Auto Loan Approvals!

[intherightdirection]

Congrratulations on your purchase of a nice car! That's a great start at 18, especially without cosigners!  You may be able to refinance down the road if you make all of your payments on time.

It will probably, be a while, but next time you do purchase a car, just talk about the price of the car, rather than the payment amount. You'll want to ask: 

- Final selling price of the car

- Interest rate/apr

- Price of any add ons they have included, such as gap insurance and extended service warranty (you don't have to buy either of these- they are optional)

- What they are giving you for trade in, if any (if you decide to trade in the focus)

If you go online before going into the dealership, you can use a loan calculator to find out how much of a loan you can afford- based on the payments you can afford. It all depends on the interest rate, but you can play around with it.  That way you know your max loan amount before stepping into a dealership. 

Your loan amount sounds about right though, depending on how much or if you put anything down. 15.9 + title & taxes + warranty and maybe gap insurance? 

Just make sure to make your payments on time and you're off to a great start.  You're smart to be on this board, already learning about credit. I wish I had this when I was younger. Good luck! 

MISCELLANEOUS COMMENTARY: I can't help but feeling there was a big error with my sale. The car was supposed to be $15.9k, but I think paid a little more. I told them what I can afford payments wise, and they shown me this car without mentioning the big price tag. I liked the car, so I said I was interested, but I did not at all think I could afford this large of a loan. If I knew I could, I would have chosen a vehicle that would hold more value as I got closer to 100k miles; but I have a 100k/72mo warranty on it, so I should be good for a while I guess. Maybe I can trade in for another vehicle (or a lease) in a couple years; I'm not sure how that works. Regardless, I am 18 with 6 months of history, and was able to get this loan without any cosigners, so I am excited to start building my credit with this. Apparently there was a lot of luck on my end. 

[TravellingNomad]

APPROVING BANK:  Patelco CU
BUREAU PULLED:  EX
CREDIT SCORE: 684 / 720 (DW)
CUSTOMER STATE OF RESIDENCE:  CA
NEW/USED:  New
YEAR OF VEHICLE:  2016
MAKE:  Mazda
MODEL:  CX-5 Grand Touring (w/ GT package)
MILEAGE:  20
RETAIL/LEASE:  Retail
AMOUNT OF LOAN:  $26,000
TERM CONTRACTED:  72
APR/LEASE RATE: 2.39 first 12 moths and 1.99 for the life for the loan
MONTHLY PAYMENT: $385
ANNUAL INCOME:
DEBT TO INCOME RATIO:
MISCELLANEOUS COMMENTARY:  Have not gotten the vehicle yet, but is trying to work price with dealer. Got cash to play with on top of the loan, but I trying not to use all of it for the purchase  Tried to get the loan just under the wife's name, but ended up doing joint. Works out because she needed my income and her score gave us top rate in the top tier. Interest rate is called "term rate pricing" (per loan officer). It will be 2.39 for 12 months starting when loan is funded, but will automatically drop to 1.99 for the rest of the loan life. Took 72 months to keep monthly below $400, but hopefully within 2-3 years (will make add'l $1k payment on top of monthly each month). Didn't want a car note (have not have one for over a decade), but can't make myself to pay the amount it would cost to replace the engine of the DW's car. Especially when the repair will cost more than the car.

[Anonymous]

Just another report... right after getting my private party purchase loan through BofA, I also applied for a refi for one of my awful Santander loans w/ ~24 months remaining. I was able to go from a 13.xx APR down to 3.59 and will save myself over $1300 over the next 18 months (I reduced the payoff time as well).

BofA is *definitely* being aggressive right now as that refi approval was right after my initial loan, a bunch of CC apps, and after my FICO auto score dropped 9 points.

APPROVING BANK: Bank of America
BUREAU PULLED: Experian
CREDIT SCORE: 687
CUSTOMER STATE OF RESIDENCE: UT
NEW/USED: Refi
YEAR OF VEHICLE: 2010
MAKE: Nissan
MODEL: 370Z
MILEAGE: 48000
RETAIL/LEASE: Refi
AMOUNT OF LOAN: 11,700
TERM CONTRACTED: 18 (They will offer this when you call to confirm despite the website saying 48 mo. min and it will come with  *lower* APR)
APR/LEASE RATE: 3.59
MONTHLY PAYMENT: 670.60
ANNUAL INCOME: 107,000
DEBT TO INCOME RATIO: N/A
MISCELLANEOUS COMMENTARY: Lots of recent credit inquiries and new accounts. Recent credit card app spree and 8+ other auto loan inquiries within 30 days. 4+ year old unpaid collection for < $500. No income verification required, instantly approved. Only had to provide current registration and they called for payoff. Easiest auto loan ever.

Long story short, if you have a similar credit profile, go for BofA right now. Other lenders were offering me 6.80-14.5 (lol) APR on my private party loan, and BofA gave me two with the greatest ease and AWESOME rates. 

[Anonymous]

APPROVING BANK: Capital One
BUREAU PULLED: All 3
CREDIT SCORE: 536/526/536
CUSTOMER STATE OF RESIDENCE: LA
NEW/USED: USED
YEAR OF VEHICLE: 2014
MAKE: Ford
MODEL: Fusion Titanium
MILEAGE: 35,342
RETAIL/LEASE: Retail
AMOUNT OF LOAN: 22,700
TERM CONTRACTED: 72 months
APR/LEASE RATE: 14.23
MONTHLY PAYMENT: $477
ANNUAL INCOME: $49k
DEBT TO INCOME RATIO: Horrible (only because of student loans - only 2k in credit card debt)
MISCELLANEOUS COMMENTARY: I just wanted to share my success because I want to show rebuilders that they can qualify with subpar credit scores. I have been trying to rebuild for about a year and my scores keep fluctuating. Everytime I think I'm making the right decisions my score would drop (i.e. paid off previous car loan, consolidated student loans).  Capital One has been very friendly to me this year and approved my for the Capital One Platinum Mastercard and the Capital One Quicksilver, now this auto loan. The approval was for (up to) $30,129 with an APR of 6.95% - 14.95%. I played around with a bunch of different cars and this was what I settled on. I will be consistent with my payments and I hope to refi in 1-2 years. My last loan was with Santander when I was 24 and knew nothing about cars or loans. I vow to never get in bed with them again. The process with Capital One was painless and I was in and out of the dealership in an hour and a half. The dealership (Rogel Ford) was very honest and gave me a great price (the price you see includes tax, title, registration, and an extended warranty). They also did NOT run my credit with other lenders to "search" for a better deal. I hope this helps someone!

[jstap01]

APPROVING BANK: Kinecta FCU
BUREAU PULLED: EX
CREDIT SCORE: 715
CUSTOMER STATE OF RESIDENCE: PA
NEW/USED: Used
YEAR OF VEHICLE: 2014
MAKE: GMC
MODEL: GMC Sierra 1500 SLE
MILEAGE: 29650
RETAIL/LEASE: Retail
AMOUNT OF LOAN: $50362
TERM CONTRACTED: 60
APR/LEASE RATE: 2.99
MONTHLY PAYMENT: $905
ANNUAL INCOME: 77k

I refinanced the original loan from 17.95%

[Anonymous]

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@Anonymous wrote:

APPROVING BANK: Capital One
BUREAU PULLED: All 3
CREDIT SCORE: 536/526/536
CUSTOMER STATE OF RESIDENCE: LA
NEW/USED: USED
YEAR OF VEHICLE: 2014
MAKE: Ford
MODEL: Fusion Titanium
MILEAGE: 35,342
RETAIL/LEASE: Retail
AMOUNT OF LOAN: 22,700
TERM CONTRACTED: 72 months
APR/LEASE RATE: 14.23
MONTHLY PAYMENT: $477
ANNUAL INCOME: $49k
DEBT TO INCOME RATIO: Horrible (only because of student loans - only 2k in credit card debt)
MISCELLANEOUS COMMENTARY: I just wanted to share my success because I want to show rebuilders that they can qualify with subpar credit scores. I have been trying to rebuild for about a year and my scores keep fluctuating. Everytime I think I'm making the right decisions my score would drop (i.e. paid off previous car loan, consolidated student loans).  Capital One has been very friendly to me this year and approved my for the Capital One Platinum Mastercard and the Capital One Quicksilver, now this auto loan. The approval was for (up to) $30,129 with an APR of 6.95% - 14.95%. I played around with a bunch of different cars and this was what I settled on. I will be consistent with my payments and I hope to refi in 1-2 years. My last loan was with Santander when I was 24 and knew nothing about cars or loans. I vow to never get in bed with them again. The process with Capital One was painless and I was in and out of the dealership in an hour and a half. The dealership (Rogel Ford) was very honest and gave me a great price (the price you see includes tax, title, registration, and an extended warranty). They also did NOT run my credit with other lenders to "search" for a better deal. I hope this helps someone!

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Congrats,  I noticed to cite student loan debt as a big issue for you.  You may want to look at income based repayment options, I just switched to it and it has saved me a ton of money each month.  It doesnt work for everyone but most of those I have talked to about it have also saved a ton.  Something to consider.

[Anonymous]

WF850,

I have noticed you posting in this thread multiple times and always had a negative sense of your postings.

Although you may not realize it, or care, I owe you a humble apology. Your suggestion about college loans is quite valuable to many and hope it gets more exposure.

Kudos(I have never been able to find this kudos button!)

[Anonymous]

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@Anonymous wrote:

WF850,

I have noticed you posting in this thread multiple times and always had a negative sense of your postings.

Although you may not realize it, or care, I owe you a humble apology. Your suggestion about college loans is quite valuable to many and hope it gets more exposure.

Kudos(I have never been able to find this kudos button!)

---

Thanks

[Anonymous]

A huge thank you to everyone who recorded their experience. You helped me get a great rate:

APPROVING BANK: DCU
BUREAU PULLED: EQ (I assume)
CREDIT SCORE: 713 (although I'm at 650 for FICO and 630 for TU
CUSTOMER STATE OF RESIDENCE: NY
NEW/USED: USED
YEAR OF VEHICLE: 2013
MAKE: Nissan
MODEL: Murano
MILEAGE: 21,230
RETAIL/LEASE: Retail
AMOUNT OF LOAN: approved up to $30K (using $24)
TERM CONTRACTED: 60 months
APR/LEASE RATE: 2.24
MONTHLY PAYMENT: 409
ANNUAL INCOME: 90k
DEBT TO INCOME RATIO: IDK
MISCELLANEOUS COMMENTARY:I am slowly digging out of the wreckage of my past. I've gone from 575 a little over a year ago to mid 600s and then out of the blue my EQ score jumped to 713. I believe a collection was pulled off. I used this thread yesterday to find a company who only pulls EQ. Not only did I get the loan, they offered me a $10k visa line at 8.25% on my way out the (virtual) door. So thank you. Here's to new wheels and a low usage ratio! 

[Anonymous]

Also What does "in the garden" mean?