auto loan rates

Christopher Whitcomb asked:




Nowadays as more and more cars are introduced the around the globe, everyone has a desire to own one. Individuals even do not mind buying a used car, if they get one in a good condition. The Modern scenario is such that most of them buy cars or most expensive commodities on credit. Even while buying used cars, you can avail loans if you can make the necessary payments. However, there are numerous financial organizations, which provide used car loans. Henceforth, it is imperative that we should study the used car auto loan rate that is offered by them for making the eventual decision.

When it comes to the number of sources from where you can get such loans, you will be glad to know that there are many of them. When someone wishes to get loans for buying used cars, the most important point that should be considered is getting them on the lowest used car auto loan rate available. Most financial organizations usually offer loans at a very low interest rate. However, they have hidden costs involved, which eventually make you pay more than what you acquired.

Apart from taking care of the used car auto loan rate, there are some other points on which you should pay attention. These auto loans should have a shorter payment period. As the used car usually costs less, it is advisable to take only a part of the price as loan and pay the rest upfront. Usually when used cars are bought from any dealers, they offer lowest available used car auto loan rate. It is seen that usually finance companies lower the rate for the auto loans, if the down payment is a good percentage of the price of the car.

The best way to know which financial companies provide used car auto loans at the lowest rates is to search on the web. Apart from the information of the rates, you can also find the reputation of these companies with a single click. Again, you also have the option of comparing offers of most companies providing used car loans. By making comparative studies, one can make the eventual decision without any trouble. You will usually get an opportunity to make an application on the internet without running off to the nearest branch.

Marvin

rjon17469 asked:


I’m currently 22 and am a senior in college (although I’m going for one more year and then possibly grad school). I would like the possibility of being able to buy a house in two to three years, and therefore am looking for ways to improve my credit. I opened a credit card ~9 months ago with a $3,000 limit. Currently the limit on it is $4,500, all payments have been on time, and the balance is my previous month’s purchases (around $100).

In reading, many people recommend having either one or two revolving credit lines, and one or two fixed credit lines, for a total of three lines of credit. My credit card is one revolving credit line. I’m curious if taking out say a four year auto loan and making payments on time would substantially improve my credit score three years from now. The loan amount would likely be $7,000 to $8,000, giving monthly payments of around or under $200, which I can realistically afford. I’ve been paying my own college tuition and rent since the second semester of my freshman year of college, so I somewhat have of a grasp of my expenses.

On a side-note, I’m under the impression that I would be stuck with the interest rate I initially receive. I could refinance, but wouldn’t that close out the line of credit and begin a new line of credit, potentially lowering my score?

The follow-up questions are, would it be in my best interest to open a second credit card for additional feedback on my credit history? Also, I currently have a good amount of student loans, all of which are in deferment until I graduate (if I attend grad school, they will remain in deferment through that period). Do these loans count towards my credit score as fixed lines of credit? Some are federally-funded, while others are through private institutions.

For what it’s worth, Credit Karma reported my credit score at 722 as of a week ago, and TransUnion reported it at 764.

Delores

chrls_bann88 asked:


My score is 480 yes oucH I fucked up in college and well it has actually gone up since I’ve been paying shit off etC and I got an auto loan for 18000 for a car worth 13000 maybe I’m dumb but it costs that much because my interest rate is out of this worlD. So it turns out the car is not even worth 13000 more like 10K and now I’m stuck with it. Ill probably keep it for 7 – 9 months to build up mycredit, do u think ill be able to refinance after that time, what do I do if I want to trade the car in and get a better one. I feel trapped because my credit is so bad

Roy

Phillyfan23 asked:


In investigating some auto loan potentials for me, a poor credit borrower…here was one proposal i saw…

The amount financed …car and taxes …would be 17,848

The interest rate is 18%, and it lists finance charge as 11,663.71 for a total of 29,512…its a 72 month term

The rate i expected as with my credit its in line with what it should be…but does that seem right for the total charges, i mean the total finance charges is over 50% of the total cost…

I’m not sure how they calculate interest in these things, but can someone with knowledge help me out to see if i’m not being burned besides the interest rate?

Carla

zatropimp asked:


I went to GMFCU (general mills federal credit union) on Monday to get a auto loan for $10,000. I took my mom with too because she is co-signing because I have no credit and she has Very good credit. She was under the A+ category they have there. Well anyways they gave me an interest rate at 4.25% but they had to send the application to corporate to approve it. The lady said I should get an answer later that day or at the latest the next day (Tuesday). I called them on Wed. wondering if I got approved or not and she said there is no answer yet. So here I am still wondering if I will get approved or not for the auto loan. I told the guy I’m buying the car from I will have the loan by Wed at the latest because that’s what I was told. I am afraid he will sell the car fast because its a really good deal. Does anyone one know how long it takes to get an auto loan approved? They are open only mon-fri so if I don’t get it Friday, I will have to wait till next Monday and by then I’m sure the car will sell.

Joan

darkwizard3533 asked:


i just got an auto loan for $8200 with 6.25% APR. sounds good right? well heres the problem. on the sales contract listing the financing details heres whats listed:

term is 60 months, 6.25% APR, $8200 financed. thats well and good.

but heres the swirly part. Finance charge is listed as $4280. this is supposed to be based off APR and amount financed and this value from what ive found is way to high.

this results in my payments being about 48 dollars higher,a nd as a result my total price payed at the end of the of the 5 years is $12480.

the auto loan calculators ive tried online show payments of $159

the contract shows $208 payments. the problem appears to be the finance charge as being calculated way to high. everything ive found
points to it being way to high.

this is supposed to be financed through a third party, a credit union. the dealer was supposed to set things up for me. seeing as the math is completely screwed, but im only getting $8200 financed at 6.25% apr through the credit union im curious as to how this is gonna work out. the dealers contract shows one things, but everything else shows another.

i have a separate sale contract showing the final price of $8200 after tax title and my down payment. so what i owe and the interest rate can’t be disputed. but the financing numbers on the other contract are bogus.

of course this is the day after. go me i wait till now to research this crap.

Duane

ohni0000 asked:


this interest rate is making the montlhy payments $650 /month. The loan officer said that if I pay this for a year we can get it refinance. I not sure about this, I believe I jumped to fast and didnot realize. My questions are, is this too much interest , can I get it refinance for cheaper payments like she said, can I take vehicle back to save from going through this, is 17.5% alot???? Please help me , I really dont know too much about this and need help from internet buddies. Thansk in advance

Jamie

lkg919 asked:


I have an auto loan with my credit union with a balance of 21,000, the loan term was for six years – began in 10/08, my payments are 370.00/month and I believe my interest rate is around 5%. Should I take my tax refund (6000) and apply it towards my loan?

Does anyone know how much time it would approx. take off the life of my loan? Would this benefit me in the long run? Or should I let my tax refund collect interest in a savings account?
i don’t need a loan!! i already have one.

i am not asking about what kind of loan i should get. i already have an auto loan, i am asking if i should make a large principle payment, and what the pros and cons are.

Keith

Jim Johnson asked:




It is very important to understand how your credit history affects the auto loan rates that you are able to qualify for, since not understanding the process can cost you significant amounts of money over the life of a typical car loan. So here is an explanation of how you can get the best auto loan rates by knowing all you can about your credit history. Let’s start out by understanding how your credit history is compiled.

There are three major credit bureaus that collect and store information about all of your credit purchases. They are Equifax, Experian, and Trans Union. Whenever you borrow money to buy something they are informed by your lenders on a regular basis about how much you borrowed and how diligent you have been on paying back that amount in the form of your monthly payments. All of this data is received by those three companies and stored in massive databases where it is packaged into an overall credit report, which is also called your credit history.

So if you are shopping for used car auto loans for instance, your prospective lenders will access that credit report and review it to determine how much risk they think will be presented by loaning you the amount that you need to buy the car you want. The number that most lenders usually refer to to get a quick and overall idea of how good your past credit history has been is called the credit score. It’s a calculation of several things including your payment history, the amount of outstanding debt you currently have, how far your credit history goes back in time, and so forth.

Obviously then, the better job you have done in paying all of your bills on time and in full, the better your overall score should be providing that you haven’t overloaded yourself with debt. When the auto loan lenders see your credit score, that enables them to decide what interest rate they will charge you for giving you a used car auto loan. The better your credit score, the better interest rate you get, and therefore the less money it costs you to get the loan.

One very important thing that you should also know is that you can get a copy of your credit score from each of the three credit bureaus and review it to be sure that it is indeed correct. Actually it is fairly common to find errors that have been made that are not in your favor, so it’s a good idea to regularly review your credit history to keep it up to date. If you find errors you can begin working with the credit bureaus to have them removed as soon as possible.

So if you want to get the best auto loan rates, you need to pay close attention to your credit history and guard it very carefully. If you review your current credit history every three months or so you should be able to stay up on any changes that will need to be made and can keep errors to a minimum. Then when you are ready to start shopping for used car auto loans you can get the best auto loan rates that are available and save lots of money.

Vincent

JJ asked:


Right now my Fico score is at 568. On my credit report the reasons stated for my low score is because of a severely late payment 8 months ago from a student loan. The reason for this is that for some reason the lender didn’t update my account as being deferred and when I found out about it, I paid it up to current and have made all other payments on time (before and after this with them). I tried contacting them about this but they are not willing to help with the late payment reporting. I also have a large amount of inquires because I’ve been applied for loans with the “bad credit” dealerships only to be told I can get a used $10000 car for like $500 a month payments (not a very good deal in my eyes because most of the vehicles have 100k miles). Now with what fico has released as the scoring for late payments my interpretation of that would be that my score would be in the 650’s if my student loan had reported correctly. If I were to go to a bank or credit union and explained my situation with that would it help me get into a vehicle or just hurt me with another inquiry? I do have some old collections from a divorce that I have been paying off and having them removed that were from about 4-5 years ago, but now I need a new vehicle and all my excess cash went to old bills so I am limited on a down payment. Currently I have 2 credit cards with a total of $500, 20% utilized just to keep a good reporting. I have been at my employer and address for 18 months and my AGI approx 40k.

I am hoping to get some professional opinions whether it would be possible to get an auto loan through a CU or Bank. Would going to a large dealership be the best bet? Any guess on the probability to get a loan would be great.
I understand I would have a higher interest rate but I am willing to accept that. I am just trying to get into a new or slightly used vehicle and bring my score up by April 2010 to purchase a home.
People come on here for answers, not snide comments. Also, I’m asking for professional experience or people who have been able to do so in similar situations. Please, if you do not know then don’t post just to get a point.

Brent