little help with financing and credit

hello all newbie here,
im looking to purchase hopefully an 08-09 4door tacoma 4x4 6speed this summer. probably sr5,would love trd,but a little bit more.
i havent owned a new vehicle in a while, my credit is about 650, any ideas what interest rates i might be looking at,and financing about 28grand, what type of payments might i be looking at? any help would be greatly appreciated.

 

When I bought my 08 TRD Sport DC 4x4 last month, my score was 707 and I got 5.65% through my credit union. You're probably looking at an interest rate between 7% and 8% with your score. Your monthly payment with a $28K loan would be as follows for 5 years:

7% = $554.43
8% = $567.74

The interest rate really depends on what bank you go to. Generally, in my experience, credit unions give better interest rates, especially if you have an account with them. If possible, try to get with an auto broker (I got $1400 below dealer invoice) or haggle as heck with the dealership. If you're patient, maybe you can wait until the end of August when the '09s are coming out and get a great deal on an '08 - you may not have the greatest selection, but you never know.

Just my 2 1/2 cents...hope it helps some.

 

Yeah I agree with Banchi im a loan officer at a Credit Union and with a 650 Score your looking at about 6.5%-7% Int. It also depends on the term you want obviously the longer the term the smaller the payments

So for:
60 months-548.00

72 months-471.00

84 months-416.00 all at 6.5 % int. Hope this helps and good luck!

 

First of all, why would you pay $28K for an SR5 4X4 m/t? I got mine for $23K (invoice), sans the 4X4 but add the a/t so it's a virtual wash. Go to www.edmunds.com, punch in the info, and it will give you the invoice price. DO NOT pay over invoice, especially now with sales lagging. Be prepared to walk out until they give you exactly what you want (within reason).

Second, NEVER finance a car for more than 60 months, if even that. Also, put down a down payment and get your amount financed as close too $20K as you can. $20K financed would put you around $400/month, give or take (it's roughly about $20 monthly payment for every $1000 you finance).

Third, what the guys above said is correct. Check out www.bankrate.com for an amortization table and other info.

 

welcome to tw neighbor. thats some great advice there.

 

One other thing, send out emails to 3 or 4 dealerships in your area telling them exactly what you want and play them against each other: "Dealer A offered $X amount. Can you beat that?". Not only will it save you haggling time, but you'll get the best price.

 

The best situation to be in is not needing to buy right away. You have the leverage and they need you more than you need them. Taco's are hot, but the whole industry is dying a slow death. If you go to a mega dealer, you may find that they just want to move trucks and will work with you. I have had great success at large dealers. They wont haggle over $500, they want the deal done and move on to the next guy.

Good luck and hold your ground!

 

thanks guys alot of great info, i wasnt sure if i could even get a loan with 650 credit, and i have a car that im going to trade in that im upside down on,about 4-5 grand depending on who gives me the best deal for trade in.

one thing how does the 4.0 sound when it starts up? lol, i have a 3.4 and i love the sound....i havent even been in a new one yet, dont care either i already know that id love it

 

I have a credit rating of 688 and was able to get a loan thru toyota finance for 7.25%

Tried a credit union and got denied for not having enough credit history. My only credit was my previous truck I bought back in 98 and a couple of credit cards. Its the same ole story of you gotta have credit to get credit.

Apparently it woulda been better had I had a foreclosure or bankruptcy

 

You can use this opportunity to build your credit also for bigger purchases next time, which is what I am doing. Also if you were in the military, use their credit unions...they even offer better rates than general credit unions.

Like others said before...I couldn't imagine owing 28K for a truck w/ insurance/gas/cost of living...either bring down the loan with bigger down payment or lesser the truck. But do stick with a beauty that is Taco .

 

I got 7.75% from toyota financial with a 650 score. $450/month, 60 months. 22K loan.

 

650 and u get 7.75?

man I have 780 credit score and they wanted to give me 7.25%

toyota financing sucks!!!

 

^Yes, they do. Credit unions FTW.

Freirefishing, I'm going to change my advice: if you're that upside down on your current truck and there's nothing wrong with it, don't buy a new one. Run what you have until it dies or you get back in black (Yes, I'm a long time AC/DC fan).

 

I have to agree. Don't buy now. Wait until you are not so upside down. You are buying a new vehicle in itself. That means you are going to take a huge hit the moment you drive it off the lot. On TOP of that you are 5-6k upside down? Being in control of your finances is much cooler than owning a new truck.

 

Hmm - I bought a 4x4 TRD Sport Access Cab last month, had pre-approved financing through my bank and told the dealer I would only use Toyota financing if they could beat my interest rate. They asked what it was - I laughed and said you tell me what you can do and then I'll tell you what my rate was (I think the sales people think we're all stupid or something!).

Anyway, they came back with 6.14% and my pre-approved rate was 6.64%.... Oh, my credit score was only 686 so I went with Toyota.. The interest rate is always negotiable when you go shopping.

 

Dave Ramsey would be proud.

 

I'd suggest what others have said about waiting rather than stretching your dollar for a brand spanking newbie ($28k). Financial institutions loan money to make money. Some just make it more attractive than others & Some don't give two hoots too. Can you say Upside down loans anybody?

In my experience, I can choose to change my conditions to fit my choices or change my choices to fit my conditions. I have always less headache when I do the latter.

I will say tho that Toyota Financial Services isn't always terrible. I got great financing from them when I bought my holdover Tacoma. They were offering 0% plus discounts to move leftover inventory. Yeah my choices were limited but I practiced changing my choices to meet my conditions. I had a budget due to my upcoming retirement from the service. I had saved but couldn't pass up TFS's offer plus my credit union couldn't match it & told me so.

Sooo, since you asked, wait, drive your current ride til it can't ride no mo