Used Car loan rates - current rate help?

[Newbalewb]

If you or anyone in your family is a veteran, USAA and PenFed have some decent rates right now on used car loans (around 2.5% depending on term).

PenFed is great and you don’t even need to be a veteran. You can pay some low membership fee and become a member

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[euan2020]

Looking at around 2.84% with BOA - if they make the process too much of a pain, might kick it to the side - taking loan out to allow me to invest the cash i have

 

[LyanVeness]

So, about used second hand car loan rates, it depends on a bunch of factors. First off, your credit score plays a big role. The better your score, the lower your rate will likely be. Also, the lender and the term length can affect the rate. Credit unions tend to have lower rates than big banks. As for the term, a shorter term usually means a lower rate but higher monthly payments. Another thing to consider is the car itself. Newer cars might get you a better rate compared to older ones. Plus, if you’re buying from a dealership, they might offer financing deals too. My advice? Shop around and compare rates from different lenders. Don’t just settle for the first offer you get.

 

[Jeep Wick]

So, about used second hand car loan rates, it depends on a bunch of factors. First off, your credit score plays a big role. The better your score, the lower your rate will likely be. Also, the lender and the term length can affect the rate. Credit unions tend to have lower rates than big banks. As for the term, a shorter term usually means a lower rate but higher monthly payments. Another thing to consider is the car itself. Newer cars might get you a better rate compared to older ones. Plus, if you’re buying from a dealership, they might offer financing deals too. My advice? Shop around and compare rates from different lenders. Don’t just settle for the first offer you get.

Having just gone through this, twice, a good credit score is only half the equation. They want to see higher income numbers as well. 2 months ago I was quoted about 12% and 8% depending on individual or joint income. This is with both scores in the 800's. Credit Karma pointed me to refinance this month at 5% but reality was 7%. YMMV.

 

[BetOnBlack]

I am in no way qualified to give financial advice. However, with that said, I would assume the bank would probably rather have money down as it provides them with cash colladeral on the loan.

i.e. if you default on the loan, they keep your 15k

You don't give the bank anything when you put cash down. It all goes to the dealer. You are financing the difference in the sales price and what you put down.
If you have excellent credit putting more down won't change your rate. It will lower your monthly payment though.

 

[Jeep Wick]

You don't give the bank anything when you put cash down. It all goes to the dealer. You are financing the difference in the sales price and what you put down.
If you have excellent credit putting more down won't change your rate. It will lower your monthly payment though.

Sort of. In my case, putting more down I was able to get a better rate and shorter term than they initially offered. I don't know what that cutoff was but I went from $1k to $4k down and everything changed.

 

[BetOnBlack]

Sort of. In my case, putting more down I was able to get a better rate and shorter term than they initially offered. I don't know what that cutoff was but I went from $1k to $4k down and everything changed.

Changing the term changes the rate. The longer the term the higher the rate as there is higher risk to the lender the longer the loan is out.
Some can also be impacted by to LTV as well.
It is a complicated formula for sure, but I've never had a rate change based on how much I put down. It's only changed on the term. But different banks different rules. The main rule is never rely on dealer financing. Always get pre approved with your bank or Credit Union to use as negotiation at the dealership. Dealers make money on selling you financing. The bank tells them your rate. The dealer then adds a mark up to it and says," great news the bank says you are approved. Your rate is 7.9% , you should jump on that because rates are going up. ".
What they didn't say is the bank quoted rate is 5%. Your 7.9 rate is what the dealership wants you to sign for so they make that 2.9% difference.

 

[Jeepeto]

You don't give the bank anything when you put cash down. It all goes to the dealer. You are financing the difference in the sales price and what you put down.
If you have excellent credit putting more down won't change your rate. It will lower your monthly payment though.

Good point, that makes perfect sense

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