Question : What interest rate on a car loan can I get if I have good to excellent credit?
I want to buy a used honda and will need to finance. My credit is very good. How do I know if they are trying to screw me on the interest rate?
- asked by Mike B
All Answers:
Answer #1
Don't know, but it should be low, because of yourexcellent credit.
- answered by DAS
Answer #2
Probably between 5% and 10%.When I bought my newcar 3 years ago, I had a limited credit historybut my score was 740. I received a 7.5% interestrate.My mom bought a new car in December and shetold me that her interest rate was 5.0% and herscore is in the 800s.
- answered by Matt
Answer #3
Difficult to tell because rates on used autos varyfrom lender to lender. To help ensure you do notget "screwed" on the interest rate, play"hardball" on the rate of interest and amount ofpayment you are willing to pay. If they give onthe rate/payment at least once, you are makingsome headway into fairdom. But watch out for thesales price and other terms changing, behold:1st,you need to know what a fair price on the vehicleis (www.nada.com) coming into the game. I wouldlet them know I know what the true value of thevehicle is early on. If they they lose in onearea ("screwing" you on the rate), they will tryto jack the sales price up on you if it is notalready maxed out. By maxed out, I mean whatevertheir maximum advance allowed by the bank is. Inother words, if the true value of the vehicle is$10,000 and the bank allows 120% advance, theywill try to sell it to you for $12,000, which putsyou will in an inequity situation from the get-go. 105-110% advance with no down payment is a fairadvance, because they do have to earn a living orthey wouldn't be selling cars.By "hard-ball" I donot mean emotional. Never get emotional about anegotiation or you risk making errors injudgement.The best bet is to walk into thedealership with a pre-approval letter from a bankor credit union and do not disclose this positionuntil after you receive their 1st terms and havecountered at least 1 more time (on yourrate/payment concerns cited above). This givesyou more leverage when you disclose your positionlater on in the negotiation (and they willcertainly not be pleased but too bad for them). Leverage is anything that is going to make theother party uncomfortable upon disclosure.Hopethis helps.
- answered by dlfield
Answer #4
you have gotten great advice so far.....But alsoas important as credit in this situation is yourability to pay back the loan. Futhernot sure whatyear of car you are interested in but be sure tolook at a few new cars too. Some cars are offeringZERO percent financing and that might put a newand used car about the same with regards tomonthly payments. So dont rule this out as anoptionSince a 17k car at 0% might have the samepayments (or very close to the same) as a 12K carat 10% and you wont need all the repair deals thatthey will try to get you to purchase if you buynew instead of used.
- answered by karen g
Answer #5
you are supposed to collect as much as resource asyou can by searching the relevant keyword insearch engine,if you have good luck there,thenyour problem solved.however,if you could not findthe fitful answer by doing that,here is theresource iprefered.
http://carloan.onlineidea.info/calculate-car-loan-interest.html
- answered by NANCY B
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