auto loan

[suzen121]

I applied for an auto loan, 1 yr post bankruptcy discharge...They came back with an interest rate of 15.5% for 72 months, 1500$ down , total amount financed approximately 27000$...The dealer said that with a subprime auto loan, he couldn't really go down on the price of the vehicle because he would have to pay an 850$ fee to the lender to get the car financed.  Does anyone know if this is true?  They pulled an auto enhanced score of approx 670...I have pulled scores ranging from 630-650, although that was before applying...My scores took quite a hit immediately after the inquiries, dropping to about 615. Just wondering if there is any truth to this 850$ fee thing!  Thanks!

[stagefoursurvivor]

I'm no expert here but, I believe that's a load of crap. I think the dealer will get a big portion of that 15%! 

What brand car? Some of the manufacturers are being surprisingly lenient in the rates they're offering.

Supposedly Toyota is offering 0% for all credit tiers

[chela62678]

Wow your score is High  I just got 15.9 with Citifinancial and my scores are in the high 500's!! Try someone else or wait a while longer

Good Luck

[suzen121]

Its a Subaru

[suzen121]

I don't even know what lender they are dealing with at this point...My fear is that it's a Santander or similar company...which from what I read on these forums would be a nightmare to deal with... I think I would be more than happy to do business with Citifinancial...I'm  going to talk to the dealer tomorrow to get more details...I can afford the payment, and would be willing to do it if it benefited my credit score in the meantime...but I just don't want to get hosed by the lender.  I realize I'm not going to get the red carpet treatment here...but I just want an honest lender!

[maynie]

Yes this is true. Certain banks require what is called a Buy Fee when they lend to someone that is high risk. The lender wants the loan secured. The dealer has to pay it. My husband says at his dealer it can range from $1500-$3000. It really sucks cause it's just another thing to make it harder for someone with poor credit to buy a car. And it gives the dealer less incentive to sell you the car. Good luck with your purchase!

[Anonymous]

OP,  my credit union is offerring 8-9% with those scores, I think you got played.  Have you tried to deal with your local CU?