what is considered a good interest rate and what is high. I realize this depends on your credit, I just want some ball park figures.
2006-12-15 19:06:19 · 9 answers · asked by nanann 2 in Cars & Transportation ➔ Buying & Selling
5 to 6% is good, 7% to 8% is ok (with a hesitation) and 8% or higher is bad. Join a credit union for the best rates. I am a member of one and can call them in the morning with all of the info for a vehicle I wish to purchase and they will have all the paperwork draw up by noon. I go in and sign, get the check and buy the vehicle.
To the first poster - 13% is a little high? It's incredibly high! Guess they have money to burn!
It's basic math. For the sake of arguement, if you buy a $20,000 car at 6% interest vs 13% and only make the monthy payments over a 60 month (5 year) loan, the difference you pay is $3927.13.
I don't know about you, but there are many things I would rather buy for $3927.13 than paying it to a bank!
2006-12-16 06:19:40 · answer #1 · answered by Joe S 6 · 0⤊ 0⤋
1
2016-09-26 14:20:52 · answer #2 · answered by ? 3 · 0⤊ 0⤋
You are right. The interest rate you will get depends a lot on your credit. At the same time, it also depends on the vehicle you want (new car loans usually have lower interest rates compared to loans for used cars). Also, the interest rate will increase substantially if you choose to pay for the vehicle beyond a twenty-four month term. In my opinion, two percentage points above the prevailing rate set by the feds is acceptable.
2006-12-15 20:59:25 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Are you buying new or used? Some certified pre-owned cars can have 3.9%-5.9%. The dealership's buy rate has been increasing quite a bit over the past 2 years, so getting a rate of even 7.9% isn't all that bad.
If it is a new car, then sometimes the manufacturer will offer a lower interest rate instead of the cash rebate. At that point, you would need to calculate which is better.
2006-12-16 08:43:01 · answer #4 · answered by The Auto Evaluator™ 7 · 0⤊ 0⤋
If you have good credit, it shouldn`t be more than 10%, 13% is a little high, but you are not wanting to pay anymore than 15% interest on a car loan if you can at all help it. The car will be wore out before you can pay it off.
2006-12-15 19:10:17 · answer #5 · answered by Sparkles 7 · 0⤊ 0⤋
Rate also depends on the terms. Longer term (72 months) = higher rate. If you are upside down on your trade and financing the negative equity into the next loan, expect a higher rate.
To get the best rate put 10-20% down, and go with a 3-4 year loan.
2006-12-16 07:18:53 · answer #6 · answered by Ann507 2 · 0⤊ 0⤋
If your fico score is 700+ chances are and depending on your debt to income ratio, you might get maybe 6 percent or lower, on the highside and if the score is low and too much debt to income coming in look about 10% or more for a loan.
2006-12-15 19:15:41 · answer #7 · answered by jdwilhambabylon5 1 · 0⤊ 0⤋
5% is good 12% is poor but ok 20% is your credit sucks and your lucky to be able to get the car..like hyou said its all based on credit and can go as low as 0%
2006-12-15 19:10:28 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Anything over 6% is high!
2006-12-15 20:22:40 · answer #9 · answered by matt v 2 · 0⤊ 0⤋