I need a cosigner for when i buy a car. I went to a few different dealers and one of them said that if i go with a cosigner, i'll get a better financing rate. Then I went to one last night and they said the cosigner doesn't have anything to do with the rate. Does anyone know who is telling the truth?

Thanks

CX

 

I believe that if you go with a coosigner you will get a better rate only because they will do both yours and his credit check. And in case you're not able to pay, they will make him/her liable for the amount in debt.
However, if you have the $$$ and can get a credit on your own, it's best to build up your credit history although the rate is rediculous.
When I was buying my first car (4 years ago), I didn't have credit history at all.
I put down half of the money and they approved the credit under my name only. Rate was like 12.9%. Horrible.
But I paid it up in advance and it helped me build my credit history faster. Paying off too fast is not good either but paying the 12.9% interest is rediculous.

 

Yea I have a cosigner and i have about half the car saved up, but the dealer said, even if i get a cosigner the rate won't change b/c it is totally based on mine and has nothing to do with the cosigners rate. That just didn't sound right to me.

 

One of two things can happen--it depends on state law, and federal law, and all sorts of things I don't know about US legal crap. Here, when you apply for credit, if you're rejected, and have a cosigner, the bank will give you credit, and a rate inbetween introductory and what your cosigner would get. The point of having a cosigner is to make sure the financing company gets their money (if you default). So yeah, don't know how it'd work for you.

 

What Dealer are you going to first!!! lets start there!

 

I went to coleman subaru and they said that i would get a better rate with the cosigner. I went to open road mazda and they said that the cosigner would not make any difference as far as the interest rate goes.

 

It depends on the finance company, not the dealer.

Depending on your credit, you may need a cosigned just to merely GET the car - irrespective of the interest rate.

Another finance firm may offer you rate A without a cosiger, and then choose to discount it if you get a cosigned (depends on their credit too).

 

do you kno your credit score? cause if you have no credit at all then you'll need a co signer but if you have credit for more than 3 years then you can get a deal with the dealers financial guy (gonna be high intrests but you can re-finance when you build up more credit) you just gotta kno how to talk man cause they will sucker you into a bad deal

 

Let me briefly discuss my credit situations. When I was sixteen my mother, in the hopes to get me good credit, decided to cosign for a credit card for me from capital one. So as time went on I used the credit card. Finally I decided around 19 to get another card and was turned down. It surprised me b/c I thought I had decent credit. So I applied for a few more. By the time I realized that there was an issue with my credit I must have applied for 5 or 6 credit cards. I spent about 6 months to a year sending out the appropriate paper work and dealing with the 3 credit companies. Finally I thought everything was good. I apply and still nothing. I asked several times if i should cancel the one credit card and everyone said that it is the only thing giving me credit and not to. I also called up capital one and they said they'd shift all the credit on the card over to me as opposed to my mother (who was actually getting the credit on the card). I again applied for another credit card. Nada. I called the credit card company back and they would not take my mother off as a guarentor. So i said **** this $hit and cancelled the card. No less than a few weeks later I applied for a macys card and I was approved. I then applied for a fleet credit card and got it. I want to get a master card, but I was denied. I think that was a special kind of card though. The mazda dealer called and said I was approved on my own w/o a cosigner for 5.75. So my credit must not be HORRIBLE. I asked him if I did have a cosigner would it help. He said no. I'm not going to get the car anyways, but I was just curious since I'm buying a car soon and I want to know for the next dealer. Oh yea I'm 99% sure i'm getting the next car I look at.

Be warned. Don't ever sign your kids up for a credit card! Let them do it when they turn 18 on their own!

 

Heh, not good to apply for too many credit cards. Maybe you should have done a research before applying to 20 different companies.
And how hard is it to go to www.equifax.com, pay $25 to see how your credit looks like and not apply for some more cards?
In less than 4 years I've gone from no credit at all (I moved to US) to over 750 points. Credit history is important unless you have ****load of money to pay cash for everything. Make a damn research dude.
To help you out, I suggest starting with equifax and google.com

 

you can also try to use www.lendingtree.com to find out what kinds of finance rate you may get.

it's a free service....the site will contact servel bank and they will offer you the loan. Great tool to shop for low apr

 

I went through equifax, transunion and the other one's website. They would not send me my credit score until i provided them with proof of address, id, etc. Then after you get all that information and send it to them, it takes several weeks for them to get your information and send you it back. Then you have to call them and correct all the information. Don't tell me about doing research, I've done plenty of research! It isn't my fault that they screwed up my whole credit situation. I tried paying the 25 dollars for my credit report and they told me they didn't have any information on me and they needed me to send proof of this and that. It isn't right that capital one says they give you credit and they don't.

 

If they didn't have any information than:
a) something was obviously wrong and you had to fix it ASAP .
That is why some people do credit checks from time to time to see if everything posted to their credit history is actually correct.

b) you had no credit history at all. This one needs no explanation.

I'll look at it from the bright side - you probably have no credit and that's why you're getting what you're getting from the dealers. Just get your mom or dad to buy the car on their name and forget the rediculous APR. Get yourself a secured credit card or one in a clothes store or similar like Macy etc. and build some credit.

There's so much research you could have done. Please don't tell me you did because I can see you didn't. Just follow the friendly advice.

To sum up - with or without a coosigner you'll get a ****ty rate.
Good luck.

 

I'm not going to even argue with you any more sasha. I know I did a great deal of research on this and I at the very least looked online to see if i could get a credit score like you said. I've saved up a **** load of money and I'm going to get my car regardless. I'm not having anyone buy the car for me, I'd rather take the crappy interest rate. I just thought it was strange how one dealer says the cosigner doesn't make a difference for the interest rate and others say it does.

Oh and funny thing. I went to a subaru dealer and they approved me for a 1.9% interest rate with my mother as a cosigner.

 

Remember you can always "refinance" your car and get a better rate once you built up some credit.