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?
2006-08-14 04:06:02 · 4 answers · asked by TiFFeRz 4 in Business & Finance ➔ Credit
Unfortunately your rate has to do with your credit score, so if you have a high credit score you'll get a good rate, something in between 5.7 and 7.7. If the dealer is telling you to get their rate you are loosing already, do not let them win. Visit this site for a complete guide to buy your new car. www.carbuyingtips.com
2006-08-14 04:24:27 · answer #1 · answered by GDL 2 · 1⤊ 0⤋
The dealership will probubly offer you the best rate on a new car.
A credit union will offer next best.
A commercial bank almost worst.
The worst rates are on used cars. Each financial institute has a range of int rates they can offer for a particular loan. Then comes the human factor so opinion will place you on either the high or low end of that range. Ask your lender if he/she thinks that is a good rate and what can you do to make it better. Then shop around.
2006-08-14 04:24:42 · answer #2 · answered by seekingknowledge 2 · 1⤊ 0⤋
Who told you 10%, the dealer? If you go through your bank (where you have your checking and/or savings account) they may be able to give you a better rate. I believe prime is around 8% right now, so 10% sounds about right, but you should definitely shop around for better rates.
2006-08-14 04:13:45 · answer #3 · answered by my brain hurts 5 · 1⤊ 0⤋
it should be zero,but ill try for 8% if i was you,it also depend on how much you are going to put down on the car .dont rush into it just search around abit because that car will be there and alot were that one came from
2006-08-14 04:14:54 · answer #4 · answered by Anonymous · 1⤊ 0⤋