Carson Toyota interest rate 12.70%

on 2/15, I financed through our credit union at 5.0% for 60 months.

I could have worked it through the dealership for (I recall 6.5%). The dealer simply partners with some institution (GMAC, some Bank on the corner, etc) for their auto loans. Our dealer said they are currently getting their best financing through ABCXYZ Bank and right now they are offering 6.5%.

Other than credit cards, I haven't heard of 12% in a long time. Did Carter win the whitehouse while I wasn't looking?

 

I just got car loan offers for $20000.00 for 48 mo.

E-LOAN 6.25%

Capitol One (thru costco) 6.25%

Teachers Federal Credit union 5.24% ( with auto deposit and auto pay)

Toyota Dealer at first offered me 7.25% .
When I said I had a offer of 5% from a credit union he offered me 5.8% .



alot depends on your credit score, I have excellent credit.


Hope this helps

 

If you're paying that much (12.7%), shame on you for not doing your homework.
Right now you can get 5.6% - 6.2% depending on the time period:
interest.com
capitolone.com
eloan.com



(edited for clarification)

 

A 600 credit score is somewhere between pretty bad and awful. I'm afraid I wouldn't ask why 12%, but why they are offering you credit at all.

If a CU knows you, check them out first. Maybe you will get 'lucky'.

Are not you the guy from a couple weeks ago who ?signed a dumbass deal with Carson, and was going to try to get out of it ?? With credit like yours, allowing Carson to repossess the car is an idea worth considering.

Forget about the Prius. Get your finances into some semblance of decent shape. May I suggest a bicycle, the bus, and cash as a start ?

 

It is called "risk-based pricing". The better your credit risk, the better your rate. Most of low rates quoted above are for Tier 1 or 2 credit, basically scores above 700.

If you are in the 600s, the 12% rate is accurate. And all of the low rate places above will not offer you credit, don't bother.

 

Agreed, as someone who works in finance (although my organization will not finance most loans if you are less than 600) the banks that will do charge a premium for that service many I have seen as of late are in the 12-18% range. A friend of mine with poor credit is being charged 16% although not happy he used it as an eye opening experience to improve his credit... by the end of next year when it is paid off he should be back in tier 1-2 and can get one of the nice rates people have been kind enough to list here.

 

Here's an interesting site I found that has a calculator that gives you the spread of interest rates based on the your credit score, the type of loan, and the state. I've got the link configured for a 5 year auto loan in California.

FICO score interest rate calculator

 

If I were you, I'd threaten to finance it through a third party. When I financed my Prius, that's exactly what I did, and I got Toyota to give me a 2.9% finance rate.

 

Was the 2.9% rate recent ? was it on a prius ? fixed ?

Unless the car manufacture subsidizes the interest rate (like a rebate) the rates are going to be fair market rates, depending on your credit "worthiness"

Don't forget that the rates went up in the last couple of months.

I was quoted 6.9% from the dealer and then i went to my local credit union and got 4.4% fixed rate for 60 months.

I would not buy a 20,000$ car with 12% interest. That's insane.

 

I take it the attorney couldn't help much to get the sale priced lowered after you signed the papers. If you think that interest rate is too high, go to the bank and get a loan at a lower rate and pay off the 12% loan. If you can't get a better loan, you'll know why Carson charged so much. You should do your research BEFORE you sign agreements. You should also do whatever it takes to get your finances straighten out.

 

I would strongly suggest that if you do not yet have the car - back out of the deal. With a 600 score credit rating you can't afford a new car let alone a new Prius.

If you need transportation and must buy a car consider getting a 10 yr old Corolla cheap that is in good running order ( or keep the car you have now). Improve your credit score first and start putting away a little each month for a new Prius - a year or two down the road.

Don't let this dealer sell you a car you can't afford at this particular time in your life. Do you really want to pay 12% interest and have the car repro'd 6 months down the road?

Springtime

 

It was a fixed rate, on a Prius, for 5 years.

I did pay it off within about 6 months tho. The only reason I financed was to get a better deal on the trade in (they figured the backend profit on the loan would offset the frontend loss).

 

That interest rate is not based on the car, it's based on *you*. You should not buy any new car until your financial life is in better shape. If you buy a new car you will be robbing yourself. If you pay an interest rate that high you will be robbing yourself.

 

I think that with a credit score of 600 you were lucky to get 12%, it should have been much higher. Honestly, you can expect 12% or higher even if you buy a used car.

 

The interest rate is based on your credit and the amount you want to borrow, not the type of car you buy.
If you have bad or questionable credit, the rate will reflect that.
In my experience, a dealer usually charges a higher interest rate, regardless of your credit. Check other sources, even your local bank may be willing to give you a better rate.

Basically, I'm just reiterating what everyone else is saying.

Good luck!