02-11-2013 02:24 AM
This seems very strange. Try to get the judgment removed and wait a while,then try again. I have seen people with more credit issues and lower scores including judgments get approved. I know you're putting down a significant amount for the down payment,I wonder if that is working against you,coupled with the amount on the loan. In all your declines,there was a mention of the judgment,I would think if you get it removed you should be fine "hopefully". I plan on applying for a auto loan soon,I have two charge off and one collection. Working on fixing these over the next few months. I wish you luck!
02-11-2013 02:50 AM
Why's it strange? Have you seen people with worse credit get approved for a loan for $40K or more? Perhaps it was because they had past auto history so a good auto-enhanced FICO? I have no auto history on my credit at all.
02-11-2013 04:08 AM
It's strange because you have 40% to put down.
The problem is, even with 40%, the loan still is about 40K, and that is a LOT of money to be on the hook for even if you are giving up 26K.
Is your heart set specifically on this car and nothing else?
Follow my financial journey: http://www.frugalrican.com
02-11-2013 05:43 AM - edited 02-11-2013 05:44 AM
My heart is 110% set on this car. Zero chance of getting any other car at this point. The biggest reason I'm more motivated than ever to fix my credit at this moment is to get approved for the financing on this car. I want the car so bad I have dreams about it. Affording it is no problem (when I was trying for a lease, I was going to pay ALL 36 months in ADVANCE as I thought that would solve the credit problem -- nope -- they wouldn't approve me), it's just my credit which I messed up 3 years ago (am in a much better financial position now) that's holding me back from it. I will get my score up, my negative accounts handled, and I WILL get this car!
02-11-2013 11:06 AM
I found the opposite when I started to look for my new car... Lease was MUCH EASIER!
I actually started being offered 15+% interest rate IF they even got approvals for purchasing in the $18-$24k range but I was Tier 2 for Acura, Kia, and Infiniti... Infiniti was the only one that could get me up to Tier 1 and I leased a new 2013 G37 Sedan Journey and Technology Package.
I was looking at a Volvo C70 Convertible at Toyota Dealership, they got me 18% but wanted some DNA for Verification, I was declined at BMW for a used non BMW and that sales person tried to tell me they basically couldn't get me anything but buy here pay here financing... I told him he must of thought I was stupid! funny thing was the denial letter from them shows like a 697 or something my highest score I had seen anywhere!
Lexus pulled a high 500's which I don't know what that was but the manager was about as nice talking to me as I would have expected if I was in jail.
and VW Tier 3 after I had been told I was Tier 1 and to come into the dealership for my CC that I had been working with the guy for the last week for options and stuff.
sorry i know almost thread jack but wanted to show my experience at each of these places... I mean you already started applying maybe go over to someone like Infinti and pick yourself out a brand new convertible and see about buying and leasing... if you get tier 1 or tier 2 at $55-$65k then go back to porche and ask if they "want to try once more before you purchase infinti!" you can bluff it and see.... just a thought.
02-11-2013 08:22 PM
Well, it's strange because you're willing to put 40% down, but they aren't willing to approve you for a loan.That is a significant down payment. Simple put, I would finance you based on the details you've provided. Dealerships are usually able to find financing for people with less than stellar credit. In your case, they seemed to have tried,but encountered some problems. I have read numerous post with people who have more credit issues i.e. low scores,bankruptcy,judgments, coupled with a low down payment,yet they get approved. They don't get the best interest rates,but still, they get approved. I am not an expert, but I just think it's a bit strange they won't finance you,that's all. It just doesn't make sense that you've encountered all these hurdles given all that you're willing to offer, combined with your salary, they should be able to find you something. I am sure someone will,just go back to the drawing board.If you happen to figure out the problem or get approved,update us. Good luck
02-11-2013 08:30 PM
I found it strange, too, but I think it's a combination of the negatives PLUS that I have no past auto or loan history on my credit. I only have 5 revolving credit card accounts. Mind you, one has a $15K limit and zero lates and 1% utilization, but I'm not the sole holder and am a joint account holder on that one.
I've given up trying to get approved with the current state of my credit though. Yeah, it's weird that even with 40% down and a $100K/year salary that I can prove with bank statements I can't get approved, but I don't see any way to get a good answer. They all just say it's because of the serious deragatory history on my report. So I'm going to do everything I can to clean that up within the next two weeks and then hopefully by then I can go back to the dealership and they'll get me approved. If not, then things will be REALLY strange.
02-11-2013 08:31 PM
Interesting! That's probably because those companies likely have a first-time buyers program or something like that. Porsche kept reiterating to me that they don't have a Porsche first-time buyers program because almost no one can afford a Porsche as their first car. Well, it's not my first car but you wouldn't know that by looking at my credit because my parents signed for the lease on my first car and I bought my second car outright in cash for $30K, so it never reported on my credit.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO