How much will a cosigner affect my auto loan rate??

535
33
Joined Jan 24, 2009
I recently got preapproved for an auto loan of $8,000 with an interest rate of 9.4%. I know this isn't TERRIBLE, but it isn't exactly good. So withthat said, how much will my rate improve if I have a cosigner with a 700+ credit score? Thanks.
 
6,597
10
Joined Jan 13, 2001
9.4 isn't good at all.. who did you get this through, a regular bank? you need to be checking some credit unions around your way - a cosigner like that, ata decent credit union, should definitely get you down towards 5 percent i would think.
 
2,261
28
Joined Aug 1, 2005
^^^5% for a used auto loan is impossible, home loans are not even that low....the bank loans you money on the strength of your credit worthiness and the valueof the asset they are lending the money to you for. The bank does not want you to default on the loan and be stuck trying to repo a 2000 Civic EX...they wantbread not a horrible asset they have to try and sell......

it would help a lot....and if you can go to a credit union instead of a bank you can get an even better rate....but there is no set formula....auto loans arenot that stable and actually vary a ton from lender to lender....I would guess it would put you in the 8% range .1%

go to google and type in used auto loans, bank rate should come up first and is very very very reliable when it comes to stuff like this....good luck
 
45
10
Joined Nov 2, 2008
If you have a co-signer with a good credit score they will usually give you the rate that the cosigner would of got if they purchased the vehicle. Thecosigner is fully responsible if you default on the loan. With that being said I just got a new car loan for 4.24% through my credit union. Rates from otherbanks in my area were around 5-5.5% for excellent credit.
 
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