Is used car financing a rip-off?

Question

I have a credit score of about 630, what interest rate can I expect from the large auto dealer in my area which boasts of having 50 lenders? I am reluctant to get involved but it is time for a new car and I don't have anything substantial to put down on one, and I don't want to buy a $1000 car anymore.

Answer 1

actually 630 is not a bad credit score, you can expect interest rate up to 21% to 25%, but there are many online sources who provide car loan for people have any credit situation, and you could be benefited due to lot of competition, for your reference http://www.carloan123.net my one of friend had recently got an car loan from there and also with minimum interest rates, you can try this source may this could help you.

Answer 2

credit score in the 630s shuld get you a rate of 10 to 14 percent depending on the car with that kind of score do not sign anything in the high teens or 20s  you can do better than that

Answer 3

No it is not a rip off.  If you had a credit score over 700 then you wouldnt be paying a high interesr rate.  Since you do not, you represent a larger risk to the lender.  Any investment that has more risk pays higher interest if it does well.  If it does poorly then you may loose money.  You are a risky investment.  You are in this position due to actions on your part, why get mad at a bank because they are holding you responsable.  You can expect a rate in the teens.

Answer 4

You will end up paying 25% interest or more and yes it is a rip off at first. Keeping up your payments and improving your credit score will get you lower interest payments lower on future purchases.

Answer 5

A credit score of 630 is not quite good enough to get the best interest rates. You might get a better rate if you shop around and be willing to make a large down payment.

You should do your own shopping for a loan at local banks, credit unions, and online car loan sites. Find the best deals on your own,  then go the dealer to see if he can beat them. Go with whoever has the best deal overall.