MONTHLY PAYMENT: 582
ANNUAL INCOME: 65k
Oh wow, that is some good news. I have been thinking of going to a Capital One branch here in the DFW area about a car loan as I have a checking account and high credit limit card back from '07 with them, at a zero balance and never late. Did you do it online or in a branch? I hate having a computer decide my fate, over talking to someone face to face. My scores are in the mid 600's on here with TU being the highest closer to 670 and waiting for the last of 3 credit cards to report with a $0 balance to increase my score hopefully. I was thinking though it might be impossible to get a loan given score and lates on my file that are about a year old now, but never late since on those couple of accounts. That is weird they pulled TU for you and Experian for your wife. All my previous car loans were with a Credit Union who only reported to Experian, so banking on usage of that report as the FICO has to be higher than the other two because I also have a Credit Card with them in addition to the former auto loans and a personal loan that is PIF never late.
I applied online and received an email to contact Capital One Auto Finance by phone. I talked to a couple people, including a supervisor, primarily validating myself . Since I had not applied for credit for five years, my address and contact information on the application did not agree with my credit reports. They were very careful. If you're in the 600s and have adequate income I can't image why you wouldn't be approved, hopefully for a much better rate.
I applied online on Friday morning, talked to Cap One by phone an hour or so later, got the conditional approval that afternoon about 4:00 pm by email, and received my blank check on Monday. Since I'm retired it took a couple days to get my income verified, but I received my approval to shop on Wednesday morning. Carmax transferred my Malibu in from Ft Worth while I was waiting my income verification so I was able to buy and take delivery of the car Wednesday evening.
It's important to note that the "blank check" is conditional on verification of address, employment, income, and personal references. Some items submitted by fax, others online.
APPROVING BANK: MERCEDES BENZ FINANCIAL
BUREAU PULLED: Transunion
CREDIT SCORE: 630
CUSTOMER STATE OF RESIDENCE: OK
YEAR OF VEHICLE: 2011
MODEL: E350 4MATIC
AMOUNT OF LOAN: 33,921
TERM CONTRACTED: 60
APR/LEASE RATE: 13.9%
MONTHLY PAYMENT: 793
ANNUAL INCOME: 150K
MISCELLANEOUS COMMENTARY: USAA membership got me a $4k rebate which I combined with cash & trade to put down $25k. Loan from USAA was denied. Capital One approved the loan at $30k and 15.9%. MBF online application was denied, but after speaking with the finance guy at the MB dealership & MBF via phone they approved in large part due to the large down payment. Interest rate isn't the greatest, but given my score I'm surprised MBF approved it. 1-2 years from now I can refinance.
APR/LEASE RATE: 0.00
MONTHLY PAYMENT: 515
ANNUAL INCOME: 44K
APPROVING BANK: Nissan Motor Acceptance Corp
BUREAU PULLED: Trans Union (me) Experian (me)
CREDIT SCORE: 662/663
CUSTOMER STATE OF RESIDENCE: Maryland
YEAR OF VEHICLE:2011
RETAIL/LEASE: Retail (Carmax)
AMOUNT OF LOAN: $30,900
DOWN PAYMENT: $1223.45
TERM CONTRACTED: 60
Purchased 2011 Nissan Altima 3.5 SR. Traded in 2001 Ford Expedition Eddie Bauer with 189K in mileage. Negative equity from Expedition $3286.53. NMAC required down payment of $1223.45.
Now the debacle I faced at Carmax. Good info for anyone considering purchasing a NEW car from Carmax, not just a Nissan:
While waiting for the Expedition to be appraised they ran my credit and we waited for the loan offers to come back on their computer. For those not familiar with Carmax, they claim to have hassle/haggle free, straight forward financing. The sales person and I stared at the computer screen waiting for all of the offers to come in. 3 offers came back. I don’t have the specifics, but the offers came from Capital One Auto Finance, Wells Fargo Dealer Services and Carmax auto finance. Down payment requirements ranged from 2.5K to 11K and had interest rates ranging from 10.5% APR to 12.75% APR. I balked at these results and informed the sales person that I was convinced that a better rate could be had with my credit score. I then realized that they had not run my credit with NMAC (Nissan's finance company). I asked why it had not. The sales person replied that they first run credit with their "preferred lenders". If those results come back "favorable" then they may run the customer’s credit with NMAC. I then asked if he considered my results from the "preferred lenders" as favorable. He said no. I then politely insisted that he run my credit with NMAC as I felt they had a vested interest in approving my loan (moving a unit). The sales person huffed and puffed and then called for a manager. The "manager: came over, collected some paperwork from the sales person and then disappeared. A few moments later an offer from NMAC came through. 0.0% APR for 60/mo, loan not to exceed $33,000. With those terms I purchased and took delivery of the vehicle that day.
Clearly Carmax gets some sort of considerable kickback for selling loans that are severely inflated. In my opinion, there is no explanation as to why 3 lenders would come back with no less than 10.5% APR and larger down payments and then NMAC comes back at 0.00% APR with HALF the down payment requirement! Also, doesn’t it seem suspect that running credit with Nissan financing seems to be an "exception" or out of the norm process requiring "management" involvement? Why aren’t they one of the "preferred lenders".? I would have never accepted those finance offers and they would have absolutely lost the sale.
I suggest that everyone who is considering purchasing a NEW car from Carmax, regardless of brand make sure that their credit application also be submitted to the manufactures finance division. Hopefully my experience helps those in the same scenario in the future.