First time buyer buys a new car, how much was your interest RATE?

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First time buyers are the hardest deals to predict interest rate on. Some first time buyers will have to pay 25% and up and some can qualify for 0% on certain cars. Ford and GM are known for putting first time buyers in cars at low rates just to move units. With the right down payment, job time, and time at residency, just about anybody could qualify for a loan through one of the aboved named banks. Ford Credit owns Mazda Credit also.....so you could look at any Ford, Mazda, or Gm Product and probably find a car/truck at a low rate. Don't think just because your friend got 5% or 25% on their deal when they were a first time buyer, that your deal will be the same. Markets change all the time and banks become more aggresive in the winter months since business is slower. They also will sometimes give you a loan because the dealer has sent them a bunch of excellent credit worthy customers and they can afford to throw in a "high" risk first time buyer. It is actually easier for a dealer to get a bad credit person approved than a first time buyer, unless the first time buyer has a substanial down payment. Any good Finance Manager should have a bank that will buy first time buyers and reasonable rates. BTW the other person mentioned the dealer will "BUMP" up the rate to make money. This is called the "Spread". If I buy the rate at a5.9% and sell at 7.9% most dealers will get a 70/30 split of the markup. Some dealers won't sell the car if they don't get the spread. That is why they let people walk at certain rates. Most states have a 2.5% markup law. Even if the dealer doesn't mark the rate up they will still get paid a flat fee from the bank in most cases. The "spread" is sometimes the only way a dealer will take a deal. Sometimes they will sell a car for no profit or little profit just to get the "Spread". The dealers call this Finance Reserve. It is not illegal and it is one of the ways dealers can sell cars for invoice or less....Show more

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First time buyer buys a new car, how much was your interest RATE?
Maybe I mean insurance instead of interest, I'm not sure, I don't know that much. I've heard that first time buyers, when buying a car, had little to no interest simply because they've never bought before. Is this true? Please give examples....Show more

The interest rate just depends on the market, supply & demand of money. Also depends on your credit. I think my first car interest rate was around 5-6% at a credit union in 2000 with good credit. Check out a credit union's rates....Show more

keep this in mind!!!! The dealership WILL actually bump UP the interest rate and split the profits with the loan company! N-E-V-E-R take the first offer. I have almost perfect credit and was told recently "oh since you have limited credit we can only get your APR at 11.99%" HAHAHAHAHAHA! yeah right! after I walked away and ignored the dealerships calls for two days they dropped it down to 9%.... needless to say I still DIDN'T buy the car!...Show more

12%, this was in 2002...Show more