I got my first auto loan in October 2017 with only a few months of credit history. My rate was 18%, $25k or so financed. I refinaced this 2009 truck in August to 16%, $20k re-financed. Plus I had to pay a few thousand out of pocket because I was upside down on my loan.
Today, I applied for auto financing on a new vehicle through the same company and, trading in the truck, I can get a loan for up to $52,500 at just 6.20%. I'm going to look at the Ford Escape or Explorer tomorrow ($32k - $47k) at a local dealer. I'm so happy I'll finally have a daily driver I'll be comfortable with, that isn't a gas guzzler, and comes with parking assist--which is something I really need.
6.2% is a lousy rate for a new car loan . . . shop around.
Ford was doing 0% on their SUV's until just a few weeks ago and is offering 2.9% now. You might even be able to beat this through a credit union.
Also, sell your truck on your own. You'll get a few thousand more for it than you would on trade.
You sound like the finance guy! They actually convinced me to send my credit off to a few other places before I finished the purchase earlier today. They swore they could get me a lower rate. He was even sure he could work out 4.99% at 84 months from a local CU. Alas, no one could not beat the 6.20% USAA rate I received.
The reason being:
1. I have only 1 yr 6 mo of credit history
2. They pulled Equifax at a 706 score (TU is 736)
3. I'm also self-employed...To my amazement, USAA asked for no verification of my income when I went and bought my new car today, so that was simple.
As far as the truck goes, it had some issues: Tires slide. Tailgate sticks. Sunroof leaks. Back sliding window leaks. Backseats grew mold as a result of all the leaks. It also needs new brakes. And, the market around here is slow. I live in a small town and there's no way I could have sold it for cash, at least not within the next 3 months. People sit on used cars forever here, and the wet season is kicking up again.
I traded it in for $16k, which is better than I thought I'd get because retail/wholesale is $18k.
Also, I didn't want to wait too long because it's only a few more days before all those new credits cards in my sig (from a recent app spree) begin showing up Now I am actually entering into the garden.