I know on a home mortgage a lot of lenders usually have a point where they will raise their rate if the loan amount is under a certain amount. Does the same hold true for auto loans?

Since I'm saving up trying to target a $300 payment, the thought ocurred to me am I going to be offered higher rates because I'm only financing about 50% of the car? On the other hand, that's still probably in the ballpark of what Joe Average Civic buyer is financing so I can't see it making too much difference.

Gee, can you tell this is only me second new car purchase?

EDIT: Sorry, I meant to post this over in the dealer forum.

 

Your thoughts are on the right path. I'm pretty sure (not 100%) that what you have described is accurate for car loans, too. I have recently been approved by a private lender. They send a check out for you to use when purchasing your new car. On this check that I received, it gives a minimum ($7,500) and a maximum amount for which the check may be used. This would imply that the contract would not be valid if used for any amount under that threshold. Your plan to finance half the TSX price should not affect you too much though, since that's still around $13,000.



TEIGER

 

American Honda Finance does not work off of a tier system. The amount financed has nothing to do with your rate. Your credit score is the only major factor.

Some lenders will lower your rate if you put more money down. Ford Motor Credit is a lender that uses this system. Tier 1 being the best and Tier 5 not a chance in hell.

You should have no trouble with very good credit getting 3.9%. Shop your rate. The one thing I learned in the car Biz is... Most people finance and most people have no idea what rate they deserve. Education is power. Know your credit score.