Ell Ess Won

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?

Mike02Z

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.

mikerulzu

iTrader: (2)

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.

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.

Mike02Z

iTrader: (13)

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.

Ell Ess Won

Funny thing is I got the blank check for the loan a month ago, and it was for a 6.84%APR and I was like, awesome, and just now I see it says for dealer-purchase ONLY and that the minimum APR they offer on person-to-person is 8.35%. I'm paying 5% on my car now under a co-signer but theres noway they can help this time around.

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.

mikerulzu

iTrader: (2)

Try a local credit union. They might be able to get you a slightly better number.

BrandonDrecksage

iTrader: (1)

thats way to high..I got 7% at a dealer when I was 20 with no credit and nothing down. is the car you want not at a dealership?

Mike02Z

iTrader: (13)

Sorry man. That totally sucks! The CU idea might be worth a try and you might have to ask yourself how bad do you want that C5. It's only money after all

Good luck!

Ell Ess Won

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.

BlueSix

Capital One ******* blows on interest rates. Check with some of your local banks, they can probably do better.

TV559

iTrader: (3)

Damn you think 9% is bad. I got a couple cars that are 20% Apr.

BlueSix

Wow...my credit cards have a lower interest rate.

Ubergeist

iTrader: (6)

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.