Auto Loan Interest Rate...

['Chair]

I was just approved for a loan from CapitalOne at 9.5% GROSS! Part of it is because its a loan for buying from a private seller but I have a fairly decent credit score (720-750) range.

I believe the main things against are...
- Short credit history -- only had a credit card for 1.5 yrs (no late payments).
- Student loans (consolidated) around $22k (no late payments).
- Only lived at my current residence for 1 year (2 years is a sweet spot for credit)
- Only been at my current job for ~7 months (previously in college is what I tell them, but the truth of the matter is that I hated my first job out of college and hopped ship when a better offer came along).


Should I be able to get a lower rate? If so, where?

[z28dreams]

I'd suggest getting your parents to cosign. You can always try refinancing it in only your own name the next year once you've gotten some real credit history.

Used cars in general have pretty crappy lending rates though, I'd probably expect around 5-8%.

From Eloan:
Rate APR
36 Month Auto Purchase 5.75% 5.75%
60 Month Auto Refinance 6.95% 6.95%

Also note, the older the car gets, the higher the rate goes up (because the higher the likelihood it has to breakdown leads to more defaults on loans).

Usually < 3 years old will be the 'prime' rate and then it gets a little worse each year.

[RacersEdge]

The first 2 things are accounted for in you credit score and that range pretty mcuh gets you the best rate, especially 740 and above.

What % of your salary would the car payment be?

['Chair]

[ QUOTE ]
...

What % of your salary would the car payment be?

[/ QUOTE ]

after tax, ~7% of my take home.

loan is for 36 months. I do not want my parents to cosign...a f-ing hassle.

Plus with this capitalOne loan, I could technically pay it off the following week penalty free or reammortize it. So I really don't plan on making 36 payments. And this will increase my credit score.