Just helped my brother get a car today. I'm tired Spent lots of time in the F&I office and I asked a lot of questions. He said 12 mos-24 mos of actively getting great credit, Installments secured at your bank, credit cards etc should easily generate a mid 600 score. Push away all the bad credit from the bk and load the model w/perfect pays. Here's my question: He told me somethig very counterintuitive: he said that in getting a car loan the rate is no longer really determined by equity (10,000 car, but only finance 5,000) or so. That the rate is more on raw scores. Any feedback? There's no reason for him to lie to me, but it seems very strange. He did say that credit unions are still more sensitive to equity requirements. Do you guys think that normal channel lenders aren't that sensitive to large down payments when determining interest rate?
Marie, That is the way it seemed to me when I was buying a car last summer. Basically scores is all anyone talked about in relationship to my interest rate. However, I went the online route. roni
who'd you go w/ and what type of rate did you get? if you don't mind sharing I'm thinking about getting a car loan in late summer/ early fall so I'm trying to get prepared
Bank of America put me in a 40,000 car with 2000 down 60 month lease.I know the dealers assistance(F&I dept.) made alot of difference.I was in the car business about ten years ago and I never thought this deal would fly. I owed 8000 more on my trade in than it was worth.
I was financed about 4 mos after a charge off (settled cc). 01/00 11% Put 3k down on a 16k vehicle. From the very start, there seemed to be no problem at all getting me financed. AnnMarie
With just about every loan these days, the interest rate is based primarily on your credit risk scores and the amount of the loan, not on the equity and/or money down. It's cheaper and easier for lenders to do it this way. I ran across a great online lender for new and used autos, motorcycles and other. You get approved up front, they send you the check, your interest rate is locked, and you're not bound to ANYTHING until you write the check out to purchase the vehicle. You can buy a new car/cycle dealer, used car/cycle dealer, or even buy your friend or neighbors car. Interest rates are great, too. But you're gonna have to have some clean credit. www.peoplefirst.com No, I don't work for them. I just thought I'd pass the info on. John Millennium Credit Building Strategies Home of "The Ultimate CRA/Creditor List" http://www.millcbs.com