topic Re: HSBC auto loan terms in Mortgage Loans

HSBC auto loan terms

Anonymous — Fri, 24 Aug 2007 01:15:02 GMT

I applied for an auto loan w/ HSBC last week. A shocking surprise to me they sent me a turbo check 1 day later. The terms are APR 13.19% for 60 months, max loan $18,800, no money down. I have a credit score of 638. My bankruptcy was discharged in 05'. I currently have an auto loan, and one credit card which I pay faithfully on time. I'd like to know if the terms are good? I have been shopping around, HSBC doesn't like that too much. But I'd like to know if I am getting a good deal or not.

Re: HSBC auto loan terms

Anonymous — Fri, 24 Aug 2007 02:12:20 GMT

That rate is way too high, in my opinion, for someone with a mid-600 credit score. I would sure shop around... try your local bank and even let a couple of dealers get your some competitive rates. I sure think you can do better. Let us know.

Re: HSBC auto loan terms

Anonymous — Fri, 24 Aug 2007 02:42:20 GMT

Thanx CreditHawk. I kinda thought it was a bit high, but I wasn't sure. I have applied through a few dealerships. And have been approved by all of them, but have yet to make any phone calls. I did go to one dealership, and had to leave. Because they didn't wanna drop $1100 off the price (guess they didn't need my sale). In your opinion, with my info,what would an ideal APR be? Just a little more info, I've had my current auto loan for 2-1/2 yrs. So I think I have somewhat "re-established" my credit by now.

Message Edited by Muffins on 08-23-2007 07:42 PM

Re: HSBC auto loan terms

Anonymous — Fri, 24 Aug 2007 04:32:50 GMT

Muffin... many auto loan applications are judged by an "auto enhanced" score, meaning the score the dealer or lender sees might differ from the FICO score you see here. An "auto enhanced" score is based heavily on how you've handled your auto loan trade lines in the past and how you're handling them now. They also weigh your other trade lines, but I think the emphasis is on your auto loan history.

If, as you say, you have "re-established" your auto loan credit over the past two or more years with no lates, that should help boost an "auto enhanced" score, but just to be sure I would request to SEE your score when a dealer or lender pulls your credit. Most dealers will show you but some might be hesitant, because sadly... some dealers will tell you that your score is lower than it really is, meaning they can charge you a higher rate and make more money off the finance up-front.

And speaking of which, if and when you decide to go through a dealer for your financing, know that the dealer stands to make a nice profit from just the finance part alone, not including what they'll make on the car. Shop for that car first and DON'T tell the salesman what you want your payments to be. Just negotiate the best price based on getting your own financing, THEN let them see what kind of deal they can put together. And tell the finance manager you want the interest rate set as his BUY RATE, which means he won't be marking up a 7% interest rate (from the lender that approves you) to 8% or more, taking more money from you and putting more in the dealer's pocket.

So about that rate... if your "auto enhanced" score is over 600, I wouldn't accept anything in the double digit rates on a used car, and I would certainly not go any higher than 6 or 7% for a new one. The deals are out there... go get 'em! Let us know how you do.

Re: HSBC auto loan terms

Anonymous — Sat, 25 Aug 2007 18:31:53 GMT

Well.....I went to a dealership today. And was laughed at by the sales guy.He said "You think that's high"? He said that my APR won't get any better than that. Because of the BK, and my past credit history. He also said that credit scores range from 400-900, and that mine being a 638 is considered "FAIR"/"BORDER LINE". Also that NO dealership will be able to get me a better deal than HSBC. Most want me to trade in my car, I WILL NOT do that and have a $600 note.I don't want to keep putting inquiries on my CR either.I actually found the car that I want. But it's not a franchised dealer. HSBC requires it to be franchised, or an e-bay seller. Is Cap One any good? This is so funny to me....The jackass sales guy tried to put me in a "BRAND SPANKING NEW" Chevy Aveo. It was SUPER DUPER loaded. And I said HELL NO!!!!!!!! I know what I want and it ain't that skateboard on wheels. If Im going to pay for something it's gonna be what I want. So in the process of leaving his manager came out and tried everything, to not get me to leave. He offered me a brand new Malibu, Impala, Cobalt. Everything except for what I want.

Re: HSBC auto loan terms

Anonymous — Sat, 25 Aug 2007 20:49:49 GMT

Without knowing all the details, 13.19 probably isn't that bad. You may be able to go through an evil dealer and get 10-11% if you can get them to take a flat fee from the lender instead of a percentage (usually 1-2%.) If you haven't tried Cap One yet, try them. I hate to generalize, but you will never get a 6-7% rate on a used car with your bureau and a BK in recent history. The only way you might is through a generous credit union on a fairly late model car with a good Loan to Value ratio.

Re: HSBC auto loan terms

Anonymous — Sat, 25 Aug 2007 21:05:55 GMT

Thanx, urlosin. I just wasn't too sure if the HSBC offer was a good one or not. Sorta just wanna say forget it, and keep my current car. I ask myself at times is this even worth the bother.

Re: HSBC auto loan terms

Anonymous — Sat, 25 Aug 2007 21:24:51 GMT

@Anonymous wrote:
Thanx, urlosin. I just wasn't too sure if the HSBC offer was a good one or not. Sorta just wanna say forget it, and keep my current car. I ask myself at times is this even worth the bother.

I hate to be the bearer of bad news, but I can tell from experience that you aren't going to just "forget it". People that are asking the questions you are asking are buyers. You will have a new car soon. Let us know what you get.

Re: HSBC auto loan terms

Anonymous — Sat, 25 Aug 2007 21:41:47 GMT

Well, I tried Cap One....BIG NOPE!!!!! urlosin, Guess I won't be getting that new car after all. It's a little nutty that w/HSBC you can buy a car off of E-Bay, but not w/a non-franchised dealer. I don't get that one.

Re: HSBC auto loan terms

Anonymous — Sat, 25 Aug 2007 21:53:44 GMT

You are actually in a pretty good position. You have the money, and know what you want. Now all you have to do is find what you want at a franchised dealer. I would check state wide, and surrounding states. Do your homework on the internet and if you find "the one" either go in and see it or have them bring it to you (they will probably want a signed buyers order to do this...and rightfully so). If I were you, once you find a car have them see if they can beat your 13.19% through their lenders. I guarantee you they will take a flat fee and a chance to sell extended warranty etc over a marked up interest rate if they can.

Re: HSBC auto loan terms

Anonymous — Sat, 25 Aug 2007 22:17:01 GMT

That's one of the problems. None only 1 dealer found a better rate. But that was the one who suggested the P&L. Plus they didn't wanna come down on the price of the car. My loan w/ HSBC is for $18.8K and the car that I wanted was $20K. Most of them want my trade, that would be a huge f-up on my part if did trade my car. I hate that I found the "perfect" car, but can't get it. AHHHHHHHHHH!!!!!! I trust me I have done A LOT of homework. I think I might wind up putting money w/my Turbo Check, in order to get what I want. I won't settle for less than what I want, as they keep trying to make me do. They make it seem as if Im asking for too much. I keep 2nd guessing myself, like maybe I am asking for too much. Then I re-think to myself...NOT!!!!

Re: HSBC auto loan terms

Anonymous — Sun, 26 Aug 2007 04:57:39 GMT

Message Edited by digitu on 08-25-2007 09:57 PM

Re: HSBC auto loan terms

Clyons0203 — Sun, 26 Aug 2007 21:39:42 GMT

If they approved you for 18.8k then (if you dont mind me asking) what is your gross income?

From what I have been told, your credit gets you approved, and your salary is what determines the loan amount. And I was also told if you make 40k a year, expect your max loan amount to be half that (20k)

Anybody else heard something similar?

Re: HSBC auto loan terms

Anonymous — Mon, 27 Aug 2007 03:51:51 GMT

While gross salary is important, it is debt to income ratio that tells them what kind of payment you can swing. In other words if you gross $10,000 a month and your total monthly credit obligations are $9000 per month you won't even get a loan. They like 30% ratio or less. Over 50% and you would be hard pressed to get a loan at all, although it is possible.

Re: HSBC auto loan terms

Anonymous — Mon, 27 Aug 2007 05:56:04 GMT

Not sure why you're asking. But I gross between $2600-$2800/month. I found another car, I scheduled a test drive for Friday morning. I hope I like it. It's missing 3 things I wanted: Fog lights, lower miles, 06' instead of 07'. My goal was an 07' Malibu LTZ w/10,000 miles or less, it has 19,000. But other than that it's everything I want. I figured I could save a few thousand $ by opting for the LT instead of the LTZ. I hope I like it, because Im excited!!!!