Banks tend to not lend less than $7,500. for a car loan. The rates for a personal loan are ridiculous! (If you happen to be perfect they will do 8.99% - at a score of 656 I am not perfect)
Please don%26#039;t suggest Capital One - they also have this same policy about not lending for these rates!
In the dealerships they will give me a 9% rate (although they are making a kick-back there) I would like to come in with a loan.
Help!
Where can I get a small auto loan (under 7k) with reasonable rates?bank loan
Credit Unions are know for having the best loans and beat banks. First get the approval notice from your credit union and then go the dealership and try to negotiate the best rate you can with the dealership with telling them your rate. Once you get the rate you want, or if the dealership cannot meet your rate, they may say you can only use their loan before flipping it to your credit union. They way around this is to have the loaqn paperwork made out to your credit union and not to you. you will get the best rate.
Right now because of the Mortgage crisis, there is problems with issuing credit-it%26#039;s a very difficult time even for people with the best credit to get a great rate. The Feds are expected tpo reduce interests rates futher that will help you more
Where can I get a small auto loan (under 7k) with reasonable rates?
loan
Why not save up and pay CASH?!|||try smaller banks.... like state bank and trust statebank.net or wachovia or maybe even regions|||go to a credit union you can get a 10000 loan for 199/month|||You may try a personal line of credit at a bank. The rates may be higher than a loan depending on your credit rating or risk.You may want to shop around between banks for your best rate.|||You will find the best rates and fee structure for auto loans at your local community credit union.
Firstly, I work at an auto dealership. 7-9% is considered a good interest rate for an auto loan these days. The problem is the amount you are trying to lend. Typically $7000-7500 is the minimal amount for an auto loan and banks are very rigid, also the model year is important because the banks will not loan money for vehicles usually older than 5 or 6 years. Shopping for a rate probably won't generate positive results because of your credit rating. If you are looking for something like prime +1 then you should consider a line of credit. Another avenue would be to take the $7500 loan and then repay the difference back into the loan. It won't cost you anything.
ReplyDeleteAlthough dealerships get kickbacks for arranging financing it is in there best interest to get you approved. You will find that because of the relationships they have with financial insitutions you will probably get a better rate at the dealership then if you went to a bank and asked for a loan.