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Started By
Message
Need advice. I have messed up. What should be my next move?
Posted on 7/6/18 at 1:44 pm
Posted on 7/6/18 at 1:44 pm
I went to a car dealership yesterday and purchased a used truck for 25,357. I did the loan through the dealership, and since I put a down payment of 17,000 I only needed 8,357 dollars of a loan to pay off the total price.
The interest rate that they quoted me was 18%. I know enough to realize that this is very high(I have zero credit score), but the finance guy told me that if I could either get a co-signer soon, or refinance the vehicle in a half year or so, then the interest rate would go down substantially.
It seemed to make sense at the time but now that I am looking at the sale contract the total that I will have paid after three years of financing this amount will equal $15,357!! I need help on what my best next move should be. Approximately how much of this total price should I be able to scrape off from a co-sign, or a refinance at a later time? And which one of these will be my best bet to save the most money?
The interest rate that they quoted me was 18%. I know enough to realize that this is very high(I have zero credit score), but the finance guy told me that if I could either get a co-signer soon, or refinance the vehicle in a half year or so, then the interest rate would go down substantially.
It seemed to make sense at the time but now that I am looking at the sale contract the total that I will have paid after three years of financing this amount will equal $15,357!! I need help on what my best next move should be. Approximately how much of this total price should I be able to scrape off from a co-sign, or a refinance at a later time? And which one of these will be my best bet to save the most money?
18
Posted on 7/6/18 at 1:49 pm to TheCanadianAmerican
Even though you don't have any credit, you should be able to get a much lower rate with that kind of equity. Assuming you don't have some terrible credit that you aren't mentioning. Even still, with that kind of equity you should be able to find a decent rate. Find some credit unions and get quotes then re finance.
Posted on 7/6/18 at 1:50 pm to TheCanadianAmerican
Oh my... There is a lot here. How do you have 17k cash and zero credit. Secondly, I have never heard of a car loan that high. You can just go to the bank and get consumer debt for substantially less than that.
Find someone to cosign and cut the rate in half or more or come up with some more cash and pay that shite off as fast as possible.
Find someone to cosign and cut the rate in half or more or come up with some more cash and pay that shite off as fast as possible.
Posted on 7/6/18 at 1:51 pm to TheCanadianAmerican
It should be illegal to receive an interest rate that high for an auto loan
Posted on 7/6/18 at 1:51 pm to TheCanadianAmerican
You put down almost 70% and got an 18% rate! Why did you do that??? Did you even talk to a bank or credit union before allowing yourself to be violated like this? If not, then you should do that immediately, instead of typing a reply back to anyone here.
Posted on 7/6/18 at 2:01 pm to TheCanadianAmerican
Your next move should be to your local bank or credit union. Tell them you have just purchased a used vehicle for $25k but put $17k down and financed $8500 with them at 18%.
Tell them you'd like to refinance the $8500. Even with a FICO of Zero, you should be able to get a $8500 loan with verifiable income and $17k in "equity". And that $8500 loan will be substantially lower rate (2.5% to 8%) depending on the length, etc.
Tell them you'd like to refinance the $8500. Even with a FICO of Zero, you should be able to get a $8500 loan with verifiable income and $17k in "equity". And that $8500 loan will be substantially lower rate (2.5% to 8%) depending on the length, etc.
Posted on 7/6/18 at 2:02 pm to TheCanadianAmerican
Go to a credit union and refinance asap
Posted on 7/6/18 at 2:03 pm to TheCanadianAmerican
Sounds like you went to a buy here/pay here dealer that specializes in financing high risk borrowers. With the amount of equity you have in the vehicle (assuming you didn't vastly over pay), you should be able to find a credit union or bank to loan you the balance at a good rate.
Make sure there isn't a pre payment penalty.
Make sure there isn't a pre payment penalty.
This post was edited on 7/6/18 at 2:04 pm
Posted on 7/6/18 at 2:07 pm to Jag_Warrior
quote:
You put down almost 70% and got an 18% rate! Why did you do that???
TheCanadianAmerican
Canadian
Posted on 7/6/18 at 2:07 pm to Golfer
Even though I have already given the down payment check to the dealership and signed all of the papers to purchase the truck, I can still refinance with a bank/credit union? That down payment money is no longer in my account.
Posted on 7/6/18 at 2:08 pm to Jag_Warrior
Yeah he messed up bad. The dealer basically said I’m gonna make my money somehow so with sonlittle left to be financed jack that rate up on a newbie. Wow.
Posted on 7/6/18 at 2:11 pm to Fat Bastard
In the agreement does it say anything about not being able to refinance/payoff the loan before a certain amount of time?
Posted on 7/6/18 at 2:12 pm to TheCanadianAmerican
Go to your nearest credit union, ASAP. They’re your best bet to refinance this vehicle without a co-signer. You might need to open accounts with the CU in order to get the loan. 2.75% is what my CU is quoting right now.
Posted on 7/6/18 at 2:15 pm to TheCanadianAmerican
quote:Assuming you paid an appropriate price for the vehicle, that money is in the vehicle as equity and should give a credit union plenty of collateral to loan you the balance owed. Assuming you can verify income.
That down payment money is no longer in my account.
Posted on 7/6/18 at 2:15 pm to TheCanadianAmerican
quote:
That down payment money is no longer in my account.
But the equity is in the deal. You'll need to get a payoff quote from whoever the lien holder is. That is the amount you will borrow on the new loan. That should be under 50% of the book value of the truck. That is what the new bank/credit union is going to loan off of.
Posted on 7/6/18 at 2:18 pm to TheCanadianAmerican
How old are you?
How do you have $17,000 to put down and 0 credit?
Did you not stop and think, 18% that seems a bit high?
How do you have $17,000 to put down and 0 credit?
Did you not stop and think, 18% that seems a bit high?
Posted on 7/6/18 at 2:20 pm to TheCanadianAmerican
I almost want you to name that dealer so that I can tell my friends not to give them any business....what they did was predatory, but you can't allow that to happen.
Posted on 7/6/18 at 2:23 pm to TheCanadianAmerican
Some options:
1) return the truck and get your money back. Many states have a grace period where you can return a vehicle within a couple days or so.
2) try to refinance or find another loan avenue to use to payoff the loan (peer lending, home equity, etc.)
1) return the truck and get your money back. Many states have a grace period where you can return a vehicle within a couple days or so.
2) try to refinance or find another loan avenue to use to payoff the loan (peer lending, home equity, etc.)
Posted on 7/6/18 at 2:25 pm to notsince98
quote:Usually only applies to new vehicles, but worth checking out in whatever state op is in.
1) return the truck and get your money back. Many states have a grace period where you can return a vehicle within a couple days or so.
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