topic Re: Denied Denied Denied! Where to turn? in Auto Loans

Denied Denied Denied! Where to turn?

jazzydaddy — Mon, 05 Nov 2012 01:22:30 GMT

Recently the engine in my car died, and it pretty much costs as much as the car is worth to fix it, so my wife and I were looking at purchasing a used vehicle from a dealership to replace it. My wife did a great job of contacting some dealerships and asking about financing, making sure to tell them that our credit isn't great, but that it's all old stuff, no bk's, no repo's, no judgements. She told them my EQ Fico is 570 and everyone said that yes, they would be able to help us get financing. So, yesterday we went to a dealership after A LOT of online research to narrow down the search. We decided on a '03 Honda Odyssey with 101,000 miles and it was in great condition. The asking price was just right, and my wife managed to haggle another $1400 off the asking price. We were all set to go...until they did the financing application.

Denied.

At first the sales manager came back out and said we would either need a co-signer (we're not doing that) or 30% down. We didn't have that much money. Later on in the conversation it ended up going up to 50% down.

My wife found info about the Cap One Auto loan this morning, read that people with a min score of 550 have been accepted and since I'm above that, we applied, although knowing we'd have to look for a different vehicle since this one was a tad too old and the mileage was too high to qualify.

At first I got a message saying we'd find out in 7-10 days. Two minutes later...DENIED.

This is so incredibly frustrating. My score was climing in the low 600's until a bogus collection popped up 6 weeks ago. My wife jumped on it immediately and got it deleted (with written confirmation of it's deletion from the ca) but the score still hasn't recovered.

Is there anywhere else to turn? Having one car with a growing family (we have a 3rd baby on the way in about 9 weeks!) is frustrating and very difficult.

I thought about asking my credit union, but they are STICKLERS about there being no collections on the credit report, and I still have a few I'm trying to get deleted.

Re: Denied Denied Denied! Where to turn?

llecs — Mon, 05 Nov 2012 03:31:33 GMT

If I was in that situation, I'd either use the $$$ set aside for a down payment on a new motor, or if more feasable use the $$$ on a temporary beater and I'd use this time to focus on repair to get in a better position 6-12+ months out.

If you wre getting the HOnda, according to KBB, the price would not be over $8k for it (based on the top of the line model), or if it is, the dealer overpriced it. Usually it's very difficult to get a loan on a used car with 100k miles. Sometihng to consider in the future.

Re: Denied Denied Denied! Where to turn?

Jutz — Mon, 05 Nov 2012 03:39:28 GMT

I agree with llecs about the age/mileage part. I've found this to be the case while looking around. Try using cap1's standards, less than 7 years, less than 70k

Re: Denied Denied Denied! Where to turn?

jazzydaddy — Mon, 05 Nov 2012 14:13:47 GMT

The price was below $8k on the vehicle, and then my wife talked them down more, so it was a good price on it. They didn't tell us anything about the reason financing wouldn't work was because it was higher mileage. I wish they would have.

As for using the money that we would have used on a down payment to fix the motor, it's not enough. If we were going to put $1K toward a "new" car, the price we've gotten to fix the old one is between $2500-$3000 based on getting a new motor, and then also fixing the cooling system. The car isn't worth much more than that all together.

I drive 50 miles each way to work, so buying a beater that may leave me sitting on the side of the road makes me very nervous.

Re: Denied Denied Denied! Where to turn?

Jutz — Mon, 05 Nov 2012 15:07:54 GMT

If you scraped a bit, and did your best to save, how long would it take to save the 8k needed? It's probably going to be tough getting financing on a 10 year old 100k mile vehicle because the banks see them as high risk. (For good reason; what if you were in the same position 2 years down the road, only you had 2-3 years left on a loan for a car that would cost the rest of the loan just to get back on the road?)

You may be better shooting for something around 10-15k with low mileage and younger.

Congrats on the new baby by the way!

Re: Denied Denied Denied! Where to turn?

boonelb — Mon, 05 Nov 2012 15:36:17 GMT

I got a cap one loan at 87k but it was a 2008 and bought the extended warranty.

Re: Denied Denied Denied! Where to turn?

TrishN — Tue, 06 Nov 2012 01:39:48 GMT

Roadloans that will help.

Re: Denied Denied Denied! Where to turn?

jazzydaddy — Tue, 06 Nov 2012 18:00:55 GMT

Anyone know the minimum credit requirements for Roadloans? I'm not familiar with them.

Re: Denied Denied Denied! Where to turn?

Jutz — Tue, 06 Nov 2012 18:38:45 GMT

Like a million percent APR

Re: Denied Denied Denied! Where to turn?

jazzydaddy — Tue, 06 Nov 2012 19:08:26 GMT

That's not what I asked, but thanks anyway.

Jutz wrote:
Like a million percent APR

Re: Denied Denied Denied! Where to turn?

TrishN — Tue, 06 Nov 2012 19:23:59 GMT

Roadloans they accept with any credit score. If you have 1 credit card ontime paymentsI just approval with roadloans ARP pretty high. 20.9 but I will get refinance after six months. I'll put 50% down on refinane though local CU latter.

Re: Denied Denied Denied! Where to turn?

jazzydaddy — Tue, 06 Nov 2012 20:02:07 GMT

I just applied and was approved for $28,000 with an APR of 15.32% which I thought was pretty good considering all the 20%+ interest rates I've been reading about.

Re: Denied Denied Denied! Where to turn?

TrishN — Tue, 06 Nov 2012 20:12:55 GMT

Congrats. We'll refinance latter. Lol

Re: Denied Denied Denied! Where to turn?

Epcot — Tue, 06 Nov 2012 20:25:39 GMT

Congrats on the approval!

Re: Denied Denied Denied! Where to turn?

madmann26 — Tue, 13 Nov 2012 19:23:46 GMT

Congrats!!

Being a Roadloans customer myself, read the fine print on your loan documents. They have LTV, year model and mileage requirements. While they have a plethora of dealers they work with, the most seamless transitions I've had have been through Carmax.

Pay ontime and refinance later.