Mist, Believe me, the last thing I'm going to do is discuss monthly payment. It helps knowing I can't get the payment I want anyway, so it's a moot point. Hence, I focus on the cash cost of the car.
Good luck getting refinanced with any big derogs. I think the whole I'll refinance in a year deal is a line. Unless you can bring your score up in the high 600's before the model year ends, you'll end up trying to refinance a used car, and will not get any deal on it. the used car tier prices are much higher than new. So much that it makes sense to buy a new car than a 1-2 year old car if your credit isn't super.
First of all, God bless the victims from yesterday's cowardly attack on our country and our way of life. May we all see justice served swiftly. Okay folks...Monday evening we went to our local Ford dealer and negotiated a great price on a 2002 Ford Escape...$200.00 over invoice plus a pair of side stepbars. I then threw in my trade...a 1990 Chevy S-10 in fair condition (I say worse than fair!) that fetched $1500.00. Well at about 4:30 last night, the salesperson calls me and says the have not heard from the bank yet and that she will know tomorrow. I suppose that due to yesterday's tragic events the banks might should not have been operating as usual. It feels petty worrying about this when there are bigger problems in this world. Any words of encouragemnet?
Words of encouragement, as far as the car loan..... As long as you are still being called, everything is ok. They are working on it. What to worry about is when you don't hear from them. What I would do is , politely, let them know you are very familiar with the credit scoring/approval process and you are comfortable talking over the situation with them....i.e., what is the bank saying? Want better equity (more money down), better terms (48 or 36 months), etc. What most Finance guys don't want to hear is 'Am I approved?' or 'Get me done!', but they are willing to talk about 'What can I do to make the situation more favorable?'. Also, watch the 'shopping', meaning, don't let them have 10 different banks run your credit. Hope this helps! Shawn
Shawn (& everyone), I just got a call from the dealership...they said no-go without a cosignor. I asked if any more money down will make a difference (I don't have much left, but I want to see if there is an amount that will help). I'm waiting for a response. Keep your fingers crossed.
Well folks, I just got the call from the dealer...no car for me. Damn, life can really be lousy sometimes.
sorry Most places will finance a higher risk loan with appropriate down payment. Appropriate would be like $4-6000 on a 21K car.
Sorry.. I suggest you go again.... This time, go to the largest dealership you can find...and go a few days before the end of the month. While it's financially better to get a new car, it's easier to finance a used car..(especially w/ a decent down payment) Good luck! jmart
Okay, guys, I'm confused! Andrew, I feel for you. You and I seem to be doing the same things--dealing with student loans and trying to get a car financed with a bad score. I have about a 500+ with Equifax. I had heard that leasing, particularly through a credit union's "smart buy", "smart lease" program led to much lower payments and more car, plus they were more lenient on credit. Have you tried it? Has anyone? What were your scores? What did the credit union focus on? Jmart, someone earlier posted that it was easier to finance new than used. But you think it's easier to finance used? I originally wanted to buy a 2 year old car. But then I heard the financing was easier with a new due to rebates, longer car life, etc. Thanks
I had student loans, and around a 500 FICO, and was unable to finance or lease a new car at several places...but was able to finance a 3 year old car.. \ jmart
Typically you'll pay 5% more interest per year for a used car 2 years old compared to a new car. If that 5% on the price of the car equals the same payments, subtracting all the new car incentives, you might be able to get a new car for the same price as a used car, but that doesn't mean you'll get it for less, or get more lenient credit approval. It's all about the cash down. If you can put 3500-5000 cash down, you'll get a good car, and a reasonable rate, but if you are walking in with nothing, or negative equity, its going to be hard.. Been there done it, ended up buying a old car i love, and spending a ton of money making it better than new (thanks to citi). Any car loan at about 16-17% or higher without a large down payment, is going to stick you with negative equity for the term of the loan. You gotta think about 40 months down the road when your 2 year old car is 6 and you hate it, but can't shake the negative equity..
Andrew- First of all- sorry. I know it;s a bad feeling. BUT, it's not over. A few things....you need to find out what banks they tried. A abnk cannot grant a loan to one dealer and not another, I know that for a fact. It's a rule to thwart favoritism among dealerships. You need to find out to keep from getting extra inquiries. Also, if a bank sees multiple auto inquiries and realize someone else denied you, they will most likely deny you. It;s awfull, but thats the way it is. Cash down WILL buy you a car, but it is sometimes a LOT of cash. If the Ford Dealer used Ford Credit and they denied you, thats not real good. They have several programs for 'bad credit' people. Not all are published. What FMC will usually let you do is put a large amount down on a short term lease, usually two years. If you make all payments on time, and the interest is not low, they will continue to finance you for higher amounts every 1.5 to 2 years. Can you find out? You may email me if you want to keep it private. Shawn
I worked with a guy with "REAL BAD CREDIT"...he put 50% DOWN, and had NO problem...although they made him pay the other 50% off in 24 months...but it wasn't 30%...it was about 10.00%...
Shawn, I replied by email to give you my particulars. I am interested in Ford's short term lease. George, I cannot afford anywhere near 50% down.
Okay everyone, I'm back and so is my thread. Ford Credit totally lost a good customer! So did the Ford Dealership. Last night I got my new car!!! I went to a dealership that promised financing for anyone...and they came through!!! Now I have a 1999 Chevy Blazer LS (Loaded and GORGEOUS!!!) The interest rate is high at 15% through Houshold, but I got the loan!!! Not sure which report they pulled but here's my scores: Eq: 529 Ex: 522 Tu: 499 I had a trade worth about $300 and put $400 down. Yeeeeeehaaaaaa! I'm so darn happy! If anyone is from the Pittsburgh area and needs a car, email me and I'll tell you where to go and which salesman to see. andrewinpittsburgh@yahoo.com
Congratulations!!! My mother has had a Blazer for years and loves it. Great news. Enjoy your new car!
WHAT A DIFFERENCE in 2 WEEKS Andrew - I read all the posts about you getting your Blazer! Kewl ride man - what color did you get and is yours 4 x 4? I saw the stupid Ford Dealer denial post you wrote about two weeks back.. I felt so sorry for you when you typed the one phrase "Damn, life can be lousy sometimes." Hey you are right - but - look where you are now! It worked out great! 15% is not bad and Household is good. And I am sure your Blazer was not $25K - $30K out the door - just by the virture of it being 2 yrs old. Pat on the back buddy! Don't scratch it! I still like NU Finish - that polyglycoat one touch wax. You can put it on and wipe it off in one hour. Consumer Reports says its the best wax as well! One bottle will do your Blazer 3-4 times LOL - very happy for you - Dogman
