Question by Phillip E Hernandez: Do credit unions really have the best rates on car loans? I am in the process of purchasing a car and decided to go to my credit union for the loan b/c i hear that they have the best rates. I had run my credit about a month before and it came back with a mid of a 777. (lucky huh). Any ways after the application process with the credit union (i had to fax my tax info to them three times) they came back and said some new collection had been reported and my mid was 625, they said i was approved at 10.75%, and they will pay 80% of the highest value Kelly Blue Book gives to the used car. That interest seems kinda high to me and it seems i can do better. What do you all think?? P.S. I was surpised at having any collection, and am still pestering them because they haven't even been able to tell me where its from. Thanks. I did pull my credit and got an address and for company name it only says medical. But i yahooed the address and got a phone number and they said they will mail the information. Also Gibbs, yes it is a used car, i just bought my wife a new accord and got a great rate of 6.45. Also this will most likely be a private party sale, or if it is a dealer it will be out of state. AutoSellingMaster, Should i let the out-of-state dealer have a crack at it?? Gibbs you are correct in reference to rate. Having a FICO of 777 would only give me an interest rate of about 9% with the Credit Union on a used car loan. That is a difference of about $ 20/mo on my payment and $ 1000 over the life of the loan, which in my opinion is not a big difference. Thank you for your input. Best answer for Do credit unions really have the best rates on car loans?:
Answer by oklatom
Continue to pester until they give you the information. Anyone using a credit report must give you the name of the company they used, and you have a right to see the report if it contains information which you challenge as not correct. If you are sure you don't have any account in collections, make them prove you do or reduce the interest rate to where it should be.
Answer by Gibbs
I am guessing you are buying a used vehicle judging by the rate. If this is true, that rate really isn't that horrible. Unfortunately, used car rates are averaging about 9% right now. If you had horrible credit, you would probably see a rate of at least 13%. My advice would be to try and buy a car from a dealership who has some finance incentives. For example, Ford was running a special rate of 4.9% on used vehicles a couple of months ago. Shoot for something like that. I would look out of state. Oddly enough, I have gotten better deals when dealing far from home.
Answer by MarJoe
You can get a better rate , shop around good luck
Answer by kapn
10.75%.....holy @hit....thats high...but 625 is really low...try one of those free credit web sites...but be sure to cancel your subscription.....they will give you a number to call....be sure to call or they will nick you 12 bucks a month. You should be able to find out what is going on
Answer by autosellingmaster
It is just a generalization that CU's have the best rates. Sometimes they do and sometimes they do not. As far as this rate it seems a bit high if your credit is as good as you say. Shop around but avoid letting a ton of people run your credit as this will actually lower your score. They do not have to show you your report. They do have to tell you why their decision is what it is and what credit bureau they used that is showing this "collection" . I would just pull all three bureaus again and that way you know. If you pull all three then and nothing is there then go in and tell them they are full of s---. If something is there that is not yours call the company and have it cleared up. Have them fax you a letter stating it is a mistake. If it is yours call the company and get it taken care of. Once taken care of have them fax you a letter stating so. This should help as proof to the CU and they may lower your rate. Also contrary to belief give the dealer a shot he may be able to get a good rate for you as they deal with several banks and sometimes can beat other rates or at least match them.
Answer by Rylie L
Not sure about the credit union. Getting a new car loan is not easy though it can be the easiest way to attain your dream car. There are many players in the car finance industry and for the consumer choosing the bestextra charges such as processing, transaction fees, documentation fees or any other fees. So one has to confirm with the financer as to the other charges that accompanies an auto loan.
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Just as with any type of loan the chances of you getting the loan and how much the interest rate will be is determined by your credit status. If you have a great credit rating then you will have the luxury of being able to pick and choose from the best interest rates. However if your credit rating is poor then the rates of interest will be higher and you might even have to consider going for a bad credit loan. However, whichever type of used car loans you need if you go with a specialist website you will get the best deal possible for your circumstances.
While a specialist car finance website will do all the hard work on your behalf you do have to do a little work yourself in order for them to be able to search for your loan. The biggest factor you will have to decide is of course how much you want to borrow and the terms you want to take the loan over.
Although a specialist will find you the best deals it is then down to you to choose the right one for your circumstances, this is when it does help if you know a little about the ins and outs of used car loans and understand the terms and conditions of the loan. While all the quotes a specialist will find for you will be the cheapest that can be found they will differ and also the terms and conditions of the loan can vary which can include any extra costs that you could have to pay including any early repayment charges.
Never be tempted to rush into choosing between used car loans, the chances are that if you rush into it blindly and take on a loan just on face value without looking over the small print and terms and conditions that you will miss vital information and then be stuck with something that could end up costing more than you had budgeted for.
Always bear in mind that along with used car loans and taking on the responsibility of a car not only will you have to find the money each month to repay the loan but also additional costs that come with the car, of course you will have to insure the car, tax and test your car and pay out to keep the car on the road along with buying fuel. There is a lot more to buying a car than just taking on a loan and you have to make sure that you can afford to take on the responsibility of a car and the loan repayments that go with it. Suggest A Specialist Website Can Get You The Best Used Car Loan Interest Rate Articles
