So, on a whim I applied at a Subaru dealership. I don't know what I was thinking with my 621 score.
Chase approved me under the condition that I that I trade in my vehicle financed through Santander, and if I can provide a down payment of $2K-10K.
That figure came from me as I told he salesperson I could pay a down payment in that range (I know, I think that was a mistake cause now they're going to ask for $10K).
Anywho, the dealership had told me that I had been declined when Chase called to verify some info. Apparently I have a fraud alert from years ago.
Chase said that most banks see the fraud alert and automatically decline the app, but he said they were different. He asked me several questions about my situation. I explained to him my loan with Santander and how I wasn't happy with the car. He asked if I wanted to keep both since my income would allow it, and I asked him for his thoughts. He and I agreed that it was better to get out rom under it, and he would conditionally approve the application if I agreed to trade in that car. He fully understood that I was upside down and said it wouldn't be a problem.
He said the dealership had submitted me with $10K down, and he just laughed when I told him that I had gave them a range of $2K-10K. Lastly he said that the down payment was something I would work out with the dealership, that as far as Chase was concerned the app was approved.
The dealership, not knowing that I talked to lender, emailed me saying they had an approval from Chase with $10K down (which could be in trade equity) and to call them to discuss further.
My main question - since Chase approved me, can I take that approval any where and shop with another dealer in case the dealer sells the vehicle I am interested in?
Also I explained to Chase that I probably had $5-7K negative equity in my car, and I knew I would take a hit as that would likely be financed on top of anything I borrow. He seemed unconcerned.
I was really impressed with their demeanor and how they explained to me, that as a company they knew everything wasn't black or white. He said they wanted to help me rebuild my credit, and could tell I had made some headway. Almost like they took an interest in my situation. Nice people.
Chase approved me for enough to cover the amount I would be left owing on the other car + the BRZ, however, the dealership says the deal is not lucrative for them and they refuse to sell the car. Plus I would be giving them $2500 cash on top of that.
I suppose that's their prerogative and loss of a sale.
Chase said that since the app was dealer submitted, if I wanted to look else where and have them finance me - I would have to re-apply on their site. I did, and was denied.
I think it's the fraud alert that's on my Equifax report causing the instant denial. They manually approved me before - I may call'em.