Credit/Auto loan cross-examine? I am looking into getting a loan for a new car.

I am looking into getting a loan for a new car. I'm individual told that my interest rate is 15%. That seems high to me. There are 3 glum marks on my credit report but all be under $500 and have since be settled. I have had an auto loan for 7 years and own never been late on a salary. I just opened a small issue credit card and pay it off respectively month. Should my interest rate really be that high?

Also if I open a reserves account at a credit union how soon would I be capable of get a loan through them?

Thanks for any advice

Answers: Fifteen percent is elevated. You should shop around for a better rate. If the auto dealer is arranging the loan, keep surrounded by mind that the dealer gets a chunk of your money as a commission. Try the lender who provided the first auto loan. You own a good record near them.

The credit union can answer your second questions.

15% car loan = rip stale.

Your plan: Put $3,000 down on an $18,000 2008 new car, and nouns the other $15,000 at $250/month for 7 years.
That won't be paid off until May 2015

In May 2015, you own a 7 year old car, and nought else to show for it.

My plan:
"Don't fear the repo"

1) Take the $3,000 cash, and buy a used vehicle.

2) Take the $250/month, and instead of giving it to the car dealer, put it within a separate bank account. Don't tie it into your debit cards, within fact make it so that you own to physically visit the bank within order to get your hand on the cash.

3) In May 2010, your $3,000 car is very soon worth about $2,000, plus you have $6,000 currency in the bank. Trade surrounded by for an $8,000 car.

4) Continue saving your $250/month.

5) In May 2012, your $8,000 saloon is worth about $7500, plus you have another $6,000 change. You can get a 4 year old motor for that $13,000, which is the same 2008 model you were looking to buy today.

6) You presently have the same 2008 sports car, but you've saved 3 years worth of payments.

7) At the end of the 7 years, you hold the same 7 year old saloon, but also pocketed $9,000 in savings.

8) Now, let's bring rediculous. Finish the 5th, 6th, and 7th year's "payments", but put them in a mutual fund and let it sit for 30 years.
$9,000 bread * 12% growth * 30 years = $225,000
Just for buying used now, and saving the difference. Check out http://www.badcreditoptions.org You in recent times fill out an application and dealers surrounded by your area will contact you.

Pay brass for cars and buy used. A new car loses advantage FAST. Today, a manufacturer can announce a $4000 rebate and WHAM you've lost $4k PLUS the standard 20% after day one. New cars are a horrible investment.

Don't obtain the loan through the dealership! That's the absolute worse way to progress. Even if your having problems getting approved other places ask the dealership who approved you and go directly through them. Typically Capital One, HSBC, or Chase is who does superior risk financing and you can go to there websites and apply and win a check sent to you just as easy as the dealership does it. however, at a dealership, if Chase say you're approved at 10%, the dealership can say you're approved at 15% and they get the extra 5% and you bring ripped off.

Good luck!
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