topic Re: Some Auto Loan Advice in Auto Loans

Some Auto Loan Advice

JustinC7 — Thu, 18 Oct 2012 00:02:44 GMT

As stated Ive been in the process of rebuilding my credit for the past 2 years. I once had a score of 450, and I now have an Equifax score of 595 according to one report, and 555 according to myfico.

My transunion is 533, and Experian is 495.

Anyway, I
'm looking to put down a $9000 trade in on a $25,000 new car. I'll be financing $16,000 for 60 (maybe 72) months.

My income is about $40k/year

I understand that most dealers pull equifax or trans union. What kind of interest rate would I be looking at?

Re: Some Auto Loan Advice

tooleman694 — Thu, 18 Oct 2012 04:02:17 GMT

18 percent or higher..

Re: Some Auto Loan Advice

ImprovingYouth — Thu, 18 Oct 2012 14:45:07 GMT

JustinC7 wrote:
As stated Ive been in the process of rebuilding my credit for the past 2 years. I once had a score of 450, and I now have an Equifax score of 595 according to one report, and 555 according to myfico.
My transunion is 533, and Experian is 495.

Anyway, I
'm looking to put down a $9000 trade in on a $25,000 new car. I'll be financing $16,000 for 60 (maybe 72) months.

My income is about $40k/year

I understand that most dealers pull equifax or trans union. What kind of interest rate would I be looking at?

Well, you do have some leverage with the amount you are putting down, however with those scores you are definitely going to be in double digit interest range. I would try to see what financing you can get without mentioning the trade-in. See if you can get approved and if you can then throw some extra chips on the table to buy down the interest rate.

Just curious is the car paid off or do you just have 9k in equity?

Re: Some Auto Loan Advice

increasingmyfico — Thu, 18 Oct 2012 21:15:58 GMT

What type of car are you considering? What state are you in? Member of any credit unions? How did your last auto loan look in regards to payment history?

Re: Some Auto Loan Advice

JustinC7 — Thu, 18 Oct 2012 21:24:30 GMT

The car is paid off.

I can probably put down and additional $1,000 to make it an even $10k down.

Would it somehow be better if I sold my car and just put cash down only?

I dont have any repos, forclosures or bankrupcies on my record.

The thing is that I've been looking through that auto loan approval thread and people with my score tend to get the 18% interest rate on new cars regarldess of what they put down. But the new car loans have been all over the place. Ive seen as little as 4% and as high has 18%

I understand that while the lender pulls all 3 scores, they'll use your best one of the the three to get you approved.

EIther way, should I scale back a bit to get a better interest rate or just bite the bullet? Do people have better luck with loans with certain manufacteres over others?

The bottom line is that my credit needs to be repaired ASAP and an auto loan will do much more for my credit than credit cards will. I really want to get my payments around $300 or so monthly which I can comfortably afford. Given my situation it seems it would make the most sense to take a 7 year loan and try to refi after a year or so of solid payments etc.

Re: Some Auto Loan Advice

increasingmyfico — Thu, 18 Oct 2012 21:32:48 GMT

Car dealers don't pull all three. Looking at a new car you may be able to get a lower rate. I can't tell you unless I know your previous auto loan history and what type of car you are looking for now.

Re: Some Auto Loan Advice

JustinC7 — Thu, 18 Oct 2012 21:48:30 GMT

2013 Nissan Altima 4cyl Sedan

I live in Pennsylvania, and I Had an auto loan back in '03. Ended up settling for about $800 or so short of the total amt owed about 3 years ago. Payment history was good for the most part bot got real sketchy towards the end. Ran in to some tough times with the recession hit

Since 2010, Ive had a credit card, Ive made every payment on time, and knocked off a couple of othe outstanding debts. The thing is that they stay on your history for so long that it really hasnt changed my score much.

Its not alot, but its worth mentioning

Re: Some Auto Loan Advice

increasingmyfico — Thu, 18 Oct 2012 21:53:20 GMT

I would try a local credit union. I would get a trade in offer from the dealer and get all all the figures agreed then take the proposal to a local cu. You will probably end up with a rate between 7-12%. Some credit unions are real aggressive right now because it has been a profitable year for them. That works in your favor. The new Altima seems to be a nice car. I'm not sure if Nissan is aggressive with lending or not. Honda and Toyota are.

Re: Some Auto Loan Advice

JustinC7 — Thu, 18 Oct 2012 21:59:08 GMT

Well, Accord can be a good second if the Altima doesnt work out :)

Personally, I'm hoping for around 10%

Re: Some Auto Loan Advice

increasingmyfico — Thu, 18 Oct 2012 22:24:25 GMT

def search credit unions then and start a lifelong relationship

Re: Some Auto Loan Advice

Wisdomby3 — Fri, 19 Oct 2012 10:15:54 GMT

Here is the deal... You are focusing your efforts on the wrong area... You need to get your score GOING UP AGAIN... So you need NEW CREDIT and GOOD PAYMENT HISTORY FOR at least 9mth 24mths.. This is where you need to work at... You need 3 good tradelines (Accounts)... Settle and negioate all collections, use PFD letter if you have to... Most importantly, keep 6mths cash reserve in the bank and never touch it... Build strong reference with a bank or credit union ONLY ONE, The problem is you are not show stabilty to a lender... Lender look at a 24mth period... 2yrs rental or mortgage history, 2yrs on the job, and 2yrs credit history.... Get serious about fixing your credit, and in 1yr your Credit Scores will jump.... Trust me!

Re: Some Auto Loan Advice

lsutigers — Tue, 06 Nov 2012 12:07:10 GMT

I was denied by everybody. In a last ditch effort I went to my local credit union with whom I didn't have an account with. I was sure I'd be denied again due to short history and an old public record......a day after I submitted I got what I thought would be the dreaded call of not approved......WRONG! approved for 15000 with 5.9 for 36 month.