My New Car Approval!!!

Discussion in 'Credit Talk' started by PSUgirl, Jun 21, 2001.

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  1. PSUgirl

    PSUgirl Guest

    I was suppose to buy a car from a friend of mine's friend, actually an SUV. But, that didnt turn out in my favor.

    Yesterday I heard an ad that was playing on the radio about a finance manager that does special financing for people that have had credit problems in the past.

    Of course I took a chance and called him. I explained my credit situation and where i stand now. He took my credit information. I was not too sure about giving him info to pull my credit files and shop around with my creditl.

    at 3:30 yesterday he called me to tell me to come down and pick out a car. I was excited.

    I couldnt make it yesterday to i met with him today at 9am. I picked out a 2000 alero, red, loaded, with power everything. I also had 2000 to put down on the car. The price was 17300, with payments around 414.00.

    It took 5 hours for them to finally approve me. I was approved for the car that i wanted, 2000 down, 14095 price, 395.00 payments for 5 years. I was jumping for joy.

    I was told by the guy i was working with that the underwiter of the loan say that he wasnt sure in giving the ok, but if he wanted to do it as a favor, then go for it!

    I was excited that i was approved by GMAC, I was shocked that he approved me, as a favor. Im now have a new car and im loving every minute!!!!!

    He told me to make sure that i make my payments ontime!

    Im a 21year old, independent college student, and i did it!

  2. PSUgirl

    PSUgirl Guest

    I would just like to add that...
    The check experian, my WORST report...

    I did have to explain my charge off, which is paid, and let them know that i had proof.

    I have 40+ inquires on this report


    you cant get any lucker than that. Im sending the guy flowers and a card. He didnt have to take a chance with me, but he did!

  3. Gregory

    Gregory Well-Known Member

    Congrats, fellow Alero owner! Mine is black, loaded - they are sweet cars... but repairs that are not covered under "warranty" are painful to the credit card ;)
  4. PSUgirl

    PSUgirl Guest

    Acutally, The person that approved me for the car gave me an extended 3 year warranty. so its a 6 year warranty, full, no deductable, and they do cover repairs.

    Only thing not covered are normal wear and tear maintainence stuff.

    I think thats awsome. There doing a wheel allignment for me soon!

  5. fingrrrl

    fingrrrl Well-Known Member

    But $395 a month? Isn't that a little steep? You'll be paying $23,500 for a $17,000 car. I'm sure your interest rate wasn't so hot because of your past credit problems, but still...what was the interest rate on that if I can ask?
  6. fingrrrl

    fingrrrl Well-Known Member

    excuse me, a $14,000 car. Is it really worth it, to pay nearly twice the amount?
  7. aigle

    aigle Well-Known Member

    Yeah I don't think it's a good idea, 5 years is a very long time and this is a lot of money not including insurance and all the other expenses. It would be better to spend around $4000 on a used car and drive it for about 2 years.
  8. dogman

    dogman Well-Known Member

    Sounds like a beautiful car! GMAC is a great reference.

    wave when you drive by - dogman
  9. PSUgirl

    PSUgirl Guest

    Over all, im very happy with the deal. I think its well worth it. Ill have the car paid off before 5 years. Im still have student loans to attend too.

    I think that this is a great way to build my credit.

    My past credit problems arent horrible. I have one charge off that was paid off. and some lates from 1998-1999.

    They gave me a 18% interest.

    Im happy. GMAC gave me a chance when know one else would. THey see a 21 year old girl with no cosigner and still in college and they think, Hell NO!

    But, im lovin every moment!!

    Im off to study for my exams tomorrow,

  10. Fat Jake

    Fat Jake Well-Known Member

    PSU Girl You are the one that had the Reliant right? I'm glad you are happy with your new car. I know what it's like when you get something you want... it's a great feeling. I just got a motorcycle a few months ago and I was in super AWE.
    Anyway check some things out. I don't think anyone was going to do you a favor by approving you. Unless your just drop dead gorgeous. (LOL) You are the customer and your spending the money. Also 18% is usually reserved for horrible credit. Look at refinancing the car after a year at your local bank or credit union. With the Olds brand-name retired it will probably have an adverse effect on it's value along the way. Also read the HELL out of your extended warrenty. They usually cover all the stuff that will only break if the engine is on the verge of blowing up. Meaning Internal engine parts. The other stuff that breaks more often you are comming straight out of pocket on. Look and also see if it's from GM or a third party insurer. That could mean the difference between alot of trouble (third party) when it comes to getting repairs.
  11. DaveLV

    DaveLV Well-Known Member

    PSU -- I'd really try to get out from both that 18% interest and the five year car loan as soon as possible. My last five year car loan, I swore I'd pay off in less time (and I was doing better than I can imagine a college student is financially). All my good intentions never made a single extra payment on that loan, and I was upside-down with it the whole term. The last year of the loan the car had many mechanical problems and was literally falling apart and I couldn't get out of it.

    You seem to be doing well with your credit, so your best bet is to make some payments and try to refinance somewhere else. Resist the temptation to refinance and keep the five years of payments though. Unless you count maybe the last five or six months on the loan, you will never owe less than this vehicle is worth.

    After all that -- congratulations on the new car, and enjoy it!
  12. PSUgirl

    PSUgirl Guest

    I completly agree with you about trying to get out of the 18% deal. I did talk with a loan officer at PNC Bank, where I have been a member for 2 years and I just joined a credit union too. They told me that after 1 year of ontime payment history that I can refinance the car. My PNC pulls trans union. So, there is no negative credit on TU. She said with a 1 year history I would have established history and would also be close to working full time and out of school.

    I think that it was magic that happened today. They saw someones report with a charge off (not showing paid, but is paid), CC with 120 late from october 1999, 40+ inquires, lots of new credit cards. But, they also saw someone that has been paying her bills ontime for over a year, with a decient job, exceptional amount of income for a college student, someone with the willingness to pay, the stablility, and the ability. I think that i would have been declined if he didnt push for me, the 2000 down also helped. Im sure if i had stronger credit i would have gotten a better happy!

  13. PSUgirl

    PSUgirl Guest

    What also sucks is that my insurance when up....But, i do know my insurance agent personally, he did keep my monthly payment under 100.00 with full coverage.

    Im still amazed by this whole thing. I cant bring myself to know that its real and that it did happen. I think its just a dream. I never expected it to happen. Im glad that I had such a positive experience for my first dealer car!

  14. Jim

    Jim Well-Known Member

    To: PSUgirl

    Congrats!. Enjoy your new car and take good care of it (oil changes every 3K miles).

    Being 21 and attending Penn State means that you are going places in life!

    You got some good advice here about refinancing next year.

    My assumption is that you will graduate, get a good job. Then get married (maybe not immediately). When you get married you will have great credit to buy a house, trade in the car on something new etc.

    How do I know this?? Am I a fortune teller???

    No. I am a former resident of Pennsylvania and I have met a few PSU girls in my younger days.

  15. PSUgirl

    PSUgirl Guest


    Your a sweety, and always have been to me!

    Im taking the car in tomorrow for a oil change thingy.

    Dont worry, this car will be well taken care of.

    Just because your older, doesnt mean you cant still meet PSU girls!


    ...and thanks for everyones response im feeling really go, so dam good i cant put myself to study for my exam tomorrow :(

    psugirl :)
  16. Jim

    Jim Well-Known Member

    To: PSUgirl,

    Enjoy the car!

    Keep posting!

    Don't let anyone here bother you! Ignore anyone who is negative.

    Best wishes - Jim
  17. PSUgirl

    PSUgirl Guest

    Thanks, Jim!

  18. mother2

    mother2 Well-Known Member

    Congrats PSUgirl. Mother2 here to give you some "motherly love".

    1. Definately make your payments on time for 1 year. If you belong to a CU, they may be able to refinance you with a better rate at about 6 to 9 mos of on time payments

    2. Study, study, study....don't let the card distract you from your primary goals!

    3. I agree, you were offered a deal and you took it. Sometimes you have to take what's offered and turn the negative aspects of the deal into positive ones.

    4. Good Luck on your credit repairs and don't accumulate too much debt.
  19. mj

    mj Well-Known Member

    PSU- Congrats on the new car.

    I don't want to pop your bubble - BUT, this is exactly what the sub-prime pushers try to do!

    "As a favor" to make you feel "more desperate" and then, WHAM. I think you got screwed on a few things ...

    18% on a completely secured loan is USURY. Prime is 7%. You're buying an automobile from a car company that is CLOSING DOWN (Olds) -- GM has been offering UNBELIEVABLE interest rates (.9%) to clear out the inventory-- 36 mo.@ 0.9%, 48 mo. @ 2.9%, 60 mo. @ 3.9%

    The other one is the extended warranty. PLEASE tell me you DIDN'T pay for that (and/or that they didn't bury it into your contract)-- GM is offering FREE 60 MONTH extended warranty on ALL olds purchases - AT NO CHARGE.

    Here's why I'm so adamant about this -- it happened to me when I was 21. I had some blemishes on my credit (3 charge-offs and 2 60 day lates)... I didn't think ANYONE would finance me. Someone did (through Ford) and I was so glad to get it I didn't care much about the rate.

    I LATER FOUND OUT IT WAS 17%...! To make matters worse, it was later explained to me that the DEALER actually made SERIOUS bucks on my contract - THEY POCKETED about 3%!!! In other words, THEY PUMPED UP THE APR FOR THEIR OWN PROFIT (I was ticked that FMAC allowed that!).

    After 3 years, when I wanted to move to a different car, I WAS UPSIDE DOWN BY OVER $2000 --- I owed MORE on the car than it was worth. I had to pay that ON TOP of the new down payment (OUCH!).

    I vowed two things after that pain -- (1) NEVER NEVER go over 3 years for a car loan and (2) ALWAYS watch the interest rates.

    My partner had 2 charge-offs from 5 years ago when we did his new car. I documented everything, and pled the case to Ford. Got him a 1.9% rate for 48 months (it's OK to go over 3 years when the rate is that low - you're making money by saving the difference between 1.9 and what you earn by investing- it's "free money").


    If you're still within the 3-day period, I'd see if you can un-do the whole thing. Rethink what you want, talk to GMAC personally and try to get a better rate.

    If you're willing to walk-away, they may be willing to do something reasonable.

    Good luck,
  20. PSUgirl

    PSUgirl Guest

    MJ, thanks for the info.

    But, The Loan is NOT secured. I only put 2000 down.

    I choose the alero, they didnt give it to me. Actually they guy that i was dealing with wanted me to get some other car, i wasnt interested in any of the ones that he wanted me to get.

    2. The "extended warranty" is not written as an extended waranty. He gave me the 6 year 100,000 mile waranty with NO Charge. I have a waranty from GMAC and a sperate warranty from the dealer i purchased it from.

    3. I will refinance the loan after 1 year. I want to prove my abililty to repay. I will feel SO confident going to get refinanced, Im sure that i will be approved.

    4. I have very good control over my finances. I dont let things go crazy. Im on a budget and Im confident that i will make all my payments ontime.

    In the meantime i will NOT apply for any credit and let all the inquires drop off my file while junum is working on it.

    Im very satisfied with the deal, im even more satisfied that my credit is getting better and will become more stronger.

    Im very proud of myself. Not alot of college students im my position can accomplish the things i have been able to do.

    god is good all the time, and all the time god is good!

    (off to take my last exam)
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