I have spent most of my adult life battling credit mistakes. My own fault. But car dealers prey on people like most of us registered on this site. I have heard time after time pay this loan on time and the next car you buy things will be better. Yeah right. 18.9% is highway robbery. I recently refinanced 2 car loans through my credit union at 6%. First time ever no co-signer, no down payment. I will NEVER finance a car at a dealership again. Now that I know I can get a pre-approval I have some bargaining power. When you buy a car with bad credit you are at that dealers mercy. Not a leg to stand on. Usually have to accept a 6 year old vehicle 100,000 miles or more. Paying 1 1/2 times what its worth and paying 17-22% on the loan. And for God's sake my myfico friends stay away from CarHop and many other buy here/pay here places!! Good Luck
In the past 3 months, I have purchased 2 new cars through VW and Audi dealers. Both times, VW Credit through the dealers blew away my CU preapproval offers. If you go to a reputable new car dealer, they have far more options available to get you financed. I don't have great credit, and was really suprised by how relatively low (7.9% and 6.4%) VW was, given the fact that I had a 450 fico score a year ago and couldn't finance a toaster.
VW/Audi seems very aggressive, as does Toyota. You do need to know what you're talking about and what you're looking for, and being pre approved certainly helps.
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if your getting these rates with a 450 FICO I am doing something WAY wrong
Not 450 anymore! I started getting serious about fixing my credit last July. The first time VW pulled Experian in October, it was 686 auto-enhanced. When I bought the Audi 2 weeks ago, they pulled TU at 643 auto-enhanced. Got a lower rate as a repeat/current VW credit customer.
You also have the option of working on your credit to avoid such situations.
I just had to purchase a car and even though I had cash, I financed... just to see what kind of a rate I could possibly get.
0.9% for 60 months. At a dealership.
Well worth all the hard work I've put in the last 1.5 years with my credit.
Follow my financial journey: http://www.frugalrican.com