I bought it new and financed through Toyota Financial. My credit was pretty bad so the rate is pretty high and I'm paying it on a 5 year loan. The dealer told me that I could go through someone other than T. Financial after 6 mo. of paying on time to get a better rate but I have no clue where to start. I've now had the car for a little more than a year and a half. I don't want to just go to my bank b/c I'd like to find the best rate out there. Thanks!
2006-12-07 10:30:00 · 5 answers · asked by mere 2 in Cars & Transportation ➔ Buying & Selling
It would depend on what your credit looks like now. If you are scoring in the high 600s or over 700 a regular big name bank is a good way to go.
Credit unions often have better rates than banks ,but they can be picky about what they will do. They do not like very much negative equity. Since you were paying a high interest rate you probably have not made much progress on the principal. Check Kelley Blue Book or NADA to get an idea of the vehicles value, if it looks like you owe a lot more than its worth a credit union probably will not do it (unless you put enough money down to get the loan to value within their guidelines).
Small regional banks are more flexible than bigger banks. They can occasionally be talked into doing deals no one else will.
If you owe a lot more than the car is worth or your credit score is still low, you will have to go to a sub-prime lender. CitiFinancial, Capital One, and HSBC do a lot of these loans.
Try not to go to more than 2 or 3 different places because your credit score goes down a little every time a bank checks it.
If all else fails you can get a home equity loan if you have a house. Make sure the interest rate savings will me more than the closing costs or it is not worth doing.
2006-12-07 11:41:20 · answer #1 · answered by Killjoy52 2 · 0⤊ 0⤋
You may be better to leave things the way they are. You were fortunate that you were able to get a loan. People who have bad credit, no credit , etc. are ALWAYS charged a higher interest rate. It's the lenders way of getting as much money as they can in the first year of the loan. that way if you don't pay etc. they won't have lost as much money. Because of your bad credit history, they basically don't trust you to make all your payments.
You can apply for a loan anywhere, banks, credit unions, finance co. etc. they may give you a better rate but you will have to qualify again, and they are harder to finance with if you have bad credit.
The other problem is that if your loan is more than the current value of the car. you are in a position called negative equity and nobody will loan you more money than the car is worth. Call T. F. and ask for a buyout amount. Then check and find out what your car is worth. If the buyout is more, your stuck. The only alternative would be to trade it in and get a better rate on the new car.
2006-12-08 15:53:07 · answer #2 · answered by ? 6 · 0⤊ 0⤋
anticipate you'll finance and may might want to positioned some funds into the vehicle, take the adaptation and attempt this try. in case you may make investments the money and make extra over the life of the loan than it really is going to cost you in pastime, then it truly is more low-priced to finance. on the end, you'll damage even or possibly do extra perfect on the pastime expenditures, and also you may nonetheless HAVE YOUR funds! utilizing OPM (different Peoples funds) is often the smart situation to do. convinced, you pay for the privilege, yet as I defined above, often times it truly is smart. Your call.
2016-11-24 21:53:26 · answer #3 · answered by ? 4 · 0⤊ 0⤋
credit unions and banks the best if your credits good otherwise if its better than it was try some here http://painintheexhaust.blogspot.com
2006-12-07 10:39:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
open an account with a credit union, and then ask to refi your car, they'll give you an app, and hopefully you'll be good to go.
2006-12-07 10:34:17 · answer #5 · answered by jay 7 · 0⤊ 0⤋