how does a 18% apr jump to 26% from the same lender

[Ocelot87]

I applied for Roadloans.com and was approved for 18% and 15k limit. I go to a approved roadloans dealer and find a car, a 08 jeep compass for 9k but I didnt tell him I was approved by roadloans already. Wanting to see if he can get me a better deal, he came back and said I was approved with a interest of 26%!!!! I asked by who and said satanders, the same company that ownes roadloans. So how did it jump from 18% to 26% from the same company?


Sorry if my grammer is wrong I'm typing from a phone.

[creditkarma2013]

That's why you should apply for a loan first at a local credit union instead of going to the dealership. Once they approve you for a fixed amount, its easier to negotiate with car salesmen when you already have funding. Don't use Roadloans, I applied there as well because I thought I wouldn't get approved but now I have a 8% APR loan with a local credit union and my FICO isn't great either.

[Elcid89]

They aren't the same loan. The offer from Roadloans is good at the rate offered as long as your deal meets their conditions.

[BlueHusky]

Obviously that's ridiculous and I hope you laughed in the dealer's face. Dealers can add interest on top, and when he ran Roadloans he probably got around the same 18% that you did...but since it was so high he figured "ok this person likely doesn't have many approval options and doesn't understand credit well..." and took advantage of you by adding 8% on top of it. Try your local credit union first, and if they can't beat 18%, then take it and make payments for a year or so while repairing your credit (lower utilization, etc), then try to refinance lower.

[Elcid89]

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@BlueHusky wrote:

Obviously that's ridiculous and I hope you laughed in the dealer's face. Dealers can add interest on top, and when he ran Roadloans he probably got around the same 18% that you did...but since it was so high he figured "ok this person likely doesn't have many approval options and doesn't understand credit well..." and took advantage of you by adding 8% on top of it. Try your local credit union first, and if they can't beat 18%, then take it and make payments for a year or so while repairing your credit (lower utilization, etc), then try to refinance lower.

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OP didn't bother telling F&I that he/she already had an approved offer from RL. He let F&I fly blind hoping that they would be able to beat the rate.

[Ocelot87]

I went back to speak to them and stated a new vehicle would get the 18% but since I'm going used its 26%. It just seems they want more money in there pocket.

[Dustink]

Anything over 10% is a scam. Speak with credit unions ect. You are bound to be able to find something under 10%. The market is rock bottom for interest rates on secured loans. 

I am a first time buyer with a score under 700 and I was approved for 3% on used and 2% on new with USAA.

[way2evil]

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@Dustink wrote:

Anything over 10% is a scam. Speak with credit unions ect. You are bound to be able to find something under 10%. The market is rock bottom for interest rates on secured loans. 

I am a first time buyer with a score under 700 and I was approved for 3% on used and 2% on new with USAA.

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Is that so?

Since you think 10% is such a great interest rate, why dont you set up your own finance company at a fixed 10% rate on every deal and I will send you a hundred loans a week at that rate.

When you have someone with two reposessions and banged up credit, 25% is a blessing.

[GetAHouse]

It varies  by state, but it most states the dealer can only raise the APR by a certain maximum amount. However the problem is that to many people accept dealerships on whatever they say withouit asking for proper verification. If it aint in writing it dion't mean **bleep**.