Overhaulin'

I need a used car loan - What int rate can i expect?

I know my scores stink & I know how to raise them. They were pretty decent a few years back, but a couple of hospital bills that went to collections plus a few late credit card payments & they went way down fast... I just want to know what kind of int rate to expect on a used car loan? If they pull the Equifax score only I read somewhere I could get 10.5%? SCORES Equifax - 625 Experian- 573 TransUnion - 541

Public Comments

1. Depends on the down payment. and you need your credit to be higher about 700's
2. u cant put 13 people in a 2 man tent its unhealthy
3. Anything between 20 and 30%. Thats what happens if you are late paying bills, for whatever reason.
4. my guess would be about 10-12% for a new car 14-20% for used. it depends. sometimes your bank will give you a better rate. thats why the numbers are broad. but if you improve your scores you can always refinance
5. with your scores, 10.5 isn't a bad rate. alot will depend on the year and who's doing the financing. Every bank has it's own guidelines.
6. 7-10% aanywhere in between explore the banks and credit unions get the best possible outcome and consolidate any other loans you have into that account.
7. Some banks wont loan on a 5+ score, yet some will you can expect 12% and up
8. Your probably looking at a higher rate than 10.5% more like 16-18 % because your score is not quite high enough , I cant remember which one but one of them is the FICO score but it all depends an which one the lender uses . Keep in mind that the dealer will offer you a rate but it almost always pays to shop around and get pre-qualified for a set amount , rate and payemnt plan you can live with. Try not to get a 72 month or longer loan on a used car if you can help it as you will be upside down on the car for a lot longer . I would reccomend no more than 4 years and 3 if you can afford it. I hope this helps and Good luck Dont rush into anything and remember if you are pre-qualified before going to the dealer do not tell them how much you are qualified for or your negotiaating leverage is out the door. Also if you can manage it try for a 20% downpayment this will help as well but at least try to have something down if you can afford but it is not always required.
9. Car loans. Check first for Credit Unions. almost every town or city in the US has thier own credit union. Example. Holyoke Credit Union Loan, Springfield Credit Union Loan ect. You can look on line for a local one and an address. go their and apply first. the only thing is you have to have a car in mind before going. the benifits are much lower intrest. much lower and they give more loans to young people with to little time to build good credit. you make the request if its in their mind a good deal they will send it to the comitee who will decide. Beyond lower intrest you also wont get screwed by car insurance. if you take a loan from a dealership you have to have full auto insurance untill the loan is payed of. which depending on the car can be quite exspensive because im guessing your fairly young. but with a credit union loan they cut you the check you get the car and have the option to get state minimum for insuranse up to the best and most exspensive wich is full auto coverage. now If your a female thats good lower car insurance and better chance of getting a loan. not my oppinion but the dealership i work at has worked that way do to statistics. 10.5% is horrrible. oh. one more thing the other huge differance a credit union will give you over a car dealership is Gap Insuranse. which is an additional 20dollars a month or so. and what it is is say you get the loan get the car and 1 yr later crash it total it and you still owe 3000.00 dollars. but your car is dead. they will take of the depretition cost. which on some cars is a lot. and useually most credit unions will drop what you owe if your car is totaled or stolen ect. so try the credit union loan first. good luck
10. BETWEEN 12% TO 18%
11. Pay cash and you won't have to worry about it. Seriously though, unless your credit score from the big 3 reporting companies average above 620, you won't get the good rates. http://money.cnn.com/2005/07/12/pf/debt/creditscore_survey/ The page actually shows home loan rates, but vehicle loans, although higher in interest because cars depreciate and home appreciate, are similar.
12. There's more to it than your credit score. The type of car, the year of the car, the length of the loan. All of these figure into the interest rate.
13. It will also depend on the car you are looking to purchase. It may be possible to get 10.5% if you are looking to buy a used 2007 or 2006 model. The older the car, the higher the rate. For instance, if you buy a 2000 vehicle with perfect credit, the best you will get would be 9.9% and they won't go longer than 48 months. If you look for a Manufacturer Certified Pre-Owned vehicle, you can probably get the lowest rate available for you, however it would have to be a late model vehicle that is still under the factory warranty. Lenders have different formulas for figuring interest rates, so make sure you don't fill out any credit applications until you find the car you want to buy. If too many people pull your credit, all the activity can reduce your chances of getting approved. Good luck and I hope this helps. You can email me through Yahoo if you have questions.