Penguins = Stanley Cup asked:
I am buying a new car looking to finance about $11,000. I had my credit run at a dealership just to see if I would qualify…they denied my request saying that I have good credit but not enough history and that I would require a co-signer. My parents will co-sign, both have excellent credit. My question is what kind of rate should I expect? The average rate in my zip code for a 48 mo. new car loan is 6.78%. The lowest available advertised I’ve seen is about 4.75%. Should I expect something around the low (4.75) the middle (6.78) or the high (7+)? Am I in any kind of position to argue for a better rate if a high one is offered considering my co-signer vs my credit worthiness?
John
I am buying a new car looking to finance about $11,000. I had my credit run at a dealership just to see if I would qualify…they denied my request saying that I have good credit but not enough history and that I would require a co-signer. My parents will co-sign, both have excellent credit. My question is what kind of rate should I expect? The average rate in my zip code for a 48 mo. new car loan is 6.78%. The lowest available advertised I’ve seen is about 4.75%. Should I expect something around the low (4.75) the middle (6.78) or the high (7+)? Am I in any kind of position to argue for a better rate if a high one is offered considering my co-signer vs my credit worthiness?
John
Herbert
hell yea argue, if your folks are co-signing, go to your loacl bank or if they are a member of a credit union go that route. always a better rate and then the dealership will try to beat that rate still just earn your business. i was salesman for 5 years and finance for 2.
Comment by RUSTY — November 26, 2009 @ 4:45 am
Gabriel
I agree with Rusty… argue for the lower rate, or just go to your own bank. Credit unions are the best. Since you don’t have a lot of credit history, get a low interest credit card from your bank and use it. Whatever you buy, make sure you have the cash already. Use the card, and pay it off with the next bill using the saved cash. That will help build your credit. If your parents co-sign, see if it’s worth refinancing the car in your name after a year. You will have a history with the bank, and they just might do it… especially if you use the credit card idea. Only do this if it’s cost effective, or if you want to show your parents how cool and responsible you are. Good luck and Happy motoring!!
Comment by DizEvo — November 27, 2009 @ 5:31 am
Aaron
Finding a bad credit auto lender take a little bit of work to find the right one. When looking to buy a new or used car, the dealer may offer bad credit financing, or refer you to a lender. Car buyers should consider arranging their own financing. Bad credit auto loans are simple yet complicated and some lenders will try to take advantage of you. It helps to know your available options.Before applying for a car loan, try to get a copy of your personal credit report. Lenders base approval on your credit score and credit history. Some lenders classify sub prime borrowers as persons with scores below say 700. On the other hand, another lender may qualify a borrower with the same score for prime rates.
Unless you have a 700 or higher credit score, it might be a good idea to look at your credit report and see what you can do to improve your credit score. A 700 score will get you the best rates at the best loan terms. Any credit score higher will not change what a lender can offer you, since you will already qualify for the best loan deal. Where you will start having trouble is if you fall below a credit score of 700. When you fall below lenders see you as a risk and will start charging higher interest rates in order to offset the risk.At this point your only options are to seek a bad credit lender or get to work on fixing your credit score. There are a number of quick things to do to improve your credit rating and get the loan you need at the rate you want.
Comment by Jordan — November 29, 2009 @ 6:46 am