financing question

[Bucky]

Out of curiosity, what is a typical financing deal for buying a new car? Let's say the car is $20,000. What is a typical down payment, APR, length of loan, monthly payment?

 

[ryan.g.williamson]

There are several good calculators out there for this sort of thing, including this one: http://www.automart.com/calculator.php

Basically, the better your credit, the less of a down payment they will expect. Some of the terms of the loan are up to you, but again, it depends on your credit. Typically, car loans are 60 months, but the APR can vary widely. Sometimes your bank will offer a better APR than the dealer, sometimes not.

 

[Cesar]

Out of curiosity, what is a typical financing deal for buying a new car? Let's say the car is $20,000. What is a typical down payment, APR, length of loan, monthly payment?

The APR depends on your credit rating. The higher your credit score, the lower the APR. For example, America Honda Finance is currently offering an APR of 4.99% but your credit score has to be 725 and above.

 

[end_is_near1]

or join a credit union, which isn't a bad idea anyways.

 

[Bucky]

Basically, the better your credit, the less of a down payment they will expect. Some of the terms of the loan are up to you, but again, it depends on your credit. Typically, car loans are 60 months, but the APR can vary widely. Sometimes your bank will offer a better APR than the dealer, sometimes not.

Thanks. I also looked up the national average for 60 month car loan from bankrate, looks like it is about 6.5% right now. So if you put 20% ($4000) down, you'll have a $16,000 loan, which comes out to $313 monthly payment.