cancel
Showing results for 
Search instead for 
Did you mean: 

What will my interest rate be?

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Established Member

What will my interest rate be?

Hello Everyone!

 

I plan on purchasing a new car and was wondering what my interest rate might be if I get my fico score for EQ to around 710 - 720.

 

My current EQ score is 662, and should go up because I just paid off my credit card. I currently have only one credit card opened with a $250 limit and 62% utilization. I just paid off the remaining balance and it's currently at 0.  I've also had a couple late on it over 4.5 years ago and the last late on my credit report  shows 4.5 years for all accounts. On my report I have 3 charged-off accounts that I have settled with collection agencies, plus the one I currently have opened, and a collection with a cable company that I have paid off also.  My report shows 4 negatives and 1 collection. I also have a 7 year old student loan that I am currently paying with no lates, and a 6.6 year car loan that I've paid off also with no lates.

 

The car I plan on purchasing is around $28500 and I plan on making a down payment of $8500, so the loan would be $20000. I make around 31k a year and have been working with my company for over 7+ years. 

 

Thanks in advance for all the replies!


Starting Score: EQ 610 (12/31/2010)
Current Score: EQ 662 (10/25/2012)
Goal Score: 720


Take the FICO Fitness Challenge
Message 1 of 11
10 REPLIES 10
Epic Contributor

Re: What will my interest rate be?

The biggest issue will be how long it's been since last negative... and if you have paid them all that's even better....

If you are financing, you can probably get goo rates with that kindd of money down!

I would talk to your local credit union or bank you use for checking and get a pre-approval with them so you have that rate... then go to dealer, work out price FIRST! 

Then let them get you financing keep your financing in your pocket... if they come back higher, pull out yours, bet they will match or beat BUT keep in mind if they are matching with a bank that is not local or one you use for anything, you might want to take yours... build the relationship that works in the future for you also and sometimes in the excitement  you don't think of that!

I had a friend that bought a used car and had the money to pay cash but wanted to finance about half and use the other for higher rate credit cards, etc.  I told him to go get pre-approval at his old School CU which he had opened but never had any loan products... I also had him do this because he had not gotten a car loan in so long and didn't even know his credit! He got that and we went to dealership ( the finance lady at the BMW quickly came out and says what if I can match rate? or maybe beat by .25%?? I told him he should go with CU because BMW finance does not help him (he was not buying a BMW!) he went with cu and when he went to sign, becuase he was taking shorter loan of 24 or 36 months AND he set up Auto pay they gave him another .50% off the rate he originally got which was much better then BMW BEFORE she tried to convince him to go with her if she could match....

Sorry little lengthy but it pays off to know your stuff before going in.

and really if you know exactly what you want, I usually won't even go in until we have a price set... they will try EVERYTHING to get you to come in and drive, pick out options, pull credit... how can they quote without knowing? DO IT ON YOUR BEST RATE! is what i say... if it's new, see what finance rate is on website for that brand car....

 

 

 

Message 2 of 11
Established Member

Re: What will my interest rate be?

Thanks for the reply! I plan on buying it from the dealership since I got my first car loan and first car from them. Hopefully that will get me a better interest rate from them. I'm still waiting on my updated fico score and should get a boost from my auto enhanced score also, so I'm hope my fico will be 710+ auto enhanced with my 62% credit card utilization going down to 0. 


Starting Score: EQ 610 (12/31/2010)
Current Score: EQ 662 (10/25/2012)
Goal Score: 720


Take the FICO Fitness Challenge
Message 3 of 11
Epic Contributor

Re: What will my interest rate be?


@mantid83 wrote:

Thanks for the reply! I plan on buying it from the dealership since I got my first car loan and first car from them. Hopefully that will get me a better interest rate from them. I'm still waiting on my updated fico score and should get a boost from my auto enhanced score also, so I'm hope my fico will be 710+ auto enhanced with my 62% credit card utilization going down to 0. 


 

1. Who was your last auto loan through that you got from them?

2. what dealership?

Message 4 of 11
Established Member

Re: What will my interest rate be?

Both were through Honda

Starting Score: EQ 610 (12/31/2010)
Current Score: EQ 662 (10/25/2012)
Goal Score: 720


Take the FICO Fitness Challenge
Message 5 of 11
Epic Contributor

Re: What will my interest rate be?


@mantid83 wrote:
Both were through Honda

Okay, then yes that makes sense, just was talking about this in the other car thread.

 

What was your score and rate last time?

If Honda wants your business again they should offer the promo rate or at least tier 2 or 3 depending on difference.... they need to push it through at the dealership!

Message 6 of 11
Established Member

Re: What will my interest rate be?

They currently have a promo going for 1.9% interest rate for well qualified buyers. I don't know if i fall under that catagory, but it would be nice to get something like 3-5%. I also want to take the loan out for 72 months.


Starting Score: EQ 610 (12/31/2010)
Current Score: EQ 662 (10/25/2012)
Goal Score: 720


Take the FICO Fitness Challenge
Message 7 of 11
Epic Contributor

Re: What will my interest rate be?


@mantid83 wrote:

They currently have a promo going for 1.9% interest rate for well qualified buyers. I don't know if i fall under that catagory, but it would be nice to get something like 3-5%. I also want to take the loan out for 72 months.


1. If you are not at 0% i Would NOT do 72 months.

2. If you are not going to die before you need to either trade or sell this car I would NOT do 72 months.

 

 

I have done it before out of that was only options (Roadloans) and I wouldn't do it again... you are just going to either eat your equity with your down payment in under a year or you are going to stay underwater for 4-5 years into the loan!

Message 8 of 11
Established Member

Re: What will my interest rate be?

I plan on driving this car for 6+ years. I my last car loan was for about $18,000 and I took it out for 6.6 years and the interest rate was 8-9% and I ended up with a good amount of equity on it after the loan was done. Being that this loan is 6 months more, what do you think? I also know brand new cars depreciates a lot after the first year. 


Starting Score: EQ 610 (12/31/2010)
Current Score: EQ 662 (10/25/2012)
Goal Score: 720


Take the FICO Fitness Challenge
Message 9 of 11
Epic Contributor

Re: What will my interest rate be?


@mantid83 wrote:

I plan on driving this car for 6+ years. I my last car loan was for about $18,000 and I took it out for 6.6 years and the interest rate was 8-9% and I ended up with a good amount of equity on it after the loan was done. Being that this loan is 6 months more, what do you think? I also know brand new cars depreciates a lot after the first year. 


If your plan is to keep it that long and we are talking about a Honda and this is your second time doing so then sure fine probably okay... but I would still do some number checks, ez loan calc or something for free on iphone or just simple google search for free calc. you can check rates and term and see if you plan to keep how much you are ganing monthly in pocket vs. how much you loose with the extra year tapped on and decide if it's pure cash that you are worried about or lower longer payments.

 

Similar but less drastic if looking at a 30 year mortgage that you have paid down to 25 and you move or refinance and go back to another 30 years!! it could make the difference of $50+k depdning...

 

I tend to jump around in cars so much but im VERY guilty of taking on longer loans to make monthly easier but its also a good feeling to look at a 24 or 36 months term and being done with it... but i get close or something and i end up trading in!!! haha

Message 10 of 11
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.