05-06-2013 07:09 AM - edited 05-07-2013 09:02 AM
I was here last fall panicking about getting a car. Happy to say that we did get approved for a loan and the car is with us. Yet here I am again back with another story.
At the time, we really just needed a good car and so we didn't really fully review what was being sold to us. Unfortunately, the car salesman neglected to mention that all the advertised things listed online was not with the car. Features I find to be important as my husband needs to keep his eyes on the road or else he'll rely on his phone to flick through music and so forth. Something I find hazardous. So we didn't get XM radio like we thought or the On Star features that was said to be there. Honestly, we may have paid 3,000 over the actual price of the car... but it was again done in haste to just GET a car.
Now here we are ready to trade in this vehicle for the newer model. Impala 2014. This time we have done all our research and comparing ( because it was that or chrylser 300 ) and firmly believe this vehicle is -the one- that will be with us for years to come. We went to the dealership of our choice and they were very insistant in selling us a car on the lot. They even offered to pay off the extent of the loan which really sealed it for us. But this time I didn't want to make a hastey decision so we left to think on it some more. We decided that if this was going to happen, waiting until the end of the year might lower the value of the trade in. So we decided to apply for a loan through the bank we finance at again. The decision was if they decline us then it's obviously not time and if they approve then it means we should move forward.
During the application process, I was sure to mention that the dealership we have in mind has stated they were willing to pay off the loan. That way they'd see we're not trying to get two car loans but only one. Today we received notice that it is "Conditional with proof of income". I'm not sure what that means... I'm hopin that's a good thing, yes? Once I send off my husband's pay stub, then it's back to waiting. Does anyone think this is a good sign or is there still a possibility that the proof of income will not do anything?
05-06-2013 07:17 AM
Sounds resonable, not sure why some dealers prefer running income or not. Last car I went to 4+ banks/dealers and some wanted paystubs, some didn't. As long as you told the truth about income on application for loan you should be just fine. Even if you fudged a little, as long as it is reasonable and is not a massive change in debt-to-income than you will be fine. GL!
05-06-2013 11:57 AM
When they say that they are going to pay off your loan are you 100% they are going to give you enough on your trade to pay it off (they give you $10k and you owe $10k) or are they going to roll it into the new loan (they give you $5k and you owe $10k, they roll $5k on top of the new car)?
05-07-2013 09:02 AM
They are going to pay off the loan 100% for trade in. Nothing will be rolled into the new car loan.
As for our status, looks like we were approved. I didn't realize it was that easy. Now the next step is just finalizing things. We now have the approval from our bank. I like banking with them and what they have to offer, so I have no plans to use whatever financing the dealership throws at us. But we'll see what happens.
05-08-2013 10:37 AM
Great news, CONGRATS!
05-12-2013 12:48 PM
I'm almost sure conditional w/ proof of income means: approved, we just want to make sure you make what you stated on application
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.