Waht is a Good APR for buying a new car?

[foolanger]

My friend wants to buy a car and was quoted an APR of 10.4%. I'm thinking thats way to high especially with today's economy. Let me know.. Thanks.. He is young but this was the quote he got with his mom as a co signer.

 

[Hammer]

they're robbing him at 10.4%. what kind of car is it?

 

[TwinkleToes77]

Well if he has bad credit.. 10% is standard..

 

[Nyical]

If he's a first time buyer, thats not too bad but since he has a cosigner that is a little high.

 

[foolanger]

a mitsubishi lancer

 

[vi edit]

Model Year___37 Months___50 Months____65 Months
2003-2001___4.49%______4.74%________4.99%


What my credit union is offering.

 

[Hammer]

i think the lancer is excluded from a lot of their deals. but you can still do better than 10.4%. go to your bank or credit union.

 

[Hammer]

double post

 

[RossMAN]

It all depends on her CREDIT, has she has credit long (over 2 years), does she have any late payments, what's her credit score, etc.?

Have her apply at her local bank or a credit union they MIGHT be able to get it down to 8.5%.

 

[GroundedSailor]

I got 3.89% at e-loan for a used car on a 36 month loan. Try them - plus it's a painless process as compared to the banks.

Edit:
and with ZERO cost/charges whatever they are called.

 

[Deeko]

0 is good.

 

[radioouman]

Bought our new car with 0%

 

[Ausm]

Originally posted by: radioouman
Bought our new car with 0%

Same here but I have a dip$hit cousin who has terrrrible credit paying 27% interest on a used car...no that is not a typo

Ausm

 

[malbojah]

Originally posted by: ausm

Originally posted by: radioouman
Bought our new car with 0%

Same here but I have a dip$hit cousin who has terrrrible credit paying 27% interest on a used car...no that is not a typo

Ausm

Hey, I didn't know we were related

 

[CChaos]

36 Months 3.99%
48 Months 4.39%
60 Months 4.39%
66 Months 4.99%
72 Months 4.99%

This is what I was quoted at e-loan just a minute ago for people with excellent credit. I think peoplefirst.com is offering similar if not identical rates. From what I've heard other places, if your credit score is 650 or higher you should qualify for the best rates.

These seem like good rates, for 60 months and less that's right around prime.

 

[Krye]

I paid 4.9% from the dealership 2 years ago.

 

[Wolverine27]

10.4% definitely seems high...especially with a co-signer, assuming she has good credit. Was this rate quoted by the dealership? If so, go secure financing elsewhere...like a bank, credit union, e-loan.com, or peoplefirst.com You should always secure your own financing before going to a dealership and see if they can beat that rate.

 

[TwinkleToes77]

My mom (never had a job, always on used my dads credit) when my parents finally seperated she had no credit history. She bought a new car and her APR was 10%. I think thats a standard no credit history rate. Only qualifying buyers can get those lower 3% type rates.

 

[rudder]

Originally posted by: Hammer
they're robbing him at 10.4%. what kind of car is it?

I've got credit cards that have much lower APR's than that with enough credit to buy a car. Unless he has bad credit he should definetly be getting a better rate.

 

[mrCide]

my bank gave me 4.9% on a 5 year loan

 

[Oakenfold]

Originally posted by: RossMAN
It all depends on her CREDIT, has she has credit long (over 2 years), does she have any late payments, what's her credit score, etc.?

Have her apply at her local bank or a credit union they MIGHT be able to get it down to 8.5%.

Spoken from the man in the know.
Sounds like your friend has NO credit or has weak unestablished or what we call a thin file, generally less than 4-5 trades open for less than 4 years.

Where I work we do not take the co-signor's credit into account when calculating the interest rate that the primary is approved for.
However for a primary plus joint application we take the better beacon score into account for interest rate calculations.
Your friend's mom is not receiving a benefit from the loan I'm guessing so IMO she doesn't qualify as a joint applicant, probably why she's a co-signor.

Would it be possible for your friend to call and have the application looked at with her being a joint and would that make a difference in the interest rate?(the reason why I ask is all instituitions have different policies on credit analysis)
That's what I would ask them, otherwise your friend is doing pretty good for no credit and 10%

Or you could always apply with another instituition!
Remember they all are different so someone else may have a different way to determine the interest rate.

 

[toant103]

Originally posted by: foolanger
My friend wants to buy a car and was quoted an APR of 10.4%. I'm thinking thats way to high especially with today's economy. Let me know.. Thanks.. He is young but this was the quote he got with his mom as a co signer.

GM has 0%

 

[Linflas]

I just bought a new truck and my credit union's rate was 4.49 for 6 years. 10.4 seems way high to me.

 

[spidey07]

Right now 0% is an awfully good rate.

Barring that try a credit union where the rates are fixed between 3-5%

 

[KokomoGST]

Well, a few months ago Mitsu was offering 0%... 10.4% is quite high even for a young guy like me with excellent credit.