Auto Loan Expectations

[joy1979]

I plan to go to the dealership tomorrow and I'm wondering what I should expect. The last time I went thru this process was 6 years ago. My credit was pretty much in the toilet so I had no real expectations. This time it's different. I believe my scores are good enough to obtain a good rate. I  plan on getting a 2008 Jetta. It's marked $15,488. I pulled my scores on 11/12/10 which are TU-693; EQ-702.  I know every situation is different, but my question is what type of rate should I expect? I'm thinking no more that 6.5%

[MrGrey]

Joy 1979

I believe that VW is currently running an APR specials until the end of November for the 2010 Jetta @0% and the 2011 Jetta @2.9% both for 60 months.  In addition, it's my understanding that the 2011 model starts at $15,995 (better bang than an '08 at $15,488) .  Everything being equal, with your scores you should qualify for a APR much lower than 6.5%.

[joy1979]

Thanks for your input MrGrey!

[Anonymous]

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@MrGrey wrote:

Joy 1979

@I believe that VW is currently running an APR specials until the end of November for the 2010 Jetta @0% and the 2011 Jetta @2.9% both for 60 months.  In addition, it's my understanding that the 2011 model starts at $15,995 (better bang than an '08 at $15,488) .  Everything being equal, with your scores you should qualify for a APR much lower than 6.5%.

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new car APR specials are "subvented" or defrayed/susidized by manufacturer involvement with the financing bank to help make sales

used cars do not offer subvented rates (unless they are CPO or some special like that).

Used car rates are a factor of score, and the specifics of the car, the LTV, AGE and mileage.

I would expect for a 3 year old car for you to get a rate that starts with a 6 but could be anywhere to a 9.

[bakalao2k]

US Bank has a 3.75% APR on a 36 month loan.  Check on bankrate for other offers.

[Anonymous]

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@bakalao2k wrote:

US Bank has a 3.75% APR on a 36 month loan.  Check on bankrate for other offers.

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3.75% is there Lowest available rate, based on term, borrower qualifications, particulars of the vehicle and other factors. There is NOT a loan APR table available to a casual user of their site that lists vehicle variables.

I would bet dollars that the OP is not looking for 36 months, or even qualifies if they were

From the website: for borrowing 16000 at my Zip Code:

Term APR Monthly Payment

36 Month	3.73%	$470.46
48 Month	4.24%	$362.96
60 Month	4.48%	$298.15
Lower rates are available at $15,000
36 Month 3.59% $440.13 48 Month 4.12% $339.50 60 Month 4.38% $278.86

[joy1979]

I went in to my local VW and was told the best they can offer would be 5.5%. I guess that isn't too bad for 48 months.

Thanks for all the input!

[tengtengvn]

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@bakalao2k wrote:

US Bank has a 3.75% APR on a 36 month loan.  Check on bankrate for other offers.

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3.5% if you have a US Bank Platinum Package and setup automatic payment.