cancel
Showing results for 
Search instead for 
Did you mean: 

Having trouble getting loan even with 40% down

Moderator Emeritus

Re: Having trouble getting loan even with 40% down

Have you tried lending tree?  What about local Credit union? Peer to Peer lending?


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Message 31 of 55
Contributor

Re: Having trouble getting loan even with 40% down

OP probably wouldn't get approved at a peer to peer like Lending Club - I invest there, I know the approval requirements.

 

To the OP: First, don't settle. If you want a new car, get it. People sometimes don't realize how much a car can change in a few years, and getting a 4-5 year old vehicle means losing a lot of really cool features, not to mention body style changes, etc. I'm in the market for the new 2014 Mazda 6 - people suggested buying used...but I wouldn't touch the pre-2014 model with a 10 foot pole, it doesn't have even a fraction of the refined looks, features, etc of the 2014 model.

 

As for the financing, here's what I think: I think you should simply wait a few months. I know it will be hard, but it will fly by, and when it comes time to buy your car it will be all new for you instead of a few months old. It would also give you something to look forward to while you wait - being impatient can only hurt you as if you do get qualified it will be less than optimum interest. Meanwhile you can:

 

1. Clean up your credit report, get everything fullly removed regarding the judgements, etc.

2. Save up an even bigger down payment.

3. Dream about your car.

 

Trust me, I know it sucks to wait. I was all set to buy the Mazda CX-5 and so dead set on wanting it, dreamed about it, etc - then I found out about the new Mazda 6 just a week or so before I was to buy the CX-5. Now I can't imagine having bought the CX-5. You never know, you may find something else while your waiting.




Starting Score: 583 (CreditKarma, 2009)
Current Score: 783 (Walmart Free FICO, March 20, 2012), 774 (Equifax, BoA Pull, 2/20/13)
Goal Score: 800+


Take the FICO Fitness Challenge
Message 32 of 55
New Contributor

Re: Having trouble getting loan even with 40% down


BlueHusky wrote:

OP probably wouldn't get approved at a peer to peer like Lending Club - I invest there, I know the approval requirements.

 

To the OP: First, don't settle. If you want a new car, get it. People sometimes don't realize how much a car can change in a few years, and getting a 4-5 year old vehicle means losing a lot of really cool features, not to mention body style changes, etc. I'm in the market for the new 2014 Mazda 6 - people suggested buying used...but I wouldn't touch the pre-2014 model with a 10 foot pole, it doesn't have even a fraction of the refined looks, features, etc of the 2014 model.

 

As for the financing, here's what I think: I think you should simply wait a few months. I know it will be hard, but it will fly by, and when it comes time to buy your car it will be all new for you instead of a few months old. It would also give you something to look forward to while you wait - being impatient can only hurt you as if you do get qualified it will be less than optimum interest. Meanwhile you can:

 

1. Clean up your credit report, get everything fullly removed regarding the judgements, etc.

2. Save up an even bigger down payment.

3. Dream about your car.

 

Trust me, I know it sucks to wait. I was all set to buy the Mazda CX-5 and so dead set on wanting it, dreamed about it, etc - then I found out about the new Mazda 6 just a week or so before I was to buy the CX-5. Now I can't imagine having bought the CX-5. You never know, you may find something else while your waiting.


Thanks, BlueHusky!

 

That's the plan, although I think I can do it within the next 3 weeks as opposed to the next 3 months. And I know EXACTLY what you mean about the car you want. With the Porsche, I never liked them until the 2013 model came out. It's all totally brand new and finally something I love. I hate the 2012, but I love the 2013.

 

It's all in progress and I'm doing my best to:

 

(1) vacate the judgement and get it deleted (Motion to Vacate Judgement is being filed with the courthouse next week)

 

(2) delete the 3 CO Amex accounts that have been paid (emails, faxes, and snail mail letters have been sent and just waiting to hear back)

 

(3) delete the 30-day late with Shell, which is my only late payment on my entire credit report (got declined on the first GW attempt; trying again with a new special strategy Smiley Wink -- will let you guys know what it is if it works)

 

(4) increase my Amex Optima card limit from $500 to $1,500 (they offered me another Optima with a $1,500 limit so I'm going to see if they can just apply that to my current Optima -- if not, I'll bite the bullet and close my current Optima card and get the new Optima card with the 3X CL)

 

(5) increase my Shell card limit from $180 to $500 (got declined on this a few days ago and was told it's because of those CO Amex accounts, so once that is handled, I should be able to easily get the CLI)

 

(6) Add a 15-year-old Amex Platinum account with a $15K+ limit to my credit history as an authorized user (have a family member who is going to add me as an AU to his 15-year-old Amex Platinum Delta card with a $15K+ limit)

 

Once all of that is done, I think I should easily be able to get approved for the loan and in fact could probably get it with only 35% down instead of 40%. No idea how much my score will jump after doing all of the above, but I'm thinking/hoping I'll see a 100-point jump after deleting the 3 CO Amex accounts and the judgement, since that would mean there's zero negative accounts on my report at that point.

 

Fingers crossed.

Message 33 of 55
Moderator

Re: Having trouble getting loan even with 40% down

4) Don't close the current Optima, take the new one in addition to the one you have now.

 

6) Amex AU's (ACM's in Amexese) don't work like that.  Those will show up as new accounts on your record, not worth pursuing.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Message 34 of 55
Valued Contributor

Re: Having trouble getting loan even with 40% down

It is probably a combination of the luxury brand with a luxury dealer. Luxury dealerships are harder to get approved through. They like people in their 30's and 40's with established credit histories.

When I tried to get approved through Acura in my early twenties with limited credit, they laughed me off the lot. Went back in my early 30's with great credit...approved!
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 35 of 55
Contributor

Re: Having trouble getting loan even with 40% down


MovingForward_2012 wrote:
It is probably a combination of the luxury brand with a luxury dealer. Luxury dealerships are harder to get approved through. They like people in their 30's and 40's with established credit histories.

When I tried to get approved through Acura in my early twenties with limited credit, they laughed me off the lot. Went back in my early 30's with great credit...approved!

Which is a horrible business model and why te average age of luxury brand buyers is going up and up - I recently read somewhere te average mercedes buyer is in his/her late 50's/early 60's. When those people die, the young people of today who are then more secure will remember being laughed off the lot and have brand loyalty somewhere else.




Starting Score: 583 (CreditKarma, 2009)
Current Score: 783 (Walmart Free FICO, March 20, 2012), 774 (Equifax, BoA Pull, 2/20/13)
Goal Score: 800+


Take the FICO Fitness Challenge
Message 36 of 55
Moderator

Re: Having trouble getting loan even with 40% down


MovingForward_2012 wrote:
It is probably a combination of the luxury brand with a luxury dealer. Luxury dealerships are harder to get approved through. They like people in their 30's and 40's with established credit histories.

When I tried to get approved through Acura in my early twenties with limited credit, they laughed me off the lot. Went back in my early 30's with great credit...approved!

Um, I don't think this is quite accurate. Smiley Happy

 

Honda Financial Services and Acura Financial Services are basically the same from people I know that work at their HQ.

 

Toyota Financial Services and Lexus Financial Services are basically the same.  I used to work at their headquarters, it's just a branding thing, different CS potentially, same internal infrastructure.

 

Dealerships and sales people on the other hand, YMMV.  I strongly suspect it was this rather than an institutional bias.  If this is just your personal anecdotal story, it's too small of a sample size.  If you have other sources, please let me know for my own education Smiley Happy.  My own experiences with Infiniti and Acura run counter to this.

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Message 37 of 55
Established Contributor

Re: Having trouble getting loan even with 40% down


750Hopeful wrote:

BlueHusky wrote:

OP probably wouldn't get approved at a peer to peer like Lending Club - I invest there, I know the approval requirements.

 

To the OP: First, don't settle. If you want a new car, get it. People sometimes don't realize how much a car can change in a few years, and getting a 4-5 year old vehicle means losing a lot of really cool features, not to mention body style changes, etc. I'm in the market for the new 2014 Mazda 6 - people suggested buying used...but I wouldn't touch the pre-2014 model with a 10 foot pole, it doesn't have even a fraction of the refined looks, features, etc of the 2014 model.

 

As for the financing, here's what I think: I think you should simply wait a few months. I know it will be hard, but it will fly by, and when it comes time to buy your car it will be all new for you instead of a few months old. It would also give you something to look forward to while you wait - being impatient can only hurt you as if you do get qualified it will be less than optimum interest. Meanwhile you can:

 

1. Clean up your credit report, get everything fullly removed regarding the judgements, etc.

2. Save up an even bigger down payment.

3. Dream about your car.

 

Trust me, I know it sucks to wait. I was all set to buy the Mazda CX-5 and so dead set on wanting it, dreamed about it, etc - then I found out about the new Mazda 6 just a week or so before I was to buy the CX-5. Now I can't imagine having bought the CX-5. You never know, you may find something else while your waiting.


Thanks, BlueHusky!

 

That's the plan, although I think I can do it within the next 3 weeks as opposed to the next 3 months. And I know EXACTLY what you mean about the car you want. With the Porsche, I never liked them until the 2013 model came out. It's all totally brand new and finally something I love. I hate the 2012, but I love the 2013.

 

It's all in progress and I'm doing my best to:

 

(1) vacate the judgement and get it deleted (Motion to Vacate Judgement is being filed with the courthouse next week)

 

(2) delete the 3 CO Amex accounts that have been paid (emails, faxes, and snail mail letters have been sent and just waiting to hear back)

 

(3) delete the 30-day late with Shell, which is my only late payment on my entire credit report (got declined on the first GW attempt; trying again with a new special strategy Smiley Wink -- will let you guys know what it is if it works)

 

(4) increase my Amex Optima card limit from $500 to $1,500 (they offered me another Optima with a $1,500 limit so I'm going to see if they can just apply that to my current Optima -- if not, I'll bite the bullet and close my current Optima card and get the new Optima card with the 3X CL)

 

(5) increase my Shell card limit from $180 to $500 (got declined on this a few days ago and was told it's because of those CO Amex accounts, so once that is handled, I should be able to easily get the CLI)

 

(6) Add a 15-year-old Amex Platinum account with a $15K+ limit to my credit history as an authorized user (have a family member who is going to add me as an AU to his 15-year-old Amex Platinum Delta card with a $15K+ limit)

 

Once all of that is done, I think I should easily be able to get approved for the loan and in fact could probably get it with only 35% down instead of 40%. No idea how much my score will jump after doing all of the above, but I'm thinking/hoping I'll see a 100-point jump after deleting the 3 CO Amex accounts and the judgement, since that would mean there's zero negative accounts on my report at that point.

 

Fingers crossed.


Did you ask them if there was a number the would approve you at?  When I was a lender there were hard limits, for example I couldn't do you at 40K, but if it was 39K you were fine. 

Message 38 of 55
New Contributor

Re: Having trouble getting loan even with 40% down


coterotie wrote:

Did you ask them if there was a number the would approve you at?  When I was a lender there were hard limits, for example I couldn't do you at 40K, but if it was 39K you were fine. 


Really? That's interesting! Because I had gotten a letter from one of the banks that the dealer submitted to and it said they couldn't approve me for the loan amount of $46,000. I don't know where the heck $46,000 came from because I only put $40,500 on the loan app. I wonder if the dealer intentionally changed it to make sure I would be approved if I wanted extra accessories or other nonsense.

Message 39 of 55
Contributor

Re: Having trouble getting loan even with 40% down

Any update?
Message 40 of 55