scugpg Posted May 18, 2011 Report Share Posted May 18, 2011 I'm considering getting a used vehicle and have been shopping around for loans with good interest rates. Best I've seen is around 5.6% fixed. Is there banks or other financial firms that might offer a better rate? Interest cost of borrowing sucks, so trying to find the best rate out there. No credit issues etc so figured I could find something better than what I've seen so far. Thanks! Link to comment Share on other sites More sharing options...
asdve23rveavwa Posted May 18, 2011 Report Share Posted May 18, 2011 One piece of advice I can give is know your credit report/score. Better score=better rates, usually. Link to comment Share on other sites More sharing options...
kickingfrog Posted May 18, 2011 Report Share Posted May 18, 2011 If you are buying from a dealer they may have better rates. Read the fine print though, the lowest rates offered are usually for 2 or 3 year term. Link to comment Share on other sites More sharing options...
SRT8 smoker craft Posted May 18, 2011 Report Share Posted May 18, 2011 Pay cash That's prime right now gonna be hard to find a better rate unless you buy new with a 0% incentive . Link to comment Share on other sites More sharing options...
scugpg Posted May 18, 2011 Author Report Share Posted May 18, 2011 If you are buying from a dealer they may have better rates. Read the fine print though, the lowest rates offered are usually for 2 or 3 year term. The 5.6 is what I was told based on 5yrs. I'll see what is offered on shorter terms but the payment starts getting pretty big at that point Link to comment Share on other sites More sharing options...
scugpg Posted May 18, 2011 Author Report Share Posted May 18, 2011 Pay cash That's prime right now gonna be hard to find a better rate unless you buy new with a 0% incentive . LOL yes wouldn't that be easier! Prime is 3% right now I believe. Link to comment Share on other sites More sharing options...
SRT8 smoker craft Posted May 18, 2011 Report Share Posted May 18, 2011 just looked BOC rate is 5.69 on a 5 year morgage vehicles are usually a bit higher so your not doing to bad at 5.6% Link to comment Share on other sites More sharing options...
DRIFTER_016 Posted May 18, 2011 Report Share Posted May 18, 2011 If you are buying from a dealer they may have better rates. Read the fine print though, the lowest rates offered are usually for 2 or 3 year term. This is true. My current vehicle I bought used from a Honda dealer when they had one of their financing deals on. The rate was 0.9% on new vehicles and 3.9% on used. FYI 5.6% is a pretty decent rate on a used vehicle. You will be hard pressed to get better than about 8% through a bank. Link to comment Share on other sites More sharing options...
BillM Posted May 18, 2011 Report Share Posted May 18, 2011 Get a line of credit and pay for the vehicle that way. If you have a house, then make it a secure line of credit which will have an even lower interest rate. Link to comment Share on other sites More sharing options...
rob v Posted May 18, 2011 Report Share Posted May 18, 2011 If you're getting quoted that rate from the dealer make sure you find out what if any discount on the purchase price you can get if you pay cash - then arrange a personal loan or personal line of credit with your lender/banker. 5.6% for 5years does look like a pretty good rate though. If you've got some equity in your home, home owner credit lines are usually the cheapest way to borrow. what you're basically doing is arranging a secured (mortgage on your home) line of credit - in return for a good rate. takes a little bit of time at the outset to get set up - but then you've got it for as long as you own your home. Link to comment Share on other sites More sharing options...
scugpg Posted May 18, 2011 Author Report Share Posted May 18, 2011 Get a line of credit and pay for the vehicle that way. If you have a house, then make it a secure line of credit which will have an even lower interest rate. I have heard folk do this as well. I'll check that out last time I asked it was a 500 setup fee. I've of heard some folks getting a 2% variable which is great. Link to comment Share on other sites More sharing options...
SlowPoke Posted May 18, 2011 Report Share Posted May 18, 2011 Get a line of credit and pay for the vehicle that way. If you have a house, then make it a secure line of credit which will have an even lower interest rate. Yup. Some banks have different names for it but it's essentially an equity line of credit. Had I not just bought the house, I could have paid for my new truck within my equity LOC and would have a 2.25% interest rate. Instead, I used a portion of it and put the rest on an unsecured (normal) line of credit which will yield a combined rate near 3.5%. Still damn good compared to the 12% dealer financing! An equity line works like this... 200,000 property value 160,000 eligible equity (80% of value) -130,000 balance owing ======== 30,000 available credit Depending on the amount borrowed, the $500 registration fee (reappraisal etc.) can be realized easily in interest savings. Having said all that; if your mortgage term is nearing renewal (within 6-7months), you have a little leverage and they may waive the $500 fee to keep you at bank x. Link to comment Share on other sites More sharing options...
BillM Posted May 18, 2011 Report Share Posted May 18, 2011 This is how I paid for my truck. They also waived the setup fee as I just signed with them for my house. No dealer can get you a rate like that. Link to comment Share on other sites More sharing options...
kemper Posted May 18, 2011 Report Share Posted May 18, 2011 I have heard folk do this as well. I'll check that out last time I asked it was a 500 setup fee. I've of heard some folks getting a 2% variable which is great. I pay 5% on my LOC, but I am a student (read: unsecured). Line of credit is probably the way to go. Link to comment Share on other sites More sharing options...
torco Posted May 18, 2011 Report Share Posted May 18, 2011 Definitely agree with Bill if you have equity your best rate is likely going to be a secured line of credit. That said 5.6% is not a terrible rate for a used vehicle. Link to comment Share on other sites More sharing options...
scugpg Posted May 18, 2011 Author Report Share Posted May 18, 2011 Thanks guys going to look at those options. I appreciate all the responses! Link to comment Share on other sites More sharing options...
ohhenrygsr Posted May 18, 2011 Report Share Posted May 18, 2011 Make sure to ask them where the financing is coming from. Try to use banks not 3rd party lenders Link to comment Share on other sites More sharing options...
bigbuck Posted May 18, 2011 Report Share Posted May 18, 2011 I'd jump on 5.6%. You probably will not find a better rate than that. Link to comment Share on other sites More sharing options...
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