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Is This a Fair Interest Rate on Auto Loan

Established Member

Is This a Fair Interest Rate on Auto Loan

I have a dealership that pulled a 600 score and I was looking to buy a 2008 Toyota Rav4.  I don't have a lot of credit - I've been repairing my credit for the past 6 years after a horrible divorce.  So I only have 2 tradelines on my report which are both credit cards.  Each of them has a 30 day late payment from last year.  Otherwise no other baddies - no collections, no public records, no repos, etc.  Toyota financing approved me with a 13.25% rate for 72 months.  I know my score is far from great but 13.25% sounds so high - Is this a fair rate?  Any advice??
Message 1 of 7
6 REPLIES
New Contributor

Re: Is This a Fair Interest Rate on Auto Loan

On my reports from this last weekend, it says the expected rates for 590-619 is 14.114 and 620-659 is 10.773.
 
I know that's just a guideline, but looks like that might be in line.
 
Someone else may know better than me, tho. Smiley Happy
 
ETA: That's for a 48-mo. Guess I don't know what to expect for a longer period of time. Sorry.


Message Edited by wiwend on 01-18-2008 04:37 PM
1/13/08: TU:727 EQ:730 EX:710
Why does Experian hate me? And Discover? I never did anything to either of them...
4/23/08: Officially addicted to myFICO. TU:726 EQ: 741 EX: 721
Message 2 of 7
New Contributor

Re: Is This a Fair Interest Rate on Auto Loan

How much are you putting down? Part of it might be that you're asking for 100% financing.
01/05/08 EQ 598 TU 612 Experian 599
01/25/08 EQ 605 TU 620 Experian 599
08/04/08 EQ 658 TU??? Experian 635
Message 3 of 7
Established Contributor

Re: Is This a Fair Interest Rate on Auto Loan

if your were purchasing a pre-owned car or used car the 13% rate would be fair. since the car is NEW i think your rate should be somewhere around 8%


Message Edited by CreditDrama85 on 01-19-2008 12:02 PM
Message 4 of 7
Senior Contributor

Re: Is This a Fair Interest Rate on Auto Loan

That's a ridiculous rate.  If it were me, I'd hold off a little bit until you get a score improvement so you'll save TONS of interest.
 
I financed a USED with roadloans for just over 10% and my scores was about the same. 
 
Do you know if this was the auto-enhanced?  I just don't trust car dealers, make him PROVE to you the score.  If he pulled both, theres always the chance that he is using your lowest score to make more $$$ for themselves.
 
Try a credit union & call around a few other banks.  Really pizz them off by taking in a blank roadloans check...then they get zero kickbacks.
 
 
Message 5 of 7
Senior Contributor

Re: Is This a Fair Interest Rate on Auto Loan



fishbjc wrote:
That's a ridiculous rate. If it were me, I'd hold off a little bit until you get a score improvement so you'll save TONS of interest.
I financed a USED with roadloans for just over 10% and my scores was about the same.
Do you know if this was the auto-enhanced? I just don't trust car dealers, make him PROVE to you the score. If he pulled both, theres always the chance that he is using your lowest score to make more $$$ for themselves.
Try a credit union & call around a few other banks. Really pizz them off by taking in a blank roadloans check...then they get zero kickbacks.



I agree. Check out a credit union. Penfed or Navy if you are eligible.
Message 6 of 7
Established Member

Re: Is This a Fair Interest Rate on Auto Loan

I checked out the Penfed website and I think my husband would be able to be a member b/c he is a gov't employee for the Dept. of Defense.  Now if he is a member, can I be on a loan along with him or can I become a member since I'm his spouse?  And we live in Illinois - Does anybody have any idea which credit bureau that they pull from?  Thanks in advance for any additional info.
Message 7 of 7