Finance Questions

Question: Toyota Auto Finance Rate Loan APR?

hi,
i'm looking to purchase an '07 Yaris Hatchback, but the rate I was offered by Toyota Finance is 14%. is this a reasonable rate for a credit score of 630?
i know that i could try capital one, etc. but i dont want to mark my credit down even more by applying to all these loans.
fyi, the last time i bought a car from Toyota they gave me 4.9% financing, but they said that was because of their special Low APR incentive.
If anyone has similar credit and got good APR on their auto loans, I would appreciate any feedback.
Also, if you have purchased a Yaris recently, what was your APR and credit score?

Thank you in advance!

Answer: Auto Finance is what I do for a living and there are several things that could be in play in your scenario.

If you are trading in your first car and still own a balance, you are most likely upside down (you owe more than it's worth) since negative equity can not be shown on most contracts, the amount that you owe over what the trade is worth is added to the sales price of the new vehicle raising your LTV (loan to value) this effects your rate.

The other thing that might have happened is there may have been late payments on your first account. I only say this because a 630 score for someone that has paid as agreed on their car loan is not a good score.

Also you may be borrowing the money for a longer term, this also effects rate. Add all of this to the fact that the manufacturers are not offering any where near the rates they were a few years ago and there you have it.

You might try another dealer, as one of the other posters said dealers mark up rates to make whats called reserve profit.

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