topic Re: WHAT KIND OF AUTO LOAN RATE SHOULD I EXPECT?? in Auto Loans

WHAT KIND OF AUTO LOAN RATE SHOULD I EXPECT??

izach26 — Fri, 25 Jan 2013 20:46:38 GMT

03/2012 I purchased a 2012 Camaro, LS Base Model, it was not the model I wanted but it was what I was approved for, everyone told me, make the payments on time for a year after that year bring the car back trade it in for a better rate..

The Numbers

Current Rate 22.99%

Cash Down $10,000

Car Note $477.00

Terms 72 MO

Loan Company: Santanair

Everypayment to date has been on time, and is automatically drafted from my pay to avoid any issues

10/2012 I purchased a used 2002 Montero Sport, The Camaro is Horrible in the Snow, I only paid $5000 and put down $2500.00 every payment has been on time also, and will be paid off 04/2013

Credit Background & Income

2012 W-2 Income $59.880.00

Credit Score is in the Low 500's

Cap One Card Open since Dec 2011 Never a Late always carry utilization balance of like 50 bucks just to make a payment

First Premiere Open Since Dec 20111 one payment late always carry utilization balance of like 50 bucks just to make a payment

A repo for 11/2006 which should drop off November 2013

Is it realistic to think Mid April end of April, having paid off the Montero Sport Loan, made every payment on time as agreed on the Camaro, I can trade in the Camaro for the Camaro I want....I have also saved up $5,000 as a down payment on the 2013 what kind of interest rate should I accept, is 5-10% realistic???

If now what do you guys think

The first dealer really ripped me a new one because of my score and I don't want this to happen again

Re: WHAT KIND OF AUTO LOAN RATE SHOULD I EXPECT??

cim — Fri, 25 Jan 2013 21:27:26 GMT

The recent positive payment history is helpful but the repo is killing you on the rate. My experience is that auto dealers and their captive lenders use automotive enhanced scores so a FICO score based on other models isn't always a great guide to go by. Either wait until the repo drops to make your next purchase, or worst case finance the new Camaro at a crappy rate now and refi once the repo drops off.

Re: WHAT KIND OF AUTO LOAN RATE SHOULD I EXPECT??

izach26 — Fri, 25 Jan 2013 22:12:40 GMT

refi the 2012 for a lower rate then wait till 11.2013 when the repo drops off and refi again?

my plan is to trade in the 2012 Camro get a 2013 something lower than 22.99% then re fi the 2013 Camaro 11/2013 when the repo drops off

Re: WHAT KIND OF AUTO LOAN RATE SHOULD I EXPECT??

izach26 — Tue, 29 Jan 2013 17:42:01 GMT

BUMP....

Re: WHAT KIND OF AUTO LOAN RATE SHOULD I EXPECT??

Revelate — Tue, 29 Jan 2013 18:27:34 GMT

@izach26 wrote:
refi the 2012 for a lower rate then wait till 11.2013 when the repo drops off and refi again?

my plan is to trade in the 2012 Camro get a 2013 something lower than 22.99% then re fi the 2013 Camaro 11/2013 when the repo drops off

If you really want the 2013 (financially I think it's a bad idea) then your course of action is legitimate and probably the best you can get; however, I don't think you're getting a single digit APR from what you've described. You may not beat the ~23% you're sitting at now, or maybe you will... it's honestly tough to predict down in the deep subprime market.

The other question is how much is left on the loan for the 2012 Camaro, and what it's tradein value happens to be. You may be underwater currently on that loan, which is going to eat away at any downpayment you have for the 2013. You're probably going to have to put 20% down again on the 2013, make sure you have enough resources to do it before pulling the trigger.

If it were me trying to get this done, I'd see about just refinancing or trading in the 2012 in November/December instead. You may be stuck with that as a fallback position depending on the current 2012's loan. Might be able to refinance the 2012 earlier too, again that's tough to predict in the low 500's, but I think your time would be better spent correcting whatever else is hurting your score besides the repo.

Re: WHAT KIND OF AUTO LOAN RATE SHOULD I EXPECT??

izach26 — Wed, 30 Jan 2013 01:41:04 GMT

so the whole finance for a 14 months, pay all on time, then trade is is a bunch of bull i guess

Re: WHAT KIND OF AUTO LOAN RATE SHOULD I EXPECT??

StartingOver10 — Wed, 30 Jan 2013 01:50:08 GMT

@izach26 wrote:
so the whole finance for a 14 months, pay all on time, then trade is is a bunch of bull i guess

Yes. The only people that make out on that deal is the dealership and the finance people. You get buried in a super underwater deal that you carry over to the next vehicle. Unless you have paid a substantial amount down or during the 14 months you financed it - you are bringing over tremendous negative equity to the new purchase.