Max legal interest rate?

[subatoy]

It took me 1 year to go from 586 to low 700s.
If I were you I would simply refinance after 1 year
of purchasin the car, even if it takes you year and a half it's no big deal.

[dsgerbc]

The issue is being denied credit (and thus delaying recovery of the credit score even further). Tough to evaluate the probability of that w/o knowing the current score &past credit issues (CC debt written off? Collection still outstanding? etc). So I'd recommend pulling a credit score off all 3 bureaus and going from there. D/k if the free once-a-year report let you see the score these days, but I'm sure there are ways to get those for cheap. In general, if one has a steady job with lots of income left over after necessities to comfortably afford a car payment and puts down a significant downpayment, interest rate shouldn't be too bad on a loan that's secured with collateral (car).

[Draco-REX]

When you go to the dealership, look presentable, be honest, and try to get the salesman to want to sell to you. You will likely have to pay MSRP, but don't pay over. It's one thing to compromise, it's another to be taken.

Ok, so you've agreed on a price. You REALLY want this car and you REALLY hope the salesman can help you even though you have bad credit. Here's the thing. Most dealerships have connections with various loan companies. Among those, they'll have an "in". A good dealership CAN get you a loan with bad or no credit. You'll get a horrible rate. But you will get the loan. And that, is your opportunity to show that you are a worthwhile investment to future creditors.

Don't waste it, or don't sign the paper.

[tachi1247]

Originally Posted by Draco-REX

When you go to the dealership, look presentable, be honest, and try to get the salesman to want to sell to you. You will likely have to pay MSRP, but don't pay over. It's one thing to compromise, it's another to be taken.

Ok, so you've agreed on a price. You REALLY want this car and you REALLY hope the salesman can help you even though you have bad credit. Here's the thing. Most dealerships have connections with various loan companies. Among those, they'll have an "in". A good dealership CAN get you a loan with bad or no credit. You'll get a horrible rate. But you will get the loan. And that, is your opportunity to show that you are a worthwhile investment to future creditors.

Don't waste it, or don't sign the paper.

As a first 86 member he shouldn't have to worry about price. It will be upfront and no negotiating necessary. I'm sure it will be MSRP since that is the way pure price seems to usually work.

[Draco-REX]

Originally Posted by tachi1247

As a first 86 member he shouldn't have to worry about price. It will be upfront and no negotiating necessary. I'm sure it will be MSRP since that is the way pure price seems to usually work.

True. I'm from the BRZ side of the FT equation where there's more leeway with the price.

[Capt Canuck]

Originally Posted by dsgerbc

The issue is being denied credit (and thus delaying recovery of the credit score even further). Tough to evaluate the probability of that w/o knowing the current score &past credit issues (CC debt written off? Collection still outstanding? etc). So I'd recommend pulling a credit score off all 3 bureaus and going from there. D/k if the free once-a-year report let you see the score these days, but I'm sure there are ways to get those for cheap.

IIRC, the credit report companies let you run one check per year for free. So you can sign up to 3 companies to check each one annually.
Might sound a bit OTT, but it meets the cheap requirement.

[Dave-ROR]

Originally Posted by Capt Canuck

IIRC, the credit report companies let you run one check per year for free. So you can sign up to 3 companies to check each one annually.
Might sound a bit OTT, but it meets the cheap requirement.

Credit report, yes. Credit sore, sadly no

[tranzformer]

You can use creditkarma.com which will give you a free credit score.

[Dave-ROR]

Originally Posted by tranzformer

You can use creditkarma.com which will give you a free credit score.

Cool never used them. Which bureau owns them? Or are they independant (not sure that's even possible).

I just pay for them as needed/desired normally.

[tranzformer]

Originally Posted by Dave-ROR

Cool never used them. Which bureau owns them? Or are they independant (not sure that's even possible).

I just pay for them as needed/desired normally.

Looks like they use TransUnion.

"Credit Karma, a San Francisco-based website, is a company that provides free credit scores to consumers. Credit Karma provides the TransRisk credit score generated from national credit bureau TransUnion,[1] the VantageScore, and the TransUnion Auto Insurance Risk Score.[2]"

http://en.m.wikipedia.org/wiki/Credit_Karma


http://www.creditkarma.com/help/howitworks

[powertrip]

if you're that worried about your score try leasing instead. a high teens or 2x % rate is bloody insane if you're planning to finance. shop it around. also to illustrate how silly accepting high rates like that are go over to bankrate and plug in the numbers, opt for a full amortization schedule and glance over how much interest you're paying.

as far as buying cars go, if you got at least >620 and DTI to afford the payment you will get approved. (DTI = Debt to income ratio). keep in mind the dealers finance guys are probably your best bet in getting a subprime loan, just keep in mind that the rate they initially sell you is NEGOTIABLE, everything at a dealer can be negotiated including the rates they can offer. they also have a lot of pull with the dealers financing company (toyota financing or whatever the inhouse is) and can sometimes pullin favors to get you approved.

[Dadhawk]

Or, you could look at this in the long term and postpone purchasing a car now until you work your way up to being able to pay cash. It's painful in the short term but completely changes your financial picture in the long term.

Here's a good explanation of how it works....

I realize life isn't always that simple, but if you focus on it, it works and there is no better time to start than when you're young.

[MrBonus]

Originally Posted by Dadhawk

Or, you could look at this in the long term and postpone purchasing a car now until you work your way up to being able to pay cash. It's painful in the short term but completely changes your financial picture in the long term.

Here's a good explanation of how it works....

I realize life isn't always that simple, but if you focus on it, it works and there is no better tiem to start than when you're young.

I agree. I don't like to be overly preachy but some measure of delayed gratitude in the face of a very, very poor financial decision can pay dividends (literally and figuratively) in your future. There is no time like the present to embrace positive change in your personal financial situation even if it involves some measure of sacrifice.

[Lonewolf]

If the best interest rate you can get on an auto loan is around 10% or more, and you aren't paying the loan off early...you need to consider not getting the car. You are essentially paying $2,000 to 3,000 more for the car above sale price. Throw in high insurance rates, registration fees, and maitenance costs, and you are basically investing your life into the car.