cNeutron Posted October 30, 2004 Report Share Posted October 30, 2004 I am getting a loan for my new car. When my mom went today to check on the interest rates it was 8%-8.5% that seems a little high to me. My parents are going to cosign on the loan and they have perfect credit. So why would the loan be so much or should i just try another bank. We are going through 5/3rd by the way. Any help would be much appreciated. Quote Link to comment Share on other sites More sharing options...
Guest 1QWKEVO Posted October 30, 2004 Report Share Posted October 30, 2004 yeah id def go through another bank, im not sure which one i go through but i had my mom co sign also and our interest rate is 4.3%....what kind of car are you going to get? Quote Link to comment Share on other sites More sharing options...
black00ws6 Posted October 30, 2004 Report Share Posted October 30, 2004 A new car loan for 8-8.5?!?!? F that, try capital one. Quote Link to comment Share on other sites More sharing options...
Mallard Posted October 30, 2004 Report Share Posted October 30, 2004 I used the Franklin County School Employees Federal Credit Union I don't think anyone in your family has to be a school employee to use them. Quote Link to comment Share on other sites More sharing options...
cNeutron Posted October 30, 2004 Author Report Share Posted October 30, 2004 the car that i am getting is a 2002 Mustang GT. I heard the year would change things but i didnt think it would be that much Quote Link to comment Share on other sites More sharing options...
Guest powers Posted October 30, 2004 Report Share Posted October 30, 2004 Originally posted by blinkkilla182: the car that i am getting is a 2002 Mustang GT. I heard the year would change things but i didnt think it would be that much the year of the car as well as the miles on the car effect both rate and term. For a 2002 you could do better than 8-8.5% but i can tell you I have seen much worse. For that car with low miles less than 40K with excelent credit you should be able to get a 4-6% rate on a 48-60 month loan. Oh also there is more than credit that will effect the terms of the loan. Things such as loan-to-value and debt ratio can mean you will get a higher rate even with a perfect credit score. Not everyone's loan is the same. On a 4 yr loan a 5% rate will save you about 1,000 in interest over the 8% rate. Quote Link to comment Share on other sites More sharing options...
MrMeanGreen Posted October 30, 2004 Report Share Posted October 30, 2004 Greg, do you deal with automobile loans in addition to mortgages? If so, let people know and they may get some assistance from you smile.gif Quote Link to comment Share on other sites More sharing options...
cNeutron Posted October 30, 2004 Author Report Share Posted October 30, 2004 Originally posted by BIG PAPA: the year of the car as well as the miles on the car effect both rate and term. For a 2002 you could do better than 8-8.5% but i can tell you I have seen much worse. For that car with low miles less than 40K with excelent credit you should be able to get a 4-6% rate on a 48-60 month loan. Oh also there is more than credit that will effect the terms of the loan. Things such as loan-to-value and debt ratio can mean you will get a higher rate even with a perfect credit score. Not everyone's loan is the same. On a 4 yr loan a 5% rate will save you about 1,000 in interest over the 8% rate.do you think its more so the bank? We didnt apply yet for it my mom just asked. So do you think that it still might be lower just a 8% average? Quote Link to comment Share on other sites More sharing options...
Guest powers Posted October 30, 2004 Report Share Posted October 30, 2004 Anthony, I don't really handle car loans but the underwriting is very similar. and Cabot, have them apply and do a credit report. Your parents will have a 30 day window to shop for the credit as long as they pull it as an auto finance inquiry. For mortgage and auto financing you can have you credit pulled as much as you want and it will only count as one inquiry as long as you do it in a 30 day window. It is a little more complicated than that but that is the basic deal on it. So don't be afraid to shop around for fear of damage to your credit, just keep it to 30 days or less before it will effect their score. And even then it won't effect that much. Also keep in mind the person she may have talked to at the bank may not be the most informative person. Most large banks do all the underwriting in one location. So the person at the bank will just be an originator. Some are very experienced and know exactly what the deal is. I have seen others that give bad information ALL the time. John also suggested cap1 which is a good suggestion. I would try household, and wells fargo as well. They take the info over the internet in most cases give you a decision based on the info supplied and verify it at a later time. Quote Link to comment Share on other sites More sharing options...
Guest Ponyfreak Posted October 30, 2004 Report Share Posted October 30, 2004 I applied for a 50K loan a month ago on a 2001 car and recieved 4.8%. Move onto another place. Quote Link to comment Share on other sites More sharing options...
PonyPimpstress1647545491 Posted October 31, 2004 Report Share Posted October 31, 2004 That's incredibly high. I have a 2004 GT with 2.9% with no co-signer. Altho... keep in mind that a used car will have a tad higher interest rates! Quote Link to comment Share on other sites More sharing options...
Guest powers Posted October 31, 2004 Report Share Posted October 31, 2004 Originally posted by Pony Pimpstress: That's incredibly high. I have a 2004 GT with 2.9% with no co-signer. Altho... keep in mind that a used car will have a tad higher interest rates! You can do even better tham that with FMCC on a new purchase. Cabot if your folks belong to a credit union have them check there as well. Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted October 31, 2004 Report Share Posted October 31, 2004 5/3 DOES have a tendency for high rates on the used market, but 8-8.5% is WAAAY too high for our loans. There must be something wrong with your credit or whomever that is cosigning with you (if they have cosigned yet). For reference, I have very good credit and got my 1995(!!!very used!!!) Corvette for 5.3% through the FIRST NATIONAL BANK OF TIFFIN, OHIO. See if you can work with them. They are a small private bank with a LOT of old deposits that allow them to make silly rate loans without worrying about dipping into the Fed Reserves. Quote Link to comment Share on other sites More sharing options...
cNeutron Posted November 1, 2004 Author Report Share Posted November 1, 2004 Originally posted by Zeitgeist: 5/3 DOES have a tendency for high rates on the used market, but 8-8.5% is WAAAY too high for our loans. There must be something wrong with your credit or whomever that is cosigning with you (if they have cosigned yet). For reference, I have very good credit and got my 1995(!!!very used!!!) Corvette for 5.3% through the FIRST NATIONAL BANK OF TIFFIN, OHIO. See if you can work with them. They are a small private bank with a LOT of old deposits that allow them to make silly rate loans without worrying about dipping into the Fed Reserves.Yea we ended up getting alot better. whoever told my mom that wasnt well informed now we are around 4%. But thanks for the help from everyone Quote Link to comment Share on other sites More sharing options...
recklessOP Posted November 2, 2004 Report Share Posted November 2, 2004 Originally posted by BIG PAPA: You can do even better tham that with FMCC on a new purchase. Quote Link to comment Share on other sites More sharing options...
Bam Posted November 2, 2004 Report Share Posted November 2, 2004 When I was 18, last year, (damn Im young), I bought my gf a car, well she's paying for it but the loan is all in my name, but anyways. The car was 3500 at a local ford dealer, me being 18, i'd had a CC for about 4 months and my cell phone bill in my name for about 6 months, other than that no credit. But I still qualified for a 4% interest rate, so your doing something wrong if between you AND your mom you cant do better than that. Whew, sry was so long. But good luck, I like paying cash for me cars, main reason why I haven't bought a car for more than 6500, lol, but its still sweet. Matt Quote Link to comment Share on other sites More sharing options...
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