Car Financing

Discussion in 'Credit Talk' started by Concerned, Apr 26, 2001.

  1. Concerned

    Concerned Well-Known Member

    Anyone have any ideas about getting car financing without turning your credit over to some finance guy at a dealership who will shop your loan around to every company in town? It would be really nice to walk into a place with a check for my car and not have to go through the embarassment of them not being able to get me financing. Curious. . .
  2. john

    john Well-Known Member

    If you don't have great credit they will shop till they drop...last year I bought a nice new BMW : ) and my credit is mildy bad. They sent it to 8 or 10 lenders and all of the "prime" auto lenders wouldn't touch it. I ended up with a loan from Omni American Federal Credit Union(in Dallas) for 10.5% which was just a few points above what good credit people get.

    Household Auto Finance is another source that you may want to try. They offered me a rate of 13%. Still pretty high.

    I would recommend trying to get the financing before you buy the car. If you can't, then tell the dealer that they must have your persmission before submitting your applcation to any banks/lenders. And also tell them not to bother sending it to places that only do prime loans, as it is probably a waste of time.

    Of course if you have good credit then go to and get a loan for around 7%.

    Good Luck!!!
  3. CF

    CF Active Member

    The dealer can submit a loan to a finance company and get it approved easier than a consumer. The dealer does a lot of volume with these companies therefore getting approvals much easier than someone calling or walking in.

  4. roni

    roni Well-Known Member

    I financed my car with Household auto last summer. My rate was 13.9% But with bad credit, I was happy. They didnt verify anything (income) and no money down was required. They sent the check in the mail next day to go car shopping.

    I refinanced the car this month with State Farms. They gave me 7.2%.

  5. Concerned

    Concerned Well-Known Member

    Any restrictions with the check? Could you buy a new car for instance? Did they need to approve the car?

    I have an old car right now that is running ok, but want to act proactively in case it dies tomorrow. (w/ 141,000 miles, anything could happen).
  6. roni

    roni Well-Known Member

    Any dealer. I bought my car from a nice dealership in long Island. It is a bank check.

    The only hold up was the dealer was not familiar with household bank and they made me wait 24 hours for the check to clear.

    You can buy a new car of course. They have restrictions on the miles on an used car though.

    They approve you for a certain amount and you go shopping.

  7. Concerned

    Concerned Well-Known Member

    Awesome! Good to know. I'll keep my fingers crossed that I won't need to use it but just in case. . .
  8. sam

    sam Well-Known Member

    Yah used car must have 25K or less miles.
  9. tareco

    tareco Well-Known Member

    Roni, when you originally got your car loan with Household, do you know how bad your credit was at that time or what your score was? Do you know which CR they pull?
  10. sam

    sam Well-Known Member

    they use equifax in georgia. It may be a good idea to get a household aka orchard account before applying

    they go over your credit reports by hand, and are very generous, as long as you dont mind their interest rate.
  11. tareco

    tareco Well-Known Member

    I currently have an orchard card and a household bank card. I've had the household for almost 3 years which is in excellent standing--always paid more than minimum and the orchard I've had for almost a year--also in excellent standing. Do you think my chances of getting a car loan are pretty good?
  12. bjoe

    bjoe Active Member

    It depends on the dealer. I was shopping for a new car in December when I first started reading this board - my credit sucked! I went to the local Mazda dealer and got the stereotypical sleazy car salesman who first put an inquiry on all 3 CRA's from the Dealership, then farmed out 5 more to 3rd party finance companies. He then tried to sell me an overpriced 2 year old truck at 19% interest through the dealership claiming that is all I would get with my credit. 2 days later I went to the Ford dealership on a recommendation from a friend. The ONLY inquiry was from Ford credit. I was approved for a new truck with 10.5% interest with nothing down except a $500 trade-in allowance.
  13. hurricane5

    hurricane5 Well-Known Member

    bjoe...can you give some specifics on your definition of terrible is (FICO score, etc)...I'm in the same situation, and NEED to get a new (bigger) car (family has expanded). Can I ask how much you were approved for, etc. I am trying to wait until Junum works on my CRs (1st round just went out), but if I can move faster on the car -- then I would like to do that.
  14. AnnMarie

    AnnMarie Well-Known Member

    I'm not who you asked but I can you that I tried to finance thru Ford Motor Credit when my FICO was 572 and I had a settled charge card, a couple collection utility accounts <200 each...and they wouldn't touch me.
  15. tareco

    tareco Well-Known Member

    What I'd really like to know is if someone can tell me how low of a score that Household will work with.
  16. roni

    roni Well-Known Member

    My score was 619. They pull equifax or experian. Of course I had negatives on my report at that time. Good Luck. And i had alot of inquiries...ALOT. I only had my orchard card for 3 months so, i dont think it affects my approval at all.


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