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What kind of interest rate for car loan

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The only people who will give you 20% loans are dealers who prey on people like this. Realistically, you will get something below 10% now if you go else where.


edit: lol, I see, you got 9%. That is a pretty bad rate.

With 5k down on a 5 year loan, that is approx to $600 a month....and you pay approx. 30K after interest when its paid off.
 
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zod96 said:
I've got nothing else to do with my money....and my car is a good 8 years old....
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OK, please take me seriously, because I've said this to MANY people and have been able to say I told you so nearly every time:

I'm guessing you're around 25 or less. At that age, a nice car is some kind of super goal that is the first thing someone strives for.

It's the WRONG thing to strive for in your situation.

First, if your credit is that poor, you've either got a lot of debt or have a problem paying bills. Therefore, you do have a lot to do with your money.

Second, what happens when the newness of the car wears off in 2 years and you're stuck with a 5-7 year loan on something you no longer want? You try to sell it, end up with negative equity, and dig yourself into a deeper hole.

If you need a different car, get something $10K or less. That way the payments are low (you'll avoid getting in over your head), you can improve your credit score over the next few years, and then the car after this one can be a little nicer.

Don't become another "told ya so" victim. 😉
 
zod96 said:
I've got nothing else to do with my money....and my car is a good 8 years old....
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Save money or invest it until you can pay cash for a car?
Thanks to the wonders of compound interest, your $25k car just got even more expensive.

Mine's 13 years old, bought when it was 3 years old, and I could walk out and pay cash for a modest new car. I don't need anything large or fancy - as far as I'm concerned, a car is just something that can comfortably get me from one place to another in a reasonable amount of time.
Instead, my goals are to finish paying off my ~6.4% student loans entirely by the end of 2011 (I graduated in 2009), maybe dabble a bit in the stock market with some disposable income, and drive my current car until it dies. 🙂
 
zod96 said:
I've got nothing else to do with my money....and my car is a good 8 years old....
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Huh? You are borrowing money to buy the car. You mean you got nothing else better to do than borrowing more money you don't have to buy a car?
 
got nothing else to do with your money? It would be nice if I will ever have a situation to say that once in my life.

if you think u got nothing else to do with your money, maybe you are not buy something that will apperciate in value. in other words, it is called investing.
 
Imdmn04 said:
Have credit score of 575, has declared bankruptcy before, and want to buy $30k car.

Not to sound like a harsh asshole, but there probably was a reason that you went through bankruptcy the first time. Most people learn from their mistakes, I hope you do too.
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I was going to say the same thing but you beat me to it.
 
Gibson486 said:
save it for something better than a car, like say, a house or condo?
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Or contribute more to your 401(k), put money into a Roth IRA, build up a larger emergency fund, etc etc. This idea that you should take out a loan to buy a new car because you have "nothing else" to do with your money is crazy.
 
dud said:
I was at my bank yesterday and someone asked about financing a car (financing a depreciating asset? ... which is a bad thing to do) and overheard rates from 1.8 to 18%.


Damn ... the rich get away with paying little-to-no financing while the poor get raped.
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The poor might not be so poor if they stopped buying new cars they can't afford... There's a reason why the interest rates are so high for people with bad credit scores.
 
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I'm going to have to join the bandwagon here. You have bad credit because you made bad decisions in the past. Getting another $25,000 or $30,000 loan is yet another bad decision.

If you have money with nothing to do with it, then you don't need a loan. Since you need a loan, you must not have much money. Seems like you have just a few thousand saved. A few thousand dollars is called an emergency fund so that you never need to go into debt again. Keep it that way.

I have enough investments that I could buy most realistic cars outright with cash today. But I drive an 8 year old car too. Within reason, I can buy anything I want at any time I want, because I don't. You should try to be in that same position, it is fantastic.
 
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zod96 said:
I've got nothing else to do with my money....and my car is a good 8 years old....
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if your car still runs and is in good condition there is NO reason to buy a new car, especially getting a loan with a shitty interest rate to do so. keep driving your current car. drive it until it wont drive any longer. then get a new car. before that happens save money and fix your credit score
 
bignateyk said:
The poor might not be so poor if they stopped buying new cars they can't afford... There's a reason why the interest rates are so high for people with bad credit scores.
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People would be amazed if they just took care of what they have instead of throwing a car away at a huge loss every 3-4 years. I had a friend dump a car off for a trade at about a $4000 loss when oil was leaking out of the filler cap. Instead of trying a new $5 PCV valve, he traded it in on a newer car "because he thought something bad was going to happen", and now he's well upside-down on a newer car that he now doesn't like as much, but he's stuck with it unless he wants to take a massive loss. Sad thing is, this isn't uncommon at all.
 
$520.00/month on a $25,000 loan at 9%. That's before taxes and all the other stuff that will be added on. This reminds me of a guy I worked with in his 20's getting a $50,000 + Nissan and it getting repossessed by the bank a couple of years later.

If you have to get a car, get a Ford Focus or something. Why do you need a $25k car exactly?
 
Ugh, this is painful. You have nothing to do with your money, but you don't have the money in the first place. Paying 9% on a 25k loan is retarded.

I'm going to assume this is 5 years.

failloan.jpg


Blowing $6,137.53 sounds like a blast.

Maybe I shouldn't talk, because I'll probably be leasing my next car. But it would be priced at better than Ford A-plan, max tier interest rate (sub-3%, at least). I can earn more than that in my high-interest checking account.
 
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zod96 said:
I've got nothing else to do with my money....and my car is a good 8 years old....
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8 Years old? That's it? I was reading your other posts thinking you had some 1983 piece of shit K-Car or something, but you have a 2002.

My car is 12 years old. It still runs great and gets great gas mileage. I have no NEED to replace it (I WANT to replace it, but that's beside the point), and I'm not going to replace it just because it's a 1998.

Do something to built your credit instead of immediately jumping into massive debt. I got ripped into over in the Garage for wanting to do the same thing.
 
I probably make more $$ than everyone else on here, and having a car payment is the worst thing. I look at that 700/mo and it feels like money down the drain. Buy something safe, and drive it till it breaks.
 
Dude I don't know why you're thinking of buying a new car especially one that costs $30,000. Way too many people making $60k/yr (do you even make that?) get $30k cars which is way too much if you ask me. You can get a very nice looking, dependable car for $10-15k.

And even then, why is an 8 year old car a problem? I got rid of my 17 year old car earlier this year and while it wasn't that nice and needed $400 in repairs, it wasn't a hunk of junk.

Just keep your car, save as much as possible, and pay off all credit cards on time. Pay off student loans or put more into the 401k if you have that much spare money. Then in a 4-5 years of good credit use, you'll be in a much better position for a good loan if that's what you really want. And by then I could maybe understand wanting a new car as it'd be 12 years old then.
 
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I'm not sure how things works in the US, but here in Canada my bank gave me pretty competitive loan rate for my car, at 1.75%

I could have paid cash for the car, but IMHO it is better for me leaving the money in my investment account.

PS. I'm well paid at my job, but I my daily driver is an 07 Camry that I bought last year used for 15K.
 
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Don't know. I got 0% for mine though. They were giving them out left and right two years ago. If you believe the TV ads, they're still doing it.
 
iGas said:
I'm not sure how things works in the US, but here in Canada my bank gave me pretty competitive loan rate for my car, at 1.75%

I could have paid cash for the car, but IMHO it is better for me leaving the money in my investment account.

PS. I'm well paid at my job, but I my daily driver is an 07 Camry that I bought last year used for 15K.
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I'd do the same at 1.75%. But this guy's credit blows.
 
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