car loan quote
How high is “too high” for a used car loan interest rate?
I’ve been looking for a used car in the area of $5,000. I have $1,000 to put down on it. My credit score is a little over 700. With 20% down, they are quoting 18% or more for a 24 month loan, which works out to about
$200 per month. Why is the rate so high?
2003 Hyundai Elantra, 70,000 miles NADA “Clean Retail” $5,900 my price $5,000.
$1,000 down
1.5 years at present job, 4 at previous
same home since 1999
about $750 credit card debt, no late/missed payments
$60,000 mortgage, under $800 monthly payments, it is a mobile home. $4,000 monthly income for me and wife. No dependents.
My previous car was stolen about one month ago. I was found as a destroyed wreck a week later. After $1,000 deductible, insurance only paid $1,000 (it was a 1998 Elantra with 155,000, so why would someone steal it?
I purchased it in 2001 and paid it off in 2004. My wife doesn’t have a car. She uses mass transit.
I can’t figure out the snag…
Auto finance is what I do for a living and car deals are based on the following factors;
Factors.
1. Loan to value (LTV).
2. Age of vehicle.
3. Term of loan.
4. Miles on vehicle.
5. Down payment.
6. Time on job.
7. Time at residence.
8. Monthly income before taxes.
9. Credit score/profile.
10. Total debt to income including new payment.
What they look for;
1. Between 85% and 115%.
2. No older then 8-years.
3. 36-72 months.
4. No more then 100,000.
5. 10% of the sales price or $1,000.00.
6. 2-years.
7. 2-years.
8. $1,500.00 to $2,000.00 depending on lender.
9. 540 or above with 4 paid as agreed lines of credit with 1 being a installment loan paid at least 12 times for at least $150.00 a month and in the credit bureaus for at least 3 years.
10. Not to exceed 45%.
Another thing that comes into play is called payment to income ratio so depending on the term of the loan and the interest rate you would have to budget for the payment. Most lenders do not exceed 16%.
As you can see score is only a very small part of what determines your interest rate. I look at credit every day and see people every month with 700 scores that can’t even get approved for a car loan. People that think scores are all that matter simply don’t know what they are talking about.
After reading the additional information the only thing I can think of is that it’s acombination of the age of the vehicle, miles on the vehicle and the small amount your wanting to finance for only 24-months, the lender will not make any money at a lower rate for 24-months.
LOOKING FOR CAR LOANS? GET multiple car loan quotes REFINANCE CAR LOAN GUARANTEED CAR CREDIT ONLINE CAR LOAN APPROVAL AND ALL TYPE OF LOANS VISIT US NOW AND APPLY ONLINE GURANTEED APPROVAL
|
|
Car Financing; Get The Car Financing You Need With This Book On Car Loan Tips, Car Loan Calculators, Quotes Comparison, Refinancing A Car And More! Do you want to know how to get the best deal for your car loan? Would you like to learn how to calculate the financing for your car loan? Are you interested in learning about the different options for car financing, whether you have bad credit, bankruptcy, or want to refinance your car loan? This book, Car Financing, will share all of this information with you and more. First, you will learn about… |
Related posts:
- car financing rates canada
- auto loan payoff calculator
- car loan quote calculator
- car loan bad credit
- auto loan quote
Tags: auto, car, car loan quote calculator, car loan quotes, car loan quotes online, loan,, loans, quote
