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Discussion Starter · #1 ·
yet i am still so excited.

i have a very poor credit score due to a period of unemployment among other things. i currently have a ten year old car which i keep repairing. road trips are my joy and i can't go anywhere with that thing. time has desperately come for a new car. i was denied at every dealership in my area except my local toyota. i don't feel they are screwing me over as i was well aware people in my position get
horrible interest rates. mine will be 15.5%. anyone else in this horrible prediciment
yet still happy and loving their car? mine (flint mica, auto, no options) is ready for me to drive away tomorrow if i agree to the terms.
 

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Have you tried carloans.com? Also what about your bank? Thats where I got mine financed at and its only 6%! If your in the 15% range then your creidit must be in the 300 area.

What youc an do is get it now at 15% after a couple months of paying this high intrest see about re financing at a lower rate.

Toyota really doesn't try to get you the lowest rate just the first one that accepts you.

Michael
 

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Discussion Starter · #5 ·
Hi guys:

I was just reading some very helpful info at this site.

my credit score was 580 the day i ordered at toyota. they told me i was in the teir that is usually a definite no. i didn't know it lowers every time you apply for credit and now i have no idea what my score is.
regardless, this dealership is telling me 15.5% is as low as they can go for me and having been denied approval so much recently i am feeling this is my only chance and the Tc is the only car i like within feasible range. i will never be seen in a civic!

the things is (excluding my upcoming car payment) my current debt to income ratio was 4%!! i have the disposable income clearly yet am being punished for things in the PAST! i'll never understand this.

my best friend suggested trying to get a loan from my bank but having been defeated so much i said oh they'll just deny me.

i am fairly certain i will be taking this car home tomorrow but could you enlighten me on re financing. i always thought that was a bad word and that some way you get screwed more by doing it. i am clueless. can ya give me some basics?

Thanks all.

ps: also, in paying back car loans are you penalized in some way if some months you can pay more than the set payment or pay the car off in fewer years than loan term?
 

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Although they can put a prepayment penalty into the loan, don't accept one that has one. Also, with 15% and as much disposable income as you have at hand, you could make double payments (or something like that) for a year or so, then refinance your loan for a lower rate.
 

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I can get you into my credit union. When I was in a similar situation (forced into a 15% loan), my CU got me 5%. http://www.dcu.com

Oh, and if you have the money - pay the damn thing off in a year - you'll only pay $2500 interest, maybe even less. or if you pay it off in 2 years, then less than $4000 in interest.
 

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Discussion Starter · #8 ·
hey now! i didn't say i was rich. just that i can afford the payments as they are. remember i never said what my monthly income is (it's not much) and i owe on a credit card and student loan. i don't have rent expense. that's what makes the difference.

can i ask you a question and please don't laugh,
what exactly are credit unions?
 

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Another option is there are companies that will fix your credit for you. Sometimes thing in the past don't get taken off like they should. I had a friend who one day couldn't get a car the next week after he paid to have his credit fix he got the car with only 5% apr.

As with credit and stuff, if you pay a loan off early it doesn't hurt you at all but it doesn't help as much. Like myself I had 10,000+ in student loans I paid a good portion of it off just month to month but when I got a big paycheck I paid the rest off. I have always been told pay the min payment and it will help raise your score and don't ever miss a payment. My score is 760 something but now I have to much credit. Another thing that can hurt your credit is if its checked to much. Dealership normally only checks it a max of 3 times, they shoul be fine with the first one. But if your credit is being checked a lot it tends to look bad.
 

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Discussion Starter · #11 ·
i see! now how would you get me in yours? i see it says you need to live in certain community, work at certain company or be related to some who does etc. and when you said you got 5% did you mean they took over your 15% loan or five percent was interest on another loan for something else.

i live in ny.
 

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Not sure I agree with paying minimum payment.

I'm in the country for less than 4 years - never carried credit card balances, never had a car loan for more than a year, don't have any loans with more than 0% APR right now. Credit score is pushing 800. I never missed a payment, but did have couple of encounters with collection agencies - mostly billing mistakes. I monitor my credit, so usually managed to resolve everything and remove derogatory records from my credit within 2 months from the moment they got there.
 

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Originally posted by lulu@May 6 2005, 12:45 AM
i see! now how would you get me in yours? i see it says you need to live in certain community, work at certain company or be related to some who does etc. and when you said you got 5% did you mean they took over your 15% loan or five percent was interest on another loan for something else.

i live in ny.
First bulletpoint on this page:

http://www.dcu.org/infodesk/membrshp/orgs.html

That's how I got in. I don't have a disability, but AAPD had the lowest annual dues ($15 and you only have to be a member of AAPD for a year) - that makes you instantly eligible to join DCU.

DCU is not the only CU out there - you might be already eligible for some other CU based on your school or your employment, or even community - ask around, or do a search on the web. If you don't want to - do the AAPD/DCU application:

http://www.dcu.org/DCU_aapd_application.pdf

And my 5% example - it was refinancing. DCU sends you or your current lender a check for your payoff amount and then the current lender sends them your title - they become the lienholder on your car and you start paying DCU. BTW, they don't have prepayment penalties or any crap like that. And if you call them they will explain the procedure. They also have a pretty cool online chat support.
 

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Discussion Starter · #14 ·
i will read up and search. good night and thanks again for the info. i should go to sleep. could be a big day tomorrow and i've been debating this purchase all day. i'm going nuts!
 

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If you haven't seen your credit report, you may want to get a copy. The new federal law entitles you to a free copy. Go to www.freecreditreport.com. If there are any inaccuracies, get em corrected. It might raise your score.
 

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Discussion Starter · #18 ·
well i guess i should tell you guys that i got it. bittersweet......
but i will try to justify/rationalize! lol

i did get to lower to 13.5% by taking a shorter term (60 instead of 72) not a huge improvement but i did ask the important question that i learned from reading some very informative posts here which said most
are so concerned with monthly payment that they don't realize they
are spendign more overall. between the two deals i saved myself $3000 in interest.

now it's not as easy as get a personal loan or do this and that. i have been denied everywhere. for cheaper cars for used cars, by banks (hsbc) by hyundai etc. turns out this is the only one that worked with me
and took a chance. i hate that i am paying out the ass but it's no one's fault but mine for my past irresposibilties.

on top of that, i genuinely need a new car. every other month i was pouring $ into repairs on a car that while yes can get me to and from work but not realiable to go further than that (i work 6 miles from home) and soon enough will run 1000s to fix. the person i love lives 900 miles from me and i often opt to drive instead of fly. i use my vacation time to see concerts and travel to nearby cities often. i am willing to take the "burden" for some freedom. i hate feeling stuck. secondly, i know myself and lets say i settled for a car i didn't really care for. when the bill came each month it would be so upsetting writing a check for significant money i worked for, for some bland civic sitting in the driveway that i hate. now i have a car i loooooooooooooove and i know if i don't get that payment in on time every time somebody will come and take it away from me.

hopefully there are a few things i can repair on my credit and then look into some sort of re-financing which i currently know nothing about but will learn.

on the bright side, the car is awesome. flint mica looks so luxurious!!! i drove around a little (still nervous) and said to myself damn i can't believe the "financially responsible" people of the world are driving this thing for as low as $18k!!!!!!! is there some catch? scion really delivered. oh yea, my insurance only went up $6 per month.

ps: you can add me to the list of people who will go crazy without a volume knob. the + and - button is nuts.
 
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