Hi everyone, new to the forum. Thinking of buying a used car. My credit score with experian credit monitoring account shows 771. But I just recently paid off a few loans that hasn't showed up. My credit to debt ration show 29%, but when the paid off loans show up it should be close to 6%. I was inquiring about a used car with a sticker price of $26K. The dealer offered me 1.99% for 60months. But now since they ran my credit, it showed up on my credit monitoring. I think it's a good deal, but my mother doesn't think so. She thinks I can magically get a 0% apr. But I was trying to explain to her that 0% usually is only offered to new car sales. What do you guys think??
1.99% sounds great. Ask if there's a rate decrease if you increase down payment.
Without data like how old the car is, what brand it is, if it's captive finance or third party finance, etc, it's impossible to know the best rates you can get.
Thanks for the quick reply! The car for 26k is a 2016 Lexus CT 200h, F sport package with navigation/rear camera. With only 8,500 miles. Clean carfax, one owner, still under warranty. The loan is coming from a credit union.
Captive finance through the dealer might only be better if it's a CPO at a brand dealer and they are marketing promotions. You can search for those promotions online or at the brand's website.
You'd be paying about $1300 in interest over a 5 year loan.
You are not getting a 0% loan on a used car. New car maybe but not on a used car. Factories don't subsizise the loans on anything but new cars and a 0% loan involves a factory subsidy to the (usually captive) finance company.
You are not getting a 0% loan on a used car. New car maybe but not on a used car. Factories don't subsizise the loans on anything but new cars and a 0% loan involves a factory subsidy to the (usually captive) finance company.
I second this. No such thing as a 0% loan on a used car. Lowest I've ever seen is 0.9% from Honda last summer on CPO Civics and Pilots.
Lexus is offering 0.9% on a few "L Certified" CPO models in my neck of the woods, but the CT isn't one of them.
