cancel
Showing results for 
Search instead for 
Did you mean: 

First Time Car Buyer

tag
Anonymous
Not applicable

First Time Car Buyer

Hey Guys, First, I'd like to say that this forum and its members do a great service for folks who have no experience with loans, mortgages, and just about anything finance and personal credit. Thank you!

 

My current situation - I am looking to buy a New Honda 2015 Accord Ex-L w/navi.I have a 617 credit score and was approved by Capital One Blank Cheque for $30,000 and 5.18%.   Ironically, DCU just rejected me (that should not happen). My question is - if Cap. One gave me 5.18%, I know I can get a lower rate elsewhere and I want to know how and where I should do so. I would appreciate any and all advice! Thanks in advance for your help!

Message 1 of 9
8 REPLIES 8
sccredit
Valued Contributor

Re: First Time Car Buyer

With a 617 credit score I don't think you'd get much better than 5.18%, thats a very good rate for the score 

Message 2 of 9
Anonymous
Not applicable

Re: First Time Car Buyer

Thanks! What about credit unions? 

Message 3 of 9
Dustink
Valued Contributor

Re: First Time Car Buyer

On a new car, the dealer is a good place to go. They might be able to beat the rate. Are you putting a good chunk down? That helps and in general is a good idea anyways.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 4 of 9
Dustink
Valued Contributor

Re: First Time Car Buyer


@Anonymous wrote:

Thanks! What about credit unions? 


If you bank with one, I would for sure talk with them.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 5 of 9
Anonymous
Not applicable

Re: First Time Car Buyer

Hello Fellow First Time Buyer here. Im curious because I want to apply for CO Blank Check as well. How many lines of credit you have and your oldest account??

 

Mind sharing?

Message 6 of 9
Anonymous
Not applicable

Re: First Time Car Buyer


@Anonymous wrote:

Hey Guys, First, I'd like to say that this forum and its members do a great service for folks who have no experience with loans, mortgages, and just about anything finance and personal credit. Thank you!

 

My current situation - I am looking to buy a New Honda 2015 Accord Ex-L w/navi.I have a 617 credit score and was approved by Capital One Blank Cheque for $30,000 and 5.18%.   Ironically, DCU just rejected me (that should not happen). My question is - if Cap. One gave me 5.18%, I know I can get a lower rate elsewhere and I want to know how and where I should do so. I would appreciate any and all advice! Thanks in advance for your help!


Typically car loans on brand new cars have really low APRs, so 5.18% for a new car is kind of high. My suggestion would be to go to your local bank (that you have an account with) and fill out an application. If they can't beat it then you should take the Capital One offer. Don't make the mistake that I did and do too much shopping around...I racked up 16 inquiries on my credit report from it Smiley Frustrated

Message 7 of 9
guydiver
Established Contributor

Re: First Time Car Buyer


@Anonymous wrote:

Hey Guys, First, I'd like to say that this forum and its members do a great service for folks who have no experience with loans, mortgages, and just about anything finance and personal credit. Thank you!

 

My current situation - I am looking to buy a New Honda 2015 Accord Ex-L w/navi.I have a 617 credit score and was approved by Capital One Blank Cheque for $30,000 and 5.18%.   Ironically, DCU just rejected me (that should not happen). My question is - if Cap. One gave me 5.18%, I know I can get a lower rate elsewhere and I want to know how and where I should do so. I would appreciate any and all advice! Thanks in advance for your help!


If DCU rejected you, that means you have some issues.  That 617 score took a hit after the first pull, so it is going to be lower now, possibly very close to 600.  5.18% is not the end of the world.  Honda might beat it by a little bit depending upon your profile, down payment etc.  Why not take the Cap1 offer, work on your score a year, then refi?  Not the end of the world.  Just saying because you don't have a lot of room for error with that score.  The good news is you got approved.,  You're not going to make much headway trying to get a better rate, and even though rate shopping should only count once on your Fico score, you will still have multiple hard pulls that will stay on your reports for up to two years.  Just something to think about.  If you really need(want) the car, it's not a bad deal.  Good luck.

Message 8 of 9
SamsungHDTV
Established Contributor

Re: First Time Car Buyer

With a score of 617 - 5.18% is a great rate. Yes rates go < 2% on new auto loans but that is with great credit.

 

But bottom line, yes you should always rate shop. Try a few other CUs, and also give the dealer a chance to beat your rate. Let them know you recieved "around 5%", hopefully compelling them to go under 5% with a rate exception.

 

And then lastly, refinance into better rates once your credit situation improves.

Message 9 of 9
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.