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Valued Member
sherakay
Posts: 59
Registered: ‎02-20-2012

Re: I can help, I manage a car dealership.

I have a question about how my CR is viewed by a dealership when applying for a loan. Not sure if they are auto-enhanced, but when I received my rejection letters from 2 CU they reported my score as 669 from EQ and 690 from TU. I have 20 positive lines on my CR and 7 adverse ones.  I have a successfully paid off car loan for $11,533 opened 2/4/06 and closed 4/14/11. Never late.

 

2005-2006 were bad years as I was going through a canceled wedding and EX moved out of apt and I got stuck with all of the bills. What can/should I do to try and get auto loan. Looking to finance $12000-13000 and put $1500 down.

 

The baddies on TU are: 

 

1) AES- Student loan- maximum deliquency of 120 day occurred in 9/05- PAY STATUS: Current; Paid or Paying as Agreed

 

2) HSBC Bank- CC- Credit Card lost or stolen (shows 30 day late in 11/05)- PAY STATUS: Current; Paid or Paying as Agreed

 

3) HSBC Bank- CC- settled less than full balance- PAY STATUS: Charged Off (I was an Authorized User on this account) Est removal- 9/12

 

4) Kay Jewelers- Charge Account- maximum deliquency of 60 days occurred in 12/05 Inactive account- PAY STATUS: Current; Paid or Paying as Agreed

 

5) CMI- Collection Agency- Balance $105  Date Placed for Collection- 9/23/08 PAY STATUS: In Collection- Est removal 5/14

 

6) Fidelity Info Corp- Collection Agency- Balance $2134 (Shows $2206 on EQ I have filed a dispute with both CRA) Date Placed for Collection- 3/29/07 PAY STATUS: In Collection- Est removal 10/13

 

7) NCO Financial- Factoring Company Account- Date Placed for Collection- 10/24/07- PAID Collection PAY STATUS: Account Paid in Full; was a collection-  Est removal 2/13 


Starting Score: Walmart myfico 664 TU Lender Pull 690 EQ Lender Pull 669
Current Score: Walmart myfico 698 TU Equifax- 686 Experian- 692 Transunion- 700 Lender Pull 7/18/12
Goal Score: 720


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Established Contributor
UpNComing
Posts: 684
Registered: ‎05-02-2008

Re: I can help, I manage a car dealership.


sherakay wrote:

I have a question about how my CR is viewed by a dealership when applying for a loan. Not sure if they are auto-enhanced, but when I received my rejection letters from 2 CU they reported my score as 669 from EQ and 690 from TU. I have 20 positive lines on my CR and 7 adverse ones.  I have a successfully paid off car loan for $11,533 opened 2/4/06 and closed 4/14/11. Never late.

 

2005-2006 were bad years as I was going through a canceled wedding and EX moved out of apt and I got stuck with all of the bills. What can/should I do to try and get auto loan. Looking to finance $12000-13000 and put $1500 down.

 

The baddies on TU are: 

 

1) AES- Student loan- maximum deliquency of 120 day occurred in 9/05- PAY STATUS: Current; Paid or Paying as Agreed

 

2) HSBC Bank- CC- Credit Card lost or stolen (shows 30 day late in 11/05)- PAY STATUS: Current; Paid or Paying as Agreed

 

3) HSBC Bank- CC- settled less than full balance- PAY STATUS: Charged Off (I was an Authorized User on this account) Est removal- 9/12

 

4) Kay Jewelers- Charge Account- maximum deliquency of 60 days occurred in 12/05 Inactive account- PAY STATUS: Current; Paid or Paying as Agreed

 

5) CMI- Collection Agency- Balance $105  Date Placed for Collection- 9/23/08 PAY STATUS: In Collection- Est removal 5/14

 

6) Fidelity Info Corp- Collection Agency- Balance $2134 (Shows $2206 on EQ I have filed a dispute with both CRA) Date Placed for Collection- 3/29/07 PAY STATUS: In Collection- Est removal 10/13

 

7) NCO Financial- Factoring Company Account- Date Placed for Collection- 10/24/07- PAID Collection PAY STATUS: Account Paid in Full; was a collection-  Est removal 2/13 



How is your income?  What were you applying for? With a paid auto in your past and score like that I don't see a problem.  The only thing that may effect you is your debt to income ratio.  To put it simply a dealer/finance company will look at the total monthly obligations listed on your report and your income to see if you qualify for a car payment.

CSP ($5k); Chase MileagePlus Explorer Visa Sig. ($6k); Chase Freedom Visa Sig. ($6k); BankAmericard Cash Rewards Visa Sig. ($5k); Amex PRG (NPSL); Amex BCE ($1k); Citi Thank You ($5.4k); Barclay Apple ($4.2k) CapOne Cash ($2.5k) CapOne Platinum ($2.5k) Wells Fargo Home Project Visa ($10.3k) Discover IT ($1.5k) WalMart ($3k); Lowes ($3k); Amazon ($5k); Kohls($1.5k)

Scores: Equ Fico 715 ~ Exp 724 ~ TU Fico 682
Member
codax85
Posts: 19
Registered: ‎04-13-2011

Re: I can help, I manage a car dealership.

In need of some guidance here as well.

I'm looking to buy a new car before the end of the year, since now we share with the wife. I am actually looking at a new Golf TDI with DSG, since I drive 50-60 miles a day and could really use the high MPG (plus I've owned diesel engines in the past while living in Europe and love the torque it comes with it).

My credit profile is probably not the best in terms of tradelines. Here's a snapshot:

 

3 credit cards, 2 with 3000$ limit each and one with a 1500 limit, all around a year old as of now.

AU on a 5 yr old card with perfect payment record

FICOs are around the 720-740 range

AAoA is around 1.5 yrs

My income is around 50k and the wife 22k, but she's supposed to get a raise in the next couple of months to around 30k

Only obbligation is rent, 1450 a month

 

I have however never had a car loan, since the last car I bought I paid cash for it and before I was living oversees.

Any chance with VW financing of getting a decent rate, or maybe I should look for a CU first?

In any case, I've only heard good things about the golf TDI, and while the car I would really want is the GTI, that high mpg of the diesel would really be the smart choice for us.

 

Thanks for your help!! :smileyhappy:

Established Contributor
UpNComing
Posts: 684
Registered: ‎05-02-2008

Re: I can help, I manage a car dealership.


codax85 wrote:

In need of some guidance here as well.

I'm looking to buy a new car before the end of the year, since now we share with the wife. I am actually looking at a new Golf TDI with DSG, since I drive 50-60 miles a day and could really use the high MPG (plus I've owned diesel engines in the past while living in Europe and love the torque it comes with it).

My credit profile is probably not the best in terms of tradelines. Here's a snapshot:

 

3 credit cards, 2 with 3000$ limit each and one with a 1500 limit, all around a year old as of now.

AU on a 5 yr old card with perfect payment record

FICOs are around the 720-740 range

AAoA is around 1.5 yrs

My income is around 50k and the wife 22k, but she's supposed to get a raise in the next couple of months to around 30k

Only obbligation is rent, 1450 a month

 

I have however never had a car loan, since the last car I bought I paid cash for it and before I was living oversees.

Any chance with VW financing of getting a decent rate, or maybe I should look for a CU first?

In any case, I've only heard good things about the golf TDI, and while the car I would really want is the GTI, that high mpg of the diesel would really be the smart choice for us.

 

Thanks for your help!! :smileyhappy:



Hi codax85 :smileyhappy:  You're fairly new credit in VCI's eyes.  If you do not have a paid auto in your history then you may find yourself relying on the First Time Buyer Program, an automatic Tier D approval which is 8.75% above the lowest published rate (1.9% as of this month).  Otherwise a cosigner with auto or mortgage history would do the trick.  Otherwise it's something that a dealer will put in front of their prime banks and see who bites.  Its not unusual to catch lightning in a bottle.

CSP ($5k); Chase MileagePlus Explorer Visa Sig. ($6k); Chase Freedom Visa Sig. ($6k); BankAmericard Cash Rewards Visa Sig. ($5k); Amex PRG (NPSL); Amex BCE ($1k); Citi Thank You ($5.4k); Barclay Apple ($4.2k) CapOne Cash ($2.5k) CapOne Platinum ($2.5k) Wells Fargo Home Project Visa ($10.3k) Discover IT ($1.5k) WalMart ($3k); Lowes ($3k); Amazon ($5k); Kohls($1.5k)

Scores: Equ Fico 715 ~ Exp 724 ~ TU Fico 682
Member
codax85
Posts: 19
Registered: ‎04-13-2011

Re: I can help, I manage a car dealership.


UpNComing wrote:

Hi codax85 :smileyhappy:  You're fairly new credit in VCI's eyes.  If you do not have a paid auto in your history then you may find yourself relying on the First Time Buyer Program, an automatic Tier D approval which is 8.75% above the lowest published rate (1.9% as of this month).  Otherwise a cosigner with auto or mortgage history would do the trick.  Otherwise it's something that a dealer will put in front of their prime banks and see who bites.  Its not unusual to catch lightning in a bottle.



Thanks a lot for the quick reply!

Yeah I imagined that I would be seen as having too thin of a file. Hopefully I can get a better rate than 9ish% with scores over 720 somewhere else. Unfortunately I do not have the luxury of having a cosigner with paid off loans, since the only one that could co sign for me would be the wife (has less of a credit record than me) and my mother, who has always paid cash for everything, so that's a no go.

Hopefully my CU can get me their advertised 2.5%, if not I guess I'll look at the higher rate as an investment for future car loans :smileyhappy:.

Btw, any negative stuff I should know about the golf TDI? If you can say obviously :smileyvery-happy:

 

Established Contributor
UpNComing
Posts: 684
Registered: ‎05-02-2008

Re: I can help, I manage a car dealership.


codax85 wrote:

UpNComing wrote:

Hi codax85 :smileyhappy:  You're fairly new credit in VCI's eyes.  If you do not have a paid auto in your history then you may find yourself relying on the First Time Buyer Program, an automatic Tier D approval which is 8.75% above the lowest published rate (1.9% as of this month).  Otherwise a cosigner with auto or mortgage history would do the trick.  Otherwise it's something that a dealer will put in front of their prime banks and see who bites.  Its not unusual to catch lightning in a bottle.



Thanks a lot for the quick reply!

Yeah I imagined that I would be seen as having too thin of a file. Hopefully I can get a better rate than 9ish% with scores over 720 somewhere else. Unfortunately I do not have the luxury of having a cosigner with paid off loans, since the only one that could co sign for me would be the wife (has less of a credit record than me) and my mother, who has always paid cash for everything, so that's a no go.

Hopefully my CU can get me their advertised 2.5%, if not I guess I'll look at the higher rate as an investment for future car loans :smileyhappy:.

Btw, any negative stuff I should know about the golf TDI? If you can say obviously :smileyvery-happy:

 


I have no issue with saying anything negative about our products if it warrants it.  The Golf TDI is a great choice.  I don't see them in the shop very often :smileywink:

CSP ($5k); Chase MileagePlus Explorer Visa Sig. ($6k); Chase Freedom Visa Sig. ($6k); BankAmericard Cash Rewards Visa Sig. ($5k); Amex PRG (NPSL); Amex BCE ($1k); Citi Thank You ($5.4k); Barclay Apple ($4.2k) CapOne Cash ($2.5k) CapOne Platinum ($2.5k) Wells Fargo Home Project Visa ($10.3k) Discover IT ($1.5k) WalMart ($3k); Lowes ($3k); Amazon ($5k); Kohls($1.5k)

Scores: Equ Fico 715 ~ Exp 724 ~ TU Fico 682
Regular Contributor
MsTucker09
Posts: 225
Registered: ‎02-16-2009

Re: I can help, I manage a car dealership.


UpNComing wrote:

MsTucker09 wrote:

It is great that you work at a car dealership, I am thinking about getting the new passat, I absolutely love it!!! The retail is like $26,500.  I can possibly put down $8k cash and trade in for $2500.  My credit scores are upper 500s, but I will be paying balances off to raise scores.  What is the likelyhood of getting the price knocked down to like $23000 or $24, 000?? I really want this car but I want my payments to be less than $400.  Also what is the likelyhood of me getting approved for a loan. 



Unfortunately MsTucker09, the 2012 Passat just doesn't have that much profit to negotiate a discount of that size.  Dealer cost on an MSRP of $26520 is $24929.  There are no cash incentives on the Passats at this time.  I'm sure you can find one for dealers cost if you are planning on financing though.  Good luck!


okay great, I saw a post where you explained that a first auto loan can make it very difficult to be approved......my credit score is 550, but will get some mistakes removed for it to increase.  Never had an auto loan, I know you cant say for sure but what is the likelyhood of me getting approved with an $8k down payment and $2k trade in?  I know my interest rate would probably be 15% or higher, but I would refinance once I get 6 months good history


Starting Score: EQ 462 9/30/11
Current Score: TU 577 4/10/12 EQ 607 4/10/12 PLUS 627 4/10/12 Beacon 5.0 621 lender pull 4/13/12
Goal Score: 650


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Established Contributor
UpNComing
Posts: 684
Registered: ‎05-02-2008

Re: I can help, I manage a car dealership.


MsTucker09 wrote:

UpNComing wrote:

MsTucker09 wrote:

It is great that you work at a car dealership, I am thinking about getting the new passat, I absolutely love it!!! The retail is like $26,500.  I can possibly put down $8k cash and trade in for $2500.  My credit scores are upper 500s, but I will be paying balances off to raise scores.  What is the likelyhood of getting the price knocked down to like $23000 or $24, 000?? I really want this car but I want my payments to be less than $400.  Also what is the likelyhood of me getting approved for a loan. 



Unfortunately MsTucker09, the 2012 Passat just doesn't have that much profit to negotiate a discount of that size.  Dealer cost on an MSRP of $26520 is $24929.  There are no cash incentives on the Passats at this time.  I'm sure you can find one for dealers cost if you are planning on financing though.  Good luck!


okay great, I saw a post where you explained that a first auto loan can make it very difficult to be approved......my credit score is 550, but will get some mistakes removed for it to increase.  Never had an auto loan, I know you cant say for sure but what is the likelyhood of me getting approved with an $8k down payment and $2k trade in?  I know my interest rate would probably be 15% or higher, but I would refinance once I get 6 months good history



With that kind of down you have a great shot!

CSP ($5k); Chase MileagePlus Explorer Visa Sig. ($6k); Chase Freedom Visa Sig. ($6k); BankAmericard Cash Rewards Visa Sig. ($5k); Amex PRG (NPSL); Amex BCE ($1k); Citi Thank You ($5.4k); Barclay Apple ($4.2k) CapOne Cash ($2.5k) CapOne Platinum ($2.5k) Wells Fargo Home Project Visa ($10.3k) Discover IT ($1.5k) WalMart ($3k); Lowes ($3k); Amazon ($5k); Kohls($1.5k)

Scores: Equ Fico 715 ~ Exp 724 ~ TU Fico 682
Contributor
poops
Posts: 75
Registered: ‎04-11-2007

Re: I can help, I manage a car dealership.

Serious questions...

 

  • What really goes on when the salesman "goes to talk to the sales mgr" in the back?
  • Also, why do dealerships have to keep prospective customers waiting for 2-4 hours in order to just buy a car?
Regular Contributor
MsTucker09
Posts: 225
Registered: ‎02-16-2009

Re: I can help, I manage a car dealership.

thanks so much, yes I was told that the more you put down the greater your chances of getting approved, I hope you are correct.  I really need a car in the next 2 months.  I will test drive it this weekend to make sure, but I am in love with the design of the Passat.  You were very helpful


UpNComing wrote:

MsTucker09 wrote:

UpNComing wrote:

MsTucker09 wrote:

It is great that you work at a car dealership, I am thinking about getting the new passat, I absolutely love it!!! The retail is like $26,500.  I can possibly put down $8k cash and trade in for $2500.  My credit scores are upper 500s, but I will be paying balances off to raise scores.  What is the likelyhood of getting the price knocked down to like $23000 or $24, 000?? I really want this car but I want my payments to be less than $400.  Also what is the likelyhood of me getting approved for a loan. 



Unfortunately MsTucker09, the 2012 Passat just doesn't have that much profit to negotiate a discount of that size.  Dealer cost on an MSRP of $26520 is $24929.  There are no cash incentives on the Passats at this time.  I'm sure you can find one for dealers cost if you are planning on financing though.  Good luck!


okay great, I saw a post where you explained that a first auto loan can make it very difficult to be approved......my credit score is 550, but will get some mistakes removed for it to increase.  Never had an auto loan, I know you cant say for sure but what is the likelyhood of me getting approved with an $8k down payment and $2k trade in?  I know my interest rate would probably be 15% or higher, but I would refinance once I get 6 months good history



With that kind of down you have a great shot!


 


Starting Score: EQ 462 9/30/11
Current Score: TU 577 4/10/12 EQ 607 4/10/12 PLUS 627 4/10/12 Beacon 5.0 621 lender pull 4/13/12
Goal Score: 650


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