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Hi all. Just had a question because I have no clue and hope to have some help I've always been given the families hand me down cars but I am looking to get a vehicle that I would actually like. My question is what is what is a normal interest rate on a loan? It should be noted that my credit score is extremely good so would this play a factor in this? Hope I can get some help or advice
Oh and I plan to buy used, not new. Would consider leasing as well if that is a cheaper way.
Hi all. Just had a question because I have no clue and hope to have some help I've always been given the families hand me down cars but I am looking to get a vehicle that I would actually like. My question is what is what is a normal interest rate on a loan? It should be noted that my credit score is extremely good so would this play a factor in this? Hope I can get some help or advice
Oh and I plan to buy used, not new. Would consider leasing as well if that is a cheaper way.
Since all of your cars have been hand me downs, I'm assuming you've never had an actual installment loan. Excellent credit plays a part in getting a good interest rate, but they also like to see that you have had more than just revolving accounts. My wife had a credit score of over 740 but got denied getting a loan on a car because she has never had an installment loan. She was eventually able to find a place that would give her the loan, but she was still shocked to find it this difficult. I'm sure this has everything to do with the tightening of the credit market. A few years ago this would have been unheard of.
But getting back to "what is a normal rate?" Well, I'm not so sure there is such a thing. We already covered excellent credit, but there are other factors to consider as well. If you are looking for a newer used car, the rates probably will be much higher than what you could get for a brand new car. This is especially true if the new car offers incentives. If you get a year end clearance model, you might be able to get interest rates as low as 0.9%. I know I just did. I got a 2011 Honda Civic for 0.9% for 5 years. With my trade-in and this almost free financing, the money I'm saving on gas is making my car payment.
My advice would be to look around at different bank websites. They will usually have their rates posted. I would guess you'll see rate at 4 or 5% depending on your credit worthiness. Don't forget to check the credit unions. Sometimes they can be much cheaper.
My new truck interest is 7%, down from 9% of my last one as I was a returning customer. My wife just bought a new Toyota with 0% interest. It pays to shop around.
Frizzo - wow, with a credit score of 740 I thought it would be a given she would have been accepted right away. Did she have to get a car at one of those places that pretty much guarantees anyone who comes in a loan? I'm really just in shock reading that it was an issue, now I'm def worried I may not even get a loan not to mention a interest rate.
Some banks will not do loans to non franchised dealers. Meaning they won't loan to mom and pop lots. But do loans to dealerships affiliated to the big automakers like Nissan, Ford, Chevy, etc. Interest rates will be dependent on credit score, loan terms and if bought privately or from a dealer. But expect it to be anywhere from 0%-7%.
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%.
Total purchase cost?
how much $ for the down payment?
Loan Amount?
what interest rate?
how long a term?
what is the monthly payment $?
will you OWN the car 100% at the end of that term?
I don't see how most of this is relevant, he's just asking about average interest rates on car loans. As far as your last point, yes of course he'll own it.... that's kind of how loans work...
Anyway, I bought a car in 2009 and after my trade in and some out of pocket cash, I financed about $10,000 at a rate of 5.4% from a local credit union with a credit score in the 760s.
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%.
Wow I always thought having a good credit score would be very helpful. I just hope it wouldn't be 10% or anything like that!!
looik for manufacturers to really star giving low rates on 2011 vehicles soon. Since you have good crdit which is require to get them.wait for them.Sone are zero and other are like 0.9%.Do the math on incentives by going to a bank site and doing the interest over number of year before decidig the interest or cash.Be sure and vist sites like emonds.com to know what you solud be poaying before the incentive. Good luck and take your time;get the price first then talk financing and be willing to walk, Don't fall for the how much you can afford a month;they love that.
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I've always been given the families hand me down cars but I am looking to get a vehicle that I would actually like. My question is what is what is a normal interest rate on a loan? It should be noted that my credit score is extremely good so would this play a factor in this? Hope I can get some help or advice 
