About six months ago, out of curiosity, I applied online for a loan through my local scion dealer and I remember it being around 5%. I was just looking online now and noticed that they are all 6.5% and higher.

Have general interest rates gone up? Should I wait to get a loan to see if rates drop? My credit is excellent, so that isnt my concern.

Any suggestions on what I should do consider the current rate of loans?

Thank you.

 

interest rate just went up unfortunately...may be a long wait for them to drop

 

they are not expected to drop for quite a while.. just keep gradualy goin up

 

Interest rates are tied into the Fed's prime rate, which has been raised a couple % points over the last year or so. As it goes up, the interest rates charged by lenders for car loans (and credit card APR's!) tend to go up. Bankrate.com is a good site to look at to shop for good interest rates. Rates won't drop any time soon, but they aren't likely to climb much higher.

 

It all depends who you listen to. Me, i take my financial info from several reputable sources. All of them say that the FED ( Allen Greenspan ) will continue to raise % rates to keep inflation in check. I wouldnt expect the FED to drop % rates for the next few years. It was thought that with the 2 hurricanes in the Gulf that the FED would hault the increases. He didnt, it went up 1/4 point a month after.

When the FED increases the % rates ... it goes across the board. It cost more money to borrow money. Yet, it also makes money in savings .. CDs .. and bills. My savings % rate went up almost one whole point since the spring. With this the % rates for mortgages have also gone up. The highest they have been in a few years.

That being said ... check with you local bank for % rates. Then check online banking for their rates. When i bought my box back in April of '04 the cheapest place to get my financing was with Toyota Financial @ 4%. 2 months later it was up to 4.5% If you have great credit, it pays to shop around.

 

i had same problem. they go up about every six months, and from what I've heard, interest rates aren't supposed to go back down for at least another year or so. I would buy sooner just in case it goes up again. I bought mine early october and the rates had just went up. Your best bet is to go through a credit union or apply for a loan elsewhere. As long as you have long established credit.

 

i forgot to mention i looked into credit unions too. Unless you belong to a union or one of your family members do then your sh*t out of luck. If you in the military you can get great loans too.