Auto Loan Approvals!

[nycsimone]

You overpaid for that mustang big time!!!

Although many lenders use NADA for financing purposes...you shouldn't!!!!

The KBB retail value of that mustang is $14,600, which means if you paid more than $13,000 for it you got ripped off.

Why?

Because in a year or 2 when you go to trade in the car they're going to offer you about $6,000 for it and you will still over over $10,000 on it.

Having good finance deals is important, but so if buying the car at a smart price. You could have purchased a brand new Mustang (base model) for not much more then that.

[Remember0]

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@nycsimone wrote:

You overpaid for that mustang big time!!!

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It's spilled milk at this time. I think the best thing they can do is try to refi the loan to a lower APR one.

I'll also note that they likely rolled in taxes, gap, warranties and other fees into the loan, making the loan amount > the purchase price of the car itself.

For what it's worth, Carmax has a 07 Mustang GT with 71k miles for 17k and people buy from them all the time and don't complain about it being priced too high.

Used car prices tend to go up during tax refund time. If you can, buy a used car June-November/December when dealers have slower sales on used and are more likely to come down on price.

[GulfWalker62]

APPROVING BANK: Glen Falls National
BUREAU PULLED: TU
CREDIT SCORE: 657
CUSTOMER STATE OF RESIDENCE: New York
NEW/USED: CPO
YEAR OF VEHICLE: 2009
MAKE: Honda
MODEL: Civic EX Sedan
MILEAGE: 52k
RETAIL/LEASE: Retail
AMOUNT OF LOAN: 13532
TERM CONTRACTED: 72-mos
APR/LEASE RATE: 6.49%
MONTHLY PAYMENT: $219.78
ANNUAL INCOME: $24k
DEBT TO INCOME RATIO: 18%(Monthly Pmts to Income)
MISCELLANEOUS COMMENTARY: This is my 1st car loan I have had that was not a joint loan, nor did

                                                                I need a co-signer. As a 52-yr old married female who had

                                                                to retire yrs before planned due to health, this is the 2nd best news

                                                                to becoming a grandma 3-yrs ago & marrying my soul-mate 15-yrs ago.

 ****I also wish to thank everyone here for the advice, the kind & caring community of real people with real hearts who truly wish to help by sharing from their own successes & working hard together as a community to make sure that everyone gets the best advice each has to offer. My husband encouraged me to do this, join

MyFico, and he & all of you have helped me so much. I wish to thank everyone !!                                                         

[determinedteacher82]

APPROVING BANK:Captial One Auto Finance 
BUREAU PULLED: EQ
CREDIT SCORE:  525
CUSTOMER STATE OF RESIDENCE: AL
NEW/USED: Used
YEAR OF VEHICLE: 2013
MAKE: Hyundai
MODEL: Sonata
MILEAGE: 1,200
RETAIL/LEASE: Retail
AMOUNT OF LOAN: $18500
TERM CONTRACTED: 72 mos
APR/LEASE RATE: 15.99% (could have been worse...)
MONTHLY PAYMENT: 400.12 (this is with a warranty that I may or may not cancel...) 367.40 with no warranty
ANNUAL INCOME: 45k
DEBT TO INCOME RATIO: $65k in student loans puts me at LOTS to litte.
MISCELLANEOUS COMMENTARY: Had a $3000 trade in of a 2004 Honda Civic in great condition. Dealt with the internet sales staff and got the cap1 approval on a Thursday before I bought on Friday night. Chase was offering 22%. No brainer. Rebuilding after being in denial for several years...slow but steady.

[Remember0]

@determinedteacher82: I'd cancel the warranty personally...$33*72 makes the cost of that warranty OVER 2k!!! I'd personally self-insure especially on a 2013 car...how many repairs can you do for 2k!? Also if you bought Dealer GAP, see if your auto insr co offers it for cheaper and if you can cancel dealer GAP.

[determinedteacher82]

I am leaning that way as well. Did do the GAP through my own insurance...my husband advised me to get it the warranty in question...but I am the recipient of the five-year 60,000 mile warranty that's left on the Hyundai.

[Remember0]

I'd shop around to see what other hyundai dealers charge to write a warranty. Typically you can buy a warranty from ANY dealership online (google to see where others have bought cheaper warranties online). At least I know you can do that with new Hondas and Toyotas.

Honestly I'd self-insure, but I tend to be risk-neutral for stuff <10k, and most other people are risk averse.

[Elle23]

APPROVING BANK: DCU
BUREAU PULLED: ?
CREDIT SCORE: CK fako 688, walmart TU 695 quizzle EQ 672
CUSTOMER STATE OF RESIDENCE: TX
NEW/USED: NEW
YEAR OF VEHICLE: 2014
MAKE: Lexus
MODEL: GS350 F SPORT
MILEAGE:
RETAIL/LEASE: PURCHASE
AMOUNT OF LOAN: 55,000
TERM CONTRACTED: 60 months
APR/LEASE RATE: 3.74%
MONTHLY PAYMENT:
ANNUAL INCOME: 88,000
DEBT TO INCOME RATIO:
MISCELLANEOUS COMMENTARY: Thanks to all the forums on my fico. My credit wa in the dumps but due to the advice on these boards and some work on my end my credit is slowly climbing back into a normal range. 6 months ago I purchased my first home (brand new!) with a great interest rate, and now I'm heading out to do a little car shopping. THANKS EVERONE! Oh yeah DCU is giving me a 5K Visa!

**edited interest rate to reflect 0.5% discount due to opening a checking**

[codefreak13]

APPROVING BANK: Abri Credit Union
BUREAU PULLED: TU
CREDIT SCORE: 689
CUSTOMER STATE OF RESIDENCE: IL
NEW/USED: NEW
YEAR OF VEHICLE: 2014
MAKE: Chevrolet
MODEL: Cruze 1LT
MILEAGE: 5000
RETAIL/LEASE: PURCHASE, Re-finance
AMOUNT OF LOAN: 21,223
TERM CONTRACTED: 60 months
APR/LEASE RATE: 4.24%
MONTHLY PAYMENT: $390
ANNUAL INCOME: 49,000
DEBT TO INCOME RATIO: 22%
MISCELLANEOUS COMMENTARY:

Had originally applied for a loan with them back in August but only got accepted for 75% LTV with a 648 TU. Ended up going with the dealer at 14.9%. Saw Abri was doing a sale on refis and figured why not with 6 payments showing on the old loan. Was approved with no issues for 4.24% (including .75% of discounts for other products). Also got a CLI on a credit card with them from $250 up to $2000. Not at all bad for 1 HP and 20 minutes of time!

[Hammer23]

Kinda crazy, but I liked my wife's SUV so much I traded in the Fusion I bought in Feb on a CX-5 of my own! 

APPROVING BANK: Mazda Capital Services (Chase)
BUREAU PULLED: TU
CREDIT SCORE: 737 (Was a Tier 1) 
CUSTOMER STATE OF RESIDENCE: OH
NEW/USED: NEW
YEAR OF VEHICLE: 2014
MAKE: Mazda 
MODEL: CX-5
MILEAGE: 50
RETAIL/LEASE: Retail
AMOUNT OF LOAN: $22,600
TERM CONTRACTED: 60
APR/LEASE RATE: 0.90%
MONTHLY PAYMENT: $385
ANNUAL INCOME: $85000
DEBT TO INCOME RATIO: 37%
MISCELLANEOUS COMMENTARY: Great process, very happy with the car. Worried about how three new auto loans in 45 days is going to impact my CBR. Socre was up 10 points from when I bought the Fusion.