Question : What is a good interest rate for a first time buyer?
I'm buying my first new car and I was wondering if anyone knows what a good (and possible) interest rate would be.I know that it will probably be a little higher because I am a first time buyer and because I'm not using a co-signer.My credit score is around 640. I'm 21, trying to finance a Toyota Yaris.Currently they are telling me I'm going to get a 10% interest rate. Is this a good interest rate for me? Think I can get better? What should I be aiming for?
- asked by TiFFeRz
All Answers:
Answer #1
Who told you 10%, the dealer? If you go throughyour bank (where you have your checking and/orsavings account) they may be able to give you abetter rate. I believe prime is around 8% rightnow, so 10% sounds about right, but you shoulddefinitely shop around for better rates.
- answered by my brain hurts
Answer #2
it should be zero,but ill try for 8% if i wasyou,it also depend on how much you are going toput down on the car .dont rush into it just searcharound abit because that car will be there andalot were that one came from
- answered by Octavis L
Answer #3
Unfortunately your rate has to do with your creditscore, so if you have a high credit score you'llget a good rate, something in between 5.7 and 7.7.If the dealer is telling you to get their rate youare loosing already, do not let them win. Visitthis site for a complete guide to buy your newcar. www.carbuyingtips.com
- answered by GDL
Answer #4
The dealership will probubly offer you the bestrate on a new car.A credit union will offer nextbest.A commercial bank almost worst.The worstrates are on used cars. Each financial institutehas a range of int rates they can offer for aparticular loan. Then comes the human factor soopinion will place you on either the high or lowend of that range. Ask your lender if he/shethinks that is a good rate and what can you do tomake it better. Then shop around.
- answered by justlettinguknow
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measure and fulfill your financial needs
