Financing options and APR
#1
TECH Addict
Thread Starter
Join Date: May 2005
Location: Top of 4th Gear; Plano, TX
Posts: 2,245
Likes: 0
Received 0 Likes
on
0 Posts
Financing options and APR
What is a decent APR when purchasing a used car nowadays?
After I sell my Camaro I plan on getting into a vette. I am on a pretty tight budget and have to finance more than half if I want to get the car I'm looking at. I applied for a www.capitalone.com autoloan and was approved for $10,000 with a 9.3%APR on a 36 month term. or 9.5%APR on a 60 month term. What has me confused is if the loan went to a dealership the APR would only be 6.84%? Im almost 20 btw.
Is this a decent offer or is it high? What do you guys pay on your loans?
After I sell my Camaro I plan on getting into a vette. I am on a pretty tight budget and have to finance more than half if I want to get the car I'm looking at. I applied for a www.capitalone.com autoloan and was approved for $10,000 with a 9.3%APR on a 36 month term. or 9.5%APR on a 60 month term. What has me confused is if the loan went to a dealership the APR would only be 6.84%? Im almost 20 btw.
Is this a decent offer or is it high? What do you guys pay on your loans?
#2
TECH Fanatic
iTrader: (13)
The dealer will typically offer a better rate as you are buying one of his cars. Even if it is a used car. Places like Capital one know that they can charge you more cause it's a personal sale not a dealer sale.
You might want to check your credit score too. Stupid things like too many inquiries can bring down your score and make you pay more for loans. Your age does not help either. You probably have only had credit for 3-5 years that can make your score go down as well.
The rate you're getting seems high to me but I have not bought a used car in many years so I'm not sure what the going rate is on a personal sale car loan.
You might want to check your credit score too. Stupid things like too many inquiries can bring down your score and make you pay more for loans. Your age does not help either. You probably have only had credit for 3-5 years that can make your score go down as well.
The rate you're getting seems high to me but I have not bought a used car in many years so I'm not sure what the going rate is on a personal sale car loan.
#3
TECH Regular
iTrader: (2)
Join Date: Nov 2005
Location: San Francisco, CA
Posts: 447
Likes: 0
Received 0 Likes
on
0 Posts
9+% is bad. The 6.84% from a dealer is pretty good right now, but that's because you're buying the car from them.
I pay 5.89% right now on a 36 month loan than I plan to pay off in a year or so.
I pay 5.89% right now on a 36 month loan than I plan to pay off in a year or so.
#4
TECH Addict
Thread Starter
Join Date: May 2005
Location: Top of 4th Gear; Plano, TX
Posts: 2,245
Likes: 0
Received 0 Likes
on
0 Posts
Well, I dont think I'm getting a person-to-person APR of less than what I'm looking at here. I honestly don't know what to do because my car payments would be the same as I'm paying now, but I would have a 5 year loan and be paying $70+ in interest every month because of the high APR.
#5
TECH Fanatic
iTrader: (13)
Originally Posted by Ell Ess Won
Well, I dont think I'm getting a person-to-person APR of less than what I'm looking at here. I honestly don't know what to do because my car payments would be the same as I'm paying now, but I would have a 5 year loan and be paying $70+ in interest every month because of the high APR.
#6
TECH Addict
Thread Starter
Join Date: May 2005
Location: Top of 4th Gear; Plano, TX
Posts: 2,245
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by Mike02Z
Can you have someone co-sign for you like a parent with a higher credit score maybe? That might bring your rate down a good bit. Other than that I'm not sure what you can do as even if it's an error on your credit report it can take weeks to get it sorted out.
Just to give you an idea, you can see the minimum APR chart for capital one here: https://www.capitaloneautofinance.co...AutoLoans.aspx
With my "short" amount of credit history, my rates are about 1% higher than listed on the chart which really is pretty good.
Trending Topics
#10
TECH Addict
Thread Starter
Join Date: May 2005
Location: Top of 4th Gear; Plano, TX
Posts: 2,245
Likes: 0
Received 0 Likes
on
0 Posts
No, the car is a private seller. My credit union would not approve me a couple months ago when I applied. When you think about it, 1% above their lowest APR's really isnt that bad for my age. I do have credit from a couple thousand dollars total that I payed off and there is realistically no way to get my credit rolling than to bite the bullet and accept what I can now.
#12
Launching!
iTrader: (3)
Join Date: Sep 2004
Location: Ceres,Ca
Posts: 211
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by mikerulzu
9+% is bad. The 6.84% from a dealer is pretty good right now, but that's because you're buying the car from them.
I pay 5.89% right now on a 36 month loan than I plan to pay off in a year or so.
I pay 5.89% right now on a 36 month loan than I plan to pay off in a year or so.
Damn you think 9% is bad. I got a couple cars that are 20% Apr.
#14
Launching!
iTrader: (6)
Join Date: Jun 2006
Location: Chicago, IL
Posts: 274
Likes: 0
Received 0 Likes
on
0 Posts
Almost 10 seems high, but given your age maybe not.
I'm in my early 20's and got a 6.99% for 48 months for my 2000 SS.
However that is through my credit union and for a pretty small amount.
I'm in my early 20's and got a 6.99% for 48 months for my 2000 SS.
However that is through my credit union and for a pretty small amount.