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Member
jazzydaddy
Posts: 20
Registered: ‎06-21-2012

Denied Denied Denied! Where to turn?

Recently the engine in my car died, and it pretty much costs as much as the car is worth to fix it, so my wife and I were looking at purchasing a used vehicle from a dealership to replace it.  My wife did a great job of contacting some dealerships and asking about financing, making sure to tell them that our credit isn't great, but that it's all old stuff, no bk's, no repo's, no judgements.  She told them my EQ Fico is 570 and everyone said that yes, they would be able to help us get financing.  So, yesterday we went to a dealership after A LOT of online research to narrow down the search.  We decided on a '03 Honda Odyssey with 101,000 miles and it was in great condition.  The asking price was just right, and my wife managed to haggle another $1400 off the asking price.  We were all set to go...until they did the financing application.

 

Denied.

 

At first the sales manager came back out and said we would either need a co-signer (we're not doing that) or 30% down.  We didn't have that much money.  Later on in the conversation it ended up going up to 50% down.

 

My wife found info about the Cap One Auto loan this morning, read that people with a min score of 550 have been accepted and since I'm above that, we applied, although knowing we'd have to look for a different vehicle since this one was a tad too old and the mileage was too high to qualify.

 

At first I got a message saying we'd find out in 7-10 days.  Two minutes later...DENIED.

 

This is so incredibly frustrating.  My score was climing in the low 600's until a bogus collection popped up 6 weeks ago.  My wife jumped on it immediately and got it deleted (with written confirmation of it's deletion from the ca) but the score still hasn't recovered.

 

Is there anywhere else to turn?  Having one car with a growing family (we have a 3rd baby on the way in about 9 weeks!) is frustrating and very difficult.

 

I thought about asking my credit union, but they are STICKLERS about there being no collections on the credit report, and I still have a few I'm trying to get deleted.

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Denied Denied Denied! Where to turn?

If I was in that situation, I'd either use the $$$ set aside for a down payment on a new motor, or if more feasable use the $$$ on a temporary beater and I'd use this time to focus on repair to get in a better position 6-12+ months out.

 

If you wre getting the HOnda, according to KBB, the price would not be over $8k for it (based on the top of the line model), or if it is, the dealer overpriced it. Usually it's very difficult to get a loan on a used car with 100k miles. Sometihng to consider in the future.

Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012

Re: Denied Denied Denied! Where to turn?

I agree with llecs about the age/mileage part.  I've found this to be the case while looking around.  Try using cap1's standards, less than 7 years, less than 70k

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Member
jazzydaddy
Posts: 20
Registered: ‎06-21-2012

Re: Denied Denied Denied! Where to turn?

The price was below $8k on the vehicle, and then my wife talked them down more, so it was a good price on it.  They didn't tell us anything about the reason financing wouldn't work was because it was higher mileage.  I wish they would have.  

 

As for using the money that we would have used on a down payment to fix the motor, it's not enough.  If we were going to put $1K toward a "new" car, the price we've gotten to fix the old one is between $2500-$3000 based on getting a new motor, and then also fixing the cooling system.  The car isn't worth much more than that all together.

 

I drive 50 miles each way to work, so buying a beater that may leave me sitting on the side of the road makes me very nervous.

Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012

Re: Denied Denied Denied! Where to turn?

If you scraped a bit, and did your best to save, how long would it take to save the 8k needed?  It's probably going to be tough getting financing on a 10 year old 100k mile vehicle because the banks see them as high risk.  (For good reason; what if you were in the same position 2 years down the road, only you had 2-3 years left on a loan for a car that would cost the rest of the loan just to get back on the road?)

 

You may be better shooting for something around 10-15k with low mileage and younger. 

 

Congrats on the new baby by the way!

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Regular Contributor
boonelb
Posts: 146
Registered: ‎01-24-2012

Re: Denied Denied Denied! Where to turn?

I got a cap one loan at 87k but it was a 2008 and bought the extended warranty.

Established Contributor
TrishN
Posts: 505
Registered: ‎11-05-2012

Re: Denied Denied Denied! Where to turn?

Roadloans that will help.

10/2012 Started with 588 EQ Fico score and 20+ CA and CO
1750$ total CL
10/2013 in 700 Club
Personal :Total CL 196K
Business : Total CL 200K
Business LOC : 1M
Garden From 10/13/2013
Member
jazzydaddy
Posts: 20
Registered: ‎06-21-2012

Re: Denied Denied Denied! Where to turn?

Anyone know the minimum credit requirements for Roadloans? I'm not familiar with them.

Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012

Re: Denied Denied Denied! Where to turn?

Like a million percent APR

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Member
jazzydaddy
Posts: 20
Registered: ‎06-21-2012

Re: Denied Denied Denied! Where to turn?

That's not what I asked, but thanks anyway.


Jutz wrote:

Like a million percent APR


 


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