I plan on purchasing a used car from a local dealer, and go shopping at several car dealerships. What is, in your experience, a reasonable, most used interest rate for the auto loan financed through the dealership?
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What is a reasonable interest rate for a used auto loan?
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I found an offer for 7.something%, but that was through my bank/credit union. Seriously, though, see if you can just pay for it outright and use that as leverage in negotiating a lower price. Most won’t want to budge from Kelley Blue Book value for dealerships and STILL tack on fees to sell it to you. See if you can haggle the APR the purchase price. See if there’s a prepayment penalty and, if not, pay more than what’s due so that you can be done with the debt earlier and pay less in interest overall. (This is part of why a large down payment is a good option.) Good luck!
6% but i woulnt count on it from used dealership they high as hell
You need to get a loan before you shop for the car. Repeated checks of your credit at dealerships hurts your score which determines the rate you get. When you get pre approved for a loan and have the check you have the upper hand . Try this site and they will get you different offers.
Options is power in a negotiation. See what your bank etc will offer and then negotiate the best rate with whomever offers it
You won’t have any control over it unless you have a big down payment. I agree that http://www.lendingtree.com will get you talking to the lender first before going to the dealer. You want to have your money lined up before you buy the car. Otherwise you are at the mercy of the finance company the dealer uses. Also watch out for add ons on the contract. Most people are so worn out waiting on approval they just want the keys and will and do sign anything. Later they realize they paid for credit life, disablity, extended "warranty" ( that’s worthless).
Good luck!
Interest rates are sky high right now. To answer your question:
a good rate for a used car is between 8 and 10, but your rate will depend on your CREDIT SCORES. I bought a new vehicle last August and have excellent credit and i received a 7.98 on a new car, but had the option of 0.0
GOOD LUCK
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