Have 560s all around for all three CRAs currently. I know this is pretty weak for auto loans, but I'm trying to get one to help rebuild. Here are the facts: * putting $5000 down, looking to borrow $5000 * looking at popular used pickup truck (Dodge Ram) * no previous auto loan * no BK, low score is due to lack of history, one derog, it's been paid off 18 months ago. * I could do a short payment term of 18 months if I can borrow $5000. * Have access to co-signer with good credit (I'm assuming 700 plus scores) * Willing to eat high interest (i.e. up to 20%)as "penance" to get a good tradeline, as it will significantly help my scores in the future. * Have proof of employment at same place for past 1.5 years, make decent salary. OK knowing these, I plan to go to a LARGE dealership with the truck I like and check around. My questions are: (1) If the dealer starts to ask if I want to know my monthly payment, would THAT be when they pull the hard inquiry into my CR? If not, at what point would they do it? (2) Should I bring the co-signer in RIGHT before the dealer starts talking financing? I don't want to get a hard inquiry and have my already low score lowered and likely be denied, of course! (3) I live in New Jersey, anyone have experience in a similar situation (low debt/income ratio, lack of history, mid 500s scores) getting a first time car loan? What strategy did YOU use? Additional strategy tips would be appreciated. i.e. should I go to a large dealer, which guy should I talk to first in the dealership.. Help is much appreciated, I did a search but I can't find strategies to help with this particular situation. Much thanks. h.a.
i just got a car loan. my fico's are from 619-670. I would try a credit union first. if any of youre close relatives belong to a credit union and they have a good history with it i would try that one first. i ended up going to my parents employee credit union apparently they have a policy that if the employee that already belongs to the credit union has a good history with the credit union anyone in their close family can also get an account there and cannot be denied for it unless judging by the persons income the credit union belives in would be impossible for them to pay it back. I would have been approved for a 5,000 loan if i applied myself. but i had my mom be a cosigner and they gave me a loan of 8500.00 instead. they let me apply for the loan first and get it approved and work the payment amounts out. i was able to get my mother to sign the loan documents acouple hours later and then get the check from the credit union. they also gave me a .5% reduction in the interest rate because my mother had good credit with them. I only i had known about there approval policy a couple of years ago i wouldnt have had to go thru cccs and my credit would be allot better now.
A lot of dealers will pull a hard INQ before talking about any figures just to see where you fit. It's best to let them make you an offer first. Otherwise, you may shoot yourself in the foot. Let's say you tell them you can pay $300 per month. They might be able to get you a loan for $275. In that case they will jack the rate so it will be $300. Basically, ask them what the payment will be and start negotiating from there.
When you fill out the application which allows them to pull it. see my other comments below Geez, I hope Nay Say Nick is gone for good. I would skip all the lowlings. Call or go see the Director of Finance with your CR's in hand. Ask him what you need to do. Does he/she think you need a cosigner? They know pretty much in advance which finance companies will do what. He should have a pretty good idea of what interest rate you will be near. If he's getting close with numbers you can live with - then let him do his own pull.
I WAS UNDER THE IMPRESSION THAT YOU "MAKE THE OFFER TO BUY @ $XX,XXX.XX" then talk finance with the dealer if you DON'T already have check in hand...
Re: Re: 560 Score: Auto Loan Strategy Tips? LOL!!! No, he and his optimistic views on life are still here.
Re: Re: 560 Score: Auto Loan Strategy Tips? Thanks a lot all! Yes I have seen Nick L's posts, and though I understand his frustration, it really is a bit discouraging to read.. I am SURE it's possible to get a loan, if you're willing to eat the interest and have a decent DP. I think I'll go with going to a big dealer with a lot of trucks.. Take a test drive, act nonchalant. Then when it's time for the sales pitch, I'll ask to speak with their finance guy. I'll bring my CR from PrivacyGuard (is that good enough, I have EX,TU, EQ scores on there) and explain my lack of history (it's because I'm on an international assignement most of the time, and don't have rent / loans to pay in the US). This would be my first major loan. Any other advice, please send it over.. Much thanks. h.a.
Re: Re: 560 Score: Auto Loan Strate um.. privacy guard scores are not FICO scores. so the credit report scores from PG will not tell him your real score.. your real scores may be higher or lower...
Re: Re: 560 Score: Auto Loan Strategy Tips? I will get to the point. Attack me if you wish, but I tell things the way they are based on experience & fact, not based on opinion or idealistic optimism. With that said.... You are really setting yourself up to be ripped off. Remember dealers make money on: Desperation & Impulse. You definately show both. First, you don't negotiate based on monthly payments (I know that is extremely hard in today's no cash down, finance forever economy), that is just stupid. Since when did having a car payment for the next 5 years (on a depreciating asset) become accepted as the norm. The fact that you are even asking these questions shows that you shouldn't even be buying a car from a dealership since: A) You will not qualify for prime rate financing from any of the major financing companies. B) You will pay the sticker price or the 'rack rate' for the car. The dealership will want you to be greatful that they are putting you in a vehicle & will not negotiate on price. If you think that it is a buyers market think again: Sticker prices on late model used cars are outrageous & the only way you can get any discount off sticker is if you can be accepted as a tier I or II customer. If you want to finance thru a credit union or with a co-signer, then you will pay full MSRP + options, or some high percentage over Kelly Blue book value.
Re: Re: Re: 560 Score: Auto Loan Strategy Tips? Well Nick, I hate to say it but I do agree with something you said. I really don't believe in negotiating on monthly payments either. You should negotiate the cost of the car. Figure out what you are willing to spend on the car and work out the montly payments with different interest rates before you go to the dealer. That way you will know based on what price they give you if you can handle the monthly payments. However, I don't think credit scores should even be discussed before you negotiate the price of a vehicle. Negotiate, then speak to a finance guy.
Re: Re: Re: 560 Score: Auto Loan Strategy Tips? NickL: I sense your frustration, and I realize I may not get a loan. Sharing your experience based on actual fact is appreciated. However, putting words in my mouth is not. First off, I realize as you said that I will be EATING EVERY LAST CENT of interest, up to 20% maybe. I am looking to borrow a maximum of $5000. I will be able to pay that in 18 months, and yes I'll be out about a grand assuming 20% interest. Now, to me, that's "penance" for my poor judgements in the past which hurt what little credit history I have... I'll suffer it (and the obvious depreciation) over the 18 months. Whether or not that is stupid I believe is for the person handing over the loot (me) to judge. I think it's a wise investment to get a good tradeline, IF I can get the loan. And that is why I am posting here, to get help and suggestions with that. Additionally, I don't think they'll jack up the "sticker price" on a 6 year old Dodge Ram.. Which is what Im looking for. Jack up interest rates, sure.. But I'm prepared for that, and if it's too much, then I walk away, simple as that. Interesting how you seem to be able to sense a person's desperation and impulsiveness through a monitor and keyboard.. I don't feel I am neither, as I am planning before acting. Basically I'm not looking for an easy way out, not naively dreaming about good APR because I know what reality is, and that reality is I will struggle to get ANY loan and need help- which is why I'm here posting in the first place. h.a.
Re: Re: Re: 560 Score: Auto Loan Strategy Tips? NickL is misinformed. Please read this thread. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=343125 With a down payment of 30% or more and a cosigner with 700+ score, you are pretty much guaranteed of getting a loan. Economy sucks atm, mortage rates are at record lows, %0 new car offers and rebates are forcing used cars prices down, and he thinks it's impossible to get a 5k loan on something with at least 5-6k in collataral. (This is at a wholesale price)
Re: Re: Re: 560 Score: Auto Loan Strategy Tips? I dont know your needs, but $5000 is a great place to start. I purchased a 2000 Ford Taurus in Dec 2002 for $5300 cash -- SE with 60,000 miles. Prices for used cars are very reasonable these days. In case you do borrow, I do hope you get one of those credit union loans -- that would be so cool
Re: Re: Re: 560 Score: Auto Loan Strategy Tips? Muff: Thanx for the suggestion, but part of the whole reason for borrowing is to get an auto loan tradeline, and keep it in good standing. Justin: Thanx for the encouragement. I will continue researching, and also sending out a dispute letter to try and get a few points back on some CR issues.. I will be doing the buying in about 8-10 weeks. No rush to buy, just gotta make sure I have all bases covered so that I can discuss with my co-signer, take some test drives, etc.. Will keep you all posted on exactly what happened, I hope it's a positive outcome. Later. h.a.
Re: Re: Re: 560 Score: Auto Loan Strategy Tips? Nick is pissed because he couldn't get a car loan. Because Nick couldn't get approved, he believes no one else will, as well. However, he's been proved wrong time and time again by myself and others. Some of what he says does have some truth to it (don't buy based on payments, the used car someone with poor credit is usually forced in to is not worth nearly as much as they sold it for). But, his name calling and insults tend to make people want to ignore him.
Re: Re: Re: 560 Score: Auto Loan Strategy Tips? If you are looking for a dodge truck I suggest you go to a Dodge dealer , the bank they tend to use the most is chrysler financial, and the way Chryslers works is that you are tierd out, depending on credit , and downpayment and job history, you say you credit is just limited but with $5,000 down you should be fine. I've seen plenty of loans go thru with Chrysler Financial at sometimes decent rates.
Nick at Nite revisited 1*Sticker prices on late model used cars are outrageous 2*If you want to finance thru a credit union or with a cosigner, then you will pay full MSRP + options, or some high percentage over Kelly Blue book value. NickL *********************** 1*That's why you never pay them. 2*Where do you think Kelly gets there values?
Nick at Nite revisited 1*Sticker prices on late model used cars are outrageous 2*If you want to finance thru a credit union or with a cosigner, then you will pay full MSRP + options, or some high percentage over Kelly Blue book value. NickL *********************** 1*That's why you never pay them. 2*Where do you think Kelly gets their values?
Nick at Nite revisited One more thing to keep in mind. If you go with the cosigner the dealer may advise you to put the co on the contract 1st, this is ok if of you get a good rate (you have equal responsibility for the loan) however there are a number of lenders that only report the 1st signer to the bureau. Let the dealer know in advance you want the tradeline reported on you as well (he should know which of his lenders do this). Your only purpose for the co should be for a lower rate, your situation with the dn pmt, job time, verifiable income etc... you can get qualified on your own with a higher apr. Good luck
