HSBC is a secondary lender. I have been in the car business for 5 years and I can tell you that rate isn't that bad if you are in fact a first time buyer. Your parents being self employed has nothing to do with rate. The FICO score is what determines rate, and rate equals risk. The good thing is that you got approved.
The draw back is if you take the car and then attempt to refi it with a credit union, you will not get as good of a rate since it will now be considered a "used" car.

I hear a lot of members saying the rate is too high but we know nothing of your score of history. If you are comfortable making the payments, then go for it.

Based on $30K at 72 months with 11.89% your payment equals 584.79.

 

Regardless of your Fico score, that rate is too high! Just because you can get a loan for something doesn't mean its a good idea! You would be much better off to hold off a year and use the money you would be spending on the car and car payments to get your Fico score back in shape and then buy (and then you wont eat as much depreciation either).

 

That's just too much interest to be paying for something, unless you have money to throw away(which is exactly what you'd be doing). I suggest saving up as much money as you can for a down payment to help lessen the interest. Or get a cheaper car.

 

I was told "you have a great credit score, I can get you the lowest rate available"...then he offered me 10%...sob

 

Did they tell you what your FICO is? If its 700+ then you should get a better rate than that. Interest rates have gone up in the last few months, but 10% still isn't a good rate.

 

NO!, I know, I meant to ask, was kind of overwhelmed. But I also knew that 10% was not the best. If he would have said between 6 and 8 percent we could have worked. I told him that, he tried to tell me that that was the best rate he could offer. I'll find a way to get one, and I won't be paying 10% interest...

 

8% might be decent given the recent rate hike. Sucks doesn't it? FWIW my credit union is offering 6.49% for up to 72 months (if you have an account). Otherwise add 0.75%. Thats almost a full percent higher than what they offered in feb.

 

12% is outrageous......

I belong to Spectrum Federal Credit Union in San Francisco. I was approved for a 4.99% USED auto loan and the interest would have been 5.99%, at the time of my application, for a NEW auto loan.

I had to be referred by a current member in order to join. My dad was a member and highly recommended I open an account with them which I did. Couldn't be happier. Not all credit unions require referrals for memberships but make sure you do your research just in case.

 

well i haven't bought the car yet and i after reviewing everything including financial and long-term wise effects... i probably won't get it.

but if it turns out i do have a chance, i will try again through a credit union.

but i don't understand why i couldn't get a decent % and/or more approved loans with my parents (my mom specifically). i thought they had excellent credit. i also have a 714 rating but no built credit history.

thanks for the help though guys. i appreciate it.