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Posted in Auto Loans
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xraykingdom

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what score do you need to get 0% for car loans

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I work in for a bank's auto loan department specifically, primarily handling inquiries and certain services. Now, the bank I work for is pretty difficult to get financed through, so I rarely see interest rates above 6%, and I don't recall seeing one over 10%. However, I've also never seen a score under 1%. That may just be my bank's rules, but I dunno. In regards to previous comments about paying interest vs rebates, you have to remember that auto loans are generally simple interest. This means that if on any given day, you take your interest (in the 0.xx format, ex 5% is 0.05) multiply it by your principal balance, and divide it by the number of days in the year, you'll find out how much interest you are paying in a day, called you per diem. This changes every time your balance does as well, but generally having a low interest rate will have a really strong effect on larger loans. For a loan under, say 10-15k while it will still definitely affect your payment, it wont be as noticeable particularly towards the end (last year or two especially in most cases) of the losn because the principal balance is so low.
For my bank, they often deny people due to bankruptcies, high balance to limit ratio, lack of recent satisfactory credit history and so forth. I've never seen a denial be just because the score was low, it depends on why the score is low.
And yes, usually the dealers do increase the APR and you're likely to get a better rate directly through a financial institution, particularly credit unions. In some cases, I've heard customers claim the dealer actually offered them lower rates through us than we offered directly, but I haven't ever had the means to confirm that.

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