ImaBird Posted January 15, 2008 Report Share Posted January 15, 2008 Even with my low FICO, I was just approved for a car loan for at 22% APR.EEK! That's high...Anyhow, I told the loan officer at the dealership that I was in the process of cleaning up my credit report.He said that I should go ahead and purchase the car to help improve my score, and then when I clean up my CR, apply to refinance the car with my bank.Is this a good idea, or is he just trying to sell me? I didn't think that banks liked to refinance cars because they depreciate too fast... Link to comment Share on other sites More sharing options...
VeVe Posted January 15, 2008 Report Share Posted January 15, 2008 Not at all worth it. You would likely have a 70 month loan too. For a ~$22,000 car, you would end up paying ~$40,000, almost twice the actual price of the car. And your payments initially would be going to interest only, so by the time you refinance, you'll be refinancing more than the price of the car. Go to Toyota. They work with low scores. What's your FICO? Link to comment Share on other sites More sharing options...
Fizzle1979 Posted January 15, 2008 Report Share Posted January 15, 2008 I also would advise against what the salesman told you. Link to comment Share on other sites More sharing options...
ImaBird Posted January 15, 2008 Author Report Share Posted January 15, 2008 Thanks for the replies.My FICO is 533... and I already went to Toyota. They wouldn't work with me... Link to comment Share on other sites More sharing options...
Moneedshelp Posted January 15, 2008 Report Share Posted January 15, 2008 If you can hold out a bit, try to bring your score up some. 22% is high. You don't want to pay cc's that type of interest good luck Link to comment Share on other sites More sharing options...
betam4x Posted January 15, 2008 Report Share Posted January 15, 2008 don't feel bad, I am paying 24.5% interest. It's definitely a rip off, but the good part is the history it will add to my credit report. Next time i refinance or buy a car I'll get a decent rate. In my case i couldn't wait, i've been through 2 cars in the past year, both used, i simply put too many miles on my vehicles to expect a used one to hold up. Link to comment Share on other sites More sharing options...
hopelesscred Posted January 15, 2008 Report Share Posted January 15, 2008 22% and 24%...Yikes!!Can u hold out or buy something reliable in cash until your credit improves?...PP history be damned, pay that car off as quickly as you can--25% is a ripoff.. Link to comment Share on other sites More sharing options...
VeVe Posted January 15, 2008 Report Share Posted January 15, 2008 Thanks for the replies.My FICO is 533... and I already went to Toyota. They wouldn't work with me...That's so odd. I had a 503 FICO, and they approved me at a not so horrible rate. And I refinanced 3 months later for another 6% lower. I thought they approved pretty much anyone. Link to comment Share on other sites More sharing options...
ImaBird Posted January 15, 2008 Author Report Share Posted January 15, 2008 I thought it was strange too; however, I think it has something to do with the area I live in. In Cincinnati, there is a high percentage of idiocy. You know the saying, "There's an idiot born every minute"? In Cincinnati, it's every second.I used to have a yellow pages ad in Michigan. I paid monthly, no questions asked.When I tried to get a listing in the Cincinnati yellow pages, they required full payment up front... not because of my credit rating, but because they have a harder time collecting in Cincinnati than anywhere else. There's something in the water here. A lot of really cheap people. Not frugal... cheap.Anyway, I think that could have something to do with it. I always heard Toyota was good about giving chances, so I was shocked when they didn't want to work with me. I really want a Matrix. Link to comment Share on other sites More sharing options...
Recommended Posts