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Can Dealer Ask For Car Back...

Established Contributor

Can Dealer Ask For Car Back...

 

So my FICO is 615, my credit cards are maxed, I have a discharged bk from 2009 and I applied for a loan with BMW Financial...I got approved for a 3.9 apr for 60 months on a 29k loan

 

I previously had a lease with BMW in 2004 that i paid on time and just finished paying a lease off with Toyota Financial on time, too.

 

I am now worried they will take the car back or jack up the rate

 

I just don't know how I humanly qualified for a rate this low

 

Any thoughts?

Message 1 of 13
12 REPLIES
Valued Contributor

Re: Can Dealer Ask For Car Back...


Andy77 wrote:

 

So my FICO is 615, my credit cards are maxed, I have a discharged bk from 2009 and I applied for a loan with BMW Financial...I got approved for a 3.9 apr for 60 months on a 29k loan

 

I previously had a lease with BMW in 2004 that i paid on time and just finished paying a lease off with Toyota Financial on time, too.

 

I am now worried they will take the car back or jack up the rate

 

I just don't know how I humanly qualified for a rate this low

 

Any thoughts?


Sounds like the proper rate for your situation. Did you put anything down or trade anything in?

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 2 of 13

Re: Can Dealer Ask For Car Back...

Applied, approved, signed?

 

If so, how could they take your car back?


Starting Score 9/2011: 600ish all 3 bureaus
Current Score 5/2013: 675 EQ, 699 TU, EX ?
Goal Score: 730 min for all 3 by mid 2014...save $40K more for a new house, $10K more for emergencies, pay off all credit cards. Simple, right? Smiley Happy


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Message 3 of 13
New Contributor

Re: Can Dealer Ask For Car Back...

If the loan is not funded by the bank they have the right to take the vehicle back.

Message 4 of 13
Established Contributor

Re: Can Dealer Ask For Car Back...

I think BMW Financial uses Chase Bank

 

Anyway I just think credit scoring makes NO LOGICAL SENSE AND HERE IS WHY...

 

Back in 2006 I got a 35k loan on a Mercedes and had no lates or BK's on my credit report.  My interest ratre was 8.5

 

Fast forward 6 yrs and now I have a BK and maxed out cards and I get a 3.9 APR

 

Makes no sense

Message 5 of 13
New Contributor

Re: Can Dealer Ask For Car Back...

Was the 2006 loan your first car loan? If so it explains the higher rate
Starting Score: EQ: 605 (10/21/2012) Trans/Walmart: 641(10/26/2012)
Current Score: EQ: 678 (4/9/13) Trans/Walmart: 693 (5/13/13) EX: 648 (4/10/13) Lender pull

Message 6 of 13
Established Contributor

Re: Can Dealer Ask For Car Back...

 

No I had paid a 3 yr lease with BMW between 2003-2006 on time

 

Part of me thnks that a dealership can really do what ever they want at the end of the day...give you a high APR or low, as they did me...I think I got such a low one becaues this is my second car with BMW

 

BUT...that makes no "credit" logical sense that I would get a lower rate with a BK vs without

Message 7 of 13
Regular Contributor

Re: Can Dealer Ask For Car Back...


Andy77 wrote:

 

No I had paid a 3 yr lease with BMW between 2003-2006 on time

 

Part of me thnks that a dealership can really do what ever they want at the end of the day...give you a high APR or low, as they did me...I think I got such a low one becaues this is my second car with BMW

 

BUT...that makes no "credit" logical sense that I would get a lower rate with a BK vs without


The difference is that you have proven yourself to pay off your car loans. Your score will be higher after AutoEnhanced which helps A LOT, and you are funding from the same company that you have previously used. Overall be thankful you got the rate you did, I'm a little surprised as a 615 usually floats in the double digit rates.

Age: 22 //Cards: Chase Freedom, Chase Amazon Visa, Discover IT, CreditOne, CapOne Quicksilver, CapOne Cash, Walmart, Barclaycard, Citibank BestBuy, NavyFederal Visa Signature cashRewards //AAoA: 1 Year 3 Months (but going down quickly Smiley Tongue) //CK:692, Sesame:656
Message 8 of 13
Regular Contributor

Re: Can Dealer Ask For Car Back...

And one more note it isnt just about your scores, look at the interest rates offered at these different time periods. 03-06 is post Internet bubble and had moderately high interest rates. Rates are being held at all time lows right now by the Federal Reserve in order to push consumer lending. Its a great time to buy, and horrible time to save Smiley Frustrated

Age: 22 //Cards: Chase Freedom, Chase Amazon Visa, Discover IT, CreditOne, CapOne Quicksilver, CapOne Cash, Walmart, Barclaycard, Citibank BestBuy, NavyFederal Visa Signature cashRewards //AAoA: 1 Year 3 Months (but going down quickly Smiley Tongue) //CK:692, Sesame:656
Message 9 of 13
Regular Contributor

Re: Can Dealer Ask For Car Back...


ImprovingYouth wrote:

Andy77 wrote:

 

No I had paid a 3 yr lease with BMW between 2003-2006 on time

 

Part of me thnks that a dealership can really do what ever they want at the end of the day...give you a high APR or low, as they did me...I think I got such a low one becaues this is my second car with BMW

 

BUT...that makes no "credit" logical sense that I would get a lower rate with a BK vs without


The difference is that you have proven yourself to pay off your car loans. Your score will be higher after AutoEnhanced which helps A LOT, and you are funding from the same company that you have previously used. Overall be thankful you got the rate you did, I'm a little surprised as a 615 usually floats in the double digit rates.


That depends if the 615 is his FICO or AUTO ENCHANCED FICO .... the AUTO could very well be off the charts compared to his standard.

 



FICO: EX 662 | EQ 670 | TU 681
Message 10 of 13