Average auto loan rate calculator?

Thursday, February 5th, 2009 at 00:57

Nani asked:

I'm looking at getting an auto loan for maybe around 5 grand. I have a 500 dollar down payment and incredibly poor credit, but a very good credited co-signer.

What sort of interest buying prescription drugs online rates would I expect to pay? The loan calculators I see put a set rate at either 6 or 10 percent, and that seems to be a pretty big difference.

Reply:

Go to a credit union and get pre approved for a loan. You will receive a pre approval letter.
When you go to buy your car, do not show your pre approval letter to the dealer. Do not let them know how much car you can afford.
You do not want to say "I have 5 grand, help me find a car".
You will not get a discount on that car. Essentially with pre approval you are considered a cash buyer. A cash buyer can get more than 30% off the sticker price of the car.

Be ready to walk away even if you love the car, and got a nice discount. They will call you and offer you a better discount. I have bought many many cars, they always call you and make you a better offer.

If you go to the dealership, they will offer you 0% interest, but of course you will pay much, much more for the car.

Since you only have 10% down, you might have to pay the higher interest rate. Could you get up to 20% down?

Finance your car here onsite if you need help buying one of these beauties :)