RoadLoans Approved with High Intrest, but in desprate need for a car

[bint-bilady]

I have been turned down by most of the banks even my credit union because of my low credit scores and the high credit utilization. I have a 574 equifax and I was only able to get approved with roadlaons ($17,500 at 16% APR/ 66 month/ with 2500 down) I don't know if I I should go with that or not.

Your input is appreciated!

[kbella]

I'm by far not an expert but I was approved at 19.75%(!) interest rate with a credit union for an auto loan, but was able to 10.99 at the dealer (plus 5k rebate).  And our scores and DTI ratio is high (hope to be better to refinance in a year).  My suggestion is to see what the dealer can get you and if they can approve you at a better rate than with roadloans.  Just don't tell them you've been preapproved and see what they can give you.  If they can't get you anything comparable, I think RoadLoans may be the best bet.  And try to refinance in a year for a better rate like me.

[Anonymous]

Just an FYI. Roadloans charges a loan acquisition fee to the dealer, who in turn passes it along to you added into the price of the car.   Ours was $1975 and after a MONTH of us having the car they refused funding.  Their reason: We know about the fee and it's illegal for the consumer to pay it.  Roadloans even gave us a loan increase to cover the fee, so they knew we knew when they told the dealer everything was fine and we took the car home.   Our lawyer is looking into their business practice. 

[Anonymous]

Bint Bilady

Roadloans made you put money down, or is this something that you wanted to do?

[moondog7324]

Here's my suggestions:

1)- Can you afford the monthly payment associated with the loan offered by ROADLOANS- if yes- proceed to step 2- if NO- forget about it.

2)Research the vehicles you want- don't get caught up in one particular brand- consider a car with very few options- why put 17,000 worth of options on a base model car that can be bought for 15,000- If you think I'm exagerrating- go price some trucks- base model compared to the optioned out models-  good source for research www.edmunds.com

3) Know what the going price is- know what rebates are available- negotiate from the invoice- not the sticker- if you have a trade in- treat it as a seperate transaction

4) walk into the dealership with confidence- There are far fewer buyers- than cars on the lot ITS A BUYERS MARKET-  The next sale may be the difference between the salesman being employed or unemployed- YOUR ADVANTAGE-

5) DO NOT LET THEM RUN YOUR CREDIT- until you feel you have negotiated the best price. They will try to do this first- as soon as you show any interest in a vehicle. If they insist walk- tell them you have financing- do not tell them it is with roadloans (they will know you are subprime and use it to their advantage)

6) Negotiate the best deal- be prepared to walk- shop the price with another dealer.

7) After the deal is done- don't buy any of the extras- undercoat- extened warranty etc.NONE!

8) When you have a deal- ask them to try and get you financing- they should be able to be the roadloan interest rate

9) If they don't and you are satisfied with going ROADLOANS- pay it faithfully for 6 months- do other things to improve your credit- then try to refinance with another lender- GOOD LUCK!