Question for those that are familiar with interest rates - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

rainofcastamere · 04-28-2016, 02:57 PM

Ok, looking to buy my first Camaro. I've never purchased a car before (my last car was given to me after my dad bought a new car) and I have a little credit, so obviously being a first time buyer, I will have a target on my back from sale reps and I want to hear from people that know what's a good deal and what's isn't unlike me. So anyway, the car I'm looking at is right under $25,000 (out the door price). The payment place he has for me is $450 a month, with no down payment, for 72 months. That's about $7000 in total interests. He started telling me how because it's the end of the month, he's hooking me up with an amazing deal and no one else can and how many people would die for that interest rate, especially first time buyers. I told him I could ask my dad (who has good credit) to co-sign, and he told me it wouldn't make a difference because my interest rate is already insanely low.

Please tell me your thoughts and if he's being genuine or if I'm getting ripped off.

UPDATE* He said warranty was added into the price which is why it looked like it was over 8 percent interest. He said my interest rate is actually 5.3 percent and he could take the warranty off and then my payments would be under 410 a month for 72 months. What do you guys think? Still a rip off?

AP90 · 04-28-2016, 03:08 PM

Not trying to be rude, but it would help to know the actual interest rate. I know, I could figure it out but it would just be easier tell us.

But as a side note, I just bought my SS which is the first thing I've ever needed to borrow money for. It was a nightmare. Car was 19,500, was going to put $6000 down, mom was co-signing and she has decent credit, and my interest rate was 13.5%. I ended up telling them where to go and just paid cash for it. Id like to build some credit, but at this rate, it cost me way to much money to build any. Doesn't help that i refuse to use a credit card though.

Mr. Stacy · 04-28-2016, 03:08 PM

Quote:

Originally Posted by rainofcastamere

Ok, looking to buy my first Camaro. I've never purchased a car before (my last car was given to me after my dad bought a new car) and I have a little credit, so obviously being a first time buyer, I will have a target on my back from sale reps and I want to hear from people that know what's a good deal and what's isn't unlike me. So anyway, the car I'm looking at is right under $25,000 (out the door price). The payment place he has for me is $450 a month, with no down payment, for 72 months. That's about $7000 in total interests. He started telling me how because it's the end of the month, he's hooking me up with an amazing deal and no one else can and how many people would die for that interest rate, especially first time buyers. I told him I could ask my dad (who has good credit) to co-sign, and he told me it wouldn't make a difference because my interest rate is already insanely low.

Please tell me your thoughts and if he's being genuine or if I'm getting ripped off.

That's about 9%. I just got a car loan for 2.6%. Check with a credit union.

rainofcastamere · 04-28-2016, 03:13 PM

It's bank financing by the way. So for a first time buyer with very little credit, is that a rip off?

nosmr2 · 04-28-2016, 03:14 PM

That is 9% interest. Tell him to go pound sand.

If your credit is so bad you need a loan at 9% interest you need to skip the car right now, build your credit and look again later. If he is just shady or trying to make a killing off you, you should look elsewhere. Either way, no Camaro today.

Apply online and see what rates they will give you. A quick google search and I didn't see anything over 5%.

I got screwed once back in the day at 12%, but never again.

rainofcastamere · 04-28-2016, 03:15 PM

Quote:

Originally Posted by AP90

Not trying to be rude, but it would help to know the actual interest rate. I know, I could figure it out but it would just be easier tell us.

But as a side note, I just bought my SS which is the first thing I've ever needed to borrow money for. It was a nightmare. Car was 19,500, was going to put $6000 down, mom was co-signing and she has decent credit, and my interest rate was 13.5%. I ended up telling them where to go and just paid cash for it. Id like to build some credit, but at this rate, it cost me way to much money to build any. Doesn't help that i refuse to use a credit card though.

He said it came out to 5.3 but my math came out to over 8 percent and the poster below you also said it was over 8 percent, hmm...

rainofcastamere · 04-28-2016, 03:18 PM

Quote:

Originally Posted by Mr. Stacy

That's about 9%. I just got a car loan for 2.6%. Check with a credit union.

Do you have good credit? And have you purchased a car before? Also how many months for 2.6 percent?

Welker2 · 04-28-2016, 03:21 PM

Quote:

Originally Posted by rainofcastamere

It's bank financing by the way. So for a first time buyer with very little credit, is that a rip off?

Is that the dealer's bank? I would suggest, as Mr. Stacy did, go to a credit union or a bank of your choice. Also, if he's willing to co-sign, take your dad, it will make a difference if his credit is good. 8% is too high. One thing dealerships try to do is the 'better the deal' on the price of the car, the higher they raise the interest rate (have an uncle who used to work at one). Good luck.

rainofcastamere · 04-28-2016, 03:30 PM

Quote:

Originally Posted by Welker2

Is that the dealer's bank? I would suggest, as Mr. Stacy did, go to a credit union or a bank of your choice. Also, if he's willing to co-sign, take your dad, it will make a difference if his credit is good. 8% is too high. One thing dealerships try to do is the 'better the deal' on the price of the car, the higher they raise the interest rate (have an uncle who used to work at one). Good luck.

Yeah, thanks man, I will look into it! I don't know if it's the dealer's bank or not. Based off what you know, realistically, around how low would I shoot for in terms of interest rate?

PalmerGA · 04-28-2016, 04:12 PM

The key to getting a good interest rate, for someone who doesn't really have a long-term credit rating, is the down payment. For someone new to applying for credit, if you can put at least 20% down, you will get about as good an interest rate as possible. And... as AP90 stated, "Doesn't help that i refuse to use a credit card though". A credit card is an excellent way for a person with little credit history to establish better credit. You don't have to max-out a credit card to establish credit - just buy some things over several months, that you can pay off when the bill comes. $100 here, $80 there... just enough to show that you are a good risk. Your credit rating will improve quickly and (with a decent down-payment) you will be getting offers for 3-5% before you know it.

Also, in my opinion, don't let the talk you into a 72 month loan. The interest paid over 6 years is ridiculous. Go for 60 months or less and pay a bit more on your principle. You'll be glad you did, on down the road.

Ewey · 04-28-2016, 04:16 PM

2.5% here

sherob · 04-28-2016, 04:53 PM

5% max... he's giving you the interest rate that he's making money off of...

rainofcastamere · 04-28-2016, 05:00 PM

Hey, thanks everyone for all your advice and help, I greatly appreciated it. Do you think I would realistically be able to get it under 3 percent with a 60 month payment?

jcampos · 04-28-2016, 05:01 PM

Haha I have 1.65% interest, I put down $3,500 and my monthly payment is $385.00! You are young so the sales person will try and screw you every possible way. Tell him what you want and if he doesn't budge walk away and go elsewhere. Hell tell him everything we are telling you! He is full of SHEEEEET!

04-28-2016, 02:57 PM	#1
rainofcastamere Drives: 2012 Bumblebee Join Date: Apr 2016 Location: Houston Posts: 40	Question for those that are familiar with interest rates Ok, looking to buy my first Camaro. I've never purchased a car before (my last car was given to me after my dad bought a new car) and I have a little credit, so obviously being a first time buyer, I will have a target on my back from sale reps and I want to hear from people that know what's a good deal and what's isn't unlike me. So anyway, the car I'm looking at is right under $25,000 (out the door price). The payment place he has for me is $450 a month, with no down payment, for 72 months. That's about $7000 in total interests. He started telling me how because it's the end of the month, he's hooking me up with an amazing deal and no one else can and how many people would die for that interest rate, especially first time buyers. I told him I could ask my dad (who has good credit) to co-sign, and he told me it wouldn't make a difference because my interest rate is already insanely low. Please tell me your thoughts and if he's being genuine or if I'm getting ripped off. UPDATE* He said warranty was added into the price which is why it looked like it was over 8 percent interest. He said my interest rate is actually 5.3 percent and he could take the warranty off and then my payments would be under 410 a month for 72 months. What do you guys think? Still a rip off? Last edited by rainofcastamere; 04-28-2016 at 03:42 PM.

04-28-2016, 03:14 PM	#5
nosmr2 Drives: 2011 L99 SS Join Date: Oct 2014 Location: Texas Posts: 500	That is 9% interest. Tell him to go pound sand. If your credit is so bad you need a loan at 9% interest you need to skip the car right now, build your credit and look again later. If he is just shady or trying to make a killing off you, you should look elsewhere. Either way, no Camaro today. Apply online and see what rates they will give you. A quick google search and I didn't see anything over 5%. I got screwed once back in the day at 12%, but never again. __________________ 2011 SS ADM LSA Conversion

04-28-2016, 04:12 PM	#10
PalmerGA Drives: 2013 SIM 1SS/RS L99 Join Date: May 2012 Location: Southwest GA Posts: 8,755 View My Garage	The key to getting a good interest rate, for someone who doesn't really have a long-term credit rating, is the down payment. For someone new to applying for credit, if you can put at least 20% down, you will get about as good an interest rate as possible. And... as AP90 stated, "Doesn't help that i refuse to use a credit card though". A credit card is an excellent way for a person with little credit history to establish better credit. You don't have to max-out a credit card to establish credit - just buy some things over several months, that you can pay off when the bill comes. $100 here, $80 there... just enough to show that you are a good risk. Your credit rating will improve quickly and (with a decent down-payment) you will be getting offers for 3-5% before you know it. Also, in my opinion, don't let the talk you into a 72 month loan. The interest paid over 6 years is ridiculous. Go for 60 months or less and pay a bit more on your principle. You'll be glad you did, on down the road. __________________ 2013 1SS/RS Coupe L99, Stainless Power Works LT Headers, SCT X4 Custom Tune from RDP, CAI Inc. Air Intake w/ Apex Scoop, VMAX CNC Ported Throttle Body, Solo Axle-Back Exhaust w/ J-pipes, Apex Catch Can, Husky Splash Guards, Heritage Grille, 3D Carbon Rear Spoiler, Oracle Chrome Turn Signal Bulbs, GM Reverse Light Trim Billets, Gorilla Black Locking Lugs, Emblem Pros Retro SS Badges/Custom Retro SS Kickplates/Under-hood Bowtie, 35% window Tint, Nitto Motivo Tires (6-8-18)

04-28-2016, 04:53 PM	#12
sherob Drives: 2015 SW 1SS/RS 1LE Join Date: Mar 2015 Location: Brighton, CO Posts: 2,736	5% max... he's giving you the interest rate that he's making money off of... __________________ “The Eagles and the Captain and Tennille ruled the airwaves, and we were the answer to it.” - Joey Ramone

04-28-2016, 03:08 PM	#2
AP90 Drives: 2010 camaro 2ss Join Date: Feb 2016 Location: Midwest Posts: 36	Not trying to be rude, but it would help to know the actual interest rate. I know, I could figure it out but it would just be easier tell us. But as a side note, I just bought my SS which is the first thing I've ever needed to borrow money for. It was a nightmare. Car was 19,500, was going to put $6000 down, mom was co-signing and she has decent credit, and my interest rate was 13.5%. I ended up telling them where to go and just paid cash for it. Id like to build some credit, but at this rate, it cost me way to much money to build any. Doesn't help that i refuse to use a credit card though.

04-28-2016, 03:13 PM	#4
rainofcastamere Drives: 2012 Bumblebee Join Date: Apr 2016 Location: Houston Posts: 40	It's bank financing by the way. So for a first time buyer with very little credit, is that a rip off?

04-28-2016, 04:16 PM	#11
Ewey Drives: 2013 Camaro SS 6 speed black Join Date: Feb 2016 Location: Tampa FL Posts: 152 View My Garage	2.5% here

04-28-2016, 05:00 PM	#13
rainofcastamere Drives: 2012 Bumblebee Join Date: Apr 2016 Location: Houston Posts: 40	Hey, thanks everyone for all your advice and help, I greatly appreciated it. Do you think I would realistically be able to get it under 3 percent with a 60 month payment?

04-28-2016, 05:01 PM	#14
jcampos Drives: 2014 Chevy Camaro SS Join Date: Dec 2014 Location: San Antonio Posts: 821	Haha I have 1.65% interest, I put down $3,500 and my monthly payment is $385.00! You are young so the sales person will try and screw you every possible way. Tell him what you want and if he doesn't budge walk away and go elsewhere. Hell tell him everything we are telling you! He is full of SHEEEEET!