What's my interest rate going to be if.......?

Question

i'm trying to buy a brand new car but my credit is horrible. lets just say my interest rate would be roughly 23%. but, my father is going to co-sign for me and he has excellent credit, lets say an interest of roughly 7%. my question is: what would the final interest rate on my new car be and should i let him buy the car with me as the co-signer?, only so that my credit goes up in the long run.

Answer 1

Very high. Tough economic times have made it where banks are only lending to people with great credit. My business managers used to be able to get people bought with 500 beacon's but secondary lenders have increased it to 550 and I have seen 625's not able to get into a vehicle ( new or used).

Eventually they will start writing loans again, just a bad time to buy a vehicle with sub par credit.

Good Luck!

Answer 2

well, a new car dealership probably isn't going to let you sign on the loan even if your dad has good credit. If your credit sucks, you're pretty much stuck going to a used car lot where you can at least get approved for a loan and your interest rate should be around 15 percent. You might as well get an 08 or something that has the first year of depreciation off of it. Save yourself 5 grand and buy a car that's one year old. Save yourself some interest too.

Getting the loan at a used car dealer will help your credit. You're not going to have any luck at a new car lot though. But don't just take my advice. I tried it myself though. I didn't even have bad credit. my credit score was 620 and I still didn't get approved with someone else who had an ok credit score, they also had loan history on two loans in good standing.