Auto Loan Approvals!

[Teo]

I've seen questions about what qualifies for the best rates when manufactureres are offering really low rates.

Here's info for anyone thinking about buying a new car right now, particularly a Honda.  For all of May 2017, Honda is doing .9% ("for well qualified buyers") for 60 months on 2017 models.  My scores aren't super high, my age of accounts is quite short, and I have no past auto loans showing on my reports.  12 months ago I bought a used Acura and could only get 15%.

NFCU gave me 3.1% for 60 months.  I took my NFCU check to the dealer because I doubted I'd be considered "well-qualified."  But to my surprise, Honda Financial did approve me for .9% for 60 mos.  

APPROVING BANK: Honda Financial
BUREAU PULLED: Don't know
CREDIT SCORE: Exp: 731, Equifax: 742, TU: 744 (don't know Auto)
CUSTOMER STATE OF RESIDENCE: TX
NEW/USED: New
YEAR OF VEHICLE: 2017
MAKE: HONDA
MODEL: Fit
MILEAGE: 11
RETAIL/LEASE: Retail
AMOUNT OF LOAN: 16000
TERM CONTRACTED: 60 mos.
APR/LEASE RATE: .9% (NFCU approval was 3.1)
MONTHLY PAYMENT: 
ANNUAL INCOME: six figures
DEBT TO INCOME RATIO: 11%
MISCELLANEOUS COMMENTARY: This was a third car for my family with teens, so nothing fancy.  I assume the modest car compared to very low debt and 5% credit card util. had something to do with getting the good rate.  Two cards (20k and 25k) have 0 balances. The rest were at 5% total.  

All thanks to this forum.  Hope my data helps someone else.

[AZHeather]

APPROVING BANK:  NFCU
BUREAU PULLED: Transunion
CREDIT SCORE: 706
CUSTOMER STATE OF RESIDENCE: AZ
NEW/USED: Late model used
YEAR OF VEHICLE: 2015
MAKE: Mercedes
MODEL: C300
MILEAGE: 21,000
RETAIL/LEASE: $32,000
AMOUNT OF LOAN: $38,000
TERM CONTRACTED: 72 months
APR/LEASE RATE: 4.25%
MONTHLY PAYMENT: $600
ANNUAL INCOME: $75,000
DEBT TO INCOME RATIO: 21%
MISCELLANEOUS COMMENTARY: Rolled over some negative equity, but the car was selling at such a great price I still ended up financing the actual retail value of the vehicle.  Working with NFCU was the easiest thing ever.  Applied online, got an immediate answer, went to a branch the next day to pick up the draft that was good for 60 days (literally took 5 minutes at the branch), found my car a week later, and gave the dealership the draft with the instructions.  They called NFCU for verification and printed out the paper work while I went and ate lunch.  Came back, signed and was done.  Awesome, smooth experience.  And to boot, since NFCU already did my credit pull, I applied for a rewards card and received a limit of $24,000 without the extra inquiry!  Lots of love for NFCU right now!!!  Oh...and NFCU offers GAP insurance for $199 for the life of the loan.  Can't beat that!

[Anonymous]

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@AZHeather wrote:

APPROVING BANK:  NFCU
BUREAU PULLED: Transunion
CREDIT SCORE: 706
CUSTOMER STATE OF RESIDENCE: AZ
NEW/USED: Late model used
YEAR OF VEHICLE: 2015
MAKE: Mercedes
MODEL: C300
MILEAGE: 21,000
RETAIL/LEASE: $32,000
AMOUNT OF LOAN: $38,000
TERM CONTRACTED: 72 months
APR/LEASE RATE: 4.25%
MONTHLY PAYMENT: $600
ANNUAL INCOME: $75,000
DEBT TO INCOME RATIO: 21%
MISCELLANEOUS COMMENTARY: Rolled over some negative equity, but the car was selling at such a great price I still ended up financing the actual retail value of the vehicle.  Working with NFCU was the easiest thing ever.  Applied online, got an immediate answer, went to a branch the next day to pick up the draft that was good for 60 days (literally took 5 minutes at the branch), found my car a week later, and gave the dealership the draft with the instructions.  They called NFCU for verification and printed out the paper work while I went and ate lunch.  Came back, signed and was done.  Awesome, smooth experience.  And to boot, since NFCU already did my credit pull, I applied for a rewards card and received a limit of $24,000 without the extra inquiry!  Lots of love for NFCU right now!!!  Oh...and NFCU offers GAP insurance for $199 for the life of the loan.  Can't beat that!

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Congrats, NFCU is a great place to do business.  We do all of our banking with them now because they always take great care of us.

[Anonymous]

APPROVING BANK:  Ascend Federal Credit Union
BUREAU PULLED:  Equifax
CREDIT SCORE: 633
CUSTOMER STATE OF RESIDENCE: TN
NEW/USED: NEW with Full Warranty & GAP Insurance
YEAR OF VEHICLE: 2017
MAKE: Toyota
MODEL: RAV4 SL
MILEAGE:  9 Miles
RETAIL/LEASE:  Retail
AMOUNT OF LOAN: $33,216 because of Negative Equity rolled in from trade in
TERM CONTRACTED: 84 Months
APR/LEASE RATE:  5.75%
MONTHLY PAYMENT:  $ 482.00
ANNUAL INCOME:  $52,000 Combined
DEBT TO INCOME RATIO:  Not sure
MISCELLANEOUS COMMENTARY:   Had to purchase a vehicle while in a Chapt 7 BK because mine was wiped out/totaled in a wreck, Purchased a 2012 Rogue with a high APR, Was able to refinance same vehicle 8 months later in July 2015 with Ascend FCU at a much lower APR. Vehicle started having mechanical issues March 2017 and repairs started adding up so decided to trade it in for a New vehicle with warranty with same credit union. Called credit union prior to car shopping and once I found the vehicle I wanted to purchase I called the credit union again to work out the numbers, didn't have to have dealership pull credit since I was still going through my credit union. Very simple process and Ascend is a great credit union to deal with. **Prior Vehicle had some negative equity that had to be rolled into new vehicle purchase** 

[Anonymous]

APPROVING BANK: Carmax Financial
BUREAU PULLED: Experian
CREDIT SCORE: 638
CUSTOMER STATE OF RESIDENCE: MA
NEW/USED: Used
YEAR OF VEHICLE: 2014
MAKE: Chevrolet
MODEL: Malibu
MILEAGE: 45,494
RETAIL/LEASE: Retail
AMOUNT OF LOAN: 13,384
TERM CONTRACTED: 60 months
APR/LEASE RATE: 8%
MONTHLY PAYMENT: $256.14
ANNUAL INCOME: 42,000
DEBT TO INCOME RATIO:
MISCELLANEOUS COMMENTARY: I really had no choice but to finance a car I need a vehicle for work and my old car was on it's last leg. It's off to the garden for me I have too many inquiries on my report for my liking.

[Anonymous]

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@Anonymous wrote:

MISCELLANEOUS COMMENTARY: I really had no choice but to finance a car I need a vehicle for work and my old car was on it's last leg. It's off to the garden for me I have too many inquiries on my report for my liking.

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That's a decent rate for a 638 FICO score, though.  At least the monthly payment isn't too fierce and if you can pay a bit extra every month (or whenever possible) you'll be ahead nicely! Congrats!

[Anonymous]

I was shocked at the APR myself I thought for sure I would be somewhere in the teens with that FICO score but this is decent.

[JimmyWayne]

APPROVING BANK: PenFed
BUREAU PULLED: Equifax
CREDIT SCORE: 651
CUSTOMER STATE OF RESIDENCE: AR
NEW/USED: New
YEAR OF VEHICLE: 2017
MAKE: Lexus
MODEL: NX Turbo
MILEAGE: 11
RETAIL/LEASE: Retail
AMOUNT OF LOAN: 37K
TERM CONTRACTED: 72.
APR/LEASE RATE: 5.2%
MONTHLY PAYMENT: $584
ANNUAL INCOME: 55K
DEBT TO INCOME RATIO: 19%
MISCELLANEOUS COMMENTARY: Was initially told I was approved for with 9%, but upon completing the app with the LO, they dropped it to 5.2%