What am I really getting into?

[BigTek]

I really need a car but I can't wait much longer for my credit scores to go up, so I will start searching on the first week of August.  My FICO is not good so what kind of interest rate am I looking at for a $17K car with $2500 down.  The MyFico Calculator estimated 15.055% APR.  Is that calculator really accurate?

[marty56]

Their estimate for my interest rate is high.  I would check with a CU and auto dealer and ask them what to expect based on your scores.  They might not want tell you but is worth a shot.

[BigTek]

Marty Do you mean its a high estimate as in it should be lower than a 15.055% APR with myfico?  You made a good suggestion, I should ask some auto dealers but it seems to me they are all liars... maybe not all of them but most are very shady. I wonder how I can find an honest auto dealer.  I'll post my findings soon...

[Anonymous]

Ask your credit union or your bank first. They are up front with members, and customers, respectively. Then take that rate to the dealer which they try to beat.

[marty56]

I meant the simulator said the interest rate would be over 6% and I got 5.4 at my CU.

Some dealers post their required scores to make their tiers and if so you may find out what tier you are in even if iots for a car you dont want.

I also have a dim view of dealers but the truth is a good finance office should know what rates you could qaulify for without having to apply.

 I would find a car I liked, and try to do a deal with the understanding that the interest rates, payment and price must all be in writting first.  Dont take the car or sign for the loan until they give it to you in writing including who is financing the loan.

[BigTek]

Not in a credit union...what kind of CU can I join?  My job does not offer this.

[Anonymous]

I'd check Sam's Club or Costco's cross reference lists for the credit unions. There is bound to be one you can join. It is only $25 to open an account. Really though, a pre-approval from a CU puts the dealer to work. I bought at the end of the month in June and really it was a better deal on the financing than I anticipated when I took the CU pre-approval paperwork.

[Anonymous]

This is what I would did.  I had simlar scores and I went through Roadloans.com and they gave me 15% on $18,000.  I went to the dealer found the car I wanted (VW Rabbit, which i LOVE) and said that I had my own fin.  They said they would try to beat the 15% and they came back with 9% yeah its not great but I can re-fin in a year.  Its best to have some sort of fin. before you go to the dealership with CU or a sub-prime lender so the dealership has to work to get your fin.  I went through VW Credit it was pretty painless and it was even done on a Saturday.

[Anonymous]

Look in the yellow pages for local credit unions. They require a small fee sometimes $5 to become a member. Ask co workers or relatives who they bank with and if anyone deals with a CU in your area.

[Anonymous]

I used a credit union last night.

633 score EQ, 9.49% interest, rolled in negative equity and didn't have to pay a dime at signing.