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Discussion Starter #1
hey everyone, so im new in this forum, b ut though i should ask advice from you guys..
so im trying to buy a terrain 2010 sle 2 awd mocha steel conv. package, sunroof, and dvd entertainment syst. so i when to my local dealer started the paper work and want to place 10k downpymt. the preaproved me but. but they want to offer me 12.4 percent intrest, and 72 mth laon...to me thats insane ....please any input would help i really want this car but i think i may have to bite the bullet and go some other make..
 

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The interest rate should be entirely dependent on your credit score. If you have a >700 score, I see no reason why you should ever have an interest rate over 7%. All you have to do is tell the Finance Manager you need a better rate below a percent you need. Be realistic...if GMAC's best is 6.9% right now, don't go telling them you need 2.9%...you likely won't find that with a different bank....but Banks WILL go lower than 6.9% if you have good credit...you just have to get the Finance Manager to try.
 

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I would check what one or two local banks and the local credit union would be willing to offer me, compare it to the terms that are available through the dealership and make a decision from there.
 

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Wow..12 %..I got mine from GMAC..credit score 830....at 4.99%..which I thought was really good for 4 years....
 

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Discussion Starter #5
i kno my credit score is not that stronge is 584, but its cuz i never had a credit card or car loan or any credit lol so thats why im puttin 10 grand down.... i mean i do make 2200 bi weekly lol so im so frustrated
 

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Discussion Starter #6
ohh let me add something i would prolly take the 12.4 percent because of the credit situation but if u do the math by the end of the loan i would be over payin almost 16k
 

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andres0101 said:
i kno my credit score is not that stronge is 584, but its cuz i never had a credit card or car loan or any credit lol so thats why im puttin 10 grand down.... i mean i do make 2200 bi weekly lol so im so frustrated
This kind of score and lack of credit is going to result in a similar rate regardless of where you look to buy a car. You'll feel this pain anywhere unless you build your credit history/rating.
 

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Discussion Starter #8
yea i think i may have to wait a few months and figure how to build my credit...does anyone know how to build cresdit till may/june im willin to wait a few months
 

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andres0101 said:
yea i think i may have to wait a few months and figure how to build my credit...does anyone know how to build cresdit till may/june im willin to wait a few months
unfortunately, when it comes to cars, no amount of credit cards will build your 'history' in the way they are wanting. They want to see history of ownership. If you have a house, you're good. If all you've got is credit cards, you're going to have to bite the bullet, unless you can find a really nice and trusting person to cosign with you.
 

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I'd start with a credit card or a major store credit line (sears, best buy, etc etc.) That will bump it slightly. Just be sure to cut up the card after it's first use ;) I wan't told that when I was young, got myself into a world of hurt. :eek:

Then do check your current bank. Since you are a customer, they may offer you something worth your consideration. If they don't, ask for a co-signer. A good rich uncle always works... Yeah, I didn't have one of those either. Credit Unions tend to be the best loan places (I got 3.99% for 72 months from my credit union with an A credit rating, A+ is their best rating which I don't have)
 

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Another option if the banks can't do any better. Is go ahead with the GMAC financing and in 4-6 months check back with the bank and refinance. With the 10K down you should have enough equity in the vehicle and after a few on time payments your credit score should bump up. It's kinda risky because there is no guarantee that you can refinance at a better rate. Good luck!!!
 

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Discussion Starter #12
yea so listen to this after a long chat with the sales man and finance manager they told me to think about takin the deal and bitting the bulllet since i dotn have good credit...haha do they think im dumb lol..n e ways ive made them wait a few days and now they called me today and said if i can get them proof of work and all notarized recomendation lettrs lol they may be able to drop the price of the car and subsequently they will have to drop the interest rate...im keeping my fingers crossed and hope fully they lower my rate to a mid 8% and lower price of terrain...lol
 

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They said they'd DROP the price? Geez, all the GMC/Chevy dealers here (Chicago area) every single one is selling at list ---no price drop ---no special financing -- no incentives at all. Because as they put it "We're selling everyone we get". Ford and other brands are dropping prices ---giving great financing and lots of incentives. Just my luck all the models I like are in hot demand....even the Hyundai Tucsun. Never in my life have I paid list price for a vehicle. My wifes credit union is at 2.9% for 72 months. Now if I can only get the Terrain I want.
 

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Credit Union. That is all.


GMAC was at 13% for me and my wife. Local credit union will get our business because the APR is going to be 5.74% for 72 months. Cant argue with that at all.
 

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Welcome to the wonderful world of credit, particularly in the United States. The fact of the matter is with that score, you're going to be paying higher interest. You could shop around a bit, but there's also a problem with that, as every time someone performs a query of your credit file, that can affect your credit too.

At the end of the day, you'll have to either come up with a way to better finance the vehicle, or make the decision to bite the bullet and pay the nasty interest (12% on a car is nasty). If it were me, it wouldn't be worth it, and I'd just drive a little ****box for a year or two until you can get that score up. Even if you can get that rate down to 8% within 2 years, that's $7-$9K you've saved in interest alone.

Perhaps you can ask a family member? Banks are paying crap interest right now, so offering 6 or 7 percent is pretty attractive for someone who's just making 1 or 2% anyway.
 
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