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Digital News Report – Not every qualifies for zero percent financing from the car dealerships. Credit score and income play a role in determining the interest rate and financing options.
Banks, credit unions and private lenders provide a wide range of auto financing. The term of the loan may vary between 36 months and 60 months. Used car loans usually carry a higher interest rate. Some banks will also refinance an existing car loan.
Today’s Rates
Bank of America is advertising a $25,000 new car loan for $311 per month. BofA has new car loans starting at 2.99 percent. Of course, a bad credit score can calculate into a higher rate. Loans over 60 months (up to 72 months) will have a starting rate of 3.49 percent.
Used car rates are higher. The starting dealer franchised rate is 3.49 percent. The longer terms will cost more. The goal is a low interest car loan whether from the dealer or the bank.
Private party loans will have a starting rate of 4.75 percent. If the borrower wants a to extend the loan past 60 months the rate will be 5.55 percent.
Longer term loans can provide for a lower monthly payment.
The starting refinance rate is 3.89 percent. Longer term loans have a rate of 4.46 percent.
Some car buyers may want to buyout their lease. Rather than paying a balloon payment to own the car at the end of a lease option, Bank of America offers a lease-buyout loan for 5.25 percent. If you want to extend the loan pas 60 moths the rate is 6.05 percent.
By Tina Brown