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I bought a brand new car on Fathers day (my son co-signed for me as my credit was crap) and was wondering how long it takes for car dealers to report my purchase. I bought it through Toyota and have made my first payment this month (early just to be on the safe side!). I just checked my credit and it hasn't appeared as of yet. Does anyone know who Toyota report their sales to - All 3 CRA's or a specific one? Is there anyone I can contact to make it happen?


PS my interest rate was 23%..yes 23%!

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Why isn't the interest rate offered based on the person with better credit history?

If I had the better credit and was cosigning something, I'd definately make the payments if the other person couldn't so that MY credit doesn't get tanked.

It does not make sense at all!!

mathematically, the probably of both defaulting is less than probability of the person with better credit defaulting.

e.g) Person A: FICO Score 680 (probability of defaulting - 14%)

Person B: FICO Score 580 (probability of defaulting - 30%)

Probability of both defaulting = 0.14 * 0.3 = 0.042

That's just 4 percent!

(In reality it won't be so low because financial situation of A may be linked to B, so both could happen to be broke at the same time)

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I don't know when, but they will. I am not saying this from personal experience with Toyota, just in general.

What folks need to know about car loans and high APR's is this. If you have bad credit and can get financed but at a ridiculous high rate, take it on the chin. Here's why. Once you have made several (6 months or more) payments, you can re-finance your car usually with much ease through online auto loan refinancers. The refinancing will come at better rates and smaller payments. You will save thousands over your current rate. So don't be upset when the liar finance manager or whoever comes back with a BS high rate. Simply accept it and drive away because in a few months, you'll be refinancing into a smaller and less costly payment.

One thing to keep in mind, is that the folks that hold your current loan, will not refinance you with better terms. You need to go elsewhere. It's just what they do.

This also works as many times as you want. Most times they have nothing to lose! They are not extending new credit, they are buying an exsisting debt, a secured one at that.

Good luck.

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Actually many credit unions I spoke to do refinance their own loans.

I saw a certified pre owned car I REALLY liked and to buy it right away (before someone else did), I signed a 13.9% finance contract, knowing I could do better at a credit union. Luckily for me the dealership was able to get me financed with the automaker's finance division for 4.9%! :-)

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Credit Unions are almost always are geat way to finance you vehicles. They usually require more $$ down than the banks used by the car lots but you get a better APR.

Refinancinig your vehicle from a 2nd chance lender with high APR's to someone else is not always a simple task. You usually have to save-up another downpayment and if you bought extra's like GAP insurance or extended warranty you just added more borrowing money on top of what you were already paying for the vehicle. Auto lenders generally like to see 12 months or more of good payments on your auto loan before refinancing, this is not always the case but usually. And don't let anything else go bad on your credit in the meantime.

If you are forced to use a co-signer, buy a cheaper car for as little as possible with as much cash down as possible. Pay on the note for 12 to 18 months and then trade that car in for something more like you were looking for the 1st time and now you won't need that co-signer...their credit is released and you made good on your promise to mom,dad, or whoever co-signed for you and you did not tie-up there credit for 4+ years.

I've been telling this to many a customer here in Texas and most of them just go ahead and take expensive car and stretch that budget again and usually come back and see me in 12 months and I usually cannot help them unless they put down a huge down payment.

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