topic Re: 22% Interest Rate in Auto Loans

22% Interest Rate

Anonymous — Thu, 29 May 2008 00:18:21 GMT

I have a car loan with Crescent Bank & Trust...I just found out..my car loan interest rate is 22%...I have had my car since November 2006...I had to get some kind of reliable car..my score weren't even in the 500s'..I don't believe...I was 22 at the time...with a newborn 1 month old baby...the car is a 2006 Chevrolet Impala...when I bought it..it had 14,000 miles...purchase price was $13000.00...car payments are $359.26...

Should I be trying to get this car refinanced???...I'm planning on buying a house within the next six months...should I wait until after I get the house???...

Scores as of 5/3/08: 661, 618, 594

Re: 22% Interest Rate

Anonymous — Thu, 29 May 2008 00:25:44 GMT

@Anonymous wrote:
I have a car loan with Crescent Bank & Trust...I just found out..my car loan interest rate is 22%...I have had my car since November 2006...I had to get some kind of reliable car..my score weren't even in the 500s'..I don't believe...I was 22 at the time...with a newborn 1 month old baby...the car is a 2006 Chevrolet Impala...when I bought it..it had 14,000 miles...purchase price was $13000.00...car payments are $359.26...

Should I be trying to get this car refinanced???...I'm planning on buying a house within the next six months...should I wait until after I get the house???...

Scores as of 5/3/08: 661, 618, 594

Yikes that is high, I was paying less for a 0 mileage brand new car in 03. Hmmm IF you can find a place that pulls TU, I would try to refinance as you will save a lot more money in the long run. Wait and see what other people tell you though.

Re: 22% Interest Rate

Anonymous — Thu, 29 May 2008 00:48:51 GMT

I would refi asap, that way ur DTI will be lower also when purchasing the home. At least it will be 5-6 months old b the time you try to buy.

If you decide to wait a couple months, you should wait until after the home purchase.

Re: 22% Interest Rate

Anonymous — Thu, 29 May 2008 00:56:06 GMT

I might not be able to refinance...I just looked at the trade in value of the car...it said it was between $8200-8900...I owe 10,000+...wouldn't I be upside down...and not able to refinance???...

Re: 22% Interest Rate

Takunda1 — Thu, 29 May 2008 01:01:04 GMT

slyhouse08 wrote:
I might not be able to refinance...I just looked at the trade in value of the car...it said it was between $8200-8900...I owe 10,000+...wouldn't I be upside down...and not able to refinance???...

For that kind of negative equity you should be able to refi, its not that bad. I would certainly try to refi immediately. Thats just crazy APR for a car. Check with your bank, if you've been a long time customer, then check with the rgulars, COAF, ROADLOANS etc. Try a credit union as well.

Re: 22% Interest Rate

Anonymous — Thu, 29 May 2008 01:10:22 GMT

I just check another website...it said:

Trade in value- $12,019
Private Sell- $13,690
Dealer Retail- $14,951

I really want my house...and I was told to wait..because my TL's on credit...they are too new...my cal loan is the oldest...I don't want to affect that...DW step father works at the dealership...I'll call and see what he says...I think I might wait until after...I mean I have never been late...and can make the payments with no problems...but after being on myFICO for the last three months...I learned the value of interest rates...and I know I can do better..and be better off...but the lower monthly payment...will lower my DTI for the house loan...I don't know what to do...

Re: 22% Interest Rate

MattH — Thu, 29 May 2008 01:52:52 GMT

@Anonymous wrote:
I have a car loan with Crescent Bank & Trust...I just found out..my car loan interest rate is 22%...I have had my car since November 2006...I had to get some kind of reliable car..my score weren't even in the 500s'..I don't believe...I was 22 at the time...with a newborn 1 month old baby...the car is a 2006 Chevrolet Impala...when I bought it..it had 14,000 miles...purchase price was $13000.00...car payments are $359.26...

Should I be trying to get this car refinanced???...I'm planning on buying a house within the next six months...should I wait until after I get the house???...

Scores as of 5/3/08: 661, 618, 594

Yikes, is the lender owned by Tony Soprano!?!? Actually this far into your loan you won't get much benefit from refinancing because you have already paid most of the total interest you are going to pay. Instead, I suggest you try really really really hard to find ways of cutting spending then divide the extra dollars evenly between a savings account and paying down your debts. With a little self-discipline you can probably make a major dent in that loan over six months. Good luck. Take a look at http://www.daveramsey.com/ for some excellent advice on debt reduction, I don't agree with everything Dave says (not all debt is bad!) but he does have lots of sound advice.

Re: 22% Interest Rate

Anonymous — Thu, 29 May 2008 02:30:58 GMT

This is a 60 month loan...it has only been...18 months...I'm kinda lost...

Re: 22% Interest Rate

MattH — Thu, 29 May 2008 02:56:13 GMT

@Anonymous wrote:
This is a 60 month loan...it has only been...18 months...I'm kinda lost...

Hmm, 18 months into a 60-month loan at 22% you have already paid about half the total interest for the entire loan term. Go to www.bankrate.com and www.mtgprofessor.com for lots of useful calculating tools and play around with various scenarios -- you will find that making extra payments on the principal should save you much more than could any plausible refi. On houses refinancing can make more of a difference because the term is so much longer, but with car loans the term is much shorter.

Re: 22% Interest Rate

Anonymous — Thu, 29 May 2008 04:39:57 GMT

REFINANCE NOW, pay 6 MONTHS on the New Loan and apply for your mortgage the second that 6th payment posts. You only lose 2 months in your plans to buy which in the grand scheme of things is nothing.

You can refinance for as little as 7% for 48 months or better if you have a CU.

Re: 22% Interest Rate

Anonymous — Thu, 29 May 2008 15:12:38 GMT

Sly the history and age will still be reflected on your CR's. The longer you pay on that loan with that interest the more upside down you will become. Cars, unlike homes do not appreciate they depreciate in value.

When you go to apply if you decide to refi, explain that you were in a high interest rate car loan and you wanted to free up more money to go towards the house -- that is the truth.

Re: 22% Interest Rate

Anonymous — Thu, 29 May 2008 17:34:34 GMT

Called DW's step father...he said the car is worth $12000...easily...so I'm waiting on loan officer to call back...and see what he says...if I'm waiting for my credit to age..for the home loan...I don't want to mess that up by closing my second to oldest account...and starting a new one...my DTI ratio is good for the house...and after I get the house...the car will be 2 years...then I would get a 36 month loan...for the refinance...

Message Edited by slyhouse08 on 05-29-2008 10:34 AM

Re: 22% Interest Rate

Anonymous — Thu, 29 May 2008 22:12:42 GMT

I understood what you were saying. A year from now your car will possibly be worth 15-20% less than it is now more miles-- more interest, and wear and tear plays apart in that, which will cause you to be more upside down. Do what works best for you. Banks go bay Kelley Blue Book value, so you may want to try that to see what it is really worth.

Call mortgage lenders that you will possibly want to use for financing and ask them about it, everything else is speculation.

As we have all seen on here all banks have their own policies. What one company may accept another one will not. When/if you refi your car it will say transfered to another lender, so they (the mortgage company) will know that you just didn't just get a new car.

Good luck.

Re: 22% Interest Rate

Anonymous — Wed, 11 Jun 2008 15:53:34 GMT

bump....SO I decided to go ahead and refinance...but seems like that is not going to happen....last night...I applied for....Capital One...DENIED...Roadloans...DENIED...

I'm in Houston, TX...is there any places that will refi me???...

TU-638
EX-600

I want a TU or EX puller....

Re: 22% Interest Rate

chartley3 — Thu, 12 Jun 2008 21:53:26 GMT

You could try HSBC. I get offers from them all the time to refinance. You should also reach out to a credit union also and see what they can do for you.

Re: 22% Interest Rate

Anonymous — Fri, 13 Jun 2008 02:01:52 GMT

I posted another thread...got approved through Road Loan 18%...Rate Genius 12.59%...and Wachovia 10%...I think I'm going through Wachovia...payment will be lowered by about $100....and she said they do manual reviews...every 6 months...for another refi...but I plan on trading it in...in 6-12 months...

Everything is on hold now...I just found out...I have to transfer my car registration...and everything over to Texas...since it is now in Louisiana...before the loan is finished...

Loan expires...July 11,2008...