Need car loan - any recommended?

Discussion in 'Credit Talk' started by vectorz, Sep 24, 2003.

  1. vectorz

    vectorz Well-Known Member

    Hi everyone,

    I'm looking to buy a used car around $30,000-$35,000. I have a median FICO of 650 (EXP 659 , EQ 670, TU 649) with a CH7 BK on my credit report from early 2000, no repo's, and not much outstanding credit and 2 years re-established minimal credit cards. I would like to find an auto loan lender that I will get the best rate for my score, plus that I know will approve me for sure. If anyone has been in a similar situation with a similar credit profile as mine has gone through the research and would like to share their results with me, I'd greatly appreciate it.
  2. chipper

    chipper Well-Known Member

    Do you have good auto history? This will boost your Auto Fico.

    Here is what I would do.

    1st - Join a credit union and see if you can qualify for a car loan.

    2nd - Go to a Major Dealer (IE Ford, Toyota, etc.) and find the car you like. The major players shop numerous banks, which will benefit you.

    3rd - Agree on price of the vehicle. If you are looking at a specific used vehicle, go home, book it out online at and tell them you will settle for no more than $500 above wholesale value.

    4th - Let them run your credit and see what they offer you. Keep in mind, that with a BK on your record, your rate may be high.

    5th - If you qualified for a certain rate at a credit union, use the prequal letter for leverage to get the rate you want.

    6th - I can't stress enough - If you are going to drop 35K, buy a new car, it has a warranty, and you will have peace of mind. Lenders hesitate to loan that kind of money for a used car, thinking that if it breaks, you will use the money for repairs or just stop paying altogether.

    Make sure you try to get pre-qualified from a credit union or a lender like WFS or Cap1 before you walk into a dealership - as you can spring your financing options on them at the last minute.
  3. vectorz

    vectorz Well-Known Member

    Chipper, thanks for the advice. Do you know of any good credit unions? Also, what is WFS? You mentioned Capital One, I heard Peoplefirst is also good. Any others?
  4. vectorz

    vectorz Well-Known Member

    YES! I just applied for the capital one auto finance company, and their 'custom financing' dept were able to approve me for more than I needed. Only problem are the restrictions that it has to be newer than a 1998, and must have less than 30,000 miles plus obviously the price has to be within the MSRP, and the biggie -- MUST be from a FRANCHISED dealership.

    Most of the good deals I've found are at NON-FRANCHISED dealerships and|or private parties. Anyone know a way around this?

    GEORGE Well-Known Member

    $30,000-$35,000 USED???

    Why not...$20,000-$30,000 NEW???

    USED is at a HIGHER interest rate...IS IT NOT???
  6. chipper

    chipper Well-Known Member

    I have to say that this is a time for stability. If you buy from a private party, you get no warranty. If you buy one make from a dealer that sells another make, you get no warranty.

    Buy a new car.
    Buy a new car.
    Buy a new car.

    If you insist on a used car, buy a CERTIFIED used car. But a Certified warranty offers little peace of mind in most cases. Even a Mercedes, which I love, offers only a 12 month warranty on their certified cars.

    If you buy a used car from a dealer, you will still want to purchase a service contract, which is just going to boost the price back up to what a new car costs.

    Buy a new car, where you get a great warranty, have a chance to build a little equity, and know that if your car breaks, it's taken care of and you get a loaner car in most cases.
  7. sam

    sam Well-Known Member

    equity new car? lol.

    All new cars are depreciating assetts unless you dump a large down payment.

    leasing is by far smarter for those that travel mid to light miles. Never any maintenance, always in a new car.

    Sorry in this market even the most prestigious cars lose 10-20% the moment you drive them off the lot.

    Buy a house if you want to build equity, not a car ;)
  8. vectorz

    vectorz Well-Known Member

    The card I want brand new is aproximately $50-55k new (Corvette Convertible), where I can get a car w/ anywhere from 20,000-40,000 miles on it for $22k-$29k. Higher interest rate? Yes, by 1-2%.
  9. vectorz

    vectorz Well-Known Member

    Re: Re: Need car loan - any recommended?

    *BING BING BING* You hit it right on the head. I never buy new cars. I'm not buying this car for an investment in any way. This'll be my 2nd car, as I have JUST finished paying off my current commuter family car. This new car I'll be buying will be for fun. But regardless, I still want to get it a good deal on it.
  10. lakpr

    lakpr Well-Known Member

    Email me .... I can suggest a very good credit union for you to join.

    Alternatively, you can go to Bankrate's website and look under credit unions link.

    What state are you in? If MN ..... there is a credit union whose membership requirement is simply to be a resident of MN ....

    Best of luck,
  11. chipper

    chipper Well-Known Member

    Re: Re: Need car loan - any recommended?

    When speaking about about vehicle equity, it is not to say you are building equity as in a house. It is to say that you can put yourself in an equity position.
    If you bought a new Accord, for example, at 5.9% interest, with ZERO down, in two years, you could sell the vehicle for more than you owe, thus putting you in an equity position, should you tire of the vehicle.
  12. chipper

    chipper Well-Known Member

    Re: Re: Need car loan - any recommended?

    Leasing is only smarter if you have committed to a car payment for the rest of your days. It is not accurate to say that a lease is smarter for everyone. Purchasing is right for some people, just as leasing is a good option for others.

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