First time buyer, what will the interest rate be?
04-24-2007, 06:01 PM
#1
Mazda3 and Honda Civic in
Thread Starter
First time buyer, what will the interest rate be?
My GF will be a 1st time car buyer probably with out a co-signer. Just curious of what you think her apr will be. I dont think she has anything in her name. I know its easier to get a new car than a used so thats probably the route she will be going.
Also she is looking at tC's, civic ex, and maybe a mazda3.
Also she is looking at tC's, civic ex, and maybe a mazda3.
04-24-2007, 06:04 PM
#2
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how's her credit? does she have alot of debt? does she have steady income?
04-24-2007, 06:05 PM
#3
Senior Moderator
It will depend on her credit score and the length of the loan, and probably some other factors.
In 2005, I got 3.9% for 60 months as a first time buyer on a used TSX, which I thought was pretty good.
In 2005, I got 3.9% for 60 months as a first time buyer on a used TSX, which I thought was pretty good.
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04-24-2007, 08:08 PM
#8
Mazda3 and Honda Civic in
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Originally Posted by Scrib
She must have a credit history. Ever paid a reoccuring bill? Cellular? Gas? Electric?
04-24-2007, 09:10 PM
#11
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Based on what you say about your g/f, I think she can get a "decent" rate if she puts some serious $$$ down.
04-24-2007, 09:13 PM
#13
Mazda3 and Honda Civic in
Thread Starter
Originally Posted by merkin110
My credit was shitty when I bought my first car and I ended up with a 12% APR.
im hoping less than 10 but will see. I know there are some knowlegable people here
04-25-2007, 02:43 AM
#19
Let me help you!
To make big purchases, a credit history is a must. Unless she's buying the car outright, she'll want to finance or lease. Why would a financing company want to risk tens of thousands of dollars on someone who has no credit history? Maybe she'll be one who defaults on her loans, or makes late payments, or misses payments. If she really wants the car in her name, she needs to wait a year or so and build up her credit, or else she'll need a co-signer with good credit.
No credit history = no buying power
With nearly no down payment and no credit history, she'll have a high APR and higher monthly payments. Also, I think the lower the credit rating, the higher the down payment will need to be. (On that show King of Cars, the bank won't give certain people loans unless they increase their down payment).
Personally, my TSX was the first car I bought with no co-signer. I only gave in $1k for my down payment, but I have perfect credit. Perfect credit can get you alot of things. I signed up during the Acura's spring APR-promo thing....so I got the 3.9% at 60 months (I could have gone 2.9% for less months, but I didn't want to pay more each month)
No credit history = no buying power
With nearly no down payment and no credit history, she'll have a high APR and higher monthly payments. Also, I think the lower the credit rating, the higher the down payment will need to be. (On that show King of Cars, the bank won't give certain people loans unless they increase their down payment).
Personally, my TSX was the first car I bought with no co-signer. I only gave in $1k for my down payment, but I have perfect credit. Perfect credit can get you alot of things. I signed up during the Acura's spring APR-promo thing....so I got the 3.9% at 60 months (I could have gone 2.9% for less months, but I didn't want to pay more each month)
04-25-2007, 07:35 AM
#20
Senior Moderator
Originally Posted by SoCaliTrojan
To make big purchases, a credit history is a must. Unless she's buying the car outright, she'll want to finance or lease. Why would a financing company want to risk tens of thousands of dollars on someone who has no credit history? Maybe she'll be one who defaults on her loans, or makes late payments, or misses payments. If she really wants the car in her name, she needs to wait a year or so and build up her credit, or else she'll need a co-signer with good credit.
No credit history = no buying power
With nearly no down payment and no credit history, she'll have a high APR and higher monthly payments. Also, I think the lower the credit rating, the higher the down payment will need to be. (On that show King of Cars, the bank won't give certain people loans unless they increase their down payment).
No credit history = no buying power
With nearly no down payment and no credit history, she'll have a high APR and higher monthly payments. Also, I think the lower the credit rating, the higher the down payment will need to be. (On that show King of Cars, the bank won't give certain people loans unless they increase their down payment).
Have her get a credit card with a small limit, and pay for groceries or something on it each month to build up her credit. I started with a $500 limit on a card while in college just to build my credit. I stayed perfect and had no problem getting a car a few years later (not that she has to wait years, but maybe one year just to show that she has credit history).
04-25-2007, 11:52 AM
#24
Got da Internet Goin Nutz
You NEVER cosign for a girlfriend any damn way! It is actually best that she does it on her own so she can establish her credit. Have her get a kia for a year or two build up her credit (probably be a ~10% loan) and then she can trade it in on something better and get a lower interest rate.
04-25-2007, 12:10 PM
#25
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Originally Posted by bl^5
You NEVER cosign for a girlfriend any damn way! It is actually best that she does it on her own so she can establish her credit. Have her get a kia for a year or two build up her credit (probably be a ~10% loan) and then she can trade it in on something better and get a lower interest rate.
The money she'd lose on the resale value of the Kia on trade-in would be more than the difference in interest she'll pay on a 10% loan versus a 4-5% loan 2 years later.
04-25-2007, 12:10 PM
#26
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Does she have to buy the car right now? Might be good to take other's suggestion about her getting a credit card and getting her credit established. Could save her a lot of money in interest.
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