What's a good finance % on buying a car

[Hillbeans]

Another car question Sorry!

Anyway, is 3.9% a good rate on a car loan? That's what my Credit Union is offering. I've seen some for 0%, but there is usually some catch (pay it off in 24 months). Just curious what everyone else thinks is a good rate.

Thanks!

 

[helenabear]

I have 1.9% financing currently on my car... my DH has about 5-6% I think. I know I've heard of some even higher, but as of last year 3.9% would have been considered good in my book

 

[orvilleair]

How long is the loan?
Got a loan in July for 60 months at 5.9%, so I'm bummed. I have decent credit. Your credit union has offered you a good rate, and I think it would be hard to do better since interest rates rose earlier this year.

 

[Dan Murphy]

3.9 is a fine rate, from credit union. If the rate is from the dealer/mgr, much can be done relative to the actual sale price and terms of the sale (length, etc) so the REAL interest rate is more difficult to ascertain. From a bank, CU or the like, it is a separate transaction and stands on its own.

And no need to be sorry, good question. Any question is a question, and therefore, good.

 

[ZachnElli]

Dh is a Director of Finance at a large dealership, it is a very good rate right now (he is sitting next to me).

 

[mudnuri]

It's more pointed towards what your credit rating is. Those 0% deals, are usually for people with A+ credit....

DH had 0% on his Duramax, and my Envoy is 2.9 % (they were not offering 0% at the time)

Usually a bank/credit union will do better than a dealer, or financial institution that is connected with the dealer, GMAC, Ford Credit etc.... Had the 0 and 2.9not been available thru GMAC, we would have gone with our Credit Union.

Some times, if you have an offer from a CU, the dealers financing will meet it.

Brandy

 

[Dan Murphy]

Originally posted by Hillbeans
....but there is usually some catch...

Oftentimes (not always), the lower/est rate, like a zero, or close, is in lieu of a cash rebate, sometimes quite high nowadays, like maybe $3-5K. You take the low rate, you forgo the rebate. Do your homework, and if you give up something to get the lower rate, do the match and see what your costs are with the higher rate, but getting what you would lose with the lower. (I think I made that sound complicated, LOL)

 

[Jenn Lynn]

We just bought a new Explorer and received 0% financing. We also ended up with about $7500 in rebates/cash back. Some from the dealer offers and some from a flyer we received in the mail.
I would be happy with 3.9 %.

 

[LisaSt]

In Canada we have 0% for purchase up to 60 months and Lease rates of 1.9 or lower for up to 48 months.

 

[The Mystery Machine]

Anything below 5% is good.