Question : What is a reasonable interest rate for a used car loan?
I plan on purchasing a used car from a local dealer, and go shopping at several car dealerships. What is, in your experience, a reasonable, most used interest rate for the car loan financed through the dealership?
- asked by Amber B
All Answers:
Answer #1
Just did a used car loan at a local bank at 8.5%. Dealers may be different. Sometimes they use alow rate to get you to buy, but keep the pricehigher to make up for it.
- answered by en camera
Answer #2
Pre-arrange your financing before you find thecar. Dealerships make alot to money from thefinancing. Let's say the call back or approvalfrom a bank is 7 percent...they contract the dealat 10 percent and the bank gives them the extramoney...but, I think you already know that. Youcan also be preapproved online (Road Loans is onesource and there are others), they will send you adraft that you take to any participating dealerand it is as good as cash. Take the dealer out ofyour finances and you will be the one that wins.Also, be careful of expensive extended warranties,shop those online also if you are interested inthem, prior to finalizing any deal. Good luck!
- answered by fencepro
Answer #3
My average credit got me 8 % a few years ago. Butthe Fed.Res. just dropped the prime a fullfreakin' 3/4 point to stop a slide into recessiontoday. I'd hold off...ask over in Business &finance Yahoo see what their take is.
- answered by Bryan C
Answer #4
I found an offer for 7.something%, but that wasthrough my bank/credit union. Seriously, though,see if you can just pay for it outright and usethat as leverage in negotiating a lower price.Most won't want to budge from Kelley Blue Bookvalue for dealerships and STILL tack on fees tosell it to you. See if you can haggle the APR thepurchase price. See if there's a prepaymentpenalty and, if not, pay more than what's due sothat you can be done with the debt earlier and payless in interest overall. (This is part of why alarge down payment is a good option.) Goodluck.Also, a good siteis...
http://www.surveyland.org/jump.php?link=autoTake care.
- answered by Gabriella B
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