What is a reasonable interest rate for a used car loan?
Written By: admin on October 9, 2009
3 Comments
I plot 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?
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Tags: car dealerships, Car Loan, fixed rate private student loan consolidation, home equity loan lowest rate, interest rate, purchasing a used car, shopping
Your credit profile is a major factor that determines the interest you’ll pay for a used car loan. Presuming your credit profile is better than most, you’ll probably pay around 9% to 12%. If you finance through a car dealership (TERRIBLE GO!), you’ll pay about 15%. Other factors are the age of the car and the lender you choose, length of the loan, etc.
Always arrange your own financing through your bank or credit union.
The newer it is the lower the rate…..if its like a 2000 model it would be about 7%……Again it just depends on other issues to…..Hope u get a excellent rate…….
A few factors come in play when one determined the rate for a car loan.
The first a foremost would be your fico score. Most lenders use a tier system to grade loan risk. A second factor would be the term of the loan. A shorter term should hold lesser risk so a lower rate should be warranted. A third factor would be the loan to value ratio. Most lenders use NADA Guide as a rule. You can go to bankrate dot com and get a national average which one could compare to a local credit union, a fantastic alternative to using the captive lenders used by the dealerships.