4.25%.
NYChris, if you are a member of a Credit Union then your likely to get the best intrest rates through them, we just bought a 2011 Jeep, the dealers lending company wanted 7% interest we went through our Credit Union an got it at 4.25%.
That's great! Did you basically go to your credit union and apply for the loan there or was this done at or through the dealer?
That's great! Did you basically go to your credit union and apply for the loan there or was this done at or through the dealer?
Do it through the credit union. figure out what you can afford, what you want to pay, and get approved, then go look for something under that amount. At the dealer it's like dealing in cash. Then you geet the purchase order, the credit union cuts a check, and you finish the paperwork.
Do it through the credit union. figure out what you can afford, what you want to pay, and get approved, then go look for something under that amount. At the dealer it's like dealing in cash. Then you get the purchase order, the credit union cuts a check, and you finish the paperwork.
Exactly.
Go to your credit union and apply for a car loan. I usually have an idea in my head of how much I want to spend, so I ask them for X amount. They approve it, and then I go shopping (if I haven't already picked something out).
It's like dealing in cash, and it's nice, especially if you don't have a car payment, as you won't have to worry about a trade in and will be in a prime spot to be picky and possibly negotiate.
Thanks merc and ion. I didn't realize it was that simple. Just curious....say you get approved but for some weird reason can't find anything or just change your mind? Basically what I am asking is you only get the loan when you provide the credit union the purchase order?
I was always under the impression that when you go car shopping the dealership contacts the bank or whatnot and sets up all the loan details for you. I could be and probably am wrong though hehe
Thanks merc and ion. I didn't realize it was that simple. Just curious....say you get approved but for some weird reason can't find anything or just change your mind? Basically what I am asking is you only get the loan when you provide the credit union the purchase order?
Correct. It's not an actual loan until the check is cut/cashed. Which is why you get approval first and find what you want, so you're not locked in until you actually pay for the car.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
