Thread: Auto Loans and cosigner

Hi! I am new to this board and am finding out alot of great information here. I started disputing items on my credit reports 2 months ago. I am awaiting results from my second dispute, but have had quite a few deletions so far. I even had a bankruptcy deleted from Experian. Unfortunatel my score seems to have dropped some points probably due to the fact that my husband has paid the mortgage late the past couple of months. Very hard to clean up your credit when someone else is attached to your credit life!! Anyway, I am desparate need of a new car. I have had to put out too much money the past couple of months repairing the one I have and alot more work needs to be done on it. After doing some searches on auto loans on this site, I am afraid to even go looking for a car. My credit scores currently range 520 to 559. I have talked to my Mother and she will add me as an authorized user on a few of her accounts. I am hoping that will help to improve my score some.

Anyway, my question is this: with such low scores will I be able to get a decent auto loan with a cosigner that has a good credit score? I have been looking at a Honda Pilot and plan to put down $10,000 on it. I am hoping the combination of a cosigner, plus a large down payment will help me. Or should I try to get my credit cleared up some more? I don't want a used car, a car isn't even an option since I have 4 kids. The current van I have I bought as used and just don't want to go there again. In the meantime, I am off to read some more to see exactly how to proceed to get some more items off my report.

Thanks for any help or info you can give me.

bump

This makes absolutely no sense. Your FICO score doesn't even qualify for subprime status, and you are looking at a Honda Pilot because you are 'desperate for a new car'. You should be looking in the classifieds for something used, not even contemplating stepping foot in any dealership.

You will not qualify for financing with a 560 Fico score. You probably will not qualify with a cosigner on the loan unless your FICO is around 600. Any loan that you do manage to get will be on a used car (very limited selection by the dealer) for some outrageous price (probably 20% over kelly blue book value) at an APR of 15 - 20%. You can forget about a new Honda Pilot for the time being, Honda Financial will not approve you unless your FICO is 700 or over.

You cannot qualify for any prime rate financing from the dealer until your FICO is at or above 680..

With your credit situation, the only vehicle that you should purchase is one that you can pay cash for. If you can't pay cash, you can't afford it, period.

The worst mistake you can make is purchasing a vehicle (new or used) if you have less than perfect credit from a car dealer.

You will not qualify for a new vehicle. You won't qualify to test drive the car either, because most dealers insist on prequalifying you prior to a test drive.

breana902~~DON'T BELIEVE EVERYTHING YOU READ HERE...

IN THE REAL WORLD...you DON'T have to "APPLY" AND QUALIFY for a TEST DRIVE...

With $10,000 down and a CO-SIGNER...it MIGHT fly...

Why not check for "NEWER" used cars first...

Originally posted by GEORGE
DON'T BELIEVE EVERYTHING YOU READ HERE...

IN THE REAL WORLD...you DON'T have to "APPLY" AND QUALIFY for a TEST DRIVE...

Sure whatever you say...

I will never believe the crap about people paying just 'a couple hundred dollars' over invoice. They will not do this unless you have prime credit & are a sure approval.

Unless you are willing to pay cash, where you will pay full: Base MSRP + optional equipement + fees (and can document that you have the cash), you must sign their credit application & be prequalified prior to any test drive or any negotiating. Most won't accept financing from a credit union, or any other financial arrangement not originated thru the dealers F&I dept.
There are too many customers for the available cars. They aren't going to waste their time with someone (such as the OP) who doesn't have a chance in h8ll of being approved.

Originally posted by GEORGE
breana902~~DON'T BELIEVE EVERYTHING YOU READ HERE...

IN THE REAL WORLD...you DON'T have to "APPLY" AND QUALIFY for a TEST DRIVE...

With $10,000 down and a CO-SIGNER...it MIGHT fly...

Why not check for "NEWER" used cars first...

Doesn't matter. With her credit situation she will be soaked on both ends.

A larger down payment = higher or (over MSRP) total vehicle price.

Her credit situation = 16.9% (minimum) APR on a used vehicle. 550 FICO will not fly for new.

I rarely post here anymore, but I still read and keep in touch. While I do believe it is smarter to buy a one or two year old used car, it is a personal preference.

I purchased a 13 month old 2002 BMW Z-3 in January for $27,100. It was certified pre-owned on top of that, so I got a 6yr/100k mile warranty instead of 4yr/50k. The shocker was, I got it off Ebay. More and more dealers are selling their inventory on Ebay. This makes super deals for consumers. I basically bought my car for full price of $36,500 and let someone driver it for a year and they paid me $10,000 and gave me an extended warranty!

NickL, generalizations are only correct about 80% of the time. Right now, there is a dealer in Independence, MO that is selling five Pilots for anywhere from $1,480 to $4,990 UNDER MSRP! They also state in their ad that they do financing.

http://cgi.ebay.com/ebaymotors/ws/eB...&category=6260

http://cgi.ebay.com/ebaymotors/ws/eB...&category=6260

http://cgi.ebay.com/ebaymotors/ws/eB...&category=6260

http://cgi.ebay.com/ebaymotors/ws/eB...&category=6260

http://cgi.ebay.com/ebaymotors/ws/eB...&category=6260

There is also a used 2003 in Miami with 18k in mileage.

http://cgi.ebay.com/ebaymotors/ws/eB...&category=6260

And another one in Clearwater, FL.

http://cgi.ebay.com/ebaymotors/ws/eB...&category=6260

It all depends on how far you want to travel to save some cash. In this crappy economy, I have no doubt they will sell you a Pilot with $10,000 down and a co-signer. The "newness" of the car and it's over MSRP selling price is falling away. I just helped a friend get a 2002 Acura RSX type S from a dealer who gave him a rate of 13.9%. The catch is he had a bankruptcy two years ago and his score was 590!

It can be done, breana902. Hell, you're local dealer might surprise you. Don't let generalizations keep you down, there is an exception to every rule. If it's what you want, go for it. Just be sure and keep it for at least 4-5 years to recoup some of the money. Honda makes a very reliable car.

I'm moving from Atlanta to Coconut Creek, Fl in 5 days!!! Then I can enjoy my Z-3 even more!

Originally posted by GEORGE
breana902~~DON'T BELIEVE EVERYTHING YOU READ HERE...

IN THE REAL WORLD...you DON'T have to "APPLY" AND QUALIFY for a TEST DRIVE...

With $10,000 down and a CO-SIGNER...it MIGHT fly...

Why not check for "NEWER" used cars first...

Thanks George - I have seen Nicks' posts in the other auto loan postings, so I know what his opinion is. What I have now was a Newer used car. I was looking at the Honda because it seats 8 and is 4 wheel drive. Since I drive all day for work, that is what I need in the bad weather. If I have to I will look at the newer used, but figure it can't hurt to try for the Honda. I am one of those people that believe anything is possible if you work and try hard enough for it. My original plan was to have this vehicle by now until I realized what my credit looked like. So - I am trying to work on that to see where I can get my score before I go looking. You never know!

Also, my friend with the RSX-S put NOTHING down except the $1,000 they gave for his trade-in and had NO COSIGNER!

Originally posted by NickL
This makes absolutely no sense. Your FICO score doesn't even qualify for subprime status, and you are looking at a Honda Pilot because you are 'desperate for a new car'. You should be looking in the classifieds for something used, not even contemplating stepping foot in any dealership.

You will not qualify for financing with a 560 Fico score. You probably will not qualify with a cosigner on the loan unless your FICO is around 600.

Nick, such a pessimist! I have read the other posts here on auto loans and people have been approved with low scores. If you read my entire post you will realize that I am trying to improve my score before I talk to anyone about financing. I have in writing a price quote - guaranteed price quote, for the Pilot. There is no mention in the quote about credit affecting the price of the car. Yes, they could turn me down based on a credit score, but they can't agree to sell me the car for more just because my score is lower. As far as buying something for cash - that is just nuts. I really don't know many people who buy cars without financing them.

"You will not qualify for a new vehicle. You won't qualify to test drive the car either, because most dealers insist on prequalifying you prior to a test drive"

Yes - I will qualify - it is just a matter of where and what interest rate. Let me know where to contact you when I do - perhaps I can send you there.