Auto loan with 529 score?

start disputing..

I had a 560 score and household offered me $18000 loan for a new card with 21% (!!) interest rate.

Basically a score under 600 , prepare to bend over and pay crazy interest rates..

 

I had low-mid 500's and AmeriCredit gave me a loan for $18,000 @21% and 9 months later they gave me $28,000 @16%

So far have had a great experience with them.
Good luck!!

 

I had a 520 Equifax score and walked into a ford dealership and a little over an hour later walked out with the newest truck i have ever owned. 11,000 loan with fairlane credit. But did get bent over with the interest. I think it is 23%. I have been paying for a year and a half and love the truck.

Casper72

 

I had a 505 EQ score.. Scored a loan with my bank...they have a 'alternate financing' branch, and got a $13,000 loan at 17.9% - and they promised to refinance in a year if I made perfect payments. I put $2500 down.. Check with your bank, if you have a good banking history with them..

jmart

 

Okay, I won't even post my score as I have yet to break 500. I shopped around for weeks to purchase a new car - finally I went to a Chrysler dealer and they not only paid the balance on my old car but put me in a new one - 15K at 17.9%. This is with a very negative credit report.

I had a long discussion with the salesman (he had 20 + years experience) as we hit it off both being ex marines. He explained that a large dealership sends several million dollars a year in financing to the dealers finance division. In order to get financing approved for those will sub par credit they bundle several good credit requests with a sub par request, send them all to the finance company and sort of tell them it is all or none - this is one method of getting financing through the dealer.

Do expect to go in with a down payment, mine was 10% plus the rebate.

Good luck.

 

I only put 500 down and the salesmen told me I didnt even need to do that but I said that I wanted to.

Casper72

 

Remember, the going rate is about $10/month per point of interest on a 60 month car loan of nominal amount.

so a 7% loan vs 17% loan = 100/month x 60 months.

Sometimes its worth just driving what you have because the negative equity you'll have on your vehicle means you'll be stuck with it for a long time due to high apr!

 

understand, my brother broke two of his beaters last weekend. Thank god i have a vw Tuff stuff. It's good to either have a personal relationship with mechanic or have a warranty no doubt! Remember, get the 10/100 bumper to bumper optionally warranty at all costs.

4 years 11 months later when it goes poop, you'll be making the warranty folks replace the big stuff...

 

Try this...my husband had a bk in 1993 and through a lot of leg work on our part he's managed to get decent auto loans. Ford Credit always approved him, but their loans are dictated by the actual Ford Credit--the dealership credit manager has to go with what they say. We found this out by calling Ford Motor Credit directly and asking reps how they do it. The best rate we ever got with Ford was about 14% 2 years after his bankruptcy.

Now GMAC has been great--their credit managers at the dealerships can wheel and deal and you can talk them down on interest rates. Say they say "oh, you're a bad credit risk we can only do 15%" you turn around and say "maybe 2 yeras ago but everything has been current and I know you can do better." Haggle, haggle, haggle. No matter what they say at a GM dealership, the rate is negotiable, just like the purchase price. We also had pretty much the same experience with Nissan MAC.

Also, the specials they run at GMAC--like "6.9 for 60 mos." are open to everyone--not just prime customers. Ford, however, makes you qualify for prime rates.

We always have tried to have about $2000 down, and the first GMAC loan was at 9% and we now are at 6.9% for a full-size truck.

We looked into the credit union, and they were nice and were going to approve him, but they were very very strict about what they'd loan--80% of loan value. We would have had to put down a lot more money and didn't really have it at the time. (we've always kept credit issues separate)

On the other hand, large down payments are supposed to help with the so-called concept of "buying" your credit.

Also, GMAC isn't just at GM dealerships--for example, if a car dealer has more than one auto maker--like say they own Cehvy, Chrysler, Honda and whatever dealerships--that gives them a better pool to tap into credit wise.

Hope that helps...if your credit has been fairly clean for at least a year and you're disputing to get things resolved, you should be fine...and you have more room to negotiate than you think!! Just be prepared to haggle, walk out, come back in a few days and make THEM work for your business.

 

Andrew,
If you are looking for a car that will last, be inexpensive to maintain, and which will not depreciate as much go for a HONDA. I don't know about their financing, though - sorry. I plan to replace my current Honda with one just like it! It has great gas mileage, in the 9 yrs I've owned it I've only spent $500 over and above regular maintenance. Unbelievable I know, but true. When I had Buicks and Fords in the past I was already into the thousands in repair bills in just a few years. Honda has been very, very good to me and I'm sticking with them.

 

I work as a salesperson at a Nissan Dealership. You will most definitely get approved for a loan. I recommend that you do not go asking for special finance though. Just go pick out the car you want within the budget you need to be in. Just an fyi, with an average interest rate and no money down you can figure with every 1000 dollars that will mean about 25 dollars a month in payment so a 10000 dollar loan will be about 250 a month. So if you need to stay in the 250 to 350 range figure looking at 10-15k cars. Also if you do not have any money down, look for a new car with a rebate, this will help you get more car for your money and also finance less and have a better chance for a better approval. I also recommend extended warranties for certain cars(any american model=) )
If you go to a Nissan dealership, we have a 2000 dollar rebates on 01 Nissan Altimas. They have a 3 year 36 thousand bumper to bumper warranty and a 5 year 60 thousand power train warranty. They are a 4 cyl, 155 hp engine and a midsize 4 dr sedan. The GLE model is the top of the line in the 01 models just an fyi. It most likely will come in leather, power seats and a sunroof with a spoiler and it stickers at about 22 k. With a 2 thousand dollar rebate and if you negotiate to like 100 over invoice which is almost about 2000 maybe a little less you can drive home in that car for like 18k It major competitors are the Honda Accord 4 cyl and the toyota camry 4 cyl. I think it would be a great car for you. The other models are the GXE Altima stickering at about 19K and the SE Altima which can vary in price from about 20K to 22 K depending on options.
Also, my owner has several dealerships too, so I also know a lot about Hyundai's and Mitsbitshi too.
I definitely think you will qualify for a loan with either Americredit, Nuvell(GMAC subsidary), WElls Fargo, or possibly Hyundai Motor Credit, they all have a lot of buying power. Oh and another plus for a new car is that you will have a lower interest rate than a preowned one no matter what. Just go to a dealership and work with a salesperson and tell them you will buy a car today but will look for an incredible deal, be upfront about your credit and be educated about the whole thing. You will be surprised at the deal you can get

 

Andrew,

Thanks for the SL advice a few days ago. I was in the same auto situation last year. I went do a rather large, high volume new car dealer at the end of 3/2000. I had about 2K I could put down. I explained my situation to the finance guy. 7 SL's in collection etc etc.., I'm sure my score was sub 500 at that time. The finance guy explained that he had a great relationship with XYZ Big Bank and that it was the end of the month and they had not yet hit their #. He put my app in with a few others who had outstanding credit. They haggled back and forth and I finally got the loan for 18K @ 15.7%. The bank did do income and employment verification but it was a piece of cake.

The auto industry is hurting now. I would think that if you went in to a dealership at the end of the month with $ to put down on a car they would work very hard at financing you.

FYI I went to another dealership the week before and was denied by 6 financing sources including Americredit.

Take a look at the auto section of your local paper. They usually have ads for new care dealerships that say 99% approval rate etc.. Try one of those, Stay away from the buy here pay here type people.

Good Luck,
Ed

 

Melissa or anyone???

I am sure this isn't possible but thought I would ask. I would like a get a new car however would like to use our annual income but not include spouse on the car loan (long story), is this possible???? I mean I presume they require income verification correct??