Auto Loans

[emshook]

Hello, I'm new to this forum and will be buying a new car in the next month or so.

I sold my car for $3000 and have until Nov. 15th to find a new one, so this will be my down payment.

I'm nervous about financing because it is my first auto loan and my credit scores aren't that great.

I just pulled scores today, and Equifax is showing 645 and Transunion 676.  (free credit report was showing Experian- 685, Equifax- 685, Transunion- 681)

I'm looking into getting a Honda Civic, Toyota Corolla, or a Hyundai Elantra, so something under $20,000

I have a stable job and make around $42k a year.  I have student loans and cc debt- that's what's hurting my score so much, and the length of my credit history.  I have no late payments, and 1 collection from 3.5 years ago from th university health center (was only $70 and was paid)

What are my chances of getting approved, let alone what kind of interest rate am I looking at?

[Elcid89]

You chances of approval should be good with your cash downpayment and your scores. Your rate will vary depending on the lender. The F&I guy will normally shop the paper around trying to get you the best rate, so try and see what he can come up with.

[jd5189]

I think you have a good shot at approval! Good luck!

[emshook]

I was thinking about going to a credit union first. There's probably no way I would qualify for the specials with 0% or 1.9% financing, is there?

[Revelate]

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emshook wrote:
I was thinking about going to a credit union first. There's probably no way I would qualify for the specials with 0% or 1.9% financing, is there?

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Not certain on this, Toyota (TFS) and likely other dealer lenders have some aggressive promo pricing right now, this is perhaps especially true if you're willing to pickup a 2012 model which I'd really recommend anyway in Nov/Dec when you're trying to get a first auto loan done.  Dealers will be absolutely incented to try to get you financing rather than a 2013 which are moving off the lots by the lease / rapid turnover folks.

I'm not certain from your post if you were looking used or new, but special financing is usually on new cars from the manufacturer's financing arm.  

That said, even if you dn't get a great interest rate out the gate (you may not, the first time buyer penalty is non-trivial on an auto-enhanced score), you can refi anyway... and I absolutely recommend attempting to secure financing from a local CU.  Having a relationship with a decent CU is nothing but goodness when it comes to your financial future.

Also, welcome to the forums!

[creditnocash]

from what ive read tfs is 650 for top tier financing. but the guy at the dealer told me i just made top tier with a 708. (700 being qualifing for top tier)

i belive i read honda was 680. 

[emshook]

I'm definitely looking for a new car. Thank you everyone for the advice so far!

Would my auto enhanced score be a lot lower since I've never had an auto loan before? That's what I'm worried about, and now that I sold my car i really do only have the 4-6 weeks to buy so not any time to raise my score.

[Elcid89]

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emshook wrote:
I was thinking about going to a credit union first. There's probably no way I would qualify for the specials with 0% or 1.9% financing, is there?

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That one is a toss-up question, but if I had to guess, I'd guess that you have a better shot at a premium tier with a captive lender as opposed to a credit union. You can always try both and choose the better package.

Inquiries for auto loans within any 45 day period count as a single inquiry for the purpose of calculating your score, so you have some leeway to shop around. I'd shop it to the credit union and have the F&I guy at the dealer shop it to all of his buyers. See what comes back.

[Shogun]

 The approval I don't think is in question, it is the rate that the purchase can be made at.  You will get approved, but you want the best deal.  That old CO, have you sent a GW to them to see if they'll delete?  That could give you a boost!

[creditnocash]

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emshook wrote:
I'm definitely looking for a new car. Thank you everyone for the advice so far!

Would my auto enhanced score be a lot lower since I've never had an auto loan before? That's what I'm worried about, and now that I sold my car i really do only have the 4-6 weeks to buy so not any time to raise my score.

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its a ymmv thing. 

ive never had any installment loans and pulled my credit from here the morning of and dealership pulled my reports about 2 hours later. 

tu was 690 eq 689   dealer said it was 708 tu pull. 

even though later i saw they pulled all three of my reports twice! (one from dealer and one from toyota financial)