I just wanted to see if anyone could offer me some advice. I took out a car loan in Feb this year with Wells Fargo Financial Acceptance and the rate is 18.99%. I know this rate sucks, but I am one year post-bankruptcy so this was my only option. Anyway, they have a points programs for on time payments that offers you 3% off your interest after 100pts and 3% more after 160pts. I am already near 100 points since I have been doubling payments and my interest rate is getting ready to go down to 15.99%. Well here is the problem, I wanted to get a 1,500 loan from them. Well I was approved, but they want to add the 1,500 to the total payoff of my car and want rewrite the loan into one loan payment. The problem is that they don't offer the points program and I will have to have 18.99% for 4 years!!!! I don't understand how the same company cannot give me the same offer? It's only been a few months. Also, the assist manager tells me that they don't offer 1,500.00 personal loans. He didn't tell me this when I first called to apply. Any advice?
If you don't need the $1500 today, I would not do their deal. Get the lower interest rate. Maybe stop making the extra payments and use that money for your other needs. Depending on your score there may be a CC to use as a temporary measure. Good luck.
Thanks for the bump and reply. We want to use the 1,500 to get our driveway paved. It is an excellent deal that we are being offered and the paving company doesn't accept cc's. I wish they did since it would solve my problem. My husband says we should just do it, but I have seriously problems with the high interest rate for 4 years. I have to call the bank by tomorrow to let them know if I want the loan. Since I have a bankruptcy on my credit I don't feel they will negotiate the rate. I told my husband that we should just save the 1,500 but he thinks we should go for the loan now.
You might want to figure out the difference between what you would pay in interest for your car loan over the remaining life of the loan under your current program w/ the interest rate being reduced shortly and the interest rate when it is not reduced. That difference (plus the interest on the $1500 and the $1500 itself) is the true cost of getting your driveway paved. Maybe Wells Fargo can help you w/ these caculations or maybe someone here can help. I'm not good w/ figures myself but I think what I am saying is accurate. Then you'd be able to compare the cost of this paving contarctor w/ the next highest bid that you're offered.
Christi, Mandy just told you exactly what I was going to. I have a feeling that paving job is going to prove to be VERY costly when you take the true cost into account. All the best! DemPooches
I feel the urgency the loan company is placing on you. They stand to lose $300 a year in interest on the first rate reduction (assumes $10,000 balance for a year with 3% rate reduction). And when you qualify for next reduction (another 3%) you will save $600 a year in interest for every $10,000 of loan balance carried! So, how important is the driveway? And, I really don't see how the bank needs to know today! I would let the rate fall 3% (when you get to 100 pts). Then inquire about the loan again. Paving company will pave today or in 3 months from now and probably at a similar price. Even if the price is $300 more, you still come out ahead if you can save on the interest charges. Just my 2 cents
Thanks guys. This is exactly how I feel. In the end we are losing out by doing this loan. I will let my husband take a look at your replies and see it it knocks some sense into him. His makes the money, but I am the one who handles all the finances. We have both been wanted to do this project for three years now, what is another few months.
Well I didn't call the loan co. back and the asst manager finally calls me and states that he can give me a separate loan for the 1,500.00. He said he had to get "special permission". I think they could have done it all along. They just wanted to rewrite the loan and collect all that interest. Well, I'm glad I waited it out. Today we get our loan. Again, thanks for the advice.
Glad it worked out for you! That "special permission" thing sounds like when the auto salesman has to go "plead" w/ his mgr for a better deal.
MandyB, I know, Its funny when you try to negotiate with a salesman and they go over to "talk" with a manager, you know they go over there and just b.s. for a few minutes to try to make you sweat it out and act like they are trying so hard to get you a deal. Do they still think people fall for that?
