How to get a better interest rate on a car loan?

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hernandez.amie
 
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Location: Miami, FL

How to get a better interest rate on a car loan?

Postby hernandez.amie » Tue Jun 04, 2013 4:22 pm

Hi everyone!

I'm currently in the market for a new car. Being that I'm 22 and have young credit (but good credit), the dealerships I've gone to have given me some ridiculous monthly payments. I have $3400, which is my trade in value on my current car.

Every salesman has advised that I cosign with my parents, but they fell on rough times a few years back, so their credit score was damaged. So they can't get approved either.

What's my next best step to getting a better interest rate on a car loan? Open up credit cards and build a higher credit? Don't do anything a hope something will happen. I was thinking of applying for a loan through a credit union, but don't see how that'll help.

Any input would be great! Thanks!


hernandez.amie
 
Posts: 2
Joined: Tue Jun 04, 2013 3:51 pm
Location: Miami, FL

Postby hernandez.amie » Wed Jun 05, 2013 3:03 pm

Anyone? I need your help.

Dylan1982
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Location: Chicago

Postby Dylan1982 » Thu Jun 06, 2013 12:09 am

I would go through your local Credit Union. They will always have lower rates than any dealership will provide you with.
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)

paparoach429
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Location: chicago

Postby paparoach429 » Thu Jun 06, 2013 1:34 am

Sounds like your in the exact same situation I was other than you have $3400 down, not $2500. I went to a huge dealer in Chicago that has a lot of pull with banks (supposedly) and they were able to approve me with 2 years of credit, and $2500 down. Yes my interest isn't the greatest at 8% but Im even lucky I was approved. You either have to bite the bullet and take what you can get and get yourself in a better situation for the next car you buy, or you will have to find someone with good credit to cosign. I didn't want to involve anyone in my finances so this is the situation Im in. Goodluck!

Dylan1982
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Posts: 323
Joined: Tue Mar 06, 2012 12:15 am
Location: Chicago

Postby Dylan1982 » Thu Jun 06, 2013 4:11 am

paparoach429 wrote:Sounds like your in the exact same situation I was other than you have $3400 down, not $2500. I went to a huge dealer in Chicago that has a lot of pull with banks (supposedly) and they were able to approve me with 2 years of credit, and $2500 down. Yes my interest isn't the greatest at 8% but Im even lucky I was approved. You either have to bite the bullet and take what you can get and get yourself in a better situation for the next car you buy, or you will have to find someone with good credit to cosign. I didn't want to involve anyone in my finances so this is the situation Im in. Goodluck!

Hey I remember I gave you some advice about that as well.. This was about a couple of months ago... Glad you got approved!
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)

rockyrock
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Location: Ventura, CA

Postby rockyrock » Thu Jun 06, 2013 5:07 am

Dylan1982 wrote:I would go through your local Credit Union. They will always have lower rates than any dealership will provide you with.


+1

It's hard to beat a CU in most cases.

If your credit is so so you won't qualify for the best deals offered by the dealers. What you may have to do is take what you can get (and afford) and then hope in six months you are able to refinance through a CU.

Make sure you do it within 12 months though as some lenders still consider this to fall in the "new vehicle" category and offer lower rates.

In the mean time dig around this forum and see what you can do to boost your score--or at least not hurt it.

Good luck!
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Chase: Freedom & UA Club USAA: Signature Visa & American Express
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