Ok, so what's a good car rate if...

Discussion in 'Credit Talk' started by NanaC, Nov 3, 2001.

  1. NanaC

    NanaC Well-Known Member

    ...you have a bk13 dismissed on your record 5 1/2 years old and 1 collection paid and 10 positives, several current positives so I'm actively being a good girl. LOL

    What would you, as experts (I've deemed you experts) consider a good rate range for a car with that history?

    Thanks sooooooooooooooooooooo much!
  2. sam

    sam Well-Known Member

    chase manhattan approved me with:

    1 $6800 chage off from 96
    1 $2800 collection from 98
    1 $2000 charge off from 96
    16 positive (10 paid off/closed)
    1 Paid off car loan
    8 bazillion inquiries

    $3000 cash down
    $30000 financed balance
    7% APR

    on a new car.
  3. NanaC

    NanaC Well-Known Member

    Ok, that helps to know your history ...gives me a real connection...Thanks so much!
  4. mindylou

    mindylou Well-Known Member

    I dunno Nana about the car rate. I just wanted to say hi.

  5. NanaC

    NanaC Well-Known Member

    ROFLMAO...you made me smile, Mindy! And, Hi right back to you!! :)
  6. bbauer

    bbauer Banned

    I'm deemed if I do and deemed if I don't. Heck of a deal.


    How you doing Nana? Have not heard from you in a while.
  7. NanaC

    NanaC Well-Known Member

    LOL - Bill, Bill! Hiya! Doing A-OK....Waiting for responses on the things we've talked about..not a whole lot more..debating this car loan...

    It's a deemed shame I don't have a lower rate! LOL

  8. Erica

    Erica Well-Known Member


    Throw me an E-mail sometime. I dont seem to have the new one you got when you moved. Hows the cement pond? Glad to see you, and good luck on the car thing!
  9. Cinergi

    Cinergi New Member

    I was post BK7 discharge by 8 months, and was financed by BMW at 4.9% on a 3 year old 5 series auto that was a lease return. Sale price was reasonable but they insisted I put $3,500 cash down because of the BK. Amazingly they would not just let me refinance the 3 series lease car I was returning at the same retail value! I was told they financed me because of my good payment history and no history of any repo's. Based on the response I got from other lenders, and what I've read on this site, that was not too bad a deal. Good luck!
  10. NanaC

    NanaC Well-Known Member

    Hi, Erica..I sent it! :) Let me know if you receive my email. :) Miss talking to you!

    Cinergi: Thanks for the info..that really helps...

    We went looking today..but it's time to 'fess up..they gave me a horrible rate..um..14.95...so we aren't buying...nope...no way...but I feel a bit helpless...though I am trying the Ford preapproval as I've heard some of you mention that Ford was pretty good to work with.

    I'd rather wait and drive my little car then put myself into that ridiculous a rate!

    Wow...have I changed! LOL
  11. NanaC

    NanaC Well-Known Member

    Hey, just a thought..

    has anybody ever tried a planetfeedback thing about the capital one car rate assigned (based on my capital one history and length of time since bk)..and gotten a reduced rate than the initial one offered?

    Just curious since they are so responsive to credit feedback.

  12. sam

    sam Well-Known Member

    Re: Hey, just a thought..

    those places like cap 1 and household are junk. Straight up junk. I got 14.25% from household, and Chase gave me half that through a dealer.

    It's called stacking where they forced your low rate high risk loan through by putting it in with other peoples loans..

    You don't have that advantage...

    go in pick out your car, bring a reasonable ($3000-3500) of cash/credit for down and walk home with the car you want. The market is dismal now and they will get you into the car at the rate you want..
  13. supershawn

    supershawn Well-Known Member

    Re: Hey, just a thought..


    You should not have any problem getting a standard 'prime' auto loan.

    The only problems that could arise would be from a negative equity or no down payment situation as car loan scores are weighted heavily on the loan-to-value rate of the purchase.

    What happened with Cap One (loanmobile)...I didn't see you post your results.

  14. mindylou

    mindylou Well-Known Member

    Nana, talk with the person in charge of credit applications at the dealership, tell them to really push it through, they do have pull with the main credit department at ford credit that gives the final say so, they talk with each other on a daily basis about credit applicants, so they(they person at the dealership) can beg the main branch to push an approval through.

  15. NanaC

    NanaC Well-Known Member

    Re: Hey, just a thought..

    Shawn..yeah, cap one came through with a wonderful (gag) 14.95%...but they said my payments could be up to 600! (LOL)

    Sam...thanks!!! That helps...Yeah..it was real disappointing today..

    Our car now has a tiny $220 payment...we are a bit spoiled!
  16. GEORGE

    GEORGE Well-Known Member

    Re: Hey, just a thought..

  17. supershawn

    supershawn Well-Known Member

    Re: Hey, just a thought..


    (Did you realize who my new wife is going to be yet? See, Creditnet is good for more than just CR help after all...it also fixed my love life :) Look for pics to be posted sometime late next weekend ... depending on how much rest we need from the honeymooon...if you know what I mean! LOLOL)

    Have you put an app in at the dealership yet?

    Some things to consider.....

    Based on Ford and GMAC.

    'They' are going to weight their 'internal' score heavily on the 'deal' itself. With Ford, For example, the computer system will score you out pretty much like this:

    Fico (Auto) Score:
    0-500 XX points
    501 - 550 XX points
    Etc..going higher with a better score

    5-99 yrs old XX points
    4 yrs old XX points
    Etc..getting higher with newer cars

    Negative Equity xx points
    Zero Equity xx points
    1-5% equity xx points
    Etc..Getting higher with each higher % value

    And there are a few more factors, but you catch my drift....if anyone wants them all, I would be glad to list them out.

    Anyway, this will generate the score for their internal use. It's usually a small number, usually 200.

    The point is, FICO score does not have as big of a factor as it does with CC's.

    Your internal score will fit into their 'tier' system...while the letters/numbers differ, they are basically the same structure.

    For Ford, it is as follows:

    00A Automatic Approval, Tier Zero
    0A Automatic Approval, Tier Zero (may have incomplete data, will be reviewed also)
    1A Automatic Approval, Tier 1 (will be reviewed)
    1 Tier 1 (will be reviewed)
    2 Tier 2 (will be reviewed)
    3 Tier 3 (will be reviewed)
    4 DENIAL (Auto- will not be reviewed, you must call in to re-hash if you desire)

    With the exception of 00A, all deals will have to reviewed with an Analyst. It is up to the dealer to choose to 'roll' the deal before doing this or not. Obviously, it is safer for some tiers than others.

    The 'tier' is directly tied to a 'Buy Rate'. This is the rate the lender is giving the dealership- the rate the loan is 'bought' at. It is then up to the dealer to set a rate for the purchaser....the difference between these two numbers is the commision paid to the dealer.

    Obviously, tier 0 has the best rate, tier 3 has the worst. The tier also sets the length of time the loan may go to, 12 - 72 months in 6 month increments.

    The rate, by teir, also varies with new and used cars, with more variances depending on the age of the car.

    (See- buying a Used car can 'hurt' you twice....it can affect your approval tier as age of the car is factoered in the scoring system, then, hit you AGAIN as it sets the rate and term of the loan...this is why it is sometimes easier to buy a new car)

    SO, the dealer 'knows' the nswer as soon as he puts your application in. He also has access to the Credut Report the system used within minutes after the app is processed- if he uses this you do not get an additional inquiry...if he is impatient and pulls it himself you will get two for the same app.

    If they tekk you they need time for an answer, etc, then the system 'denied; you and they neeed to look over your reports, info, and prepare to re-hash the deal with the lender. There are obvioualy only certain times of the day they can do this. It also helps to get certain Analyst (each dealer is assigned 1, 2, or 3 analyst depending on it's size. They will always use the same ones). I know, for certain apps, I woul try to get certain analysts...you know what they do and don't like to see.

    If you are 'denied' they will look over your report and the deal to see if they have another lender that might favor your deal a little better, then try putting it through them. You WILL get an inquiry for each lender tried...they will not accept a pre-printed report (wonder why?). FWIW, there was a time when they would....I think it was before Adobe Photoshop though!

    Some things to remember on these apps......unless you really, really, really, embelish things...they are not going to be verified. If I really wanted a car loan, I know that I would NOT want to live at an address less than 2.7 years, be on a job less than 2.7 yrs (remember, it does NOT have to be with same employer, just same profession), I would have a low rent or mtg payment, I would have BOTH a savings and checking account, and a phone in my name- or verified at my address (NO phone, No loan, Baby!). If I REALLY< REALLY, wanted the loan, I would want all these numbers to be at least 5 yrs. WHY? Cause the internal score is what we are after here, not really the FICO, and these numbers will generate enough internal points to offset the FICO damage.

    Hope this helps! As always, I am available by email for q's on this type of stuff....I have seen the ins and outs and goods and bads and can probably help.

  18. sam

    sam Well-Known Member

    Re: Hey, just a thought..

    embellishing the truth works for all facets of loans.

    Chase did not:
    verify employment (no way)
    verify phone # (Not listed at my name anyways)
    verify anything other then SSN card, and DL and Insurance Card.

    I was like WTF? Thats it? Got the payment book in the mail today. No verification of anything, they took my score, and took my cash..

    odd huh?
  19. supershawn

    supershawn Well-Known Member

    Re: Hey, just a thought..

    Sam- exactly.

    The only time anything is verified is in the case of a denial and you are working it to get a conditional approval- and this is done by the dealer, for the dealer- not by the lender.

    Honestly (OK, bad choice of words, I admit it), less than 2.7 yrs for employment or home will not help you at all, 2.7 is good, and 5 or over is great.

    I can tell you for a fact that a majority of apps, upon entering the machine, are accidently 'fat fingered' to checking/savings, 5 yrs, 5yrs, and salary is bumped. Either the salesman does it before he gets to the finance office, he doesnt aske and just checks what he wants, or the F&I guy does it himself. But, just in case, do it yorself.

    Some things I forgot....the 'best ' way to figure your income is to give them a weekly number, make it 'gross', then think of any additional monies you come into during a week..bonuses, ebay sales, etc...then let them do the math for yearly. Their math will give you a nice raise....or just do it yourself. Salary is important as it helps your debt to income ratio.

    Remember, the computer will automaticaly approve a good internal score...these may not even be reviewed by an analyst. I have seen 'friends' of F&I guys get auto approvals (that would not be reviewed by lender or deler principal) when they didnt even have jobs. You are proving your worthiness, get a good score.

    Also...NEVER mention financing...always act as if you already have financing arranged. Let them bring it up...ask about rates 'because you have already gotten pre-approval' from your bank. Let them quote you a low or lowball rate....then 'decide' to give tham a try. They will get the deal done....

  20. making

    making Well-Known Member

    Re: Hey, just a thought..

    cool posts supershawn.

    and good luck with the car nana :)


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