Car loan - interest rates

I got a loan from Ford Motor Credit (FMC) when my scores ranged from 611 to 650. At the time (early 2001, i think) their best rate was 8.9, I had 5k to put down, which appeared to make a big difference. I told the salesguy that my credit scores were not that good and if I couldn't get the 8.9, I wasn't buying the truck. He said that they were one of FMC's biggest accounts in Ohio and that they had some pull with the lender.

So, in summary, I think having a decent amount to put down, going to a large dealer who has some pull with a lender, and telling the salesman upfront what your scores are, all help.

I would start with, hey my scores are xxx, can you help me get x.x% rate? No? How about if I put $xxxx down? No? Thanks, I'll go elsewhere.

[edit]
I forgot to add, that I had 2 pd chgoffs showing at the time.

 

I just got a loan for through e-loan. It's at 15.5%. My score are below.

Dave

 

What was your dp?

 

It pains me to admit, but back in the Dark Ages (BCN- Before CreditNet), we absolutely had to get another car; no choice in the matter. We weren't finished with CCCS yet. Supposedly that means you can't get any loans, but we went to one of those deakers that writes their own paper and left in a couple of hours with a used Nissan Altima that we paid too much for, and on top of that, paid over 20% interest. But, we got a car. Almost three years later, with the odometer reading well over 100K miles now, we still have it and haven't done a thing to it except change the oil, etc.

 

go to Credit Watch, sign up for free 30 days, and get your FICO scores

Equifax.com

you should know your scores , at least your FICO, before you start seeking a loan, at least that's what I think most would advise

 

Deakers... I wonder what I meant by that....

That really was an interesting experience. It was one of those places where if you can pass the Thump Test (if the flesh bounces back when they thump your arm), you get a car...

 

I got a car loan about 1.5 years ago, when my credit was REALLY bad. I knew it was bad, but I needed a car.

So, ignorant as I was, I shopped around for a good interest rate A LOT. I must have racked up 25 inquiries on my report. I tried online, dealers, and even banks. Most declined, or offered 20+% interest rates. After a while, one dealer clued me in on the fact that I was hurting my credit with the inquiries. He somehow got me approved for a 14% loan, and that should have been the best I got.

But I went to another dealer (Saturn). I told the guy I wanted a Saturn. I told him I could put $3500 down. I also told him I wanted the promotional 1.9% financing. Today, I know that this was a rediculous request with sub 500 FICO. And, I now know enough to be amazed that I drove away with the car and 1.9% APR financing...he even let me pay the down payment in installments. Amazing.

Now the loan is 1/2 paid, and I have never been late on a payment. The interest I will ultimately pay on this car (Saturn SL2) is less than $300. Go figure. Great car, too.

So, my advice is to find a motivated seller! Tell them that your credit is bad, and OFFER TO SHOW IT TO HIM/HER. Do not do as I did, keep the inquiries off your report. You will not likely get the promotional deal (I was really, really lucky- I think the salesman I got the car from must have lied somehow about my credit), but many dealers have "special" loans for people with damaged credit. It will help if you agree to shorter terms (36 months if you can) and larger down payments. Don't pay 20%, but maybe 14% or so is the best you can do. Good luck!

If anyone lives around San Jose, CA and wants to buy a Saturn, let me know. I'll try to set you up

 

I got a car loan about 1.5 years ago, when my credit was REALLY bad. I knew it was bad, but I needed a car.

So, ignorant as I was, I shopped around for a good interest rate A LOT. I must have racked up 25 inquiries on my report. I tried online, dealers, and even banks. Most declined, or offered 20+% interest rates. After a while, one dealer clued me in on the fact that I was hurting my credit with the inquiries. He somehow got me approved for a 14% loan, and that should have been the best I got.

But I went to another dealer (Saturn). I told the guy I wanted a Saturn. I told him I could put $3500 down. I also told him I wanted the promotional 1.9% financing. Today, I know that this was a rediculous request with sub 500 FICO. And, I now know enough to be amazed that I drove away with the car and 1.9% APR financing...he even let me pay the down payment in installments. Amazing.

Now the loan is 1/2 paid, and I have never been late on a payment. The interest I will ultimately pay on this car (Saturn SL2) is less than $300. Go figure. Great car, too.

So, my advice is to find a motivated seller! Tell them that your credit is bad, and OFFER TO SHOW IT TO HIM/HER. Do not do as I did, keep the inquiries off your report. You will not likely get the promotional deal (I was really, really lucky- I think the salesman I got the car from must have lied somehow about my credit), but many dealers have "special" loans for people with damaged credit. It will help if you agree to shorter terms (36 months if you can) and larger down payments. Don't pay 20%, but maybe 14% or so is the best you can do. Good luck!

If anyone lives around San Jose, CA and wants to buy a Saturn, let me know. I'll try to set you up

 

Are these UNpaid charge offs? If not, then I wouldn't be TOO concerned.

3 years ago i got a new car and I had serveral RECENT PAID chargeoffs, but the finance manager was more concerned with the one unpaid one that was older than the others.

I got 11.99% with HF (Honda Finance).

 

I financed a car a little over a month ago...it was my first car loan and I had only one derog left on my TU (that's what everyone pulls in my area). HOWEVER, it was my first auto loan which makes things very difficult, unless you want to pay sky high int rates. I think my actual TU score at the time was in the 660 range (I asked the bank and she told me what it was).

I also wound up financing through Ford Credit at 7.5% for three years, but my down payment was very large. At first they came back with 11.9% with 20% down....but then dropped it to 7.5% when I offered to triple my down payment. They were great to deal with...didn't require any proof of income, employment, etc etc etc. Ford seems to be the auto lender most willing to help people in unique situations (do a search on this board for "ford credit").

Banks that declined me include: TranSouth, Wells Fargo, Americredit, my CU, Bank of America, Nissan Motor Credit, Carmax Auto Financing and Household Auto. Quite an impressive list, huh?

Good luck but with such a large down payment (did you say 50%?), you should be able to negotiate a decent rate. Like someone else said, the best thing to do is be upfront with the dealership, and work directly with a finance manager (not a car salesman). This is what I did and managed to get 'pre-approved' before I was even spoke to a salesman and started looking at cars. Sortof a backwards approach, but it worked very well for me.

 

chase pulled TU $3500 cash down on $30000 (total line price). 7% APR

TU was pulled by chase, 579 score no recent derogs.

 

I didn't have to put anything down, I put $4000 down on a $18,900 car and financed $14,900

Dave

 

If you go through a captive finance company, with 50% down, you should be able to get 5-8% interest on a new car. On a used car, with 50% down, you should still be under 13% if your scores are near 600.

 

I just got several. First I went through Cap 1. I got approved for Peoplesfirst, I believe the interest rate was 8%. But here is the rub. None of the dealers would accept online loans! That was a great surprise, particularly after I had negotiated price and stuff. Zero of 3. Apparently they have problems w/ getting all the paperwork into them, and then Peoplesfirst holds the check. I found this really surprising. I know they work for some people, but not me. At all. This is the same for eLoan, or any other online lender, from what the dealers told me.

So I went to my credit union. I STRONGLY recommend CUs, if you have access to one. I got approved in about 30 mins, but had to put 10% down. That was w/ my worst report, EQ, w/ a score of 580.

Try a credit union first.

 

keltexx,

I have heard a lot of people say the same thing as you about online lenders. I wonder if this is really true, or if this is just a way for them to do the financing instead. <?>