I'm trying to buy a car, and this guy wants me to pay 24%. I don't have the best credit. What's the typical apr for someone like me?
2006-10-10 06:15:31 · 6 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
There isnt a "typical" % rate for anyone. Your interest rate is whatever you qualify for through a particular lending institution based off of your credit and the terms of the loan.
Bad credit folks will always pay a premium because they are riskier, and this premium is usually in the high teens to low 20's depending on state max laws (also called usery laws), the year and type of the vehicle, and length of loan.
If you think your rate is too high, then you are free to seek money elsewhere.
2006-10-10 07:04:30 · answer #1 · answered by Manny 6 · 0⤊ 0⤋
Unfortunately, typical is not typical, can be 12% range and up depending on different criteria. your credit, the length of loan and the vehicle itself makes a difference
in Ny, 24 is the state maximum. i can only assume from your name 987 that youre 19 years old. Assuming that then most likely you have little or no credit. with a 000 score, they are using sub-prime lenders, rates can be high, but be careful some dont help/improve credit as you pay on time, only hurts if you dont pay.
Kbb.com or edmunds.com offer sites/links for tutorials on credit.
Ask for the bank name, and as someone else mentioned check with your own bank and DO negotiate the APR with salesperson after you negotiate price. GOOD LUCK.
2006-10-10 14:14:26 · answer #2 · answered by Chris C7 2 · 0⤊ 0⤋
It all varies on credt score, term, and amount financed. Do not do those free credit report things call your local credit union and apply for a loan and go back to the dealer with those rates in mind. Keep in mind dealers are allowed to mark up rates to 3% over what they buy it for.
2006-10-10 13:25:13 · answer #3 · answered by Colin L 5 · 0⤊ 0⤋
24 is generally from an outside credit/loan company. banks (if you have good credit) will do 6-10%, as will credit cards, etc. if you have exceptional credit they will go lower, you just have to ask. can be tricky tho. if you have missed a payment here and there, not got alot of job history (only been at current job for few months), recently moved to new area, etc then you are labeled a risk or potential risk.
2006-10-10 13:19:55 · answer #4 · answered by jenivive 6 · 0⤊ 1⤋
6-10% for good credit
20-29% percent for bad credit
You should fall in the teen range
2006-10-10 13:16:48 · answer #5 · answered by michaelyoung_airforce 6 · 0⤊ 0⤋
this guy is trying to screw you. you should not pay more than 12% and thats high.
2006-10-10 13:19:27 · answer #6 · answered by roy40372 6 · 0⤊ 1⤋