topic Re: what is a "well qualified buyer" for automobile special financing 0% etc. in Auto Loans

what is a "well qualified buyer" for automobile special financing 0% etc.

startover03 — Fri, 04 Mar 2011 16:35:41 GMT

While I am sure I don't meet this criteria currently, I would like to know, does anyone have some numbers (fico) to share regarding these "well qualified buyer" interest special financing through dealerships (or other). I'd like to know what they're looking for? Anyone who has received this type financing, please share your scores/background? Thanks!

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

usmc58555 — Fri, 04 Mar 2011 17:16:40 GMT

In all honesty, well qualified is another way to say "not all buyers will qualify" They cannot quantify it simply with a score since there are many other factors that are considered. Ihave seen 580s get a 0% rate due to how the deal was constructed.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

blackarsenic — Fri, 04 Mar 2011 19:52:22 GMT

Impossible

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

CMJustice26 — Fri, 04 Mar 2011 19:55:09 GMT

I qualified for Nissan's "well qualified" deal (1.9% for 72). TU FICO pulled by Nissan was 720, put $2000 down and had about $1000 in trade. Loan amount ended up right at $25K, a little under half of my gross income.

They weren't sure the could get me the rate because I'd never had a car loan, but after some tug and pull they got me approved : )

Basically the sales manager said a good prior auto loan history with a 680 could get the rate.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

usmc58555 — Fri, 04 Mar 2011 20:06:12 GMT

blackarsenic wrote:

In all honesty, well qualified is another way to say "not all buyers will qualify" They cannot quantify it simply with a score since there are many other factors that are considered. Ihave seen 580s get a 0% rate due to how the deal was constructed.

Impossible

Possible: Recovering from a BK, but had re-established, had an existing relationship with FMC with no blemishes, was a Ford Employee, put 3K down, and was a vehicle that Ford wanted to get off the lots.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

700orbust — Fri, 04 Mar 2011 23:25:47 GMT

I agree, its isn't always based on score...I qualified for BMW's 1.9% rate when I bought my M3, scores were around 675, util was high on a couple cards, but I was trading in a 24K BMW and put down about $4500. I also understated my income (wasn't sure what my distributions would add up to) so the purchase price was slightly more than my income - that was the only obstacle. But their qualification was a "pass/fail". Not tiered. Every lender/manufacturer is different.

Also, I have been told my numerous employees - Your score could be in the dumps, but if you've had a flawless payment history with the lender, you'll get another loan. I had a friend who had scores around 590 - but he paid his previous BMWFS loan like clockwork and they approved him for a new one.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

striders — Sat, 05 Mar 2011 18:54:03 GMT

In my experiences, "well qualified means" NO AUTO REPO for the last 4 years. Even if your score is 700, have low utilization, but you have had repo in less than 4 years, bank will decline the auto loan.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

cdtotten — Mon, 07 Mar 2011 13:01:59 GMT

Yes because most lenders use auto-enhanced scoring, so a repo is a death blow to any chances of a car loan. It is also extremely rare to see someone with a 700 ho had a car repo in the past 4 years... that's a big deal.

At least for Honda, their top tier usually requires a 720.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

striders — Mon, 07 Mar 2011 15:34:11 GMT

There IS still a chance though... I got a loan with 9.9% even with a repo record. Not the best APR, but definitely not a sub-prime either..
cdtotten wrote:
Yes because most lenders use auto-enhanced scoring, so a repo is a death blow to any chances of a car loan. It is also extremely rare to see someone with a 700 ho had a car repo in the past 4 years... that's a big deal.

At least for Honda, their top tier usually requires a 720.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

850striver — Wed, 19 Dec 2012 22:22:40 GMT

In 2010, my wife and I were 3 years past bk, had a 700 FICO score and low utilization on 3 unsecured credit cards. We had financed our previous vehicle with Honda Finance and did not declare it in the bk but they were aware of it.

Our income was (and remains) 'fixed' based on SS (retirement for me, disability for her) plus a 18k annual disabily pension for her. We own our home and, in 2010, had a few store accounts open with low balances as well as a $5,000. credit limit on a Dell acct. opened in late 2008.

We financed a new (2010) Civic with only the equity in our trade-in (approximately $2,500) as a dp and received the 1.9% 'special' financing rate (on a 60-month loan).

This was our 3rd car loan with Honda Finance so that was probably a factor. I plan to purchase a 2013 Honda and expect to receive the 1.9% financing again on the basis of a perfect payment record with them and approximately $4,000. equity in my current Honda which will be my DP.

In brief, Honda Finance has been good to us and yes, there is life after BK.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

maiden_girl — Thu, 20 Dec 2012 09:57:27 GMT

850striver wrote:
In 2010, my wife and I were 3 years past bk, had a 700 FICO score and low utilization on 3 unsecured credit cards. We had financed our previous vehicle with Honda Finance and did not declare it in the bk but they were aware of it.

Our income was (and remains) 'fixed' based on SS (retirement for me, disability for her) plus a 18k annual disabily pension for her. We own our home and, in 2010, had a few store accounts open with low balances as well as a $5,000. credit limit on a Dell acct. opened in late 2008.

We financed a new (2010) Civic with only the equity in our trade-in (approximately $2,500) as a dp and received the 1.9% 'special' financing rate (on a 60-month loan).

This was our 3rd car loan with Honda Finance so that was probably a factor. I plan to purchase a 2013 Honda and expect to receive the 1.9% financing again on the basis of a perfect payment record with them and approximately $4,000. equity in my current Honda which will be my DP.

In brief, Honda Finance has been good to us and yes, there is life after BK.

Usually if you are post BK and a company is aware of it but you haven't done anything to jeopardize your relationship with them...they will usually stay with you. This is true for most companies.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

MovingForward_2012 — Thu, 20 Dec 2012 13:03:00 GMT

The same with Honda's subdivision, Acura Financial. Last month I was approved with them for a lease with a 724 score. They told me the cutoff for tier 1 is 720 and that that was the score required for the advertised special that quoted, "for well qualified lessees".

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

MovingForward_2012 — Thu, 20 Dec 2012 13:07:20 GMT

I should add that Honda/Acura is very forgiving. I surrendered a 2003 Accord after reaffirming it after filing Ch 7 bankruptcy. After being approved through Acura Financial last month, I received a letter in the mail saying, "Welcome back to our family". So they still had my surrender paperwork almost 10 years later from Honda Financial.