topic Re: Can I get a Better rate on auto loan? in Auto Loans

Can I get a Better rate on auto loan?

Anonymous — Fri, 10 Jun 2011 16:15:18 GMT

Hello, I have been looking around for a (used) newer model vehicle(Lincoln MKS or Acura TL) and recently started shopping around for a finance company.

I am active duty military, and have accounts with: Navy Federal, Usaa, and Capital One. My Trade in is Valued at $12,500.

I recently applied for a loan through Navy and was approved for $16,000 at 4.99% for a 2010 or newer vehicle.

I was approved through USAA for $17,000 at 3.3% for a 2010 or newer vehicle, and 5.2% for a 2-7 year old vehicle.

Capital one approved me for $16,000 at 5.5% for a 2010 or newer vehicle, and 6% for a 2-7 year old vehicle.

My current scores are 691 on Transunion, 694 on Equifax, and experian Fako is 709. My current utli is 3%.

I have a few baddies from 2006, 2-30day,1-60 day,1-90 day late on a unsecured loan, and a chargeoff on BOA credit card which was paid 2 weeks after the chargeoff.

I had a car loan through Capital One, that was paid off Never Late. My income is around $49000 annually and my mortgage is $702 monthly.

Re: Can I get a Better rate on auto loan?

Anonymous — Fri, 10 Jun 2011 22:35:07 GMT

@Anonymous wrote:
Hello, I have been looking around for a (used) newer model vehicle(Lincoln MKS or Acura TL) and recently started shopping around for a finance company.
I am active duty military, and have accounts with: Navy Federal, Usaa, and Capital One. My Trade in is Valued at $12,500.

I recently applied for a loan through Navy and was approved for $16,000 at 4.99% for a 2010 or newer vehicle.
I was approved through USAA for $17,000 at 3.3% for a 2010 or newer vehicle, and 5.2% for a 2-7 year old vehicle.
Capital one approved me for $16,000 at 5.5% for a 2010 or newer vehicle, and 6% for a 2-7 year old vehicle.

My current scores are 691 on Transunion, 694 on Equifax, and experian Fako is 709. My current utli is 3%.
I have a few baddies from 2006, 2-30day,1-60 day,1-90 day late on a unsecured loan, and a chargeoff on BOA credit card which was paid 2 weeks after the chargeoff.
I had a car loan through Capital One, that was paid off Never Late. My income is around $49000 annually and my mortgage is $702 monthly.

What rate do you think you can/should get?

Anything below 3.99% is usually considered a subvented rate, as in the Finance company arm of the dealership is offering a NON normal rate to entice buyers. the rates you are quoting are good and competitive.

Any rate below 3.% , at 60 months is in most cases a money loser for a bank.

You are not going to be getting 1.9% or 0% on a used car. And if you are somewhere somehow money is changing hands.

Re: Can I get a Better rate on auto loan?

Anonymous — Fri, 10 Jun 2011 23:19:32 GMT

Thanks for answering. I wasn't sure if their was a better interest rate out their or not, so I decided to see what other people opinion was.

Re: Can I get a Better rate on auto loan?

Anonymous — Sat, 11 Jun 2011 19:56:08 GMT

@Anonymous wrote:
Thanks for answering. I wasn't sure if their was a better interest rate out their or not, so I decided to see what other people opinion was.

Again and out of curiosity, what rate do you think you are missing? 3.9 is pretty low.

Re: Can I get a Better rate on auto loan?

eharley0142 — Sat, 11 Jun 2011 22:30:49 GMT

Pen Fed has a 2.49 % rate for internet applications.

https://www.penfed.org/productsAndRates/loans/vehicleLoans/newAutoLoans.asp

Re: Can I get a Better rate on auto loan?

Anonymous — Sat, 11 Jun 2011 23:55:57 GMT

1-that's a new car rate, not a used.
2-Penfed has some of the strictest lending standards, I doubt the op with his history would qualify.
3-few people who participate in these forums qualify for loan products from Penfed

Re: Can I get a Better rate on auto loan?

eharley0142 — Sun, 12 Jun 2011 14:53:34 GMT

They are advertising the same rate for used car loans

https://www.penfed.org/productsAndRates/loans/vehicleLoans/usedAutoLoans.asp

But you're right, who knows what the lending standards are for that rate without contacting them.

Re: Can I get a Better rate on auto loan?

Anonymous — Sun, 12 Jun 2011 18:17:12 GMT

I based my original answer on the link that was supplied, and on the OP's statement of intent to buy a used car, and did not bother investigating to see what PENFED was offering in used.

PENFED is OFFERING rates as LOW as 2.49%. That does not mean all applicants are getting approved or getting that rate.

I am 110% sure that the OP with the lates on his credit report will either not be approved at all, or if they did get approved not be approved at that rate.

PENFED has very strict lending standards, with a history, even if you just read other posts on these forums, of denying loans.

My God, most people who open a PENFED account if their credit is not AAA are opened on a "probationary" second class citizen level.

Again, doing research in these forums, most people who pursue a lending relationship with PENFED begin the application process anew after spending a year or so micromanaging their report information and active credit lines.

Is PENFED a valid resource? Yes. Is PENFED a lending institution? Yes.

But they also are pretty darn strict.

if Navy Federal is giving you a 3.99%, and USAA is offering a lil lower, you really are getting one of the best rates you can get.

ETA:

Again, I stand by my statement that greater then 90% of the people who participate in these forums would probably not qualify for an unrestricted PENFED account out of the gate, much less actually qualify for a loan.

And BTW: Penfed member since 2008