Is 17.5% too high

[gophermn]

I recently went looking for a used car today as I need to hand over my lease as it comes up in a few weeks. I am looking at a Chevy Tahoe 2005 with 45K miles at 17.5% at 66 months.
Any thoughts or constructive critism is welcomed. I am tossing the idea between the Tahoe or TrailBlazer. Both are the right size for the family, dog and security from derilicts slamming into the rear of my wife's car totaling it out a she is pregnant (happened 2 weeks ago). Now you can see why I would prefer a tank rather then a car.

Nonetheless, do those rates look ok for someone discharged CH7 in May 2008?
The lender is: http://www.consumerportfolio.com/

According to the dealer, I will hear from RoadLoans and CapitalOne Friday 12/2/09.

[HHM]

For someone just recently out of BK, that is not a bad rate (many people see a rate of 20% or more. )

But what is the price of the car. I am more concerned about the length of the loan and the age of the vehicle...at that interest rate, that is too long of a term IMO.

[Never_Again]

You are financing a 4 year old vehicle for 5 1/2 years. The rate sounds about right for where you are, but I would carefully consider the term. The vehicle will last OK, as the Tahoes are a very good vehicle.

You are probably paying around $14,000 for this vehicle. This would make your payment around $330.00 for 66 months. The total you will pay is $21,780, or $7780 in interest.

If you did this loan for 36 months, the payment would be about $500, or just $170 more. The total that you would pay is 18,000, or $4000 in interest. You may also get a lower rate with the shorter term.

With a rate that high, I would try to finance less money.

[gophermn]

The price of the vehicle is $18950. 66month term with $2500down at 17.5%.
In fact here is the vehicle: http://lbchevy.lutherauto.com/Preown...oryId=26395996

I did some "google" research on CPS (http://www.consumerportfolio.com/) and these folks are not liked too well. Harrassing phone calls, going adfter your 1st born, etc.. Is this something I need to get used to because of my recent CH7 and creditors acting like 3yr olds?

[RedLight]

You can read my thread about the car I just bought 20 days out of my bk. My wife did not feel safe either in a small car so we opted for a Chevy Equinox. We were denied Capital One, but Roadloans approved us for about what you got. But, the dealer got us under the 17% mark which is pretty good. Are you purchasing at a franchising lot? If so, a good finance manager knows exactly who to run your credit through as they have a long list of possible creditors. I would be a little leary of ConsumerPortfolio as I was with RoadLoans.

I have already been in contact with Americredit and they are all extremely professional which makes a huge difference. However, all in all, if you need the car and you are sure that is the one for you, you can always purchase it at 66 months and try to pay a little extra each month. We are applying and extra $50 a month and will act like that is the actual car payment. That way if you have to cut back, you can. At any rate, good luck!!!

[Flamingo]

Another avenue you can try if you have not already...in the past, did you have a paid off, never late loan with GMAC, Ford Credit or any other car dealer related lender? If so, that can work for you for another car loan through them. We were not yet discharged in our Chapter 13, paid off our Chapter 13 early in 4/06 and got a 0%, 4 year loan for a new Saturn through GMAC (their promo rates/offer for that time). I was shocked but we were told it was because we had previous good credit with GMAC (mortgage and car loan) and also good credit prior to filing. Anything is worth a shot if you have not yet checked out that avenue. Best of luck to you...

[StartingOver08]

Another avenue you might consider is getting the same SUV (or similar) for a lot less by getting something a few years older and financing much less.

I am not trying to be critical or judgmental at all. I am in your position. I have to have a vehicle because we filed the motion to surrender mine in the BK. My discharge will be next week (projected discharge). In order to truly learn from this BK, I have decided that everything must be cash or financed to be paid off within 12 months or less in order to truly get a fresh start. I have been actively checking craigslist, autotrader, e-bay motors etc and there are some really exceptional deals right now on SUV's.

Think about not getting into a 66 month payment. That is almost forever!

[gophermn]

Thanks all - and I agree about 66mos being forever. Espercially when I have a $0 car payment right now!!!

Because I didn't reaffirm my car or mortgage, but still kept making the payments in good faith, there is no activity on my credit report which means my credit scores are not that high (i.e low/mid 600's). So that probably won't work for a GMAC loan.

I understand I am probably going to be with Americredit/Roadloans or CPS. Right now with my lease coming due and my wife no longer owning a car because of the accident (still waiting for the Ins check), I need to get something and soon!

Anyway, answer me this? Despite my credit history do I still have room to bargain and ask the dealership to drop the price? Afterall, they know I am pre-approved. This SUV has been on the lot for a few months and looking at NADA the trade in vs retail is close to what they are asking.

[StartingOver08]

Thanks all - and I agree about 66mos being forever. Espercially when I have a $0 car payment right now!!!...

Anyway, answer me this? Despite my credit history do I still have room to bargain and ask the dealership to drop the price? Afterall, they know I am pre-approved. This SUV has been on the lot for a few months and looking at NADA the trade in vs retail is close to what they are asking.

Yes you can negotiate. In fact in this website there is a sticky all about negotiating for a new or used vehicle. And it is excellent. Don't let the car dealer make you feel so bad you pay full price. Read the sticky here in BKForum today.

[HHM]

Well, for a Tahoe, in this market, that price seems high. But I agree with the other comments, try to get a shorter term and put more money down.

[gophermn]

I will read the sticky on negotiating! The dealership just called and it looks like Americredit will pick up the loan at 17.0% for 72 months. After reading this post, I will indeed 1. Negotiate the price and 2. put a few xtra down and shorten the term to something like 54.

Thanks all for the awesome support!

[relief13035]

Negotiate and keep on negotiating until you get what fits in your financial status. Try not to get caught up in the confusing tactics that dealerships are trained in to "make the sale". You want your fresh start to be a good one!