Did dealership kill financing?

[Anonymous]

credit score of 550 (low, I know!) however, I read various articles on obaining financing  and I felt prepared. I have 2 cc's at less than 50 percent used, no late payments in last six monthes. I also paid olff a car within last 2.5 years.  I was putting $2500 down and financing less than 80 percent of price.  Car is a 2007 Mazda6 35,00 miles. Rejected b/c dealer said I don't have proof of income. 2 paystubs, W2, I even offered bank statmentsL  Finance guy told me the banks will only cosider those who make 42,000/yr or better. Also said tips/commissions do not ocunt as part of yearly income (even thou its shown on paycheck and W2 . I was putting down more than 20 percent and financing 9,500 over 48 monthes.  Finance said I was rejectd. Anyone know if these are legit reasons?

[settleordelete]

Tips do count as income in some states if not all of them. I think you should try another dealer ( a more Honest one) when you get your score up. Another thing is that some people make way less money than you are and  drive off in brand new cars everyday. So the dealership sold you a Lie instead of a car.

[cabarkeep]

Sounds like they just couldn't get you financed for whatever reason ... not everything is being shown in the explaination ... could be for other reasons...

What type of job?  Length of time on the job? 

How much does your checks show?  Tips?

What type of derog is on the credit to have 550 credit?  Any bk's? Repos? Chargeoffs?  How recent?

How much was the sale price of the car?  I am sure the dealer did not share with you the book sheet but that would make a difference as far as what they were trying to finance in relation to book which in turn spells your chance at an approval or decline.

When you say you were financing 80% of the car were you talking about the total amount including tax/license in relation to book figures?  Most financing sources will use wholesale book and yes you would probably have to be pretty close to 80% of wholesale book to get bought and short term like 48-60 mos

Good down payment though ... depending on the rest of your credit and job info you sound like a deal that someone could argue on with the bank.

Oh was the 550 Experian?

Anyways sounds like theres more to the story ...i am sure just about any major car dealer that has any relations with their banks would love to have a shot at this ..depending on the rest of the information i talked about above.

Good luck

Message Edited by cabarkeep on 03-29-2009 10:42 AM

[Anonymous]

It used to be that tips income or additional income was regualrly counted.  Now they are alot pickier about that.  It was probably the whole file, not just lack of income.  The income was probably just the easy explanation.  Alot of dealers are having problem getting nayone financed who is less than 650 FICO so 550 FICO with tip income and probably less than a true 20% down would be a tough deal to sell.

[moondog7324]

I think ou should get those scores up- the quickest way is getting your credit card utilization <10%.  Are there any items on your report that can de disputed?

[Anonymous]

I don't know why a dealer would "kill" financing.  That would kill a sale for them.  Usually the opposite is true:  If they can figure out a way to get you financed, regardles of how bad the rate or deal is, they usually try to close it and move the sale.  And you end up with an 18% auto loan.