Car loan interest rate for young individual?
miniz1988 asked:
Im planning on purchasing a car from a private party. The car costs $16,000 and i will be putting $13,000 down, so i need a $3000 dollar loan. The only issue is i am only 20 years old. My credit score is 743. How difficult will it be for me to get a car loan, and what kind of interest rate can i expect to get? Also i won’t have a co-signer.
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Im planning on purchasing a car from a private party. The car costs $16,000 and i will be putting $13,000 down, so i need a $3000 dollar loan. The only issue is i am only 20 years old. My credit score is 743. How difficult will it be for me to get a car loan, and what kind of interest rate can i expect to get? Also i won’t have a co-signer.
August 14th, 2009 at 9:44 am
Check the bank you do you checking/savings with. They will typically have MUCH better rates than any dealer financing. Also, it might be worth checking out your local credit unions. Our current loan is 4.75% which is at least 1% lower than many banks.
August 15th, 2009 at 8:47 am
Youll be fine, anyone will give you the loan, actually you may be asked to finance more money because most lenders only lend $5k and up….Your in a huge equity position on the car. and rate should be about 5.99-8.99 and the only reason itll be that high is the loan amount is so small, the bank wants to make a little money on it, and because the car is used, and because lenders have all increased thier rates due to the economy. Rates not a big deal though, since your only financing about $3000-$5000 your only going to pay back about $300-$500 dollars in finance charges depending on the term (im figuering 36 months), and the final financed amout. Best option would be to join a local Credit Union and apply for the loan there. They always have the most competitive rates and are more willing to help members. And make sure its a Simple Interest Loan as well, this basically means if you pay the car off sooner, your not responsible for the entire finance charge and only required to pay a small portion of it.
August 17th, 2009 at 10:19 pm
You have a great credit score, no problem with a bank or credit union rates are quite good, especially with that much down……good luck
August 18th, 2009 at 6:52 am
It can really save you some money to just get a car loan estimate online to see what the going rates are. You might be pleasantly happy. Also if your credit is not so great, a lot of online loaners are more able to help people.
What I most often tell friends is that an online quote at is what I would do.
August 18th, 2009 at 11:31 am
miniz1988, Get a free online auto loan quote. The automated questionairre will let you know if you can be approved. It’s free and you can get an answer in minutes.