650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

I went to Toyota dealer yesterday to buy a 2007 camry. After taxes and adding a sunroof the car totalled 23000. The finance manager tried to give me a APR of 15.95% and the car note would be 618. Was heout his rabbit a** mind.

He told me my score was 650, so why was the APR that high and the payment that high. I told him to kiss my a**, and I left. I know he tried to get over.

Agree.....

650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

Yes he did try to get one over on you but that%26#039;s how he gets paid. He gets an approval rate and then marks it up as much as is possible to make a big profit. His pay plan depends on it. It%26#039;s referred to in the industry as backside profit. This differs from the profit made off the price of the car and accessories which is called the frontside profit. He also makes money when he marks up the roadside assistance, the extended warranty, the simonize, the vin etching and etc... All are negotiable but no one will tell you that. When I do the math $23,000 at 15.95% for 60 months is only $558.70 and in order to get 618 the amount financed would have to be $25441. That%26#039;s a 10% difference which to me is a lot of money to just put in someones pocket. The average tier one rate now is about 6.86% so I would assume that you might have to pay more than that since your score (according to him is 650). The average credit score is 675 and tier one is over 720. So let%26#039;s say you have to pay 11% for 60 months on 23000 that is only $500.08 a month which is 20% less than you would have been stuck with if you stayed there.

I just bought a car and you can be sure that I brought my ipaq with excel with me just to be sure his math wasn%26#039;t %26quot;fuzzy%26quot;.

I love the new Camrys but I really love my Yaris. Good luck with the purchase. I%26#039;m pretty sure you can do a lot better.

650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

I%26#039;ll say this, Toyota has AAA credit and probably the lowest capital cost of any auto mfg. In SoCal, there are usually offering 5Y promotions of %26lt;5% APR, but that is for %26quot;outstanding%26quot; credit, which often times means %26gt;700. At 650 though, you certainly are not high-risk. Try calling another Toyota dealership (getting 2nd opinion) and ask to speak with the Finance Manager. Also, talk to your bank and check there rates on automobile loans as well as a Home Equity Line of Credit (if you own a house). Check bankrate.com for comparable rates. You have to find the hungry lender.

650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

Well I am really sorry to tell you that 650 it%26#039;s not exactly a perfect score.... and car notes are for those with perfect credit, which can be considered starting at about 715 (score) up to 810. Still an 15.95 APR for a car is really high, if I were you, I would look around in other banks and ask for pre-approved loans terms and compare them.

650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

good luck finding better

650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

Ya your APR shouldn%26#039;t have been that high with that credit score. Try going to your bank and see what they will do for you.

650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

Since you are looking at a brand new camry go around the finance department and go to your bank or even maybe look at Lending Tree or CitiFinancial. I have a lower credit score than yours and just got refinanced on my car at 11% with CitiFinancial. Go to the dealer or a different dealer with your financing in place. Also look at what the invoice price is on the vehicle and if you really are getting a good deal or not. A lot of the times you can get a new car at or close to invoice.

650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

Auto finance is what I do for a living and there are several things that a lender looks at before deciding weather to loan money on a vehicle and at what rate.

They look at how much you are borrowing in relation to what the vehicle is worth, how long you are borrowing the money for, how old is the vehicle, how many miles are on it, how long have you been at your job/residence and how much money you make a month before taxes.

All of the above can effect your rate on interest. Plus a score of only 650 is not great in the first place.

Scores are made up of the following;

1. Payment history 35%

2. Time in bureau 15%

3. New credit 10%

4. Type of credit used 10%

5. Debt to income ratio 30%

As you can see, 1,2%26amp;5 are the most important as far as score is concerned. I see people every month with score a lot higher then yours that can not get approved period because their score is made up of one credit card with a $500.00 limit paid 15-times and a couple of student loans. Their score is great but they have no qualifying credit to approve them for a car.

650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

Always get pre approved from your bank BEFORE heading out to the dealership if your are pessimistic about car financing through dealerships.

Alot less stress and BS that way. Good luck.

650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

The price of an automobile and financing are flexible...and negotiable...simply tell him u want a better rate...you CAN also seek financing on your own..with your bank, credit union, insurance company, etc...you are NOT required to go thru their finance company.

go to www.myfico.com to see an explanation regarding yoru scores....per FICO 723 is the average score in America..so therefore, you are considered below average and that is why the finance company is charging you such interest.

650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

Doesn%26#039;t should right to me.... sounds like he is marking up the interest rate that you were actually approved for. Go to a different Toyota dealership and tell them your story and ask what rate they think they can get you with that score.

650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

Hey, I feel your pain, but I gotta go with Chris and my man Spifiman on this. I used to be a credit analyst/underwriter and I sold cars as well. 650 is an okay score, but it%26#039;s not going to get you the rate you%26#039;re looking for. Plus it didn%26#039;t help that the car dealer did in fact try to stick it to you when you weren%26#039;t looking since they knew that you weren%26#039;t in a prime position for financing. Did you have a trade or a down payment? Just that alone will knock off a point or two off the financing. Another thing, did you settle for the %26quot;sticker price%26quot;? There%26#039;s a difference between the sticker (MSRP) and the invoice price. You should NEVER pay what%26#039;s on the sticker. Just those things alone will make the difference in what you%26#039;re financing.

Also, shop around at other dealerships before settling. Find out what others are doing. If a dealership is selling more cars than another, at times they may have a little more wiggle room to wheel %26amp; deal than the one that%26#039;s hurting for that next sale. Also, it helps when you go to purchase a car, speak to the SALES MANAGER. Eliminate the middle man and show them that you%26#039;re serious that you%26#039;re serious about buying a car. Let them know that you%26#039;ve shopped around for the car you want and you%26#039;re serious about buying but without the haggling and you%26#039;re willing to come to an agreement that everyone will be happy with. Like I said earlier, it%26#039;s important that you have something to bring to the table like a down payment or a decent trade-in. It%26#039;s like the old saying money talks, you know the rest. Like Spifiman said, you can%26#039;t rely on credit alone. You could have a fairly high score, but it doesn%26#039;t matter much when it%26#039;s a bunch of different credit cards. If you haven%26#039;t financed a car before, the lenders are not sure whether or not you%26#039;re able to handle something like that. Next to a mortgage, a car note is heaviest weighted trade line on an account. One reason for that financial responsibility (insurance) has to be obtained in order to minimize the risk from loss. Another thing is that the length of time is longer to repay them back.

I hate that they tried to do that to you, maybe next time with the help of the answers from me and everyone else, you%26#039;ll be able to get that car you want.

Good luck!

650 credit score with 16% APR? Bulls**t!!!!! Finance Manager?

Try Capital One Auto. I applied online and was approved. My score was 627 with a few cards but no car loan. What may have helped me was the fact that my income/debt ratio was really low (which they surprisingly never asked me to verify). I got a used car with an 8% rate which I know is not the greatest but at least single digit for a first car. They send you a check to take to the car lot and that%26#039;s it.

Good Luck!