What is the average used car financing percentage?

Tuesday, March 3rd, 2009 at 07:05

Robesrt asked:

I buy without a prescription am just trying to calculate how much it would cost me to finance a car. I have good, not excellent credit.

Additional Details
Down payment will be anywhere from 10% to 20% of the car price.

Reply:

A lot will depend on the year of the car you are buying as well as it's retail loan value v/s purchase price. In addition, many Manufacturer Certified Pre-Owned vehicles typically have a lower rate, such a 3.9% on a Pontiac for 60 months. As long as you qualify, it wouldn't matter how much money you put down because it's a set rate.

The older the car, the higher the interest rate will be. If you buy a 2005-2006, you can probably get 6% - 7% or so through a credit union / bank. If you try to buy a 2001 model, the rate might be 11% and they will only let you finance the car for 48 months, rather than 60. This sometimes makes the payment on a more expensive newer car the same as one a couple years older. It will cost more, however if you can add 12 months to your term, it helps to lower your monthly payment. I hope this helps and you can email me if you have questions.

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