# what's a typical used car loan interest rate now days?



## bzcat (Nov 26, 2001)

I was looking at bankrate.com and the average 36 months used car loan is about 8.5% Since this is average, I was wondering if someone who works for a bank or credit union mind telling me what your rates are for someone with tier one credit?
850+ FICO
$30k loan amount
$200k+ income (lots of room left over after mortgage and bills)
I assume I could get something closer to prime rate or does FICO score not do anything for you for used car loan?


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## Jetdrivr (Oct 28, 2004)

*Re: what's a typical used car loan interest rate now days? (bzcat)*

The collateral in question plays an increasingly larger part of the APR offered these days. 
8.5% is a good rate on a used car but not the best that is available for someone who is considered Grade A paper. You can maybe do a bit better at your local bank or a credit union if you are a member. Most of our customers go out at 29.99% and above, but we deal exclusively in deep subprime lending. 
Also, I'm questioning your report of an 850+ FICO considering that 850 is the maximum numerical value available for a FICO and it is theoretically not achievable. If one lender pulls your bureau or if you have one nickel out on credit, your FICO will be below 850.


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## TRegKnowItAll (Oct 2, 2003)

*Re: what's a typical used car loan interest rate now days? (Jetdrivr)*

New car rates are always better then used. In most cases lease MF's are better then standard APR's too.
In my 4 plus years I have only once seen a FICO of 852, so while 850 is supposed to be the cap, it is not. It is however very very rare to even see north of 800.


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## lojasmo (Dec 23, 2002)

*Re: what's a typical used car loan interest rate now days? (bzcat)*

I think my credit union gave me 5.9 on my used car.
Saturn gave us....4.9????? I don't freaking remember....for a new vue.


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## Jetdrivr (Oct 28, 2004)

*Re: what's a typical used car loan interest rate now days? (TRegKnowItAll)*


_Quote, originally posted by *TRegKnowItAll* »_New car rates are always better then used. In most cases lease MF's are better then standard APR's too.
In my 4 plus years I have only once seen a FICO of 852, so while 850 is supposed to be the cap, it is not. It is however very very rare to even see north of 800.

You were probably looking at some scoring model other than the FICO, such as the Vantage, which has a maximum of 990. 
There is theoretically no such thing as "perfect" credit in terms of FICO since 30% of the weighted average of a persons debt determines his FICO score. In other words, if you owe even one dollar to a creditor, you have less than perfect credit because you are "in debt." If you own a home, as many people do, you are in debt to the financial institution servicing the loan. 
I'll stand by my comment that there is no such thing as a perfect 850 FICO score, and certainly no such thing as a FICO over 850. I'm guessing you were looking at some other scoring model.


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## [email protected] (Feb 14, 2005)

*Re: what's a typical used car loan interest rate now days? (Jetdrivr)*

Once I saw a 827 FICO. All of us, from the finance director on down, were blown away. To be 800 plus is almost impossible. 
Back OT, rates all vary by your lender. I pay 6% on a 5 year old car, and I'm happy with that.


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## Jetdrivr (Oct 28, 2004)

*Re: what's a typical used car loan interest rate now days? ([email protected])*

I can understand that.  The FICO is not a linear progression. The higher your score, the more difficult it is to achieve another point or two. I happen to be on the higher end of the scale and my score only varies by a point or two as large changes take place.


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## bzcat (Nov 26, 2001)

*Re: what's a typical used car loan interest rate now days? (Jetdrivr)*


_Quote, originally posted by *Jetdrivr* »_The collateral in question plays an increasingly larger part of the APR offered these days. 
8.5% is a good rate on a used car but not the best that is available for someone who is considered Grade A paper. You can maybe do a bit better at your local bank or a credit union if you are a member. Most of our customers go out at 29.99% and above, but we deal exclusively in deep subprime lending. 
Also, I'm questioning your report of an 850+ FICO considering that 850 is the maximum numerical value available for a FICO and it is theoretically not achievable. If one lender pulls your bureau or if you have one nickel out on credit, your FICO will be below 850. 


So what you are saying is the car is an important factor in the rate? Why would that be the case?
And I checked my credit report when I got home last night, my FICO is 824 according to Transunion and 833 according to Experian. It's not 850+ as I mentioned before. For some reason I thought it was over 850 but evidently 850 is the max. Thanks for pointing that out.
I guess I may be better off using my home equity LOC...


_Modified by bzcat at 7:19 PM 5-11-2007_


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## [email protected] (Feb 14, 2005)

*Re: what's a typical used car loan interest rate now days? (bzcat)*


_Quote, originally posted by *bzcat* »_So what you are saying is the car is an important factor in the rate? Why would that be the case?
_Modified by bzcat at 7:19 PM 5-11-2007_

Usually the model year of the car plays a lot into the rate.


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## jebglx (Jul 13, 2000)

*Re: what's a typical used car loan interest rate now days? ([email protected])*


_Quote, originally posted by *[email protected]* »_Usually the model year of the car plays a lot into the rate. 


it does. for example, my new car rate is 7.49% (up to 60months), used 1-2 years is 7.74% (up to 48months) and 3yrs or older is 8.49% (up to 36 months)
bill


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## Jetdrivr (Oct 28, 2004)

*Re: what's a typical used car loan interest rate now days? (bzcat)*


_Quote, originally posted by *bzcat* »_
So what you are saying is the car is an important factor in the rate? Why would that be the case?
And I checked my credit report when I got home last night, my FICO is 824 according to Transunion and 833 according to Experian. It's not 850+ as I mentioned before. For some reason I thought it was over 850 but evidently 850 is the max. Thanks for pointing that out.
I guess I may be better off using my home equity LOC...

The car in question plays a huge part in the interest rate offered. A newer car typically will get you a lower rate but also an older car with a higher loan value will also get you a lower rate. 
Wtih an 824 FICO, you should be eligible for some of the lowest rates your lending institution offers, assuming the collateral is good.
As for using your HELOC to finance a car purchase ... I'm not a credit counselor, so consider it just friendly advice, but you may wish to reconsider that idea. It is never a good idea to finance a depreciating asset vis a vis your HELOC. That is one very quick way to end up very upside down in a car. 
With an income of $200K/annum, why don't you just pay cash for this used car purchase? What used car could you possibly be buying that you cannot afford to pay for outright? And if things are so tight on a $200K income that you cannot bankroll the purchase of a used car, maybe this might be a purchase you want to put off for a while?


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## bzcat (Nov 26, 2001)

*Re: what's a typical used car loan interest rate now days? (Jetdrivr)*


_Quote, originally posted by *Jetdrivr* »_
The car in question plays a huge part in the interest rate offered. A newer car typically will get you a lower rate but also an older car with a higher loan value will also get you a lower rate. 
Wtih an 824 FICO, you should be eligible for some of the lowest rates your lending institution offers, assuming the collateral is good.
As for using your HELOC to finance a car purchase ... I'm not a credit counselor, so consider it just friendly advice, but you may wish to reconsider that idea. It is never a good idea to finance a depreciating asset vis a vis your HELOC. That is one very quick way to end up very upside down in a car. 
With an income of $200K/annum, why don't you just pay cash for this used car purchase? What used car could you possibly be buying that you cannot afford to pay for outright? And if things are so tight on a $200K income that you cannot bankroll the purchase of a used car, maybe this might be a purchase you want to put off for a while?









The car in question is a 2004 Porsche 996. I have enough liquid asset to cover the purchase price but I prefer to not empty my piggy bank on a car so I was thinking of putting down $25k cash and financing the rest. The home equity loan idea is just one option since used car loan rate is not particularly attractive right now. But the bottom line is that I don't really need the 996 so if I can't swing a good rate for the loan, I won't buy it. I just always wanted a Porsche... but thanks for the info so far.


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## Jetdrivr (Oct 28, 2004)

*Re: what's a typical used car loan interest rate now days? (bzcat)*

I think your best option will be to seek the funding from your local bank, preferably one you do business with. Your credit seems fine and your downstroke is more than adequate. They will give you about the best APR you will find.


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## dubrmine (Aug 31, 2002)

*Re: what's a typical used car loan interest rate now days? (bzcat)*

I would definitely contact a local credit union. I don't think you need to be a member that long to get the best rates on a car loan. I just got one with 5% interest http://****************.com/smile/emthup.gif


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## Joe-E (May 16, 2007)

Try a company Like e-loans, capital one, and other online lenders. When I was looking for a car. I was pre-approved for a used car loan @ 6.9%- 7.3%. providing that the car was not older then a 2004. The loan was 48-60 months 
Note that rate included electric bill pay which saves you .25%


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## SIXPAK GQ (Mar 25, 2007)

2.99 to 4.99


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## Joe-E (May 16, 2007)

2.99% on a used car!? Where!?? And what are those terms?


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## anotoneher (Jan 20, 2007)

*Re: (Joe-E)*


_Quote, originally posted by *Joe-E* »_2.99% on a used car!? Where!?? And what are those terms?

Thats if pigs fly over the moon, the sun rises at 3pm, the finance manager goes blind half way through the deal and your credit is a +750.


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## ramsecon04 (Jun 27, 2006)

*Re: what's a typical used car loan interest rate now days? (bzcat)*

I know Wells Fargo has rates as low as the mid to upper 7's with excellent credit. If you bank with them, you may even get additional rate discounts. Let me know (I'm employed there) http://****************.com/smile/emthup.gif


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## Cluemanti (Jun 17, 2003)

*Re: (anotoneher)*


_Quote, originally posted by *anotoneher* »_Thats if pigs fly over the moon, the sun rises at 3pm, the finance manager goes blind half way through the deal and your credit is a +750.

I have 2% on my loan....








It is through a special program through USAA though.... http://****************.com/smile/emthup.gif


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## sej683s (Dec 21, 2004)

*Re: (Cluemanti)*


_Quote, originally posted by *Cluemanti* »_
I have 2% on my loan....








It is through a special program through USAA though.... http://****************.com/smile/emthup.gif 

i got one of those too http://****************.com/smile/emthup.gif i think mine is a little above 2% though. my car loan is under 5% as well. usaa is the shiz


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## kaitlynn.cadence (Feb 15, 2011)

the model year of the car plays a lot into the rate.


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## AJB (Nov 11, 2002)

What about just getting a line of credit or a personal loan? With 200k income and all, I'm sure you would qualify from some sort of bank or credit union.


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## EugeneWilliam (Mar 23, 2012)

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## Hostile (Nov 18, 2001)

*FV-QR*

My credit union (PenFed) is giving the following rates for used car loans:

Rate | Term | Loan Amount | Approx. Loan Pmt. ($20,000 Auto)
1.99% APR* | 12 to 36 months | $500 to $70,000 | $572.76
1.99% APR* | 12 to 48 months | $7,500 to $70,000 | $433.82
2.49% APR* | 49 to 60 months | $10,000 to $70,000 | $354.86

BTW - those are the same rates and terms for their new car loans.

EDIT: Dammit, tricked by a spammer!


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## deagle (Feb 22, 2011)

check your credit union also, as they also give out surprisingly competitve rates


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