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I am looking at financing 10K on a used car at my local dealer after a 00 down and a 00 trade-in, They are offering me a 54 month loan at 14% because of my credit rating which is 608.

I understand that my credit is an issue but am wondering if 14% is high considering I am seeing that the average market rate in my area is 6.78%.

Anyone have any knowledge on the subject?

6 Comments »

1. 

   4.5 year loan on an used car bothers me a bit more.
   Hope it’s on the new side.

   Do this for me, go to your local credit union and see if they approve you for an used car loan.
   They do this all the time – no cost to you.
   That way you can go back to the car dealer and focus on negotiating a good price – not negotiate a good interest rate.
   /

   Comment by Judy — May 17, 2010 @ 4:17 pm

2. 

   With the way that auto loans have been difficult to secure in this econonmy. The web places are good and often more flexible.

   I suggest http://auto.deal4-you.com

   Comment by Ernest C — May 17, 2010 @ 4:17 pm

3. 

   hi
   If you looking for a legitimate online loans in 1 Hour.once approved your loan will be transferred directly to your checking account promptly, and securely. Now you’ll be able to use the cash for all your necessities.

   http://bestonlineloancompanies.com

   • 100% secure and processing
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   Good luck!…………….

   Comment by Shaki — May 17, 2010 @ 4:17 pm

4. 

   14% is about right

   Comment by My Take on It — May 17, 2010 @ 4:17 pm

5. 

   Car auto Loans

   Check the site thoroughly. It’s an excellent site with some wonderful options for you. It will definitely help you. Have a look.
   Its just that auto loans seem difficult to secure in this economy. The websites places are fast and often easier to qualify sometimes.

   My friend recently used
   http://best-online-loans.info/carloans.html

   Comment by Faith — May 17, 2010 @ 4:17 pm

6. 

   14 percent is high, I think with your credit score you can find a loan for 10% or 9%. Rather than finance the car through the dealership, why don’t you look for a third party lender, or take out a personal loan from your bank?

   Here’s the math: 10000 – 2000 – 2500 = 5500. A $5500 loan is pretty small. If you get that financed at 14% for 54 months, you are looking at monthly payments around $138 per month. If you can afford to pay more per month, say $250, then your lender may offer you a lower rate.

   The thing to consider is that if you pay more per month, you will pay down the loan faster and pay less in *total* interest. I would negotiate a better loan by offering to pay more per month for fewer months. A 4.5 year loan for a used car is a long length of time. Over time, your car could be worth less than what you owe!

   If you take out a loan for 36 months at 10%, your monthly payments would be $177 per month. And if you take out a loan for 24 months at 10%, your monthly payments would be $254. You should find a better lender!

   Comment by ho hummmmm — May 17, 2010 @ 4:17 pm

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