Why the high interest rates on dealership loans, Can't they come down any?

I was looking at getting an S2000 and getting financed. I have a credit rating of 647. I financed my current car through my bank and have never missed a payment and have paid most of it off. I also had taken out a started loan and paid that off. I was looking at getting it until they told me the interest would be 13.5 percent! Is that not rediculous? Why so high?

Why the high interest rates on dealership loans, Can%26#039;t they come down any?education loans

They could. However, the dealer doesn%26#039;t make money on the actual car purchase, but rather on the loan itself. That is why in most cases you will never see a low interest loan. The only way to accomplish a low interest with the dealer is if you come in with a pre-approved loan. However a per-approved loan might help, but usually doesn%26#039;t.

Also, there is no such thing as a 0% loan with nothing down. That type of add is just a draw. I use to work at a Car lot in Fresno CA. We would openly laugh at those who came in on those adds. They told us to tell people that the loan was was for with excellent credit, that was not true.

Why the high interest rates on dealership loans, Can%26#039;t they come down any?

loan

they are just messing with you. The finance guys at the dealerships run off more customers. Go to your bank, most have an auto-loan department..they will give you a draft to shop with...don%26#039;t deal with the dealerships finance ever. Your bank will not let you pay more than what that car is worth either...they can actually haggle the price down for you or point you in a different direction. My credit union is awesome with car buying and have saved my butt %26amp; allowed me to turn my nose up at all the %26quot;you win%26quot; games the dealers play.|||There are several factors for loan companies to consider before deriving at a rate. However, all rates quoted are subject to negotiation.|||your credit score is not the best..... shop around for rates as well.|||Interest rates are based on several things, how much are you borrowing in relation to what the vehicle is worth by N.A.D.A., how long are you borrowing the money for, how many miles are on the car, how old is it, how much are you putting down, how long have you been at your job/residence, how much do you make a month and do you budget for the payment requested.

Any of those things that are out of line for the lenders guidelines will impact rate.