I was thinking about refinancing my high interest car loan on my used car. But I have heard that all used car loans are high. Would I get a lower interest rate on a new car than if I were just refinance the used one that I have? the apr I have now is an insane 14.75%
The interest rates on new cars are usually lower than used cars. Manufacturers also do APR promos from time to time. You can check the ads in your local newspaper or the internet to see if there are any rates being advertised.
〉 Answered on Apr 29th, 2008 by Shelly LoCascio, Dealer Principal at Irwin Lincoln Mercury Mazda
Your rate is based on your personal credit score. If it is over 700 you should be able to finance at a lower rate as long as your car is relatively new and does not have a lot of miles on it. You should check with your personal bank and/or Credit Union to get their rates. You may be able to do much better on an independent lender rather than the dealer arranged loan. Also be certain you know exactly what your payoff to your current lender will be if you pay off their loan for another and inquire about early termination fees, etc.
〉 Answered on Apr 29th, 2008 by Jessie L Thatcher, F&I and Sales Specialist at Reynolds and Reynolds Company (Retired)