Re: Where to Apply?[ Edited ]
12-21-2012 06:34 PM - edited 12-21-2012 06:34 PM
@Revelate. I totally agree, as my mom used to tell me, "Sometimes you have to go sideways to go forward."
What I've found, is that people want to get this fantastic car, but may not have the credit and/or income to support it, but they don't want to get just a "get by car" until they can really afford what they truly want. I was in a similar place when me and my ex-fiance broke up (this was many years ago). We were just a few years out of college, and when we broke up, I had no money, and prior to us breaking up, we were talking about buying a new car. Well, long story short. We broke up and my car was not going to make it. I financed a car (I would NEVER want to have for an extended period of time) for about 19% interest for a 7k loan; they gave me $1500 for my trade-in. I had that loan for about six months, and then got it refinanced through Capital One for about 12.95% for 36 months. I paid it off in about 18months (half the time). Drove the car for another year and a half, and then was approved for a brand new Honda Accord at my credit union for about 3%. I had the trade-in of the car I didn't really like, but it was paid off, AND they gave me 4k for it, plus I put 4k down, so that 24k car, I purchased for 16k w/3% rate. I had to wait a little bit, but I got what I wanted and didn't have horrific car payments. I have this thing, I won't pay more than $500 a month for a car payment and insurance a month (combined).
To OP, I think you should be alright with getting just any loan, as Revelate said, and then refinancing within 6 months or so. As long as you pay on time (and if possible, pay double payments or a payment and a half), you will be able to refinance to a better rate.