Update:
So after spending all day at the dealership here's what happened. In my wait, the gentleman that I thought was a salesman on cookie duty (prepping cookies for customers) was the Owner. He was extremely forthright and helpful and as a result I gained a lot of insight into the process.
I walked away without a new car & loan but that was only on my account. Here's what the results were:
I was first approved (by dealer finance team-meaning they were confident they could get me approved w/a lender under these terms):
2009 Infinity G37, Journey - approx 21k miles
Asking price 27-28k. With tax/license etc total came to about 30-31k.
(overpriced in my opinion - I would have searched for & accepted a10k more in mileage for a 4-5k savings).
They offered me 19% interest
DP required was 6k minimum. 20%! They were squirmish about that but believed they could get it done. (They also presented 7k, 7.5k, 8k and 10k down).
Lowest monthly payment was I want to say $570? It was mid to high $500's.
(sorry I can't recall exactly, I didn't keep a copy of the offers).
Note, I do have to say that while they said that - my credit history DID tell a compelling story itself that matched exactly (down to the exact dates) what I had told the owner about my situation.. I'm talking down to the "t". I had told him earlier not knowing what he would see on his version of my credit report. He had sat down with me prior to offering up the above deal and reviewed my report and began asking again what dates I was unemployed etc and was able to visually see the exact same story on my reporting and the payment histories. I highly doubt most dealers, let alone owners, would sit down and engage in a discussion like this - so I presume this helped alot with securing a lower DP option. Or, maybe it's more common than I think.
He asked if he could offer his input and I requested he did. He suggested a lower cost vehicle to save on how much I threw away on interest. He stated after 12 months of positive payment history, bring it back and they would put me into a newer Infiniti of my "dreams". Again, this 09 was priced higher than I would deem reasonable - for me - as I again would have traded a bit more mileage to knock off about 4-5k just from the asking price. They didn't budge so much on bring the tag down. He took it down about $500.
So we looked at a 2011 Altima and 2005 G35 Infiniti. Altima stickers were $17,998 and the Infinit was $18,995. It was then a choice of V6 (Infinit) vs. not a V6 (Altima). Leather vs. cloth, sunroof vs no sunroof, power seats vs no power seats (the Altima was the base model) etc. So I opted w/the Infiniti.
Financing approved:
$20,749.00 incld. tax/feels/license etc
23.99% interest - 48 & 60 month options.
Options at 6k, 6.5k and 7k down.
Seeing the monthly (60 mo @ 23.99% w/6k down was $489.46 and it went as low as $460.41 w/7k dp).
This gave me serious heartburn. I asked for an option at 3k or 4k down.
They presented 4k down and didnt believe it could be done for less. I figured.
4k down = $547.56 at 60 months. (I would rather absorb more monthly than up front was my theory).
I wasn't sold on the terms.
They then offered me 3500 down that day, 500 in two weeks and deferred down payment for 54 days from that date.
Got a call yesterday to confirm the lender approved financing. But.... I'm not digging the thought of that one being my "starter"/fico building car.
I realized that if I am going to fork over savings, and pay a high note w/high interest - I want to LOVE the car and that would make it worth it to be dedicated and diligent.
So while the 05 makes alot of sense as a "starter" car - for me - I didn't want to play around and waste money if I didn't see the worth in the car itself (speaking of my personal definition of worth). I don't recommend that to most people though. I make more money than my average peers in the same job and so not everyone is in the same position as I am, especially in this economy. And most people my age have not been in the same career for 12 + years. So I am very stable (as can be) and on an upward trajectory.. if I wasn't I would be a bit more cautious with my vehicle selection. Anything can happen to me too - but I've always carefully examined my risks. So this works for me - but I don't think I would encourage everyone to jump a car class higher than they should get. And again, if given a choice, I'd still take the better equipped newer or older Altima before jumping a car class.
Looking at the numbers and speaking about how finance folks and lenders look at credit gave me a reality check. Mostly the take away was that I am going to go back to the drawing board, deal w/my immediate needs (credit rebuilding, perhaps friends & family that need a hand, add more cushion to savings) and then go back and make plans to get the 2009 but prepare to pay more down. OR... find a lower price point car that I deem to be "worthy" of me entering into another finance agreement. A newer Altima thats not a base model would be fine, so I am keeping my eye out.
I think the 05 just didn't rock my world and I think it first and foremost needs to make financial sense and one needs to be wise. But if you can get that AND have it rock your world - that is the icing on the cake. I'm in a good situation where it is a choice to do this at this time so I have the luxury to hold on until the right match comes along.
I also learned that dealerships pay the finance company to approve bad credit folks. Anywhere from a few hundred dollars to a few thousand is what I heard.
That was an interesting concept I didn't know, which could be a direct relation to the down payment they require up front. In fact, a salesperson let that slip when I was having difficulty accepting a 6k down payment for the older car. If I was going to do that, I would get the 09 w/lower interest and the LOVE IT factor.
So that's it. I'm just deferring the purchase a bit and re-evaluating w/this new information how much I am willing to put as a down payment. I see the numbers better now and understand clearly how it will affect me in a positive way to put more down.
Knowledge truly is power and I have learned SO MUCH from everyone here and appreciate that. Time to get back to work on my credit report.. lol
I am so very excited to have control. I encourage everyone to get this involved in their credit report maintenence.
PS. sorry for any typos- I am in a hurry.
Starting Score: EQ 522, TU 482 June 2012
musicdiva wrote:Sorry again for the long post!!!
PS My score was 552. Not sure if it was auto enhanced, but I am thinking not so.
Congrats!
At an Infiniti dealership? I would almost assure you it was auto-enhanced.
Personally I think it was a smart choice to go with the cheaper car, especially if you like it as well. There's always time later in life for "the car of your dreams" as he put it when everything is in a rosier spot FICO wise.
I would sort of take that "we pay the lender hundreds to thousands of dollars for them to take the loan" with a grain of salt. My experience with the Acura dealership I went to, I got quoted a rate early, before any lender had accepted the loan. That loan then got shopped out later that evening (perhaps bundled with other loans I don't know) when I was already driving home in said vehicle.
What I suspect is there can be a difference between the lender financing, and what the auto dealership quoted. Legally that's allowed to be as much as 2% for the dealer to make in interest on the loan; however, if the lenders aren't willing to accept it for 2% less than what the dealer offered, then the dealer likely has to cover the additional marker (which sounds supiciously like your number over the course of the loan) with their cut.
Paying hundreds or thousands of dollars straight up for someone to approve the loan, would be financial suicide in a car dealershp. Might be interesting to ask that of UpNComing in his thread, but I strongly suspect it works as I think.
Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)Current Score: EQ 660, Wally TU 697, EX unknown (05/13/13)
Goal Score: 680 in all three (01/01/14)
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Revelate wrote:
musicdiva wrote:Sorry again for the long post!!!
PS My score was 552. Not sure if it was auto enhanced, but I am thinking not so.
Congrats!
At an Infiniti dealership? I would almost assure you it was auto-enhanced.
Personally I think it was a smart choice to go with the cheaper car, especially if you like it as well. There's always time later in life for "the car of your dreams" as he put it when everything is in a rosier spot FICO wise.
Thanks!
And yes - as much as I am considering a jump to the 09 Infiniti - I am looking for and would take a newer version of my 02 Altima 3.5 V6. I just can't see myself downgrading with interest and that monthly payment. The 05 Infiniti isn't woth it so much to me for some reason. Maybe it's because it looks like a 16 year old would buy it to put some 20+ inch rims on it. I don't know.. call me crazy. lol
So I know I am approved and now just need a match for a car I can live with for 12 months.
I will take the pay the lenders for loans with a grain of salt. I just know that's what made them start to grumble and refuse to consider a lower down. They way they spoke and brought it up made me believe the payment amount (to the lender) was tied to my level of a down payment. However it works, I could care less as long as I get a reasonable arrangement.
So I am very happy! And my new Wells Fargo Secured card hit my report on Sunday literally I received the alert from my credit monitoring on my way to the dealership.. and when we looked through my report it showed. Good timing. That gave me motivation to sit back, find my match then go for it.
I have terrible credit, and even worse before my auto loan started showing up (i would say high 400's). I found a local dealer with a nice 06 infiniti g35x, asking around 11k. Got me approved at a place called Westlake Financial with 21% interest and 2k dp. All in all worked out pretty good, the approval process was very simple, so if you are looking for an easy approval loan, you may check with westlake. Just thought i'd share my experience. Working on building my score up now so that I can refi asap!
Starting Score: FICO EQ = 503 | TU - 504
The process was very easy, went to the dealership picked out the car, filled out paperwork with all info including my last 2 paystubs and 6 refrences (which they didn't even call), they told me to take the car to lunch and come back. Went to lunch, thinking that there is no way I will be approved, went back and they said we got you approved here are the terms: $2000 down, $349 per month for 35 months, and to boot they required the dealership to give me a 6 month warranty on the car. They report every month to all 3 CRAs. They have no grace period, you have to pay on the due date. I have had once where I couldn't pay on the due date, called the day before and asked if I could pay 3 days after and they were very nice and set me up, no negative reporting.
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