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Auto Loan Approvals!

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flan
Regular Contributor

Re: Auto Loan Approvals!


@Anonymous wrote:

Flan, you are correct, if their is a finance rebate it is going to be tied to the captive finance arm but that is not the case in this situation as non-captive arms don't provide finanace rebates because of course rebates are factory sponsored to increase sales.   Often times there are very attractive rates or rebates through captive finance companies but like in this case there is a choose one or the other so once you choose to take a non-finance rebate and finance with a non-captive company you are free to finance through any company you want or in fact pay cash. The finance and insurance guy is a commissioned sales person so like in this case they shape the deal to their benefit by getting a couple of points of finanace kickback for doing absolutely nothing which is what drives me crazy.  According to the automotive trade journal Automotive News the avergage car sale resulted in over $1,800 of revenue out of the finance and insurance guy alone so this one point here one point their practice along with all of the other add ons are highly profitable for them and why they can really not be trusted to look out for your best interest. 


So, i went and looked at the actual terms of the college grad rebate, and it says (among other things): The College Graduate Rebate Program and College Graduate Finance Program are available upon credit approval from and execution of a finance or lease contract through a participating Toyota dealer and Toyota Financial Services (TFS). 

 

So, to get the rebate, you have to finance through the captive finance arm.  How long you have to wait to refi, I don't know.

Message 2751 of 4,736
Dj4Money
Established Contributor

Re: Auto Loan Approvals!

 You have I think 30 days if you want to do it right after you purchased but haven't made your first payment. But honestly I've heard people doing it right after the first payment.

 Most CU's and some banks will still consider the car new if it's less than a year old and has limited mileage on it at the time of re-fi.

 

 You'll get better rates new than used.

Message 2752 of 4,736
Princess9483
Valued Member

Re: Auto Loan Approvals!

Well, my car was totalled 2 weeks ago, a 2005 Prius with 68k mi fully loaded. Still fighting with insurance company over car value, but thought I would shop for a rate. My current credit union and current lender, USF Federal Credit Union, approved me for 11k 48mo @ 7.25% with autopayments, 7.5% without. Score pulled was 600, cutoff was 600, whew! Joined DCU and called in for a loan but was denied. She said it was due to old collections, they are almost ready to drop within the next year. My score pulled was 609. She then said that even if approved my rate would be 11.25%. I have never had a rate that high even when my credit was in the mid 500's, USF's highest rate is 9.99%, 9.74% w/auto, and you just need 20% down. A bit much for a 20k or higher car but still do able. So I thanked the DCU lady and hung up the phone. Will stick with USF from now on!

 

Will update when I get new wheels.

Fico: Beginning 506 (11/2013)
TU 619 (10/2015)
1/2017: Equifax 659, TU 655, Experian 642
Mortgage middle: TU 630
Goal 700 (but will settle for mortgage 640)

Current: TU 665 Oct '17
Message 2753 of 4,736
guydiver
Established Contributor

Re: Auto Loan Approvals!


@Princess9483 wrote:

Well, my car was totalled 2 weeks ago, a 2005 Prius with 68k mi fully loaded. Still fighting with insurance company over car value, @but thought I would shop for a rate. My current credit union and current lender, USF Federal Credit Union, approved me for 11k 48mo @ 7.25% with autopayments, 7.5% without. Score pulled was 600, cutoff was 600, whew! Joined DCU and called in for a loan but was denied. She said it was due to old collections, they are almost ready to drop within the next year. My score pulled was 609. She then said that even if approved my rate would be 11.25%. I have never had a rate that high even when my credit was in the mid 500's, USF's highest rate is 9.99%, 9.74% w/auto, and you just need 20% down. A bit much for a 20k or higher car but still do able. So I thanked the DCU lady and hung up the phone. Will stick with USF from now on!

 

Will update when I get new wheels.


DCU can be a bit more stringent with their loans.  But from what I have seen, the better your scores become, the harder they are to beat.  Plus, that 20% down will go away.  Big difference.  Don't write them off just yet.  Anyhoo, Congrats on your approval!

 

'diver

Message 2754 of 4,736
Ragelog
Established Contributor

Re: Auto Loan Approvals!

I am impressed by the low rate with such a low score to be honest. Work on your credit and you will eventually be able to get most loans at the best terms in the future. I didn't know DCU would lend below a 620 score.

EQ04 675, EQ08 676, EX08 719, TU08 703 $12704.75/$123050 Revolving Credit (All 0% or 1.99%) - In Garden Since 5/25/2016

Last negative item should fall off in July 2017.
Message 2755 of 4,736
Princess9483
Valued Member

Re: Auto Loan Approvals!

I guess the fact that I have had 2 car loans and a 13yr history with the CU helped. Not to mention both will get paid off before they mature and that I was never late on any of the loans. I have been rebuilding my credit for awhile now, got sick in 2007, but for some reason I have not been able to break a 620. Hopefully that will happen when they age off within the next year. Thanks for the advise though!

Fico: Beginning 506 (11/2013)
TU 619 (10/2015)
1/2017: Equifax 659, TU 655, Experian 642
Mortgage middle: TU 630
Goal 700 (but will settle for mortgage 640)

Current: TU 665 Oct '17
Message 2756 of 4,736
AyalaZero
New Contributor

Re: Auto Loan Approvals!

 

@Princess9483 wrote:

I guess the fact that I have had 2 car loans and a 13yr history with the CU helped. Not to mention both will get paid off before they mature and that I was never late on any of the loans. I have been rebuilding my credit for awhile now, got sick in 2007, but for some reason I have not been able to break a 620. Hopefully that will happen when they age off within the next year. Thanks for the advise though!


What is holding your scores so low?  Something doesn't seem right.

Starting Scores: Low 500's 2/27/08
Current Scores:Transunion: 700 02/13/15 Experian: 713 02/17/15 Equifax: 736 02/18/15
Goal Score: 770 Across the board!!
Message 2757 of 4,736
eddiei
Member

Re: Auto Loan Approvals!

APPROVING BANK: Chase
BUREAU PULLED: TU FICO Auto 04
CREDIT SCORE: 703 me/712 DW
CUSTOMER STATE OF RESIDENCE: CT
NEW/USED: NEW
YEAR OF VEHICLE: 2016
MAKE: Mazda
MODEL: CX-5 Grand Touring AWD with tech package
MILEAGE: 11 (4 when I started the test drive)
RETAIL/LEASE: LEASE
AMOUNT OF LOAN: $31946 (with fees)
TERM CONTRACTED: 36 Months/12K mikes/yr
APR/LEASE RATE: 2.16% (.0009 MF)
MONTHLY PAYMENT: $403.24 (w/tax)
ANNUAL INCOME: $87K
DEBT TO INCOME RATIO: 9% with lease
MISCELLANEOUS COMMENTARY: Did a lot of research on how best to make the deal. Wasn't too sure about my credit as Barclaycard had me at TU FICO of 642. I hadn't gone through the car buying process at a dealership since 1999. Been rebuilding my credit since 2013 after killing it with a divorce, foreclosure and CH13 BK filing in 2007 (asked for it to be dismissed 6 months later because the ex wouldn't get with the program). 

 

This forum has made all the difference. Got many collections removed. I started building up my new wife's credit. Then added myself as an AU on her best cards to get me going. I was able to get this deal on my own as she doesn't work staying at home with our 2 yr old. I made it a joint application to get the benefit of the lease on both reports to help when we buy a home.

 

While the car buing experience was painless at the dealership I went to, I could have made a better deal if I had been more confident. I negotiated the price through email. Was confortable with that because I got it for the price both Truecar and Edmunds said I could get it for which was dealer invoice. I could have done better on the money factor and fees. I could have saved $15/month tops. I'll just have to chalk it up to lessons learned. WTH is etching?

Message 2758 of 4,736
flan
Regular Contributor

Re: Auto Loan Approvals!


@eddiei wrote:

While the car buing experience was painless at the dealership I went to, I could have made a better deal if I had been more confident. I negotiated the price through email. Was confortable with that because I got it for the price both Truecar and Edmunds said I could get it for which was dealer invoice. I could have done better on the money factor and fees. I could have saved $15/month tops. I'll just have to chalk it up to lessons learned. WTH is etching?


Etching is a way dealers pad their profits.  They etch the vin (or some other number) in some or all of the windows of the car.  It costs about $30 to do this, they charge you $400.  The claim is that doing this reduces theft.  I have my doubts. 

 

Message 2759 of 4,736
Anonymous
Not applicable

Re: Auto Loan Approvals!

Looked up the info flan posted this weekend and was coming here to post it. Anyone have any ideas about how I go about finding out when I would be able to refi?

Message 2760 of 4,736
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