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Used car loans. What's a decent interest rate?

N

notfred

Lifer
If I were to take out a loan for a used car, say around $5000, what kind of interest rate do you think I would get? When I last checked my credit score (couple months ago) it was at 694.

Any financial people have any rough guesses?
 
Whenever I think of used cars, I always think 10% for some reason.

My wife works at a local bank and says most people are getting 6.5-8.5 on used cars, depending on credit history of course, and how close to loan value of the car they want to borrow.

EDIT

My wife says the bank will also knock off about 1/2 % interest if you will let them EFT the payment. 🙂
 
I inquired about that not long ago. I wasn't able to get a loan without co-signer cause I didn't have my full time job for long enough. The loan would have been at 13-14% though. This is for $4k over a few years.
 
I'm getting 5.25%, which is better than most, which is way better than ads on the left side!
 
I was speaking with a honda sales person today and he said the best a loan apr on used vehicle is around 4.5 %. So good luck if you get such a good rate. You probably should try a bank or credit union first.
 
Depending on several factors (not just your credit score) anywhere from 5.5 - 7.9% is what you should expect.

To get the lowest possible rate, borrow up to 80% of the vehicle's value.
 
4.75 for new, 4.9 for 2002-1997, 5.25 for anything older with my Credit Union.

I agree, ban all intrusive advertising... I think everyone should make it a point to protest in every message they post until the ADS<ON<THE<LEFT deal is fixed. I know we should just all subscribe, I understand. But come try things on our side of the fence...

Just my two cents.

--Christopher
 
I got mine a 4.75%, 0 down - it was at a special credit union sale only available to members of my credit union 😛
 
Originally posted by: RossMAN
Depending on several factors (not just your credit score) anywhere from 5.5 - 7.9% is what you should expect.

To get the lowest possible rate, borrow up to 80% of the vehicle's value.
Click to expand...

I got a much better deal from e-loan. 3.89% (simple interest) for a used car on a 36 month loan. I borrowed less than half the value of the car - the rest was cash down. Borrowed amount $10,264.50. Total payments $10,909.44.

The process was painless & easy. Filled the forms online. Got my email approval within 10 mins which had a minimum & maximum amount I could borrow. Went online & printed the forms. Went to the dealer, filled in the loan amount, signed the 2 forms and handed them over to the dealer. Dealer called and got an authorization #. Dealer faxed the documents. I drove out with the car.

Oh yes, the next day after approval e-loan called me to confirm the information. And, once the dealer was paid, since I chose electronic payments I had to send them an debit authorization form with a cancelled check.

Couldn't be simpler. No employer verification, no bank verification, no submitting pay slips, W-2's, 1040's etc. I don't think any bank could match that either in charges or service. Would have been given the run around by the bank which, frankly, are better geared to commercial customers.

Appreciate you work for a bank, hence your bias, but bottom line for me is less money out of my pocket and more convenience with e-loan.


 
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