QuestionI starting financing my car in July. At that point and time, my credit wasnt good at all. However I really needed a car, and was willing to deal with the high interest rate. I wanted to start building my credit, as well as purchasing a car I really wanted. Unfortunately, the lowest APR I was offered was around 20(very high)At that rate I'll be paying double the amount of the loan by the time the car is fully paid off. The dealer advised me to make my payments on time every month, then come back and refinance to lower my rates. Is there a certain amount of time I should wait? Some say as little as 6 months, all the way to a year. Refinancing is me starting a whole new contract. So i dont want to wait too long, but at the same time, I want my rates to be way lower, which would be recommended after my credit score gets better. Which of course takes time. Im totally open to any suggestions. Thanks in advance.
AnswerHi Helena
Yes its not fun for consumers making payments on something like a Cavalier when they could be driving a Cadillac for same payments had they not had a blemished credit rating.
As for the dealer telling you make payments on time and come back in 6 months to a year for a better rate, that is an outright lie and sales pitch, what really happens is with the high interest you will more than likely be so far up-side down with your current purchase that you cant trade, and down the road stuck with a vehicle thats worthless and still owe thousands, i have seen this way to many times.
Have you looked at your credit report ?, is there something on there that should not be ?.or you feel should be deleated
With high rates you must buy the least expensive car that will fit your needs,Shop for rates at more than one dealer and at same time banks and credit unions.
Go to my website http://www.usedcartips.org/
navigate to I GOT POOR CREDIT it will give you some idea what your working with. should you have further questions I will be here for you
Regards
Ray
