Auto Loans topics

Test Drive and Credit Pull

hardworkpaysoff — Sat, 25 May 2013 09:22:06 GMT

For any of you out there who have followed my two pevious posts, I am interested in buying a new 2014 Mustang v6 manual at the end of August of this year. I went to a dealer today to test drive the car, and ended up having a lot of my questions answered, and my credit pulled. For the sake of reference, my only credit lines are in my signature: I have no installment loan history of any type.

TU Auto 04 FICO: 702

EX v3 Auto: 672

The sales lady said she was surprised at how good my credit was for just recently turning 19 in April. Although they did not run it through any banks or Ford Motor Credit, she said that after a brief discussion with the finance guy, they are sure I would be approved for the promotional rate of 1.9% for 60 months. So now, I have atleast confirmed that I will be able to get a decent rate on this loan, if not a pretty darn good one.

Some questions I have for the community:

1) UGH! Another hard pull. :( This is going to put me at 9-10 now. By the time I apply I will be down to 5-6, but these numbers scare me. Should I be this worried about hard pulls and how it effects my credit score?

2) I plan to actually order the car, which needs a 6-8 week lead. Will I have any negotiation power in this, even though its a brand new model and BTO?

3) In regards to ordering, are they going to pull my credit at the order time and then pull it again when the car arrives and I sign the paperwork? That would be nuts!

4) Anything I'm missing...? I feel like I've got most the bases covered.

5) Anybody ever been inside a Shelby GT500? The dealer not only let me get inside the one on the showroom floor, but I also got to start the engine and I revved it just a bit for fun. All the customers on the floor looked directly at me, it was great! I was also suprised I was allowed to test drive alone... no kidding. They must have good insurance to let a 19 year old drive a 300HP car alone.

Anyway that's all for now, its nearly 3:30AM here.

Chances of loan approval?

dtulonghorn — Sat, 25 May 2013 07:54:12 GMT

I am planning on buying a new car between August and the end of September. Right now I am pretty set on the 2013 Ford Focus ST or the 2013 Subaru WRX. Anyways I will need some financing to buy the car. Basically I want to know my chances of being approved for an auto loan. I have never taken out a loan of any kind in my life and I really don't know what all goes into taking one out. I'm still very new to this and do not know which factors they will consider.

Some basic information about me is that I am 20 and have only had a credit history since the end of January 2013, so I do not yet have an available credit score. I should finally have one in late June though. I have two credit cards at the moment, a secured Capital One Platinum MasterCard with a limit of $251 and a Discover it Card with a $500 limit. I have been paying off the balance on both cards in full every month and do not have a balance at all. Some other information that they may take into consideration is that I have multiple income streams coming in each month and pretty much no expenses. I have a full-ride for college, a trust fund that pays living expenses, and the bulk of my income is discretionary. I will also be trading-in my current car or selling it privately, but it should provide $5000-$7000 of the downpayment on the car. I will also be putting down between $5000-$10000 cash so my overall downpayment will be in the range of $10000-17000. which will leave me with having to take out a loan of around $9000 to $16000.

So given all of that information what do you think my chances are of getting a loan? And at what possible rates. According to credit score estimators I have used my credit score should be in the upper 600s by the time I buy my car or perhaps higher. If you have any questions or need anymore information I will be happy to oblige. Thanks for any answers you guys can provide and I greatly appreciate it.

Edit: And if my discretionary income makes a difference it is around $1600 a month after all my other expenses are paid.

Wells Fargo waving fees for Oklahoma customers

BearsAndTurtlesRtheBest — Fri, 24 May 2013 21:39:02 GMT

Just thought Id share what wells fargo posted on their sign in to pay autolaons:

Our thoughts are with everyone impacted by the tornado in Oklahoma and we want to do our part to help. Wells Fargo Dealer Services
is waiving late fees for impacted Oklahoma customers in FEMA-designated zones from May 21 through May 28, 2013 on auto loans.
Please call us at 1-800-289-8004 for assistance.h

Bankruptcy and a co signer

amieric88 — Fri, 24 May 2013 19:20:57 GMT

Hi there
I have a family member who co-signed a car with me to help me build my credit. However, they have run into a hardship and medical bills have left her owing a lot of money after insurance took care of their part. Here's my question - if they file for BK and I'm joint owner of the vehicle how does this effect me and my credit and ownership to the car? Will they take the car away from me? What's the deal? What do I have to expect. My credit hasn't built up enough to probably purchase one on my own (that isn't a piece of S from a buy-here-pay here). Thoughts? I'm a little worried.

Lending Tree for Auto Refi Success

rkdavie — Fri, 24 May 2013 15:12:42 GMT

Nine months ago I bought a new car and took a 13.9% loan from GM Financial (obtained through the dealer). Besides needing a new car, this was part of my grand plan to rebuld my credit and eventually qualify for a mortgage. My credit scores at the time were in the 580 range. I originally intended to wait a full year before attempting a refi, but a few days ago I got the urge to put my info into Lending Tree and see what it would spit out. My current FICO score from here was 731, so I figured I had a shot. Lending tree presented me with 5 offers. The highest rate offered was 15.31% from some company called Blue Yield-I don't think so. Capital One came in at 7.50%-better but not ideal. The best rate was 3.29% from Up2Drive. Never heard of them, so did some research. They are the financing arm of BMW North America. I called them up and asked them "what's the catch". They said no catch and explained the offer. They fedexed the documents and a "drive check" which I would send to my curret lender to pay off my current loan. All I had to do was fax them some required documentation and they would call with an authorization number to put on the check. They got everything they needed and now my check is on the way to my current lender to payoff my current loan. So far, I am very impressed with this company. They were wonderful on the phone and answered all my questions. One of the other lenders wanted to try and sell me all kinds of extra stuff like extended warranties. Up2Drive seems very straight forward. I'll update when my current loan is paid off and my new loan funds and let you know if this was really as easy as it seems. The best part is my loan payment will be REDUCED BY $80 A MONTH! I did not extend the length of my loan. My orginal loan was 72 months. I had paid 9 months. This loan is for 60 months.

The only negative using lending tree to get offers is that everyone who gives you an offer will call relentlessly to try and get your business. It's all good though. I will be saving a ton of money!

What kind of increase/decrease should I expect?

obageegee — Fri, 24 May 2013 12:22:04 GMT

Approved for $17,000 at 4.9% 60 months. What kind of increase or decrease should I expect on my CR?

Audi and VW financing apps through websites

bahbahd — Thu, 23 May 2013 19:21:27 GMT

Doesn't Audi use VW financing? I am looking at possibly an Audi A4, a VW Passat TDI or maybe a Subaru. I have gone without a car for way too long. I think it is time I buy.

I really want an A4. I really don't want my Ex thinking I am "rich" though.

Edit: I guess my question is if I will need to app twice to VW financing if I am going to look at both VW dealership and Audi dealership. Thoughts?

still owe $9000 on car after end of contract.

Yvette350 — Thu, 23 May 2013 10:50:18 GMT

I financed a car with national in 3/2007 for 72 months. My loan was sold to Ally after about 4 years. I have had 3 deferments during the lifetime of this loan. now almost 2 months after my contract should end, they still want $9000 on the car. That's another 2 years on this car. My total pay off would be $11,000. Even with deferment fees and and any late fees they will Asses, how is this possible? How do I end this cycle? I am so tired of car notes. I want to direct that money towards paying off other creditors faster. And who wants to pay 8 years for a car. I already feel like a total loser for financing it for 6 years. I literally want to cry. I'm 43, desperate to clean up my credit life, but feel trapped and raped. I know I said yes, but I still feel assaulted. It has been 6 years on this car, when does it end? What can I do? What are my options? I have no problem paying the extra deferments until June 2013.... But mercy already!!

When are the auto sales events?

Volpes — Thu, 23 May 2013 10:15:21 GMT

I figured this may be a good place to ask, but generally when are sales events held? I know there is New Years, and End of the Year, maybe 4th of July?

I'm having some tough times car shopping (I was just jerked around by two dealers last weekend :( ), and its hard to find a fair deal from the dealerships.

I just want to keep my eyes open for whenever there may be another sales event. And... because I know its coming, yes I know these "sales events" can be gimmicky, but due to time I will be missing out on Hert'z $1,000 off Memorial Day sale (on top of their already lower market value prices).

Chances of getting 2nd car loan?

jay_c27 — Thu, 23 May 2013 02:38:42 GMT

hello all, i have been following the forum for a while and have found great info. my situation is as follows:

i declared chp 7 bankruptcy in 2008 which was finalized in 09. havent had any credit since then as i was afraid to apply for any credit only to be denied. i finished school 5/12 and began working 8/12. i saved up for a down payment and to my surprise got approved for a $16,xxx loan through honda financial at 11.95% w/ a payment of 369.51/month x60 months and 637 EQ score in october. did not finance through my CU they said my financial history and recently opened account would not get me qualified. currently, i make about $7,000/month before taxes, pay my CU secured credit card on time every month, pay an extra 100-150 on the car note on time every month, pay double on my school loan, and have an 640 EQ score.

What are my chances at getting into another loan with a good down payment? How would this affect my chance of refinancing this coming october on the 1 yr anniversary?

thanks in advance!

Fifth Third Auto loans?? Should I consider them

neptunejcw — Wed, 22 May 2013 23:23:13 GMT

I have a secured credit card through 5/3rd, at 6 months I will be going & getting a hard pull to get it unsecured. My TU score will be right at 700, I have a short credit history but do anyone suggest I ask them about a car loan since I already have built up a repor with them?

Mom's bank called and said she's able to refinance

WallyxD — Wed, 22 May 2013 22:42:53 GMT

My mom told me she just got a call from the bank with who she has an auto loan with (the dealership's "default" bank/ Buy Here Pay Here dealership) and told her that she had good news and that she was now in position to refinance her car with another bank. So we started thinking that this was because my mom has improved her credit since getting the car. However, I know for sure not much has been improved, her payment history has gotten better, but as a result of dealing with a credit repair company, accounts have been deleted (I take it as the accounts that weren't in good standing somehow got removed) so her AAoA went down to 1 year, 1 month from almost 5 years. So my question is, does that phone call definitely mean her credit has improved? If so, should she wait until the end of the year to try to refinance her car since it'd her more time to improve her credit?

Auto Insurance

Vmukesh — Wed, 22 May 2013 10:29:49 GMT

Under what circumstances can a No Claim Bonus can be allowed?

USAA Car Buying Service and car buying advice

Dustink — Wed, 22 May 2013 06:29:47 GMT

I just want to let people know that the USAA car buying service is open to anyone. You do not need full membership to use this service. A basic civilian membership gives you access to this service and to USAA auto warranties. Just a good way to start negotiations at the dealership. You will know the market rate for the vehicle and the market rate for a warranty to go with it.

USAA auto loans require full membership, but getting a pre-approval before going to the car dealer is important.

Get some pre-approvals in hand before heading off to the dealer.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7 steps to an improved car buying experience:

Step 0:

Get your finances in order. If you do not have a large emergency fund and steady job. then just stop here, you have no place buying a car. If you do have those two things, then get a large down payment together. Go with 20% minimum, but more would be better.

Step 1:

Determine what you need in a vehicle. Take into account size, comfort, traction, MPG, reliability, cost of ownership ect.

Step 2:

Research a vehicle that fulfils your needs. The internet is a great resource. Just make sure the people providing the information are not being biased by the manufactures money.

Step 3:

Get together some pre-approvals for the shortest term you can afford (60 month maximum). Auto INQs within a short period of time are scored as 1 INQ. So, do some rate shopping. Let the banks compete. If one beats the other, go back to the first and let them know. See if they will go even lower.

Step 4:

Get in touch with internet sales at all of your local dealers. Get them competing on price. The USAA car service helps with this.

Step 5:

Test drive vehicles. No matter how much research you have done. You still need to drive the vehicle to make sure you like it. Go for a good long test drive. Relax and don't let the salesmen talk the whole time. Let the car do the talking. Even if you think it is the right choice, go test drive some other makes and models. Car buying should not be a rushed process. Take your time and think through the process. Also, stringing the dealers along like this helps keep the negotiations on your side of the table.

Step 6:

Find the car you like and start working the numbers. Most of the negotiations have been done already, but see if the price can move anymore and let the dealer have a shot at beating your rate.

Step 7:

Don't let F&I sell you extras. Just say "no", 99% of the time you will find better deals elsewhere. You do not need GAP, because you are putting a good amount down and have gone with a short term loan. You do not need the warranty because you can find one cheaper elsewhere. Or properly maintain your car and let statistics remain on your side. According to statistics, the cost of a warranty will be higher than the cost of repairing a properly maintained vehicle.

Is SANTANDER the Old GMAC?

Scuba — Wed, 22 May 2013 04:35:56 GMT

There have been some horror stories on this company and I will be looking for a loan soon and used to be ok with GMAC but thinking they have changed.

Does anyone know if Santander is GMAC?

HELP!!!!!!. Have excellent auto loan history but ..........

summerhunny11 — Wed, 22 May 2013 02:14:09 GMT

Hi All,

I am looking for a new car soon, hopefully. I recently paid off my financed car and I have no lates over that 5 yr period. I also financed a car at 18 which may have one late. I have about 20% cc use on cards that total around $2500 and some medical collections that are 3 years old, around $3k.

I have gone through disputing, paying some things off, etc. Experian actually sent me a letter stating that they will not investigate the medicals again (disputed twice).

Anyways, I am working on paying the cards down to 10% within the month.

Scores are still bad Equifax 607, TU is 685. I am hoping these will go up once I get the cc's down to 10%.

Any advice for leasing or buying? Rates I should expect, etc? Would my Auto enhanced be higher perhaps?

Approval Chances/Expected Rate

dpw3868 — Tue, 21 May 2013 20:11:15 GMT

Hello all.

First post. Been rebuilding my Credit. Here is my situation.

Current Score about a 661 (on creditkarma) last time i checked myFico the scores were the same as CK (655)

I just paid off a ChargeOff reporting a balance has not hit my score yet.

I am looking to get a new car.

2013 Town and Country Touring L

MSRP 36015

Rebates:2750

Trade in: 5000

Friend and Family Discount:

Financing: 26128

I have 3 revolving credit cards havn't had a any lates in 4 or more years. The rebates expire in June not sure how long it will take for the debt i paid off to report and its effects on my score.

What do you guys think/advice?

Motorcycle Financing - good credit but no history of major loans

bluedeviled_egg — Tue, 21 May 2013 20:04:44 GMT

I'm thinking of getting a Ducati 848 evo (MSRP around $14000), and I was told by the salesperson that motorcycle financing is very strict and they don't typically lend to people without history of bigger loans (e.g. car loans, house, etc). Is that true? I have an income from rental, dividends of around 60k/year, and I have 2 credit cards (+ one recently closed of total limit $5800. My experian credit score is 743. Do you guys have any experience with this? I was told that the financing application is a soft pull? I guess I'm going to try with the dealer's financing company FreedomRoad, but would I have better luck with banks/credit unions?

Thanks!

Can I still negotiate with dealer after the bank printed the check?

NyaBuksh — Tue, 21 May 2013 18:35:19 GMT

Hi,

I signed my loan documents at my credit union and they gave me a $2,999 check for the motorcycle that I want. However, the total purchase price is $3,451 because of taxes, tags and fees. Can I still negotiate with the dealer to have the "out the door" price come down to $2,999? If the dealer doesn't budge, can my credit union re-print a check for the same amount payable to another dealership?

I am lgoing to the dealer today. Please help!!!

Thanks!

NFCU Loan ?

NiNoMArksLA — Tue, 21 May 2013 05:10:18 GMT

Hello I wanted to Refin my Loan From Santander At 24% $504 a Month 2011 Dodge Nitro 49k Miles Had It For 6 Months Do u think I should do it right now

EX 660 TU 559 EQ Don't Know

Do u need a high score to get Appoved
Do You Need Ext Credit
Do You Need More History With Car Loans