Auto Loan Approved!

[Anonymous]

Hello all,

So here is my situation.

Only 6 months credit history.

But recently has a FICO score of 710.

Pay 25% down.

Only 9 months on my current job.

Only 9  months on my current address.

Low income. $2000/month

First time buyer and borrower.

Have been rejected by several financing companies, and recently even rejected by local credit union.

Then I ask to the dealership. It seems they work with numerous banks.

After running the financial application, I received an interest rate at 4.9%. This is really good for me I thought at first.

Then I visit the dealership and get other things done, they finalize the interest rate at 3.3%!!!

I am pretty surprised!!

But I am still wondering, how this rate level would be? Is it fairly good? Or it is actually high? Is there any space allowing me to refinance at a lower rate in the future?

Thank you all.

[2GreenThumbs]

Yay!  Congratulations!

[pipeguy]

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@Anonymous wrote:

Hello all,

So here is my situation.

Only 6 months credit history.

But recently has a FICO score of 710.

Pay 25% down.

Only 9 months on my current job.

Only 9  months on my current address.

Low income. $2000/month

First time buyer and borrower.

Have been rejected by several financing companies, and recently even rejected by local credit union.

Then I ask to the dealership. It seems they work with numerous banks.

After running the financial application, I received an interest rate at 4.9%. This is really good for me I thought at first.

Then I visit the dealership and get other things done, they finalize the interest rate at 3.3%!!!

I am pretty surprised!!

But I am still wondering, how this rate level would be? Is it fairly good? Or it is actually high? Is there any space allowing me to refinance at a lower rate in the future?

Thank you all.

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3.3% is a very good rate considering your limited credit history - DCU and NFCU offer rates in the 2.6 to 2.99 rage for their top tier loans and you are very close to that. 

Only thing I'd check is to see if the dealer dumped a bunch of "extras" in there like GAP, extended warranty, Credit Life and other such high markup nonsense to "show" a very low APR whereas they are increasing your cost and their profit through the back end finance dept. 

If this is the case, it's NOT such a good deal, but there is a way to sign the papers at the quoted 3.3% rate then cancel all that extra nonsense.

[Anonymous]

Thanks a lot.

They did not sell me any extra things. They give me an extended warranty like 3mons/3000miles but did not charge me anything. I buy the insurance myself. 

But there are some other things of this car a little annoying. The tires are said to be 6/32, they did not change them! I am highly likely to change new tires during winter season. And there are little chips on the windshield.

But overally, dealer is good. It is a recent purchase, I will wait and make judgement later on.

I probably will trade this in for another newer car 2 or 3 yeras later. Maybe the rate will be lower further at that time.

But thanks a lot for your reply!

[Anonymous]

Congrats!

Very good rate at 3.3%

Keep it safe, keep payments on time.

And if and when you are ready for another car, decide on a new car if ready.

Possible to get 0% deal.

Just make sure if makes financial sense for next purchase, like this one!