18% auto loan interest rate?
 

I tried HBSC from ebay and I got a stinking 18% interest rate. That ---- seems pretty high to me, I'm new to auto loans so I could be wrong. My house is financed around 6-7%.


update
---------
I got 13% with the wifey's credit and mine

Re: 18% auto loan interest rate?
 

That's a horrible rate for an auto loan. Right now I pay 27.99% which is the worst god damn interest rate you can have on a loan. My last loan which was through HSBC was 12.69% and I had "questionable" credit. :l HSBC is a good bank to loan to people with ---- credit. If your credit is decent, go someplace else because HSBC will just ---- you over. :3
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Re: 18% auto loan interest rate?
 

pretty much.

if you go to a credit union depending on your credit your interest rate should be between 9-14% i'd say on a used car. much lower on a new car.

Re: 18% auto loan interest rate?
 

6-7% is considered pretty tough to beat for a loan rate on a used car. any new car over 5%, don't go for it. 6.9% interest is approx $20 paid for every $1000 financed on 5yr, $25 for 4 year.

Re: 18% auto loan interest rate?
 

pentagon credit union - i didnt qualify
capital one - failed ...

I guess no credit is bad credit really is true.. BLAH

Re: 18% auto loan interest rate?
 

Well then HSBC is the bank for you. :P I have 3 credit cards with HSBC, all of which have a pathetic $300 limit. Those dick lickers don't hand out credit limit increases for NOTHING. :7 For that, I carry a -0- balance with them and they can ---- themselves if they want to make any money off me.

How much is the loan for? A high interest rate isn't that bad if the loan amount is low. I'm only paying about $4k in interest over the course of my 2.5 year loan at 27.99%. It's not that bad since the loan amount was so low. :l
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Re: 18% auto loan interest rate?
 

18% is a terrible rate.
Personally, I just bought an 06 impreza wagon. 6.5% through a credit union. $13,900 financed at $308 a month. Plus, when the "bank" owns a car, you will need full coverage. I have a $500 collision deductible on my insurance for the car and it costs $815 a year.

Re: 18% auto loan interest rate?
 

A buddy of mine just got a new car last month at 9% .
Yesterday My wife with crappy credit got a used 2002 at 5.74%
I'm at 0% ...car loans FTL.

Re: 18% auto loan interest rate?
 

co-signer?

Re: 18% auto loan interest rate?
 

Define "crappy". Bad credit does NOT=5.74% interest rate on a USED vehicle.
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Re: 18% auto loan interest rate?
 

I'm trying to borrow 15k; the total car cost should be around ~ 14k+1k depost + 1kTTL&BS

Re: 18% auto loan interest rate?
 

A "good" interest rate won't really save you much money considering the amount of the loan. I wouldn't worry so much about it and just make sure you make your payments ontime so next time you can get a better rate. I'm too lazy to do the math, but even if you dropped down to a 10% interest rate, you will only save a small amount of money over the course of the loan. Make a bigger payment every month and you will make that money back.
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Re: 18% auto loan interest rate?
 

:y

even if you pay 10 or 50 bucks over the payment it makes a huge difference in amount of interest paid, especially if you do it at the begining

Re: 18% auto loan interest rate?
 

15,000 * .18 = 2700
15,000 * .1 = 2000

I guess your right, its just a 700 difference. If I'm calculating it correctly..

Re: 18% auto loan interest rate?
 

Ok, I did the math. ::)

$15k for 5 years at 10% interest is about $318/month and it will cost you $4100 in interest over the course of the loan.

$15k for 5 years at 18% interest is about $380/month and it will cost you $7800 in interest over the course of the loan.

So it will cost you $3700 more in interest($62 more a month) over a 5 year loan.

Now, if you pay an extra $20/month on that $380/month payment you will only pay $7100 in interest, saving you $700.

Pay an extra $70/month bringing your payment to $450/month and you will only pay $5900 in interest, saving you $1900. :o
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Re: 18% auto loan interest rate?
 

I just went to look at some pick ups at my buddies dealership. Used car loan at 60 months was 5.9 %

Re: 18% auto loan interest rate?
 

One of the things I regret was not making bigger payments in the BEGINNING of my current loan. I pay an extra ~$135/month on my loan, but didn't start for about 6 months after the loan started. I could have saved alot more money if I had done that from the beginning. :-\
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Re: 18% auto loan interest rate?
 

Boost your the man... Thanks for the info!

Re: 18% auto loan interest rate?
 

I'm a finance nerd. For some reason I love dealing with numbers and finances and ----. :-[ :1

I really should get a job doing ---- like that because it's actually something I love doing. :l
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Re: 18% auto loan interest rate?
 

That is not how interest is calculated at all. http://www.bankrate.com/brm/popcalc2.asp. I think Dr. Boosts numbers are right.

I'd say if you aren't able to search google and find out how much monthly payments are going to cost you, maybe you shouldn't go into $15k of debt. Get informed, then spend money.

I should also mention in regards to what Dr. Boost said, well if you can afford to pay $132 a month more for the payment, most likely you won't get such ---- financing options. $132 extra a month is approximately 33% of your monthly payment. Very few people can afford to do that. Basically what I'm saying is, wait and get better financing options before you go and spend $15k because otherwise you are spending $4k more because you have ----/no credit. Sounds pretty stupid to me.

Re: 18% auto loan interest rate?
 

She went through Bankruptcy 6 years ago on credit cards/medical bills, around 20k worth. But she did continue to pay off her old car.
Since then she has had no other loans untill now.

Re: 18% auto loan interest rate?
 

18% = fail

I only have about 18 months credit history and about a 705 credit score. That got me a 8.25% rate for my new car, which I thought was kind of shitty... but I guess you gotta start somewhere.

Re: 18% auto loan interest rate?
 

update: I got some new numbers %13 for hsbc when I filed jointly. Also I'm retrying my credit union filing jointly... So at least I'm heading in the correct direction!

Re: 18% auto loan interest rate?
 

i sell used cars at carmax and i see finance decisions all day.
with used cars, the vehicle has a lot to do with the interest rate. no bank want's to finance a 96 ford ranger with 145k miles.
the average interest rate i see on the cars i sell is around 12%
18% on a used vehicle with no credit history depending on the money down is just a little high. i would say 15% would be normal on that situation with no money down.
also you need to look at how much 1% changes your payment. it's not that much. now if you are talking 15% down to 8% that is a big chunk of money.
but i get people complaining about a 8% rate saying they could probably get a 6.9% through their credit union.

these are not 30 year home loans we are talking about. it's a 5 year loan.

but yeah 18% is a little higher then i would expect.

Re: 18% auto loan interest rate?
 

Credit Union > Student Loan > Citibank > other bullshit.

Re: 18% auto loan interest rate?
 

wells fargo ususally is pretty good with financing lower credit scored people

Re: 18% auto loan interest rate?
 

i used to have a personal loan with citi financial, they charged me 19% interest rate on 10K and on a 36 month loan it was 369/MO it ended up being 3500 in interest.

Re: 18% auto loan interest rate?
 

Your "score" looks good, but your credit history SUCKS. Lenders want to see a decent amount of time of payment history to see how well you do in the long run. My credit was PERFECT for the first couple of years. Then they gave my dumbass too much credit and I fucked myself and maxed out my credit cards on Honda parts. :1 Then I got smart and kept my credit clear.....then I bought an expensive truck(stupid)that got repoed, then I got smart AGAIN and am now on my way to rebuilding my credit. They can see my patterns and they know I'm a pretty high risk, but have been doing good for a few years now. Credit is the best thing in the world, but it's also the devil. :3

They dropped it 2%. :-\ They're pretty much expecting you to ---- up. :7 I would avoid HSBC if you have the option. If you want to learn more about credit and loans and who gives what for how much, visit www.creditboards.com . They are the place to go with financing questions.

It's nice to see so many people on here who know what's up with loans and financing. :)
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Re: 18% auto loan interest rate?
 

I just went through a local credit union for my new truck. I purchased a used 2007 isuzu i-370(chevy colorado twin). It was a rental truck and had 7000 miles. The credit union offered me a 4.75% rate for 60 months. It turns out, if you schedule automatic payments with them, they knock off .25%. Our loan for a total of 19,200ish for 60 months was 308 per month. They told me my credit score was 809. I haven't even done anything special. I plan on refinancing in a few more months for a quick boost in the credit score as well.

One secret that most people know is that if you've got only one credit card and it's pretty maxxed, it hurts your credit. If you have the same ammount of money spent ------ over a few different credit cards, it actually boosts your credit a decent ammount. They look at the percentage of money you have financed versus the ammount you could have financed.

I couldn't believe the loan we were able to get. We currently pay an extra 40 a month, but I'm thinking about dumping a bit more on it.

Re: 18% auto loan interest rate?
 

Why the ---- would you refinance a loan that's already at less than 5%?? :S For a used vehicle, that's about as good as it gets.

Credit is weird when it comes to available credit on credit cards. They like to see a low balance(less than 50% of the available credit), but they worry about a high limit card because that means you could go crazy and spend a ---- load of money overnight and sink into major debt. It's hard to say what will look the best as far as credit cards go. A high limit with a low balance means you have the ability to stop yourself from spending your total available credit, but you have the ability to sink into major debt in a hurry while I low limit means you don't have the experience of a high limit to know what you would do with it, BUT you also don't have the means to put yourself into major debt. :l It can work for you or against you. :-\
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Re: 18% auto loan interest rate?
 

"cocaine is a hell of a drug..." Rick James

Re: 18% auto loan interest rate?
 

Where the ---- did I learn to count? :1
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Re: 18% auto loan interest rate?
 

We can even do better than the 13%. Hit up this dude- Matt Cagle- Financial Specialist, Wachovia Bank N.A. 704-590-8251. Tell him birchmore sent u!

Re: 18% auto loan interest rate?
 

I might do that if the credit union doesnt come through..