About how much is the interest rate on purchasing a new car if I'm going to make payments on it for about 4 or 5 years??

3/8/2006 2:57:34 PM

depends on your credit

3/8/2006 2:58:14 PM

depends on your credit

get pre approved at your financial institution before you go to any dealers

[Edited on March 8, 2006 at 2:17 PM. Reason : credit union if possible]

3/8/2006 3:06:06 PM

Should be 0% on a new car. Between 5-7% on a new-used car. Get a co-signer if its anything else.

3/8/2006 3:08:52 PM

i got 3% on a used card at coastal federal credit union

3/8/2006 3:10:34 PM

I'm looking to get a 2006 Nissan Xterra. It will be the first car that I've ever bought from a dealership. My credit isnt the best coming out of college, but I guess it's not too bad. If I get pre-approved through credit union will I have to pick one of the cars that they have or will they issue me a check(if all goes well) to the Nissan dealership. Sorry, I've never done this before and always buy cars through private dealers.

3/8/2006 3:26:35 PM

0% offers are pretty hard to find these days.....


6.5% if you've got good credit on a 5 year loan is pretty much the standard.

catch a promo and it'll be less

3/8/2006 3:57:47 PM

http://www.thewolfweb.com/message_topic.aspx?topic=392897

3/8/2006 3:58:35 PM

you get approved through the bank for typically either a limit or a range of $$ - say for example $30k is your limit

you go to dealership - pick out what you want - haggle - they send bill of sale to bank - bank sends them check - you start monthly payments to bank

3/8/2006 3:59:03 PM

I believe that SECU does 4.7% on new cars over 5 years. You can usually get a beter rate from in-house financing though, especially if you have the SECU as an option. 0% is much harder to find these days. 5 years is a long time to pay for a car though, shorten it if you can.

3/8/2006 4:05:27 PM

DO NOT HAVE A CAR LOAN FOR 5 YEARS, 4 SHOULD BE MAX, IF YOU CANT DO 4 YOU CANT AFFORD THE CAR

3/8/2006 4:35:03 PM

i thougth 4-5 years was standard for a brand new car am I wrong?

3/8/2006 4:35:20 PM

do w/e you want. as long as you can afford the monthly payments you're fine

3/8/2006 4:35:55 PM

4 YEARS IS STANDARD

ONLY FOOLS THAT WANT TO LOOK RICH DRIVING A CAR THEY CANT AFFORD HAVE LOANS FOR 5/6/7 YEARS

IF YOU WANT TO HAVE A CAR PAYMENT FOR 5 YEARS OR MORE GO FOR IT BUT I CAN PROMISE YOU, YOU WILL GET REAL TIRED OF CAR PAYMENTS AFTER ABOUT A YEAR, SO JSUT IMAGINE WHAT 5 OR 6 WILL DO TO YOU

[Edited on March 8, 2006 at 4:39 PM. Reason : ]

3/8/2006 4:39:07 PM

Also depends on your intent. I guess this doesn't apply as much to a new car, but for a used car, are you looking to get value out of it at the end, or not? In my case, I took out a 4-year loan on a used car, not intending to get much out of it at the end of the loan. In fact, I'll probably keep it after it's paid off. So I'm happy with my low monthly payment, even though it's a long-ish term for a used car.

*If you're going to do this, do be sure the car will last for the term of the loan!*

3/8/2006 5:58:21 PM

Quote :

"I believe that SECU does 4.7% on new cars over 5 years. You can usually get a beter rate from in-house financing though, especially if you have the SECU as an option. 0% is much harder to find these days. 5 years is a long time to pay for a car though, shorten it if you can. "

SECU is 6.25%, new or used. I just got a Tundra and financed through them.

You won't find many in house rates lower than 6.5% unless it's a promotion (and with those you need kick ass credit with multiple lines of credit).

3/8/2006 6:14:51 PM

more likely to find 0 interest deals on american cars. A lot of the jap makers run deals, though (3% for 3 years, 4% for 4, 5% for 5, etc). More than 4 years means you can't afford the car. If the interest is high, make a down payment. If not, don't. Either way, you should have 20% of the value of the loan in cash.


http://www.carbuyingtips.com

[Edited on March 8, 2006 at 7:03 PM. Reason : sdf]

3/8/2006 7:02:21 PM

I just bought a new car. I got 5% on a 3 year loan.

3/8/2006 7:48:08 PM

^^^^^ actually somewhere between 60 and 66 months is the national average term for a car loan.

3/8/2006 10:14:09 PM

Just because it's the national average doesn't make it a sound financial move.

3/9/2006 12:12:24 AM

honda used to do 0% APR.

3/9/2006 12:56:37 AM

5 years is standard.

3/9/2006 2:24:48 AM

YEAH, STANDARD FOR GETTING UPSIDEDOWN IN A XTERRA

need to really check out the depreciation and compare your loan values to what you can expect give how long you plan to keep the car - you want to have some time in there to build up a cushion for repairs to the nissan and purchase of the next one

[Edited on March 9, 2006 at 7:57 AM. Reason : save the pmt amt after its gone]

3/9/2006 7:53:20 AM

^What he said

3/9/2006 8:10:31 AM

damn 60 months is standard, that is nuts when i bought my car in fall 04 they said standard was 48 months, read some article from car and driver or something like that about buy a new vehicle and i financed for 3.5 years and will be paid off in 2.5 years


^^def want to make sure your car is not gonna be worth less after your loan is paid off or anytime during it, if i were to trade my car or get in a wreak, i have enough value in my vehicle that it will pay my loan off and give me some money in pocket

[Edited on March 9, 2006 at 8:15 AM. Reason : ]

3/9/2006 8:15:12 AM

i wouldnt buy a nissan

and i especially wouldnt pay for one for 5 yrs

3/9/2006 9:01:29 AM

The question isn't about what car he should buy.

When I bought my car everyone and their mom was pissed off that I bought a brand new one. But you know what? That was the car that I wanted. I could finally afford a brand new car. And so I bought that brand new car. So if someone wants to buy a Nissan, or a Ford, or a piece of crap, then let them.

My interest rate is 2.9% for five years.

3/9/2006 9:43:43 AM

i dont care what he buys

im just sayin why pay all that time for some junk

you know

3/9/2006 9:46:02 AM

most people don't keep cars for 5 years most keep cars for 3 years....I on average get a new car about every 2....does that mean that I should finance all my cars for 24 months? NO...as cars become more expensive people have to finance them for longer. Who would want to pay $360-460 per month for a $14000 car?

3/9/2006 11:19:16 AM

Along with advising against a 60 month loan, I would also not recommend the purchase of a new car. Get one that's a year old or so - don't be the chump that eats the cost of depreciation just to satisfy your ego.

3/9/2006 11:25:41 AM

I bought a car last year that was an 04' and got a 8.9% interest rate which was the lowest on a 72 month loan - I can't afford over $300 a month, and would rather keep my car than to trade so often, a car is a car

3/9/2006 11:45:35 AM

Quote :

"most people don't keep cars for 5 years most keep cars for 3 years....I on average get a new car about every 2....does that mean that I should finance all my cars for 24 months? NO...as cars become more expensive people have to finance them for longer. Who would want to pay $360-460 per month for a $14000 car? "

bro if you are buying a car every 2 years then you have more money than you know what to do with or you jsut want to be the cool guy with a new car every couple years

i however and most people that are smart dont buy a car with the intent of selling it 2 years later, i plan on keeping mine for 8 or 10 years and dont want to have car payments for the rest of their lives

[Edited on March 9, 2006 at 11:50 AM. Reason : ]

3/9/2006 11:49:22 AM

being in the car business I generally wait until a deal too good for me to pass up comes by. I all comes down to what you want....some people want cars as basic transportation and some want cars that they can have fun with. Generally speaking most people get a new car every 3-4 years at the worst.

3/9/2006 11:53:10 AM

that is nuts, now i have thought of buying a new one already with an 05 model but i have no plans of buying a new one for many years unless i come across a lot of money all of a sudden and want a more fun car

from the sounds of it this guy wants a car to drive for many years

who knows

3/9/2006 11:55:13 AM

Quote :

"Who would want to pay $360-460 per month for a $14000 car?"

Because they want to save money? If you finance a car over 3 years your payment will be $427 versus $272 when you finance over 5 years. However, you only end up paying $15,389 for the car versus $16,337 when financed over the 5 years, almost a $1,000 difference. This is based off the 6.25% rate of the SECU, a pretty safe number. And if you are buying something a little more expensive, like the Xterra he mentioned, then the difference will be about $2,000 for going 3 years instead of 5.

price:	$14,000.00	$14,000.00	$14,000.00	$14,000.00
years:	3		4		5		6
months: 36		48		60		72
rate:	6.25%		6.25%		6.25%		6.25%
per mo:	$427.49		$330.40		$272.29		$233.68
total:	$15,389.81	$15,859.08	$16,337.38	$16,824.68
			
price:	$26,000.00	$26,000.00	$26,000.00	$26,000.00
years:	3		4		5		6
months: 36		48		60		72
rate:	6.25%		6.25%		6.25%		6.25%
per mo:	$793.92		$613.60		$505.68		$433.97
total:	$28,581.08	$29,452.58	$30,340.85	$31,245.84

3/9/2006 1:20:47 PM

^
It depends. Over a 5 year loan, I'd rather have the extra $texas per month. If you compare a 15 vs. 30 year home loan though, THEN it makes a huge difference.

3/9/2006 1:52:57 PM

I'm definately not looking to buy a new car every 4-5 years or 2 years at that. I would rather finance it for 4 or 5 years...keep it for about 10 years and then maybe think about getting another one after that. i think it's dumb to have a car for a short period of time and growing up with not a lot of money you would understand. Right now i'm driving a 1987 jeep cherokee and never had a brand new car in my life, so it's about that time.

3/9/2006 3:04:55 PM

youre still better off to buy a used 1 or 2 yr old car

3/9/2006 3:32:28 PM