well, ive been waiting since the day i registered to get my xb. i was told that day i could get financed even though i don't have a beacon score but i have 2 car loans one for 7k and one for 6k. well im supposed to get my xb today and i find out my interest rate is like 12% and they decide to tell me that now. with a 1500 down payment ill be shellin out 340 a month and a grand total of like 22k for a bone stock manual xb. they say it could be lower with a co-signer since scions lovely pure price guarantee doesn't let them shop around for rates or some bs. no one in my household can co-sign because they've all purchased vehicles and what not in the past year and are paying over 500 a month. can i chalk this up to the cost of credit suck it up and buy the car ive been pining for for the past few months and told everyone i know im getting one or buy me a daily beater honda like everyone else?? anyone have any refinancing experience that may help me justify this communist blasphamy (sp?) that toyota is bestowing upon me.

the whole point of getting this car was the price and that's been thrown out the window. need some good advice to get me out of this depression. :cry:

thanks,
ben

I would go to the bank in which you have your other loans with and get pre-approved with them. 12% is BS! ive had friends with a bankrupcy on thier credit and get 17%....shop around!

well i was pretty sure they could rate shop...in fact, at my dealer they have different rates for different banks posted on the wall (well those rates apply to people with a+++ credit score....) but they can still search around....

Jeff

We got 10% because we are "overextended" on our credit but as soon as we payoff a couple things we are going to refinance. You should ask where ever you do your banking what their interest rate would be. They might beat 12% just to get the loan.

Good Luck!

If the 12% is dealer financing, then most of that is profit to them on the "back end" of the deal (which is actually paid on the "front end" of the loan, since most of your payment will be interest, and less will be principal).

I suggest looking for a local credit union. Sometimes, if you open a checking account (they're usually free) and take out a loan that's paid monthly by "ACH" (automatic clearing house) from your account, they'll grant a slight reduction to the interest rate for letting them debit your account automatically. And, they are normally more flexible about your payment date, by letting you specify what day of the month is the best day to make the payment.

Click here (http://www.creditoption.com/creditunions/1tncu.htm) for a list of credit unions in Tennessee that are on the Internet. Most credit unions are now very flexible with regard to member inclusion.

What happened to the cars you have the two other loans for? Can you sell one, or both and then get the xB?

I don't think toyota is upping your rates to make extra cash, their system looks at your credit rating, looks at what you already owe, and unfortunately you fall into a higher credit risk bracket, thus 12%. Capital One offered me a fixed 2.9% cash advance/transfer deal with no fees or other costs, so I paid the bulk of my price using that and cash for the rest. You should definitely look around at other lenders, but if you're already tapped out and are asking for more, I wouldn't expect an awesome rate, sorry.

I got offered a 12.7 through toyota and told em to shove it, went to my credit union got a 4.9 no co-signers 2k down, bone stock 5 spd

Cruiser, holding "back end money" on Scions via rate is forbidden. If the rate is 12% thats it. The pure price solution puts everything up front, no games. also the rates should be posted in the showroom and on the web by zones based on beacon scores, so there should be no surprises. Shopping a credit union, or local bank for a better rate is not a bad idea if you are unhappy with the posted rate.The worst thing that will happen is that everything will be just fine, as you are already approved.

well the first thing you have to understand about credit is that each one is different. i've had people come into my dealership who have great credit, but couldn't get financed at a great rate. one guy had 26 open accounts, never late. but he was maxed out on most of them...meaning he had payments up the yin yang, so we couldn't get him done. remember, you're taking a loan out against a depreciating product. if you decide not to pay later, toyota can repo the car, but they take a huge loss. with scion, we can't shop your rate. it is what it is. we can't make rate in the back end either. i would love to tell you more, but i haven't seen your credit, so i wouldn't be able to tell you why the rate is so high. but i have a feeling that the 2 open autos (you other 2 car payments) have something to do with it.

www.wfsfinancial.com

They have done real good by me over the years and I have not always had the best of credit.

Good luck

Did they tell you your FICO score? By law (Fair Credit Act) you are entitled to see all the documents that the dealer/loan facilities have obtained. This would include your FICO score. I guess beacon score is the same.

www.myfico.com

Yeah, go to a credit union or even your local bank.

Apply on lending tree to see what offers you get. If it is around 4 or 5% walk back in there and show them the printout. I'm sure they would match it if they can, that is if you even want to go with them after they tried to throw you under the short bus...excuse the pun. You have to remember banks pay car dealers to sign loans....more interest more bonus. Good luck with everything

I work @ eloan.com

Fill out the app and check the box that says refer me to other lenders.

HTH

I know how he feels. My XB came in today, but when i went to a credit union today they told me 12% financing, and I guess i cant get a loan over 80% of the total value of the car, i will only be putting down $1000, and I've had credit for 2 years, and worked for 2 years, nothing late. Another place told me I need 20% $ down , and a co-signer, a really great credit co-signer. If i went with 12% I would be paying 334 a month whick equals a grand total to 21,040 for my bone stock xb. What happened to the 14k car? It just doesnt seem right, I've seen other people get less interest with screwed up credit. It just sux! :evil:

jesus... 12%

i got 4.3% and my payments are $226 $1100 in total intrest over 5 years

i woulda walked right away if they tried to crack me for anything over 5.5%

it's up to you, if you really want the car, then do it - personally i'd look around for a better loan, not through the dealership

- Brian

Did they tell you your FICO score? By law (Fair Credit Act) you are entitled to see all the documents that the dealer/loan facilities have obtained. This would include your FICO score. I guess beacon score is the same.


Actually they dont have to give you your fico score unless you live in Calie or Colorado. They do have to discolse to you what type of information they looked at on your credit, ex you have too much debt, you co-signed on too many loans ect, but per federal law they can't give you your fico info because they are not a credit reporting agency.

<---- Wells Fargo Home Equity Loan Processer (really sucky job.)

i got 6.9 threw toyota with no credit, no co-signer, and 1k down. sometimes i wish i had bad credit cause fixing credit is easier than making it....

[quote]
<---- Wells Fargo Home Equity Loan Processer (really sucky job.)

hey wells fargo does my home mortgage.... can you hook me up with anything?? ;)

You should really hit up a credit union in your area. I know.... I do work at one here in Mass. and I'm in charge of most internet loans that come in. It's too bad you're not local, I'd see what I could do for you. PM me for any info.

well apparently it was worth it cuz it's sittin in the driveway. gonna refinance in a few months. they finance solely through toyota for some reason around here, gonna refinance in like 6 months. the other 2 loans were like 2 years ago. guess im gonna take one for the team now to get this damned credit started.

still love the car anyway.:P

If its in the driveway, congrats and you need to change your sig line... :lol: Maybe something like Got a Hold of One...

When I was purchasing my xB they first tired to screw me with a 15% interest rate giving me the excuse that I'm a first time buyer. I do have somewhat of a credit history with my student loan for over 2 years and was never late. No hassle no haggle right? That maybe with the actual price but you can still mess around with the interest rate. In the end, my interest rate came down to 7% but I ended up putting down 6k dollars and my monthly payments is $200. I'm not sure if I got a good deal, but anything was better than the rediculous 15% :shock:

My bank does 2.9% for car loans.

Cruiser, holding "back end money" on Scions via rate is forbidden. If the rate is 12% thats it. The pure price solution puts everything up front, no games. also the rates should be posted in the showroom and on the web by zones based on beacon scores, so there should be no surprises. Shopping a credit union, or local bank for a better rate is not a bad idea if you are unhappy with the posted rate.The worst thing that will happen is that everything will be just fine, as you are already approved.

I'm sure there is a lot that's theoretically forbidden but how is whacking someone with an insanely high interest rate forbidden when the dealership is pushing the financing through their own channels? All salesmen I've encountered (and a number of service writers) are liars; their closers and general sales managers are even bigger liars (read: Confessions of a Car Salesman from Edmonds.com) so please pardon my cynicism and jaded outlook.

There is a local Toyota dealership that puts 18" wheels & tires onto every xB as they roll off the truck. Then they hike the price $2,400 and do not offer stock xB's, claiming these cars are so hot - you can't get them anywhere. I don't want the wheels/ tires they're selling and can get something else for less $$$ (even TRD wheels & tires package costs up to $700 less). How stupid do they think the consumer is??? I do like their facial expressions when I tell them that I finance car dealerships for a living and that I've never seen a dealership with the "terrible" margins they claim. Seriously - a salesman is going to know anything about the financial health of the dealership???

That's why I go onto the dealership with my HP12C and pencil/paper, ready to do battle with the geeks behind the desk.

It sometimes isn't easy to hear this, but your credit score is your responsibility. If its less than 620, your rate through Toyota Financial Services is 12.5%. The dealer does not set this rate and they can't negotiate with the bank over it. If your score is over 700, you get 4.2%. Its that simple.

The dealer is not allowed to "participate" in the rate. That means they can't mark up the rate and pocket the difference like we can on the Toyota line. We get a flat fee from TFS of $250 per contract, no matter what tier its in. We have no incentive to mess with it because we are paid the same no matter what.

There are people in this world who have lower scores than I think they really deserve. Its unfortunate, but the credit reporting system has some odd quirks. This is rare, but it does happen. In those cases, I encourage customers to talk to their credit union. Those institutions usually don't care about the raw score, but only about your actual history.

Cruiser, holding "back end money" on Scions via rate is forbidden. If the rate is 12% thats it. The pure price solution puts everything up front, no games. also the rates should be posted in the showroom and on the web by zones based on beacon scores, so there should be no surprises.

All this may be true, but that doesn't mean that some dealers don't do it. Old habits die hard, particularly when they are profitable.

If the dealer is giving a customer such a poor rate, the alternative is to shop banks and credit unions for a better rate. If this is unsuccessful, it might be a good idea for the buyer not to stretch his credit so far. He should buy something more economical and build up a nest egg for a 2005 or 2006 xB.

All this may be true, but that doesn't mean that some dealers don't do it. Old habits die hard, particularly when they are profitable.



That doesn't work. I had a situation where a customer's score was 694 when I ran it here at the dealership. I contracted them at the correct rate of 5.3%. When Toyota ran them, they were a 702. Don't ask me how, because I don't know, but they had a slightly higher score when Toyota ran it. I didn't even know this had happened until 2 weeks later when Toyota sent the contract back to us. They would not process it becuase it was done at the wrong rate. I had to bring the customer back to recontract at 4.2%. There was no option for me to keep the difference like I could have on a Toyota.

I don't blame you a bit for being skeptical about this part of the process. We've collectively earned a pretty bad reputation. There is much more to financing that most folks realize and that makes it easy to continue old practices. Under the Scion banner, Toyota is trying to change that. Personally, I don't mind.

Yeah, I got gypt then. My credit score was slightly above 700 and they punked me with a 7% interest Rate claiming that I'm a first time buyer. Scary thing was, when we first sat down and I filled out the credit sheet and they came back with a 14% :shock:

Yeah, I got gypt then. My credit score was slightly above 700 and they punked me with a 7% interest Rate claiming that I'm a first time buyer. Scary thing was, when we first sat down and I filled out the credit sheet and they came back with a 14% :shock:

I was at Riverside Toyota today and was basically told they won't sell me an xB that's stock unless they know it's coming off the truck in coming weeks. They weren't interested in putting back the 15" wheels & hubcaps to make a sale. But, when they learned I work in finance for a living, the salesperson turned me over to their fleet guy right away.

It sometimes isn't easy to hear this, but your credit score is your responsibility. If its less than 620, your rate through Toyota Financial Services is 12.5%. The dealer does not set this rate and they can't negotiate with the bank over it. If your score is over 700, you get 4.2%. Its that simple.

The dealer is not allowed to "participate" in the rate. That means they can't mark up the rate and pocket the difference like we can on the Toyota line. We get a flat fee from TFS of $250 per contract, no matter what tier its in. We have no incentive to mess with it because we are paid the same no matter what.

There are people in this world who have lower scores than I think they really deserve. Its unfortunate, but the credit reporting system has some odd quirks. This is rare, but it does happen. In those cases, I encourage customers to talk to their credit union. Those institutions usually don't care about the raw score, but only about your actual history.

I don't think anyone here was debating the responsibility of a credit score. My experience in finance has been that to have a score below 620 (FICO) one is either a new borrower with no prior credit history (or very limited history) or someone that just doesn't pay their bills (and believe it or not, some borrowers have very good, reasonable explanations for their credit and they should be listened to and not judged simply because of the "guidelines" for financing - some folks with lower scores really are good credit risks).

Perhaps you're one of the few finance guys to work by the book, and you should be applauded for that. I get a kick out of the sales guys that assume everyone on the lot has 1) bad credit and 2) can afford $425/ month for 60 months for a car that costs $15,000 and 3) if we have a trade we're either all upside down or too stupid to question the proposed trade-in value of the vehicle and we'll all believe the (sometimes) phoney call to the "wholesale" manager about the "last 3 [insert vehicle here] sold at auction."

Yeah, I got gypt then. My credit score was slightly above 700 and they punked me with a 7% interest Rate claiming that I'm a first time buyer. Scary thing was, when we first sat down and I filled out the credit sheet and they came back with a 14% :shock:

What a crock of poop! I've had first time buyers with only two pieces of credit and have scores over 700 and they automatically get the lowest rate. I even had a person with no score at all who qualified under the college grad program who got hte 4.2%.

No credit score and no college grad program equals 12.5% on Scions. That is NOT the case with Toyotas but it certainly is with Scion.

Correction on rates... Just after I posted that last message, I was handed a new rate sheet. Tier 1 is 4.4%, tier 2 is 5.3%, tier 3 is 10.25% and tier 4 is 12.5%. All of these are for the Washington DC metro area, but most regions will be close.

I work @ eloan.com

Fill out the app and check the box that says refer me to other lenders.

HTH

i was just declined a loan from eloan.com :oops: damn my credit aint that bad. but i didn't check the box to refer me to other lenders because i didnt want a lot of credit checks. was that my mistake?

I cosighned with my dad and got 5.9% and he's still shellin out about 450 a month to pay off his Sequoa ( I don't know if that's how you spell it) s.u.v. 12% is BS. I am a first time buyer.