Auto Loan - First Time Car Buyer

[Anonymous]

I am starting the process of purchasing/financing my first car. My stats are below. I tried the capital one auto navigator and it came back with a 6.1% apr for a $20,000, 60-month loan. At first this seemed high to me, but then carvana came back with 5.19% for the same terms. Are these rates in-line with what one would expect? Finally, used lending tree to try and find additional rates and lightstream came back with 4.19%. I have never heard of them before, does anyone have any feedback on using them for an auto loan?

Car downpayment: $5k

Transunion: 789

Equifax: 786

Experian: 795

*A note about my credit scores: 6 months ago my scores were about 680 due to carrying a high balance for approx. 8 months. 

Current Utlization: 1%

Available Credit: $38,464

Accounts: 3 credit cards and one student loan ($5k balance)

Income: $100,000 base w/ an expected bonus of $70k (I have only been using my base salary on pre-quals)

[nycsimone]

Your numbers look fine. You should be able to get financing at 3.5% or less with those numbers. You can do a real pre-approval with a local credit union (generally best rates) or just wait until you go to the dealership and ask that they do 3.5% or better.

By financing thru the dealership you have the ability to negotiate a little better price on the vehicle itself. Do your research on pricing before you go in and draw a hard line in the sand.

[Harvey26]

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@Anonymous wrote:

I am starting the process of purchasing/financing my first car. My stats are below. I tried the capital one auto navigator and it came back with a 6.1% apr for a $20,000, 60-month loan. At first this seemed high to me, but then carvana came back with 5.19% for the same terms. Are these rates in-line with what one would expect? Finally, used lending tree to try and find additional rates and lightstream came back with 4.19%. I have never heard of them before, does anyone have any feedback on using them for an auto loan?

Car downpayment: $5k

Transunion: 789

Equifax: 786

Experian: 795

*A note about my credit scores: 6 months ago my scores were about 680 due to carrying a high balance for approx. 8 months. 

Current Utlization: 1%

Available Credit: $38,464

Accounts: 3 credit cards and one student loan ($5k balance)

Income: $100,000 base w/ an expected bonus of $70k (I have only been using my base salary on pre-quals)

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I would go to a local CU and get preapproved. I am almost 100% postivie you will get lower than 4%. Take that preapproval to the dealer. Do not let them shot gun your credit trying to find you a lower rate. I would look at some local credit unions in your area and swe which has the lowest rate and pull the trigger with them.