Need help with Auto Loan

[dragos13]

So its time to replace the old Dodge before she completely dies on me. I want to get something before the race season starts and am looking to finally finance a vehicle. Preferably, I'd like to get an auto loan from a bank so that I can buy a car from a personal sale, rather then having to go to a dealership.

My price range is going to be around $10K. I'm really interested in a Subaru WRX Wagon.

Where have you guys gone for loans? What type of rates does everyone have? My credit is around 680, currently own my home, and would try to bring about 30%-40% for a down payment so probably finance around $6-$7K.

Any help would be great, thanks in advance!

[rforsythe]

Try a credit union first; Bellco and Westerra are a couple places to start, plus any that you might be able to get membership with through any affiliations (work, military, associations, etc). CU's often have superior rates and service.

I have my truck loan through CapOne, and suffice to say probably would not choose to use them again. They are fully annoying to deal with.

[dragos13]

Thanks Ralph.

Do you think switching my banking to a CU would help with the rates or loan approval?

[jbnwc]

I like Bellco - they were good to me. Denver Credit Union sucks to deal with. Don't rule out the dealer; they work with several banks/credit unions and may be able to get you a good rate.

[Sarge]

Most credit unions require it. They won't give you a loan without a savings account or something. Even if you go to a dealer and get a loan from a local CU, they'll open a savings account and put like $5 in it.

[jbnwc]

Thanks Ralph.

Do you think switching my banking to a CU would help with the rates or loan approval?

The best way to get better rates is to always pay all your bills on time. You will probably have to open a checking and/or savings acct with the CU to get the loan no matter what.

[dragos13]

Thanks guys.

I have definitely worked hard on getting my credit score up from what it used to be. I pay everything on time but still seem to get denied on credit cards. Right now I'm with Wells Fargo and would willing to change to a CU for sure. I've been reading the other bank thread and thats kind of what got me thinking

[rforsythe]

Thanks guys.

I have definitely worked hard on getting my credit score up from what it used to be. I pay everything on time but still seem to get denied on credit cards. Right now I'm with Wells Fargo and would willing to change to a CU for sure. I've been reading the other bank thread and thats kind of what got me thinking

Paying on time is only part of it. They also look at your debt to income ratio, and because half the country pretty much defaulted on their revolving debt in the past couple years are a lot less likely to just randomly issue it. That said, car loans are considered secured debt, and you are far more likely to successfully get a loan because of that even if CC's are snubbing you.

[vort3xr6]

Don't go to American General. They raped me with 21% interest on a 5g loan.

Fuckers.

[Ricky]

Don't go to American General. They raped me with 21% interest on a 5g loan.

Fuckers.

You can't rape the willing. If you signed the papers, and nobody else would give you a loan, then you got what you needed, right? They charge you 21% because they gave you a product you can't get anywhere else at a lower price. If you could, you would have gone with that loan.

American General has been the place that would loan to me when nobody else would. I've had something like 7 different loans with them, and currently have 2 with them, one is my bike. On a new vehicle, their rates are very competitive, if your credit is bad. Otherwise, get a loan elsewhere.

[Zach929rr]

Bellco been good to me thus far on my Drz.

[vort3xr6]

You can't rape the willing. If you signed the papers, and nobody else would give you a loan, then you got what you needed, right? They charge you 21% because they gave you a product you can't get anywhere else at a lower price. If you could, you would have gone with that loan.

American General has been the place that would loan to me when nobody else would. I've had something like 7 different loans with them, and currently have 2 with them, one is my bike. On a new vehicle, their rates are very competitive, if your credit is bad. Otherwise, get a loan elsewhere.

I have near 800 credit so it wasn't a matter of finding a place to loan me money. The vehicle I bought was too old for a car loan, too large of amount for a personal loan, and too little of collateral. Plus I needed the loan within 24 hours.

So yea I made the choice but still, it sucks.

Plus the worst part about American General is you cannot make payments to principle without going into the actual store. If you make a $500 payment, the send you your next month's bill saying "congratulations you don't have any payments for 2 months."

[Ricky]

I have near 800 credit so it wasn't a matter of finding a place to loan me money. The vehicle I bought was too old for a car loan, too large of amount for a personal loan, and too little of collateral. Plus I needed the loan within 24 hours.

So yea I made the choice but still, it sucks.

Plus the worst part about American General is you cannot make payments to principle without going into the actual store. If you make a $500 payment, the send you your next month's bill saying "congratulations you don't have any payments for 2 months."

So you see my point then. You were in a hurry, and they gave you money that nobody else would when in a hurry, AND after getting denied. They tend to service those with under-par credit, so that's why the rate is so high. They also took a high risk by loaning you money for something nobody else would.

That's how all simple interest loans work, though it can depend from branch to branch, and teller to teller that applies the payment. When you have a payment due of $200 and you pay $400, The part that doesn't go to interest, DOES go to principal. You just have the option of not making a payment the following month. When you explicitly state that the money is to go principal, then they will not apply it as a payment. But really the whole argument is moot. If you make big payments early vs principal only payments, there is zero difference in the math to calculate the total amount of interest over the life of the loan. You are charged for interest from the last time you made a payment, and the rest goes to principal. Whether or not that affects your "shown" payment amount for the following month, doesn't really make any difference.

[bulldog]

Not sure if your credit is good enough, but many dealers will give you 0% interest on a new car for as long as 72 months. I did this in 2004 and paid the car off so quick since I never paid a dime in interest. Just make sure you pay it all before that 0% interest goes away because many places will hit you with all the interest at that point.