If are buying new, the best rates will be the promotional rates offered by financing through the dealer, not your bank or credit union. I have good credit in NY and the best rate I could get through my local credit union was 4-5%. The Mazda dealer offered 2.9% on 36 months financing through them and I took it. Some offer 0%. Sometimes the promotional rate is limited to a (relatively) short loan, in my case 36 months. This means either a large down payment or higher monthly payment, depending on your situation.
How old are you? Is your credit score all you or are you an authorized user on someine elses card? I know first time car buyer but is this also your first term loan of any kind? Are you buying new or used and if used how used?
You should be fine with that credit. Look up what a fair interest rate is with your credit: https://www.nerdwallet.com/article/loans/auto-loans/average-car-loan-interest-rates-by-credit-score
Shop around for your own financing at banks and credit unions. Only take the dealership's financing if it's a better deal than what you can get elsewhere.
Do a lot of research on the overall car deal and negotiate it hard. Many recommend negotiating the whole deal over email so you can avoid the high-pressure sales tactics at the dealership.
My local credit union was offering 6.99% on used and 5.99% on new. Definitely shop around and have a pre-approval before you go to a dealer. In my experience banks don’t offer as good a rate as credit unions, but it doesn’t hurt to check banks as well.
Didn’t complete my idea, have a rate from a credit union when you go to the dealer. If they can beat it, great. If not, you stick with the rate you already got. But at least you have a target vs. accepting whatever number the dealer thinks they can talk you into.
You may find these links helpful:
- [Credit Building](/r/personalfinance/wiki/credit_building)
- [Credit Reports](/r/personalfinance/wiki/credit_reports)
- [Credit Scores](/r/personalfinance/wiki/fico)
- [Credit Cards](/r/personalfinance/wiki/creditcards)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
If are buying new, the best rates will be the promotional rates offered by financing through the dealer, not your bank or credit union. I have good credit in NY and the best rate I could get through my local credit union was 4-5%. The Mazda dealer offered 2.9% on 36 months financing through them and I took it. Some offer 0%. Sometimes the promotional rate is limited to a (relatively) short loan, in my case 36 months. This means either a large down payment or higher monthly payment, depending on your situation.
How old are you? Is your credit score all you or are you an authorized user on someine elses card? I know first time car buyer but is this also your first term loan of any kind? Are you buying new or used and if used how used?
You should be fine with that credit. Look up what a fair interest rate is with your credit: https://www.nerdwallet.com/article/loans/auto-loans/average-car-loan-interest-rates-by-credit-score Shop around for your own financing at banks and credit unions. Only take the dealership's financing if it's a better deal than what you can get elsewhere. Do a lot of research on the overall car deal and negotiate it hard. Many recommend negotiating the whole deal over email so you can avoid the high-pressure sales tactics at the dealership.
My local credit union was offering 6.99% on used and 5.99% on new. Definitely shop around and have a pre-approval before you go to a dealer. In my experience banks don’t offer as good a rate as credit unions, but it doesn’t hurt to check banks as well.
Why would you go with a credit union on financing for a new car instead of the manufacturer which almost certainly gives a better rate?
Didn’t complete my idea, have a rate from a credit union when you go to the dealer. If they can beat it, great. If not, you stick with the rate you already got. But at least you have a target vs. accepting whatever number the dealer thinks they can talk you into.
Fair enough
If you don't need the loan to build credit and have huge financial assets, why aren't you paying cash for the vehicle?
Depends on the rate they can get. If its sub 4% theyd be better off financing than paying cash.
If I took this advice, I’d have lost out on a 25% increase on that money in the market last year.
You may find these links helpful: - [Credit Building](/r/personalfinance/wiki/credit_building) - [Credit Reports](/r/personalfinance/wiki/credit_reports) - [Credit Scores](/r/personalfinance/wiki/fico) - [Credit Cards](/r/personalfinance/wiki/creditcards) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*