How to get out of a 25% interest rate on auto loan?

[Mulder25]

When I first got my car, a 2003 Toyota Corolla LE from Carmax almost a year ago, I had no credit.  My credit is now fair-good depending on which agency you use.  Unfortunately, since it is a 2003, I cannot get the car refinanced.  I have a 24.99% interest rate, and it is killing me.  Is there anything I can do?  I still have lmited credit history, though what exists is good.  My utilization is a little high, about 40% overall.  My length of history is short, and unfortunately, I have 18 inquiries - That one SUCKS!

What can I do about this?  I dont want to apply for anything unless i'm sure I will get approval, Trying to get a mortgage, and then trying to get more cards to have a higher total limit is what got me to 18 inquiries, and i dont want another one unless it works.

I talked to my bank (UMB) and they said there is not a good chance of getting approved for an unsecured personal loan, and zero chance of refinancing a car that old.  Whats frustrating, is that the car only has 80k miles on it, it still has at least another 1/2 million miles - did i mention its a Corolla? Maybe even another 750k.

Any advice is greately appreciated.  Please no sarcastic or rude comments.

[dabrian]

Try DCU and NFCU if your eligible.   My local CU NSECU will finance older cars so there probably are others that will as well.

[Remember0]

I think DCU does cars upto 12 yrs old (but has to be paid off before your car gets to >12 yrs). Call them and ask.

Ultimately it might be hard to refi this. How much do you have left and are you also upside down (compared to NADA retail)?

[Mulder25]

Lol, im drowning... NADA prices it at retail for $7750, I still owe 13.2K on it(just the principal).  Carmax was great, as far as friendliness, and I love the car, had everything, including floor mats, spare tire, all the fluids were fresh, etc.  But DAMN! they are overpriced.

[Creditaddict]

Where you able to buy the house?

What credit cards do you currently have with limits and balances?

[Remember0]

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@Mulder25 wrote:

Lol, im drowning... NADA prices it at retail for $7750, I still owe 13.2K on it(just the principal).  Carmax was great, as far as friendliness, and I love the car, had everything, including floor mats, spare tire, all the fluids were fresh, etc.  But DAMN! they are overpriced.

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You aren't going to get ~170% LTV refi'ed. Can you being say 4-5k to the table to refi? Only then really will it work imo. And I agree Carmax is expensive especially for older and higher mileage cars. Aka you are much less underwater if you spend a little more say ~15k at carmax than if your budget is ~11k.

[vinciano]

Could you buy a new car? I had 24.89 APR with Santander. Last night I went to a Ford dealership and got a new car, with a 3.9 APR. I owed $13,920 on a car with a value of about $9,800. They rolled the $4,120 negative equity into the new loan. I paid no money down. Got all of this done with an auto enhanced Equifax pull of 588. 

Like yourself I tried to refinance, but the best rate I could get was 10.99%. Wasn't really in the market for a new car but when Ford Motor Credit gave me a 3.9% it made most sense to just roll the negative equity into a new loan with a loan APR. 

[Remember0]

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@vinciano wrote:

Last night I went to a Ford dealership and got a new car, with a 3.9 APR. I owed $13,920 on a car with a value of about $9,800. They rolled the $4,120 negative equity into the new loan. I paid no money down. Got all of this done with an auto enhanced Equifax pull of 588. 

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Whoa, nice rate. Any auto baddies out of curiosity? I'll have to keep that in mind when I see <675 scores!

[juggalo9er]

my interest rate was 20.54, i just ponied up the cash and asked the credit union what i had to do to get out of it. 2k in  my case

[Mulder25]

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@vinciano wrote:

Could you buy a new car? I had 24.89 APR with Santander. Last night I went to a Ford dealership and got a new car, with a 3.9 APR. I owed $13,920 on a car with a value of about $9,800. They rolled the $4,120 negative equity into the new loan. I paid no money down. Got all of this done with an auto enhanced Equifax pull of 588. 

Like yourself I tried to refinance, but the best rate I could get was 10.99%. Wasn't really in the market for a new car but when Ford Motor Credit gave me a 3.9% it made most sense to just roll the negative equity into a new loan with a loan APR. 

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I was just being super picky.  I insisted on a Toyota Corolla with a standard transmission.  It was the only one they had in the country.  I knew a little more money and I could have had a better value, but I was insistent on what I wanted.  

I think I will check out Ford then.  If they can offer a less than 10% loan, even with the negative equity, I could still be saving, Just need to find a car that I like - i'm not a ford fan.  I wonder if Nissan or Hyndai could pull this off? I would really love a Sonata.