I have all of my ducks in a row - I have my car all picked out. Its sitting at the dealer right now waiting for me. Its beckoning me with its siren song. My God, its beautiful ... its perfect.

However, I'm having trouble getting a loan with a low enough interest rate. The best rate I've been offered so far is still 5 percentage points too high for me!

This minor detail may detail may ruin everything, and I am so close! Please lend me your emotional support through this difficult time.

 

5% too high? That's what i have... i thought it was pretty good.

 

No, 13% is 5 higher than the maximum of 8% that I need. Sorry if I wasn't clear. Wow, 5% would be fantastic - a rate like that would seal the deal. :smile:

 

I went with the MINI Select loan. It has a higher Interest rate but they only finance the depreciation of the car over the course of the loan. Similar to a lease but there is unlimited mileage.

 

First, I tried Capital One Auto Finance. You should've seen me when I got approved for my loan - I was absolutely glowing. I closed my notebook computer and beamed with a sense of accomplishment. A half an hour later, I opened up the computer again to look at the details of the loan, and my world came crashing down because of an exhorbitant interest rate. This depressed me greatly, because from what I've heard, Capital One Auto Finance is renown for low interest rates.

Then, I tried Eloan, and a company offered me a slightly lower interest rate through them - but still not low enough. This only reassured me that there may still be hope.

Finally, I faxed a credit application to the dealer - to let their financing department have their way with me. I expect to hear a response today, but I can't say I'm very optimistic.

 

Well i suddenly feel better then...

I'm refinancing to get my OWN interest rate (co-signed now, of course) in a year, and i'm scared to death to see what it is. I had zero credit to my name before this car loan.

Good luck with finding a good rate! I just went through me and my family's bank.

 

Generally dealers always have the lowest loan prices even if your credit isn't the best.

 

When my time comes up, I have two avenues. One involves me getting the loan, the other my parents : ) I have no credit history, but my credit union offers auto specific loans around 5%. And the credit union is a University credit union, so they expect me to be a poor student* already.

I don't know if you've already tried the credit union route, but perhaps there is one you can look into.


*Well, I overuse this line, but it's practically true.

John

 

Thanks for the reassurance - I hope you're right. I'm still waiting for a response from my dealer. I also put an application in to my family bank - but their loan offers aren't usually that hot. It was still worth a try.

Keep the emotional support coming, gang.

 

Check this out... 4.25%

www.penfed.com

you're welcome...!

 

Nice, but it doesn't look like I'm elligible to join - and if I am elligible, its a stretch.

 

Costco offers new car loans at the rate of 4.30%
If you're not a member, its worth the $45 to join.. Check out their website

 

Thanks for the suggestion! My wife and I are indeed Costco members, although I think she has our membership card with her at work. However, I'm not sure how much it'd help ...

"Costco has teamed up with Capital One Auto Finance to provide members with discounted auto loan rates and a hassle-free buying experience."

LOL!

I'm reassured by all of these options, and I do appreciate your suggestions.

 

There must be more to the story. Why the high interest rate? In this age of easy credit and low rates there must be some serious credit problems for them to be asking 13% on a new car. Perhaps you would be better served to forget the MINI for now and work on improving your credit score. I know that sounds harsh, but so is bankruptcy. The banks are only looking out for themselves, they don't care about you or what is best for you. If they are seeing "red flags" you may do well to re-think your finances.

 

Honestly, I share your sentiments and your post stands out as the voice of reason. While I hate to think there are "serious problems", we have not been timely with some of our payments - there is no more to the story. I indeed thought this might have an impact upon an attempt to finance a new vehicle, but I wouldn't know until I tried.

I don't know my actual credit rating, but I think the results of my attempt to finance speak for themselves, and indicates that our credit needs repaired. Rest assured, I wouldn't be pursuing the MINI whatsoever if I didn't think it'd fit in our budget with a reasonable percentage rate.

That being said, this car tempts me like the grapes hung over Tantalus' head - just out of reach. If things pan out in my favor, and by some miracle, a rate is offered that meets my requirements then I will embrace ownership. If not, then I will also benefit as you suggested.

Regardless of the outcome, I will make every effort to improve our credit.

 

I cant remember the name of the company but there is a TV ad with an incredibly annoying sock-puppet dog. Bar none i think but im not sure.


BTW. bit of a mythology fan are you? :smile:

 

cshonts - Since I'm not familiar with your situation or your time frame on getting the car I don't know if this will work in your case ... but I heard that if a parent has one of their credit card services issue a credit card to their child the child then starts a credit history. And, as long as the parent keeps a good credit rating, the child will also have a good credit history and credit rating.
I'm not sure if you can use this bit of information but ... for all those "kids" out there who want to purchase a car, rent an aparment or want to have their own credit card - start hitting up your parents now!

 

MOAN ...

Last week, I hung a swinging chair from the overhang on our back porch, and I must've missed the stud, because it came crashing down and I think I have a fractured rib from landing on the wooden chair arm.

MOAN ...

This really doesn't have anything to do with my plight ... except I'm having shortness of breath, and may be on my death bed. This might be my last chance to own an MCS.

 

Okay, the MINI is a nay. Can't say I'm not disappointed because I've been in the market since 8/04, but this'll benefit me in the long run. I just have to continue being patient.

How long does it take for credit to go from bad to good?

 

Start by getting a copy of your credit report. You can see if anything has gone to collection. You want to resolve those.

Dave.

 

I could be wrong on any number of these points BUT...

Bad credit scores as reported by varying credit companies remain on your record for 7 years. But I believe all reports are averaged into your credit "score", so theoretically you could begin improving your credit immediately.

I am, however, reminded of college -- where it was a LOT easier to tank a GPA than it was to build it back up after said tanking.

My credit sucks -- so I can sympathize. I've got the money, but I'm seriously lax about making payments on time. Frankly, I think this makes me the ideal credit customer, as they always get paid PLUS they get a late fee.

 

There is always the option of taking the higher interest rate and refinancing in a year or so-

Don't give up your MINI dream! It's only money.

 

Go to

www.myfico.com

Start there. You can find your score, and there is a tool to help you understand how quickest to bring it up. Making payments on time defines 80% of you score. You need to be timely, or everything will always cost you more.

Then go here:

http://clarkhoward.com/library/rolodex_credit.html

-know your credit score,

-know what's on your report, as it can often be wrong, and in some cases fraudulent (think I.D. theft. It's a REAL as it gets, and it CAN happen to you)

-know what's in your bank acccount

-know what companies are trying to find out about you.


And then head to your local credit union, and sign up. Get a car loan there, and you'll save money. If you went tomorrow, you'll likely be offered 1-2 % less as a rate.

 

There is a drawback to good credit. It's hard to throw away the 0% credit card offers as fast as they arrive.

 

in spite of being in my 50s, owning 2 successful auto repair businesses as well as rental property and a valuable 1st home, my (VERY CONSERVATIVE) regular bank turned down an 18k loan for a used mini because my debt to income ratio isnt what they want. i will point out here, my income hovers near 6 figures a year, but the rental property and loan on my house, plus revolving credit needed to run the businesses looks less than ideal to my income. (and my credit score is bumping 800!!) the dealer will finance new at a good rate just based on my score, so its no big deal, i just ordered new last week, and will wait a few months to get it!! the point is, i have worked hard all my life and have a good score, but it was still no go with a crappy lender rule. im sure i could get money all over town if i needed to, that wasnt the point at all-i went to the bank where i run 2 million plus a year in business cash flow through 4 accounts. they love having my daily business but hate doing anything for me. after re- reading this post, perhaps i should get a new bank!!LOL