Im financing a 2000 infiniti for 5 yrs,have good credit,with a score about 730.what should my interest rate be

Question

Im just confused how this works. I was going to buy a new chevy from an authorized dealer and my credit ran for a 8.99 percent for 5 and half yr financing term. But i decided against the new car and found a good used car i want from a private dealer and when he ran my credit he was saying its good and gave me a 11.9 for 5 year term. I think thats pretty high. I understand when you finance a used car for a SHORTER term they usually raise the interest rate. But im financing a 5 year and 3 month term...i think 11.9 percent is a high interest rate. The car is a little over 13, 000 (with the extended warranty, taxes, and registration included) with a 3,000 deposit. Does anyone know what my percent rate really should be with good credit?

Answer 1

Try at a credit union or your own bank. With good credit you should be able to get that loan for about 7%.
Go back and tell the dealer that you won't accept a loan for anything less than 7%. If they want to sell you that car, they will find someone to lend you the money.

Answer 2

I was in the biz for 6 years and did finance for 3 of them. Because it a 7 year old car, the banks will want to shorten the term and raise the rate. Many reasons for this but just the way it is. Your rate should be more like 9 though. Go to a credit union or your own bank. They are trying to make money on rate from you, the new car should have been about 2 points lower too. And your credit score is more than decent, anything of 720 or higher always qualifies for the best interest rate available at all banks.

Answer 3

Your rate will depend on the lender. Generally speaking, new cars have a lower rate. Because of this, even though the price is higher, in the long run, you wind up paying less.

Your credit is decent, you should get a pretty decent rate. But explore financing it new. You might be pleasantly surprised. Particularly if you're going to finance an 8 year old car for 5 years, that will put it at 13+ years old by the time it's paid off.

Answer 4

Don't be in a hurry here!

First: Contact YOUR bank. Ask them what the "average retail" value is on the car you want.

Second: Ask them what amount they will loan you for this car. The down payment will be the difference between what they will loan you and the price of the car.

Third: Ask what your interest rate from them will be.

Now you are informed as to what the car is worth in general, how much you will need to put down and how much it will cost to finance it. OK?

Check with USAA Federal Savings Bank. They are rated at the top of good institutions to deal with and with your credit score you can do better than what they've been quoting you!!
Do Not finance through a dealer. They've got their hand in your pocket that way!

I used to sell cars and trucks. Go to the NADA web site and take a look at the numbers BEFORE you BUY anything!!!!!

Answer 5

Talk to the Finance Manager where you are buying the car,don't ask them for advice they are NOT on your side, but they are commissioned employees of that dealership. Most finance companies make little distinction between new and used for 700+ beacon scores as long as the used car is not out of their financing guideline's. Remember rate like all other things in buying a car is a negotiation.

Answer 6

Some on used vehicles may be about 9% on 3 year term. The longer the term, it may run higher.
Unfortunately mileage has little bearing. It's the model year and depreciation they consider.

At the end of your term, the car will be 13 years old.

Answer 7

No way it should be so high. Try going to a credit union or your bank for the loan. Tell the dealer financier to shove that. They are just trying to get more money out of you.
I got a 4.9% with a credit score of 710 from my bank.