So scion tried to screw me today (SoCal)
 

Well actually yesterday, anyway I went into Dch of scion in Oxnard California. I went in to buy an frs 10 series but I'm 19 years old and haven't yet established any credit so I had a consigner come in with me. My consigner has average credit, so after filling out all of the application info the salesman runs a credit check and comes back with an offer with these terms.


This offer is for a regular auto frs with trd exuast. They salesman told me that he wouldn't be able to get me into a 10 series because of the extra cost.(total crap!)

Anyway here is if offer for a 2013 a/t frs with trd exuast

Apr:14.99(crazy)
Down payment:10,000
Monthly payment of $560 a month
Term: 60 months
Total cost of car: $43,600

So I asked him what the price of the car was because those numbers didn't add up, and after a couple mins on his computer he said " I can't seem to find the price of the car" so what a load of crap from that guy.

Of course I said absolutely not.

So he hit be back with this offer for a completely stock a/t:

Apr: 13.99
Down payment: $3500
Monthly:$604
Term:72 months
Total cost: $46,988

After telling him those numbers were crazy and that I wanted to see where he is getting his(actually his manager) numbers from, and he just avoided the question and told me that I am lucky they were even talking to me about A loan.


Any thoughts on this? Any suggestions on what I should do?

Tell them to go fuck themselves and try a different dealer. Also, if you can have a co-signer with great credit that should help.

That's basically what I told them, and I'll try to find a better consigner but I don't think I will be able too. I don't have any family around and this guy who is willing to consign is a friend of my fiancés parent and he is only doing it to build credit on his end. I'll hot another dealer ship and see what the deal is.

go to a diff dealer, that is ridiculous
try to get a loan from a bank, lower rates... i dunno if its possible for u, but its worth a try

Why not talk to a bank/credit union and get a loan squared away first? Then walk in and hand the dealership a check for the car?

sent from my locker... help!

Mid to high teens for a first time buyer with little to no credit history isnt so far fetched, my first auto loan was at 18.99 cause I had no credit and no co signer, the credit union I worked at wouldnt even approve me for a loan. It is bs they wouldn't give you a breakdown though. I would say build up so credit and savings before you buy a brand new car. But if youre set on buying now find a differrent dealership that has better sales people.

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When I bought my first car I was 20 years old. I had no credit, but had a decent job at the time pulling about $30k/year. I wanted an 06 tC with a few goodies. The only way TFS would finance me was if i put a third of the value of the car as a down payment. I put down $6800 and was financed at 14% APR back in the summer of 2005. Six months later I refinanced the loan with a local bank for 5% in 2006 (back when 5% was decent).

Just wanted to share what I went through because I've been there. I couldn't find a co-signer and I really wanted the car, so I made it happen but wasn't stupid enough to keep paying on such a high interest loan.

Honestly? At those rates, don't buy the car.

All you're doing at this point is making the banks richer.

Build up credit with a low limit credit card (pay off your balances on time, start small with cell phone bills and gas expenses), then move up to buying bigger things.

Or you can pay 10%+ APR and throw away money like you're made of it.

-alex

Agree, try to get pre-approved by your bank/credit union.

Also, search your region forum in here and see if a member(s) can help you in finding a good honest deale in the south cal region.

I acty ended up joining the military and got my rate dropped to 6%, tfs was really great about it also. I actually went to tfs again to finance my fr-s because of my experience with them

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Well the arp is more of less understandable, I had a ridiculously high apt on my first auto loan too.(i am currently paying off a car that will be handed over to to my fiance once I buy my new car)

So I understand the apr but that doesn't explain the extra 10-15k

Total cost of the car was probaby with apr included. If financing the car is going to cost almost as much as 2 then its definitely not worth it.

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I am 20, bought the car in April, got 2.55% APR, with $10k down and nearly perfect credit, and I still needed a cosigner. My dealer was great to work with in that aspect.

OP:

Odd dealer. I had 0 credit 2 years ago when I went to buy my first new car (as the last car I had co signed and every ounce of credit went to the co-signer and not me! despite me making all the payments).

Anyways, I had to do 17% for that car at the time to start out with, but was able to refinance after 6 months at.........0.95%!

Trick is with Equifax (which is the toughest to get up).

You might have to take a larger hit to establish the credit, but in 6 months or more, just refinance and it should be a much lower %

Sorry, you need to build up credit before you buy a $25-30K+ car. As a 19 year old who has little to no credit, you can start by buying a used car and paying it off quickly. It also seems like you are asking a lot from a co-signer that you barely know. If you default on the loan it is not just your ass on the line, it is his as well.

My advice. Build up credit by buying a cheaper used car. Pay it off quickly and then you can have a credit history as well as more time to save up for a downpayment.

As a 19 year old, it is crazy to have $500-600 car payments along with what will most likely be high insurance. If you want something sporty, there are lots of used options out there.

Unless you have like $15K+ to put down, it sounds like you are really reaching for this car.

Perhaps they were showing you the "total cost" of seven years at high interest.

Agree with what's been said. If you need a co-signer, it probably isn't the right time to buy a car. There are many ways to get your credit up and do it wisely so that you aren't feeding the bank system.

I personally started with a phone bill, then a small $500 credit card, then a car. My credit was good enough within 6 months of that little card being issued to get approved for a 4.5%, $50,000 car loan. 4.5% isn't good, but it's a hell of a lot better than 14.99. You can do all that in less than a year. You wait a couple years, you'll be in better shape. I just got an offer for $50,000 at 1.49%. Usually get something similar twice a year

That is exactly what it is. If the OP is rolling tax and dealer add-ons into the final price the interest alone at 14.9% on a $28-30K car is going to be like $14K....

You have no understanding of how a loan works.

Go download a loan amortization table and figure it out yourself, because I figured it out for you:

$10k down payment
$23k financed
Total interest will be $9822.86
Total paid will be $42822.86 ($43k)
See attachment.

Edit: I did the numbers for the other scenario too. $29500 financed, $3500 down, monthly payments $607.71, total payments will be $47255.22.... it adds up.

-alex

^hes right, get a beater and drive it till u have money and have a good paying stable job
i didnt buy a nice car till 2 years after i finished school, i could of gotten it as soon as i landed a job, but i saved instead
its nice to not have to worry about payments

WOWOWOW holy jeez! at those terms i can get a m3

It's the APR that's killing you.

Total cost is $43k when all is said and done

The car you want is stickered at ~$33k with tax(6%)
You put down $10k and you finance $23k at 14.99%
Your payment is $580
$580*60=$34,800 + your down is ~$44k

Financed $23k - total payments of $34k = -$11k <-this is your interest.

If you put no money down and finance $33k @ 14.99 will be around $800 a month which totals ~$49k after 60mos.
Financed $33k - total payments of $49k = -$16k <- again this is interest paid.

:bonk:

I understand everyone argument about buying a cheaper used car. And I have been paying off a cheap used car for some time now but it still hasn't built any credit. And I have a very stable job and make close to around 60k a year at the moment(wedding photographer) So a 500 car payment is within reason for me. And I know with that kind of money I could just save and by the car in cash, but that would take a good year+ to save up for. Obviously if this loan doesn't work out than that will be the plan, but waiting a year plus to buy this car is a little long for me.


But I'm understanding the apr dilemma, I understand how interest works but when I've used the scion calculator at the same interested I just wayyyyy different numbers.

Edit: just realized how illiterate my iphone autocorrect makes me sound.

Just keep shopping around for loans. You have mKe good money and can make the payments. The dealer is going to sell you a car wether you use them or bring them a bank draft.

You're gonna have to find the best loan yourself. Keep searching, I know you'll find the right bank.

What is your credit rating? You can pull this yourself. Also, were you ever late with payments? There are many reasons why the dealer may be coming back with a high APR, I know dealers get a bad reputation, and some do try to take advantage, but at the end of the day they don't want to lose your business either. So something seems off if you have already established credit with another car.

You need to know what your credit rating is (if you don't already) and know if there is something that is impacting your ability to get a loan. And as others have said, you should apply for a loan through Penfed, or a local credit union who may give you a better rate.

You should also plan on putting down a sizeable down payment. If you cannot put 10-20% down on this car right now, you need to save up.

Also, are you self employed as a photographer? That alone will impact your loan since you are only 19.

A wedding photographer is a high risk profession, just like a restaurant worker.

Until you can have several years of credit behind you... you will always pay a high rate of interest as you are self employed.

Even after 20 years, they consider a higher risk due to self employment.

If I were you, I'll get a beater car and start building your credit . In about 6 months to a year you will see a good significant scores, and by then maybe you can get a series 11 :)

In the mean time save your hard earned money for something else and go out find some nice chicks rather than have a brand new car and have to fork out more than $600 a month with no $$ left in your pocket .

Just my .02 cents

The same arguments apply:

- You have no idea how to build up credit even though you have more than enough income. Stop paying off car loans and start using short term unsecured credit (aka credit cards) to your advantage
- If you can't wait a year to save up to buy this car, you don't have your priorities straight and a high APR is your only "out".
- Paying off a cheap used car for "quite some time" when you're 19 doesn't mean jack squat. Try 5-7 years for you to have enough decent credit to buy a house, that's usually the credit history a lender looks at.

I understand you want the car badly. A lot of us do when we see something we like. But buying a car is the 2nd or 3rd biggest thing most of us will buy in life next to a house (and a post-graduate education). You should know what financing and credit scores actually do for you before you go in to talk numbers, and how you should manage your finances better.

Make money work for you, not the other way around.

-alex

I understand what you are saying but how are my "priorities not straight?" I have a job, my own business actually. I have a fiancé, I have an apartment, I pay all my bills on time every month. I make more than enough money to pay for the car. Id say financially I am in a better place to buy this car that most people who have bought the car.

And I completely understand about credit cards, I've applied for quite a few, I've even applied for secured credit cards... All applications rejected.

And I didn't say that me paying off my first car loan was a big deal or anything I am just responding to the people who are suggesting that, and letting them know that I have been paying off my first $16000 car for around a year now and it is almost paid off. Yet I still haven't build any credit from it so to the people who are telling me to do that, I have been.


Also I am perfectly able to put about 10k down on this car. So while I respect your opinion you seem to be a little biased about my situation. I get this all time, so I don't take it personally but it's because I'm 19 years old, no college education and I make more money than most starting salaries out of college.

Just because I am 19 doesn't mean I don't know about money, I know enough about money to pay my bills, to pay my taxes, to do my regular sales tax, llc tax, and make appropriate tax deductions for my business. And I knew enough to walk out from a bad deal even though I could have afforded it but I knew enough to not pay 45 thousand for a car that retails for under
30 thousand.

The big thing I get from your reply is you applying for multiple credit applications, those are considered hard hits against your credit. Also were you primary borrower on your loan or a cosigner?

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Good lord. 46k?? Go somewhere else and see what's up

BUT

Be realistic and get something you can afford with the credit you DO have. It's called living within your means... You'll be kicking yourself in the ass for spending 46k on a 25k car.

I can pick your argument apart easily (having a fiance and/or being married at age 19 is not a strong counterargument to financial stability, just an FYI), but the bottom line is this:

1) you are ruining your chances at good credit with what you're diong
2) you're not using money to your advantage (and yes, you can open credit cards with $500 limit with virtually zero score)... and your inability to open credit cards is representative of a bigger underlying issue with your credit report that you aren't addressing
3) your employment and credit history is high risk, no matter how good it looks to you
4) you keep looking at overall cost of the car over course of the loan... when was the last time anyone bought a house based on total payments over the life of the mortgage? a house is bought based on price and APR, and (to a lesser extent) monthly payments. I suggest you do the same on your car purchase and not look at overall payments.

Either way, my comments are still the same. Your priorities aren't straight and you're focused on secondary concerns with the purchase of this car (total price and APR) when you should be focused on the primary concerns (lack of credit and high risk, high income job). If I were you, I'd suck it up for 2 years and pay for a car outright with cash. And I'd take that money being saved and put it in a CD that can get you money back after 2 years. Or even short term bonds.

But hey, it's your money and credit, do with it as you please.

-alex

Tell him to fuck off and go to another dealer, in cali there are a lot of options and that is fucking ridiculous. first off APR 14% no, just no. 2.9 maybe. Next total cost of the car 47K, not unless you are buying two of them, you should be getting below msrp for a 13. Leave and never go back, of course the monthly and term will change with diff APR and total cost but no, just no

Penfed.org probably has the best interest rates for new and used vehicles. I've used them many times. Carsten ... you may want to call them and see what they may be able to do for you. Tell them you are looking to put 10K down and finance the remaining. Be able to provide tax returns to verify your income. Have a personal financial form (assets and liabilities) available. Maybe Penfed.org has a credit card. Ask them if you get their credit card and show a good payment history on the card .... can you finance with them in 6 months. We've all been there. You don't want to be screwed with a obscenely high interest rate.

OP, don't take this personal, but lenders have lifetime's worth of data available to them based on factors such as loan amount, age, occupation, etc. The reason your finding it hard to get a low interest rate loan is due to your age and occupation (self employed). $60K seems like a ton, but you are also in California which has high taxes, and a high cost of living. Being self employed and 19, you are high risk. You may not feel that way, but that is how the system works, and lenders have the data to back it up.

Simply put, paying 10-15% interest on a car that cost $30K or so is a horrible decision. I don't car how bad you want the car, cars are one of the worst investment out there and depreciate considerably the minute you drive off the lot. Compounding that with $10-15K in interest payments is just, well for lack of a better term, irresponsible.

If you are not able to secure a loan that has a 1-4% or lower interest rate, you are simply going to have to either save up more cash, or come up with another plan. Or pay the bank a ton of money in interest and hope nothing bad happens.

Also, if your fiance is not self employed, you may be better off helping her build up her credit and then leveraging her credit rating/occupation once you get married.

I have excellent credit, but my wife is even better and we have taken advantage of that.

Honestly, If he feels he wants or needs to get it, then just research the hell out of it first (financially).

What you need to realize is that you aren't locking in that high APR for life....there's something called RE-FINANCING at a later time. However each time your credit score is pulled for something, it depreciates. So that's why I suggest minimum 6 months.

I really wanted this car last year....but had to take a step back, build up more credit (and $) just to do it, in what I think was the "right way" for me personally.

Again....research

That's what I'm thinking, that's why I walked away from the deal. I know it was a terrible deal and that was the reason for this thread I'm the first place.

And I totally understand about the high risk profession as well, that is why I've been turned down for so many credit cards. It's always one of many reasons like "you haven't been working long enough, you don't have a stable income, we don't have a way prove you will make money consistly" and I know it's just the banks way of protecting itself and it makes sense.

I'm not buying this car with anything over a 4% and I never said that I would. I'm smart enough to know not to do that. It's just frustrating when you have the money but just no one willing to give you a break.

If the loan doesn't work out I will just save up and buy the car outright but even then I don't want to do that because I would like I build credit by financing the car.

I've read up a ton on building credit, everything from secured credit cards, to auto loans, to unsecured credit cards, even ridiculously sketchy In store credit cards. it's just that I am in a weird place that makes it incredibly hard to get a break.

Already way ahead of you, refinanced my first auto loan.

It's a weird assumption that everyone on here thinks I haven't done any research at all.

Is it because I am 19 and therefore stupid? Or what?

I mean I appciate the suggestions, but I have done a massive amount of research on this.