Mortgage Loans

[hipgal0825]

Hello, new to this forum. I have an older car (1996) and want to purchase something a little newer.  I've started the process by contacting dealerships (have narrowed my wants to Honda CRV and Jeep Compass) and asking how successful they are at dealing with credit issues (I have some late payments on 2 credit cards and have a bankruptcy (1999). Wasn't too familiar with how they work till recently, but finally got into a bill consolidation program and am currently regularly paying on the credit cards which were/are both over their limits. I recently got a copy from Experian of my credit report and it shows 2 cars that I've had (including the current one) and they show as paid off and the credit history payments look good. However, the dealerships have said that without seeing my exact credit report, but based on what I've told them, I probably could get approved but would more than likely have a high interest rate. My question (that none of them can seem to tell me without seeing my credit report) is what is considered high and low for interest rates on cars? I ask this too because on many of the car sites you can estimate your monthly payment, but you have to enter an APR and I don't know what they'd consider more than the average/normal buyer would get. Anyone have any experience or advice?  Any help would be really appreciated.

Message Edited by hipgal0825 on 08-18-2007 09:41 PM

[rtoshow]

I have sold cars this month at zero & at 20.99. The differences can be huge based on your credit. Keep in mind, the dealer gets a "buy rate" from the lender & they may mark it up on you. That's another profit center for the dealer. Your best bet is go to the lot with your own financing & that won't happen. You will get the best rate that your credit qualifies you for.

[tpere925]

That is correct.  The only way for the dealership to get any APR is to run your credit.  Nobody can tell you your exact interest rate based off what you tell them.  Even if you have your fico score, there are other factors the auto lenders look for too!

[steelfan]

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rtoshow wrote:
I have sold cars this month at zero & at 20.99. The differences can be huge based on your credit. Keep in mind, the dealer gets a "buy rate" from the lender & they may mark it up on you. That's another profit center for the dealer. Your best bet is go to the lot with your own financing & that won't happen. You will get the best rate that your credit qualifies you for.

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What are the minimum qualifications to get 0%.  I will be in the market for a vehcile in a another year.  By then all my scores will be close to 800. Two are 760's now and one is 740  I have no bad info on any of my reports and have 6 car loans all with postive payment history

[HouseHunter]

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rtoshow wrote:
I have sold cars this month at zero & at 20.99. The differences can be huge based on your credit. Keep in mind, the dealer gets a "buy rate" from the lender & they may mark it up on you. That's another profit center for the dealer. Your best bet is go to the lot with your own financing & that won't happen. You will get the best rate that your credit qualifies you for.

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My credit union through my employer has a program where one can get pre-approved financing on the spot at the dealership for their rate of, which the last time I looked was like, 5.25%.  Of course, that rate may change based on credit history but I know people who got that rate with scores much lower than mine. 

[Haleysgirl]

Just FYI, since we have purchased 2 vehicles this year... My credit score was 647 according to the dealer in March when I puchased a 2004 Durango, my interest rate is 15.6% at Wells Fargo.  Two weeks ago my bf and I bought a brand new 2007 Dakota at a different dealer, my score is now "over 700", and his is "in the high 600's", that interest rate is 14.8% at Capitol One Auto Finance.  I am not sure how they figure the rates, but I am sure the dealer is getting a kickback!!!

Our plan is to go to the credit union and refinance both as soon as possible, if you go to either finance companies websites they show their current interst rates well below 10%. (Credit union wants me to pay 6 months to establish history on an auto loan, 1 more payment and I am there)

<<<At least we both have nice rides with lots of sand and no vaseline.>>>

My suggestion is to try Capitol One's Blank Check program, or something similar before you go to the dealer, in our case it could have saved us over $100 a month on EACH vehicle!

[hipgal0825]

Thanks Haley, I wish I could, unfortunately, the 2 cred. cards I have consolidated are with Capital One.

[Tuscani]

Good read:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&message.id=1231

[hipgal0825]

Thanks Tuscani, very interesting.  Wonder if that means I'd have a pretty decent FICO Auto Industry score because on my credit report the 2 auto loans listed show "ok" almost completely across the board a couple "nd" and they both have "never late" comments.  Also, I'd filed my bankruptcy 4/99 and in 9/99 got financed at a dealership for a used car.  It's been 8 years since my bankruptcy now, so perhaps I'd still get approved. 

[Tuscani]

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hipgal0825 wrote:

Thanks Tuscani, very interesting.  Wonder if that means I'd have a pretty decent FICO Auto Industry score because on my credit report the 2 auto loans listed show "ok" almost completely across the board a couple "nd" and they both have "never late" comments.  Also, I'd filed my bankruptcy 4/99 and in 9/99 got financed at a dealership for a used car.  It's been 8 years since my bankruptcy now, so perhaps I'd still get approved. 

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Yep.. Sounds like your Auto score should be higher.