Brand new car with bad credit?

[f1ared]

I just wanted to let everyone know that we were APPROVED! I only asked for $16,000 but Capital One approved us for $19,200 at 8.09%.....Not to bad if you ask me! I also applied at RoadLoans (which offered us 20%), Wells Fargo, and 2 of my local Credit unions....still waiting to hear back from those though.

I'm surprised they gave us 8.09%, and now I'm wondering if we missed some fine print somewhere or something...Anyobdy have experience with an Auto Loan from Cap One? I'm just wondering if there is any hidden fee's or something else we may have missed.

Thanks!

[enharu]

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@f1ared wrote:

I just wanted to let everyone know that we were APPROVED! I only asked for $16,000 but Capital One approved us for $19,200 at 8.09%.....Not to bad if you ask me! I also applied at RoadLoans (which offered us 20%), Wells Fargo, and 2 of my local Credit unions....still waiting to hear back from those though.

I'm surprised they gave us 8.09%, and now I'm wondering if we missed some fine print somewhere or something...Anyobdy have experience with an Auto Loan from Cap One? I'm just wondering if there is any hidden fee's or something else we may have missed.

Thanks!

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grats.

best to go over the entire T&Cs just to be on the safe side.

but in general I don't think there's going to be some shady fine print.

[f1ared]

Of course, now the dealership is saying "they can beat that rate!", we may just stay with capital one though...I've heard to many horror storys where someone takes there new car home and the dealership says "actually...sorry we couldnt do the promised rate" or "it wasn't approved"

[enharu]

If you want to make sure the loan you get from the dealership is approved, simply wait a couple days before you pick up the car.

In most cases, as long as you are buying the car on a weekday morning / afternoon, they can call the bank to verify everything has been processed and done. A lot of times the financing company are closed on weekends or at night, which also happens to be the most convenient time for people to do their car shopping, so the loans end up getting processed the next business day.

[f1ared]

I guess we could see what the dealership can do for us. It's just that now we have alot of inquries on our reports, AND we were also approved at a Local credit union as well. So I just don't see the need and I don't think they can do better than 8%.

[enharu]

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@f1ared wrote:

I guess we could see what the dealership can do for us. It's just that now we have alot of inquries on our reports, AND we were also approved at a Local credit union as well. So I just don't see the need and I don't think they can do better than 8%.

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it really depends on your credit profile and the financial institution you are dealing with.

Generally, the financing arm of the manufacturers themselves tend to have the best rates, since they're in a way motivated to sell their own cars. The finance manager themselves sometimes have a little leeway to tweak your APR by a little as well. For instance my friend was able to get her APR lowered from 3.59 to 3.19 after some haggling back and forth. Not really a game-changer, still money saved nevertheless.

The best way to tell is to ask the dealership for their financing tier chart. Look at where your credit is, and that should give you a rough approximation of your rates. Sometimes they can "bump" you up to the next higher tier as well. But if they are suddenly bumping you up from tier 3 to 1, then you know you have more work to do to bring down the price of the car.

[Dustink]

That downpayment is grounds for a tier bump. 8% is way too high with 10k down. The bank is taking little risk, yet charging 8%. That is a loan I'd offer any day. Talk with the dealer.

I put a bit less down, with scores in the mid 600's and got promo financing from Subaru. I think you should be under 5% in your situation.

[f1ared]

Thanks for the reply's, we're going to go this weekend. I'll let you know how it turns out.

[maiden_girl]

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@f1ared wrote:

Thanks for the reply's, we're going to go this weekend. I'll let you know how it turns out.

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You should try to purchase during the week Like Tuesday-Thursday...less traffic and less haggle and more than likely willing to deal.

[f1ared]

This may be the wrong forum for this...but does anyone know how much lower the invoice should be vs MSRP? The MSRP of the van I want is $24,985, and I have a dealership telling me there invoice is $24,299...but they'll sell it to me for $23,499. UNDER invoice?

I was told that invoice is usually $3,000 to $4,000 lower than MSRP..is this true?

I know there's KBB and Edmunds.com, but there MSRP isn't listed as $24,985 so I don't trust it. By the way, I've had VERY LITTLE luck trying to negotiate thru email as this forum suggests...either no one will get back to me, or they just tell me the MSRP so on and so forth.

Thanks!