687 FICO and 10.75% auto loan?

Sounds a bit high.

Do you have negatives?

???

.

 

what is the trade-in value on it? were you putting any money down? have you moved or started a new job recently?

its not the FICO, its the Internal Scorecard.

if you don't mind the inquiries you can have him shop the application or look for financing yourself. often times, if the dealer sells a vehicle for a rate higher than the lender would offer the dealer gets the kick-back. get the lender name and phone number and call them yourself and ask about the rate.

 

Rates are higher on used cars but they should not be that high....maybe 4-7% max, but 10%+ sounds like a rip off.

 

Well, several factors come into play with the interest rate, but it does seem a bit high to me.

We filed bk7 in October of last year, discharged in February of this year. Took out a loan to buy my 97 Explorer in July and the interest rate is 11.25% through our credit union. FICO was around 585 or so.

 

FWIW, I bought a 2000 Accord in April, 2 years post Ch7 BK, scores were low 600s. Got a 12% loan from Chase w/2500 down, 9500 borrowed.

 

used car 704 score at CU yielded 39-72 months @ 4.25% APR $0 down, certified check to any dealer or person.

36 months @ 3.75%

25K was the requested and approved amount. Please try your CU and equifax dispute trick before you waste inquiries. I just got denied a card that i really wanted because i was "car shopping" and yes, they counted every individual inquiry against me. They = amex.

 

Ya'll need to ckout this site I found just yesterday, it's very informative!

http://www.carbuyingtips.com/car1.htm

I certainly learned a few things! It gives approximates on what scores should get what APR's. You should find it helpful.

 

I agree about the credit union. I bought a new car last year. I'm not sure what my score was then, but the dealer said the best they could do was 8%. The credit union gave me the loan at 5.5%. And the credit union loan is simple interest, I'm willing to bet that the dealer's financing used the Rule of 78 to compute interest.

 

I used to work in a dealership. The finance guy works on commission as well. They get notification of what interest rate the bank will sell the note to the dealer for.... they then add a point or a few points hoping to sucker you into it. They get the difference the loan brings.
That interest rate is too high!

 

Sounds like you are doing your homework. Nice going. Higher rates for used cars is true, although it is more on the urban legend side of the spectrum. Buy rates (what the dealer pays for money) are usually 4.25% for new cars and 4.75% for a car that is a year old. Each year older averages to about .25% higher, so one can see that although used car rates are higher, they are really not much higher.

Legally, the dealership can only make 3 points off you - meaning if you qualify for 4.75%, they will hit you with 7.75% and no more.

Since auto loans are purely score driven, I would expect to see you in the 5-6% range. The 7% range, with good credit would only be appropriate if you are a 'credit ghost' or a first-time buyer.

 

Please, please don't believe the lie that the dealers will tell you, either, that all inquiries if you "shop" only count as one hit. Bull#$%&. Found that out the hard way. Go to your credit union, and arrive at the dealership with your loan in your hand. You'll be in much better position to negotiate on the price of the car......you also didn't let us know mileage of the vehicle, options, etc.....

A good resource to check out is www.kbb.com. You can ascertain the value of the car that the *dealer* probably put into it.....(estimated).....subtract that from what they quoted and that is how much they're hitting you with. Depending on trade-ins, etc.....there are people on this board that can tell you if you're getting ripped off.

Buying a car is a two-part process. It sounds like your CU will fix you up with your loan, the most important part. Now you can get down to the nitty-gritty with them.....the actual car buying.

Good luck.