Help-Need Auto Loan w/Low 500 score

Discussion in 'Credit Talk' started by Ringo41, May 17, 2004.

  1. Ringo41

    Ringo41 Member

    I will need to purchase a car here in the next month or so as my old one is about to die. I have had credit problems but am in the process of trying to clean up.

    Currently my score shows around 540 on Privacyguard but I am going to pull my actual scores from my FICO.com this week.

    I have a very high income now, I have worked at my current employer for 7+ years, and I do have auto loan history that has been excellent - with my last loan being paid off tomorrow. It's just the rest of my credit that's bad - mostly older derogs but a few newer ones.

    I have been reading posts on this subject and have heard that having good auto credit history may help me.

    Any advice here would be appreciated. I would like to figure out what approach I should take:

    1. Should I apply online?
    2. Do I stand a better chance of just going to the dealer?
    3. Should I try a credit union?
    4. Should I call Ford Motor credit or GMAC directly?
    5. Or should I call the bank where I have my current loan at and explain things?

    These are some of the things I've read. I am terribly embarrassed to go in and face the dealer with such bad credit. But if it means I can get a better rate, I would do so.

    I am looking to borrow around $25K. I would like to either buy a used SUV or a new car in the $20-30K range.

    Any advice or comments would be appreciated.
     
  2. sahlegian

    sahlegian Well-Known Member

    just go face the dealer, i would buy a less expensive fuel efficiant car. if u have poor scores, u will be robbed on interest rates for an SUV and you will be putting 40 bucks worth of gas in per week. Maybe more.. Think Corolla, or Civic.. Im tellin you that you will have like a 600 per monthy car payment for 6 yrs with those scores and that kinda loan. May not sound bad now, but in 3 yrs when the warranty is gone, gas prices are 2.85 per gallon, and you owe 9000 more than its worth, u will wish u had listened to me.
     
  3. charline

    charline Active Member

    Hi! I had excellent luck working with a dealership that has an online site too.(found it by checking newspaper ads for dealerships) I waited until near the end of the month(April of last year) and contacted the internet fleet manager about my interest in a 2002 SUV. He called me...checked my CR and saw that I had 3 previous car loans in good standing. In a few hours he called me back with an interest rate that I refused(10%). I told him I was shopping elsewhere too. He called back again and I accepted the interest rate of 7% completed the application over the phone and one of his salesmen delivered the SUV to me (I live 150 miles from this dealership) 2 days later. The salesman brought the contract with him and I signed it upon delivery of the vehicle. I had a chapter 13 discharge in 2002 and my scores were in the low 600 range.
    I think the dealers are eager to make their end of the month qoutas and this is the time of year that they want to move out syock to make room for new models. Good luck!
     
  4. jlynn

    jlynn Well-Known Member

  5. chrisb

    chrisb Well-Known Member

    I agree that you might be able to get a better rate from the dealer, but if you go in there knowing you have already been qualified and have all the info, you can shop the dealership's rates and have leverage (12%, well I already was approved at 10%)

    Also, if you're thinking you might want something used, if you don't have a backup loan already set up and you find that perfect SUV you might be stuck with whatever rate they give you.

    My last car was bought with a loan through http://www.roadloans.com and my scores are low 500's. I know I got a bad rate, but it still beat the offer from the dealership. I came in with a check and all the paperwork which had been Fed-Ex'd from roadloans and the wife drove off in her new "used" car.

    If you're looking used, know what the retail value is for the type of SUV you're looking at, also have the new KBB pricing to compair. I bought an 03 Mercury Sable with 15K on it for 12,500 (stickered last year in the 23K range) You might not do that well, but you can get a year or two old used and let the first owner take the 9-10 thousand loss.

    Good luck.

    ChrisB
     
  6. Ringo41

    Ringo41 Member

    Thanks for the responses. It makes me feel somewhat better thinking I might at least have a slight chance of getting a decent loan.

    I have heard a lot about Ford Motor Credit basing their decisions on past auto credit history. If I call an FI guy at the dealer, do they work with Ford directly? Also, would I then have to buy a Ford car or in the Ford family? Does Ford Motor Credit do used car loans as well?

    Dumb questions, I know but I haven't bought a car for 8 years, that's how old my current car is, and last time my credit was spotless so it wasn't a concern.
     
  7. fun4u2

    fun4u2 Well-Known Member

    have you thought of a "in house" dealer who can finace your loan without going through major banks or finance co.

    major co usually take advantage of your by offering loan with extremely high interest rates and seek alot of money down.

    I first financed a small loan through an in house dealer for 6k paid it off within 18 months to prove my credit worthiness then I was able to get a good finance through a major dealer.

    you may need to start out small and work your way up, unless you don't have the patience.
     
  8. jlynn

    jlynn Well-Known Member

    The right F & I guy will have some leeway, thats why I suggested going to a "high volume" dealer (I think I suggested that LOL). I'm not super familiar with Ford, this is my first time with them, but if they are anything like GMAC, they will finance anything on the Ford dealers used lot (ex - my 99 Jeep Wrangler was financed by GMAC) but note interest rates will be higher on a used car. The 4.9 we got was also because it was an incentive vehicle. You will have to do your homework with the dealer. Its getting late in the "new car" year, so hopefully you will have a good selection.

    It never hurts to make a phone call and ask an F & I guy these questions :)
     
  9. cmg0679

    cmg0679 Well-Known Member

    You can get pre-approved or actually approved at www.fordcredit.com before you even go to the dealer. Click on the apply for credit link, and fill out the full credit application. You will either recieve an instant decision, or one within an hour usually during business hours. Any score under 600 gets manually reviewed, so someone will actually see that you have a clean auto pay history, and that will definately help to get you into a higher tier, maybe a C tier. If you can combine rebates and incentives, with a sizeable downpayment, you can even get into a B tier where the better interest rates are. But at a C, usually between 10-12% and even a D is 16%.

    Your approval will then be assigned to a dealer that you choose, and you can just show up, give then your certificate and get your car. Ford is a real approval. GMAC on the other hand is not, you will still have to go through the application process at the dealer. GMAC now has Nuvell Credit which is their sub-prime division.

    You could also contact a high volume dealer like suggested by others and deal directly with the internet sales manager. You can do everything over the phone and fax, and never have to go to the dealership untill you pick up your vehicle.
     
  10. annie

    annie Well-Known Member

    The other thing you can do is get inthe car and then refinance with a credit union. Me and DH both bought cars and I got raped on the interest rate, had a foreclosure, then we turned around and refinanced with my work credit union, DH interest rate was 9% and mine was (gasp)15%. But refinancing with the credit union our interest will be 6.9 and 6.0 %.
     
  11. Mongrol

    Mongrol Well-Known Member

    I work for UAG (United Auto Group) Stock symbol UAG... we are a fortune 200 company

    Where do you live? I can hook you up with a contact who won't screw you... We have over 160 dealerships in the US... 250 or so in the world ... usually just the big ones with high volume.. (13k employees)


    leave your email or phone number on here and I'll hook you up.

    I personally think (i am not an F&I guy) that you will be looking at 21.95 % interest... 2 or 3 grand down at least and you will be dealing with Household bank or Americredit.... DON'T APPLY ONLINE!!!! Waste of inqs and your score will drop... Pick the car you want and the dealership closest to you... Make sure it is the last day of the month... preferrably a Saturday.... Trade in your car at night so it gets appraised higher... (make sure it is detailed to get a higher price for it) pull a galves on it or KBB.com before you go so you know the real worth... (take at least 300 to 500 bucks below KBB.com for the REAL price which is galves) Print this out and give to FnI guy so you can bargain more...
    Take 1/2 a % to a full % off what his quote to you is and deal that way... if he says 21% he will go down to 20%... this will save you money...

    last but not least.... when the deal isn't to your liking... get it in writing... get him to print it out... WALK OUT THE DOOR and go to the dealership across the street... show them the paperwork and tell them to beat the price...

    This should save you some headaches..

    BTW... you will get approved... I have heard of people with a 485 getting approved.. I think it was 35% down...

    And good luck...
     
  12. EvanMorri1

    EvanMorri1 New Member

    You can opt for a bad credit loan also. Read autoloanservice.ca/car-loans-for-bad-credit for any info you may need
     
  13. jam237

    jam237 Well-Known Member

    Evan, this is a 13 year old post.
     
  14. jshimmer

    jshimmer Well-Known Member

    It may still be good information for someone searching for help on this topic.
     
  15. jam237

    jam237 Well-Known Member

    True, but not when the only reason the poster bumped it was to promote their own Canadian car loans for bad credit web site. :)
     
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    danielreed New Member

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