Is This Normal For Auto Loan?

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OK, I went to a Saturn dealer today as they had some very nice used cars in a reasonable price range. I'm always upfront about our bankruptcy. The salesman told me we could expect to pay a rate of 18% to 20% for an auto loan from one of the sub prime lenders! And he said we would have to have a downpayment of $1500.

Is this true that these are the rates for people with a BK???? It is totally outrageous. So we have only been out of the BK since the end of April, our scores are in the low 600s--but 20%???

Is there no decency at all with lenders? We are talking about a loan in the $7000 range. We had two car loans from a bank and both were paid off with no lates in 1999. How can a lender possibly justify rates like that? Especially a car. If you don't pay, they come and take it away.

Someone please tell me you were able to get an auto loan that was at a reasonable rate, even post BK. I can understand higher rates, but all rates are down on loans and this is absolutely absurd.

Good Lord, someone help me from going insane (I'm not kidding).

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I know when we filed BK in 1/97 and bought a car in 7/97 our interest rate was 17.99. We put no money down though. They had the cash rebate going on so they used that towards the DP. Financed a used car a year later and the interest rate was 21.99. Mainly because the interest rate is higher for used cars than new ones.

We bought a used van last summer. They tried to give us an interest rate of 20.99. I told them they were out of there minds. Why would I want to trade a car in that I'm paying 17.99 on NOW to pay on a used car 3 percent higher! :shock:

So I walked out. Told them I can handle a higher interest rate because our credit wasn't spotless and we had a BK 5 years ago but I've financed 2 vehicles since then and they needed to do better.

I got 12.99 2 days later! :D

Persistance pays off. Offer a rate you feel comfortable with knowing you have a BK. If they can do it to make the sale, they will. They try to bend you over because of it and say that is the best they can do. NOT! If I had only known then...

I'd tell them if you can get the interest with 15.99 to 17.99 but no money down, you'll take it. Or like $500 down. Otherwise, you'll keep shopping until you find someone that will.

Our current car loan is through TranSouth. They are a 2nd/3rd rate loan company but have had no problems. We missed Ford & Daimler/Chrysler by just a few points.

Chin up and be strong!

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My husband and I had a BK in 2000. I was an airline employee and lost my job in 9/2001 and we had a repo due to my job loss. I was unable to get financed at a regular dealer. My scores are inching right at or below 600's. They said it was the repo after BK that they couldn't get it done.

I am not sure what options I have. Drive Time approved me but there cars have such high milage. If I could somehow get rid of Household repo on my credit I might have a chance. They wont go away!

Any suggestions?

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Is Drive Time one of those Buy Here Pay Here places? I believe they never report to any credit bureaus and thus all the payments that you make on time doesn't do your rating any good. At least that's what it said in one of the Credit Repair books.

If I'm going to be making car payments they better help my scores. It's hard enough to keep up with paying everything and for the length of time car payments are made they should help us with our FICOs.

If anyone knows anything more about these Pay Here places, please post. I've always wondered about them because they advertise all over the place.

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Saw the link--how are places like this allowed to remain in business? Guess word of mouth is probably the only thing that works since our regulators who are supposed to protect us are more concerned about the $$$ being poured into their pockets.

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Thanks Tarheel,

I appreciate that post. My husband bought his car from JD Byrder and they are reporting. He makes bi-weekly payments and they say they actually report every 2 weeks which is supposed to help your score. Maybe I should just keep looking.

I feel like I dont have very many options.

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