Hi, I bought a car about a year ago and I make my payments on time every single month. However, the interest rate is 16% and I am struggling to make this payment. My credit is very poor do to a lot of small stupid things like a cell-phone bill a friend ran up that I stupidly let on my plan, old utility bills I paid, but late, ect. I desperately need to lower the interest rate, but can’t find anyone to approve me at a lower rate. Does anyone know of any lenders who might be able to help in Virginia. I have already tried Wells Fargo and Capital One and both turned me down. Thanks!
Auto finance is what I do for a living and I must agree with madman, once a special finance customer drives off the lot the amount of money they owe is more then the vehicle is worth and with only having it a year you are way upside down in your loan.
Your only chance is going to be your own local bank or credit union and you need to be able to put some more cash down so you loan to value will be in line.
Good luck.
If you are a member of a credit union, ask them. They will often be a bit more flexible than a bank, particularly if you have a steady job.
You are out of luck for two reasons.
First, your interest rate reflects your credit history.
Second, as soon as you bought the car, it dropped in price and your loan is now underwater. No lender will refinance the loan without you paying down some of the loan.