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Hi all, I am new to this forum. I am looking to get an Accord Sport manual. Just wanted to know if 9% apr is ok for someone with bad credit like mine :( I am planning to refinance it after my credit score goes up. I was quoted $20,150 before tax by my dealer. I think it a good deal, but I am sure you guys know more. Please let me know
Thanks
 

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I never shopped for the Sport, so don't know if it's a great deal pricewise, but assuming there are no crazy fees (you never mentioned them) added to the cost of the vehicle, it sounds like a good price!

The interest rate they gave you, however, is absolutely HORRENDOUS! Ask them to lower the rate or get a cosigner to lower the rate. DO NOT buy a car with such high interest rate! You will be paying for a lot of interest over the next few years!
 

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The Shadow displaced Bug Magnet
2020 Honda Accord Touring 2.0T in Modern Steel Metallic
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I am planning to refinance it after my credit score goes up.

The idea that one can reduce their interest rate on a loan is never a good strategy.

What if your score doesn't go up... or doesn't go up fast enough ? Or maybe the whole economy tanks and 9% becomes the fantastic offer by Honda for those with 800 scores?

You got a lot riding on the assumption of a maybe.

Why don't you wait 6 months, make yourself a more attractive loan applicant or ask family etc to co-sign the loan.
 

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Get a copy of your credit report.It's free from all 3 agencies by law https://www.annualcreditreport.com/index.action

Pay the small fee (from at least one) to get your score,then see if the dealer is overcharging you on the rate(based on your score) or if you can do better.I've bought cars before where they quoted me a rate, I found a better rate,they matched it instantly.

Good luck,
Pete
 

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Hi all, I am new to this forum. I am looking to get an Accord Sport manual. Just wanted to know if 9% apr is ok for someone with bad credit like mine :( I am planning to refinance it after my credit score goes up. I was quoted $20,150 before tax by my dealer. I think it a good deal, but I am sure you guys know more. Please let me know
Thanks
I monitor my family's credit scores constantly. When you take on a new loan, your credit score goes down as a result. Ours took an initial hit of 40-50 points when the account was opened, and this was just for a lease. The score will improve once you establish regular payments, but for us, it probably will be a 6-12 month period until the score is back to what it was pre-loan. I'm not sure if this is typical, but if it is, you will be looking at a minimum of 1 yr (and probably a lot more) before it will be to your advantage to do a refi.
 

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9% would be a good rate for someone with a 575 credit score. Things happen in life that are out of our control so if your job is secure and you can afford the payment then buying the car will benefit your credit score in the long run. As others have said if you can get a co signer you can improve the rate now and improve your credit score in the long run. My daughter was diagnosed with scoliosis two years ago and it progressed very quickly. She had to have back surgery last Nov where they inserted two rods and 17 screws. Cost me $158,000 after it was said and done but with insurance I was responsible for 25%. So $39,500 later I had no choice but to let a few credit cards go unpaid to cover the doctor bills. And to make matters worse my wife had to leave her job to take care of my daughter for 4 months. We went from a two income family to one income and a 40k doctor bill. This my friend is life happening...lol..

If you finance $20,500 for 5 years at 9% you will pay $5,000 in interest and your payment would be $425 a month. If you have no one that would sign as a co-signer and you can comfortably make the payment then you really have no other choice. You can save your money and buy a beater car for $5000 but who's to say that car will last 5 years. You could end up buying two beater cars over the same 5 years and would have paid 40% of the cost of a new car.. In the end only you can make the decision, just be truthful with your self.
 

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Day Walker
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Hi all, I am new to this forum. I am looking to get an Accord Sport manual. Just wanted to know if 9% apr is ok for someone with bad credit like mine :( I am planning to refinance it after my credit score goes up. I was quoted $20,150 before tax by my dealer. I think it a good deal, but I am sure you guys know more. Please let me know
Thanks
It is all about perspective my friend. If your credit truly is bad, then 9% is outstanding. I know people to this day with 16 and up 22% interest rates and their credit truly stinks. If your credit score is anywhere in the 500's that is an awesome interest rate. If it is say up to about 675, it's still not too bad. If you are 676 or greater, I recommend shopping around for loans to see what other deals you may be able to get. Just don't go with the first offer. You will take a 2 to 3 point hit for the inquiries, but they know your not about to buy three or four cars. The key however is to know where you stand (get your actual score) so you can make the deal, and not the dealership or the finance company. My credit Union has financed the last 5 vehicles I have purchased so I am essentially a cash customer to the dealer. Only time I have ever let the dealerships credit division finance me is when I took a 0% deal for my truck. The credit unions best offer was 1.9% (hey I understand they have to make money too), but hey nothing like free financing.
 

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Wow! That's a lot, but depending on your credit score you may not get better. I would try to get in with a credit union and get cheaper rates. I have a 1.29% Interest rate and my credit isn't perfect. You have to be willing to walk away and don't have many people run your credit.
 

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if you can afford and want the car, I'd say go for it (but try to get a decent deal on the car - I got $2000 of MSRP on my new Accord EX-L, not the greatest but I got them to pay off my current loan on my trade in, so it wasn't a bad deal).

OR as stated above, shop around a bit too to get the best rate, hopefully <9%.

Then try to improve your scores, pay down some revolving credit card balances to 20% of your open to buy, but keep card accounts open, among other things. After a year, try to get a refinance on your car loan. You may end up with a similar payment for a shorter time but at a lower rate, that'll save you money. Keep up with all your payments and next time you may get the 0.9% rate that I got this time.

I paid something like 19% interest on my first self-financed (used VW Scirocco) car ... but that was in 1980 when the rates were astronomical.
 

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Refinancing on a relatively short loan (never go more than 4 years on a car loan) is never a good strategy. You pay the bulk of the interest in the first year anyway and then when you refinance you start all over paying more interest than principal.
 

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Join a credit union, you will get a better rate.
 

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I never shopped for the Sport, so don't know if it's a great deal pricewise, but assuming there are no crazy fees (you never mentioned them) added to the cost of the vehicle, it sounds like a good price!

The interest rate they gave you, however, is absolutely HORRENDOUS! Ask them to lower the rate or get a cosigner to lower the rate. DO NOT buy a car with such high interest rate! You will be paying for a lot of interest over the next few years!


Horrendous??? He said he has bad credit.
Some banks will want to charge him 21%.
 

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Hold the phone!

A. These crazy "1st post" threads always make me think troll. But that aside….
B. Dealer cost for a Sport 6MT is $22,662, before doc fees. Even if the dealer was willing to give up his $500 kickback, the best price would be around $22,100 plus doc fees.
C. Therefore that price of $20,150 is either bullcrap (as in troll) or he is buying a USED car and omitted that slight fact.
D. If the car is used, who knows what the real deal may be (year, mileage, condition, certified, loan-term?). 9% on a used car may be okay.
 

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True car lists 3 dealers in my area willing to sell a 2015 Sport 6MT for $20,910, so that is not to far off.
 
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