Car Financing

[Randi1009]

I finally bought a car today. My bankruptcy was discharged in August and Iet my old car go in the bankruptcy. Since I'm rebuilding now and I knew I would be hit with a huge interest rate, I wanted to keep the amount I financed down and I ended up with a 2010 Chevy cobalt for $7200. Not my dream car but it will get me to and from work and around town just fine. I got stuck with 26 percent interest though. Anyone who has refinanced, how long into the loan should I be until I try refinancing?

[bstone]

26%? You should have shopped. I got 17% the day after discharge, six months later 8.8%. At least it's a small amount, make large payments if you can.

In six months you can probably trade out of it and get a better rate on a new/er car.

[Anonymous]

Where did you try?  What are your scores?  I got 6.6% with cap 1 just under 3 months post discharge.  

[ezdriver]

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@Anonymous wrote:

Where did you try?  What are your scores?  I got 6.6% with cap 1 just under 3 months post discharge.  

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What brand and how old was the vehicle you financed? Was it purchased from a dealer or private party? These details matter so those seeing help can understand how close to their own situation yours may have been.

[Randi1009]

I'm starting to think maybe I should have shopped more. My car is being financed with a local credit union, which is a good relationship to build, just the interest rate sucks. The only credit report they pulled was Equifax which currently has a score of 565. I guess if nothing else, I didn't finance a huge amount of money and my payments are low enough I can pay extra towards the loan every month. I didn't even try capital one because I included two capital one cards in my bankruptcy and they've denied me for even a secured card at this point so I figured it would be a waste of time trying auto financing with them.

[bstone]

On that small of an amount I would be torn. On one hand it's a high rate, most states max out around 30%. However, on the other hand getting in good with the credit union might be well worth the rate.

Your next loan could be a prime rate, just pay on time (not even a day late) and this should be a start to a great relationship.

[Anonymous]

I used their auto navigator loan.  You're pre-approved with participating dealers for a range or rates which is dependent on your down payment and what year car you purchase.  I bought a 2014 certified used Toyota RAV4 with no down payment.  If I had put down a down payment I could have gotten the rate down about another percent but as this was to replace a total loss I have some other expenses to budget for.