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Car loan for used car

Jeff Fatt

Jeff Fatt

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I've never had a car loan before so I'm new to the process. I've just been quoted 1.74% for 48 months and am curious if those are good terms. I hear the commercials all the time for 0.00% on new cars, but I'm shopping for used and am guessing those deals don't apply to used.

If those are not good terms, where is the best place to go? I'd assume not through a dealership. This quote is through a credit union for what it's worth.
 
You almost always pay more for used cars. Plus credit unions normally give lower rates.
 
Pretty sure that's a solid rate for a used car. They can be much higher.
 
I went with 1.99% a couple of years ago; dealer financing on a used car. Probably could have done better, but it didn't seem outrageous to us at the time.
 
That's a good rate.

When I researched last year, PenFed had the lowest rates. (You have to jump through a couple administrative hoops to join PenFed if you're not military.) I got 1.5% from them, but I don't think they're offering that rate anymore. On a $15k car the difference between 1.5% and 1.74% is only $75 in interest.
 
that seems like a good rate. I was happy with 1.9% for 60 months, which I got through the dealership for a certified pre-owned two years ago.
 
Since you made me curious, a quick look at some local credit unions and my primary bank (USAA) reveal that 1.36% is about the best I could find. I'd say you found a pretty good rate.
 
That's a good rate. My lady friend is looking at used cars and with no credit history and 0 down the rate was 12% for 60 months.

With a $3K down payment that dropped in half.
 
That is a great rate. I work in Auto Finance and we only do used and that beats our lowest rate. If you want to look around look at PenFed, Air Force Fed or one of the other military credit unions. They charge you $50 to join and you don't have to be in the military. For example Pen Fed is offering 1.99% for 60 months and Air Force Fed is offering 1.85% for 60 months.
 
DeaconCav06 said:
That's a good rate. My lady friend is looking at used cars and with no credit history and 0 down the rate was 12% for 60 months.

With a $3K down payment that dropped in half.
Click to expand...

12%? damn that sucks
 
Just out of curiosity, I assume getting low rates like these is based on a minimum credit score and/or other qualifying metrics, yes?
 
PhilliesDeacs said:
Just out of curiosity, I assume getting low rates like these is based on a minimum credit score and/or other qualifying metrics, yes?
Click to expand...

Yes that is true. The most commonly used tool is the FICO score that is calculated by the credit bureaus along with other info on your credit bureau (late payments, repos, bankruptcies, etc.) These tools are used to grade your riskiness and the rate you are given is determined by that grade.
 
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