Help with Auto Loan

[failur3byh3art]

Ok so I recently got my license. I'm 29 years of age and this is my first time buying a used car, or rather a car in general. I've been driving around here and there for the past 4 years with on and off experience. Now, I make 26k a year with my current job and go to school full time. I'm recently recovering from debt and have a 596 fico score (480 Last October). My credit ratio usage is around 3% and I do not keep high balances. I'm pretty responsible as I have to be in order to rebuild successfully. Now, I went through a prequalify with Capital one because I've been with them for over a year now with my credit cards and they gave me an offer of 8% on a 20k car. Mileage on the car is 13k and it's a Toyota Camry V6 with no bad background or issues. I know that 8% for some of you is and can be considered high but that reflects off my current credit scores. A family member told me 8% for my current score is good and it could have been worse as a ~600 score can range from 10-15%. If I have a co-signer with excellent credit sign for me as well what would my numbers look like? I know it's different for everyone and mileage will vary, but what would the possibility be? Also, putting down about 15-20% with the current interest rate above. Do you consider this a good deal? Should I apply to penfed or another CU?

Oh one more thing to add is that my monthly payments were estimated to be 384$

Things to note:
I don't pay rent where I live (family is nice enough to let me live here rent free while I focus on school)

I don't have major bills to pay

No current loans, including student loans.

Covered by financial aid for a long while.

[Anonymous]

8% is not terrible especially if the length of the loan is 6 or 7 years.

3.75% is probably best you could hope for 6 years with a co-signer with very good credit.  That would save about $40/month

Try not to use a co-signer.  (just my 2 cents)

• It is an unfair burdeon on them.  Not that they don't love and trust you but it shows as an obligation on their credit.
• Only use a co-signer if it is the only possible way for you to get any vehicle.

Do get GAP insurance.  This covers the difference between what you owe and what insurance pays if stolen/totalled.  It's a very hard pill to swallow to total a car and still owe lots of money.   Cars depreciate quickly and with any loan you pay more interest at first and that slowly goes down. You can download a free amortization schedule and see what you will owe after 6 months, 1 year.... I don't know about Cap1 but my credit unions charge $299 one time fee for the GAP coverage.

Capital One - your deal sound sreasonable - don't know much about car but if possible see if you can get a certified pre-owned with a good warranty.  Sometimes CPO have better warranties than new.  Captial one is a bird in the hand but may or may not be your best rate.

I feel since capital one looks at all 3 scores they try and find a way to screw you.  Most lenders pull 1 score.  

If you know what your real FICO scores are and not just the FICO 8 you can try and find a lender that uses your best score.

For example DCU uses your FICO Mortgage score and Visions (local CU) uses Experian Mortgage Score.  I just refinanced from 8% for 7 years to 3.75% for 6 years with Visions - they gave me an A rating, but Capital One would have looked at 3 auto scores and likely come back with a lower rate.

Also what is your history when was your last late?  Any bankruptcy, any open collections.

That info with your FICO scores could help us recommend something better.