Used Car Financing Question! I Need Help!?
hey guys, if anyone knows about financing please i need your help. My sister is trying to get a car, a 3-series sedan and the vehicle costs about 23,000. The guy at the used car dealership said that with a co-signer, who she has, my dad. My dad has about 780+ credit score and he wants to put $5,000 down. The guy said with a 72 month payment plan it will be 12% interest rate. Doesnt that sound alittle too high? even with my dad co-signing for her. Btw we live in CA if that helps.
Public Comments
- Instead of asking random people about your financial situation, go to a few different banks or credit unions of your choice and apply for an auto loan the same way you did at the dealer. If one rate is reasonably lower, finance through that bank. Dealers are allowed to mark up the interest rate, I'm not sure what the limit is in CA.
- I wouldn't not work with that dealer because she will be paying over 2000 in intrest alone. Since your dad is co-signing (I'm guessing he has decent credit) then you should have no problem with a bank financing at a better rate. I would shop around for loans and such, that dealer is doing his job, getting all the money he can get out of you.
- It depends on the year of the vehicle. The older the car, the higher the interest rate. Even with perfect credit, buy-rate on a 2001 model for 48 months is going to be about 9.9%. If this car is a 2006 model, then yes, 12% is way to high. Keep in mind a few things about used car financing. The things that will increase the rate will be the year<the older the higher> , the term of the loan<the longer the term the higher the rate>, and your credit. Basically, if this is a 2001 3-Series, then 12% for 72 months is not far off. I would check with your bank or credit union just to see what they would offer on the exact vehicle. Good luck and I hope this helps.
