What kind of APR should I expect?

[Anonymous]

Hi,

This is maybe complicated: 

-I'm buying new, major make and model, total value of the car around 30k

-The xmas bonus was nice this year.  I'm going to put 20k down to make the loan around 10k

-Income is around 60k

-I'm in the chicago metro area. 

-My credit score is around 670

-The hurt is a 5 year old debt in collections of about 1k.  I'd like to just pay it and make it go away, but it's being reported by a different agency on 2 different credit reports.  I haven't been able to get to the bottom of who I should be paying on it. 

That said, I know I won't get a great rate, I just want to know what kind of rate I should be expecting to see? 

I've seen the approval threads and I see some pretty reasonable stuff for somebody with around my score, but I worry that the debt on the credit history will drive up the rate more. 

[Anonymous]

That's not true. You might actually qualify for a pretty good rate. Of course, check a credit union in the area, but financing with the dealer might actually get you a better APR. You're also putting a lot down, which is good. Don't accept anything over 5% with your score, income, and just ONE collection from 5 years ago. 

[Grafton88]

I agree with crownr0yal.  You should be looking to get a good rate.  You have a lot of positives and only one negative.  

Find the car you want.  Don't buy until you have looked at CU and banks for loan APRs.  Use that as your starting point for rates.  Check the car manufacture's website to see if they have any special financing deals.  Then see what a dealer can do for you.

Good luck and welcome to the forums.

[Anonymous]

Hey thanks guys.  You were right.   Retail banks have come in with APR's from 1.9% to a highside of about 4%.  Really strange though:  the manufacturer's finance outfit rejected it.  One would think that those guys would be a little bit 'looser' on that. 

[Anonymous]

Should finance as much as possible of the 30000. It's better to show on your credit with higher limits. You can just pay the 20000 you were planning to do as down payment for first payment and payment toward principal.