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Established Contributor
Posts: 684
Registered: ‎05-02-2008
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Re: I can help, I manage a car dealership.


joeblow2 wrote:

What would be the min score required to get a prime loan with 0 down? In your experience?



Mid upper 600's may put you in prime rate territory.  Low 620+ could get you in with a prime lender at a higher rate.

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Scores: Equ Fico 715 ~ Exp 724 ~ TU Fico 682
Established Member
Posts: 22
Registered: ‎02-13-2012
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Re: I can help, I manage a car dealership.

"The question is, what are you planning on doing with the open auto that you currently have?  A lender may stipulate that you trade or pay the open auto loan.  You have a decent shot at getting approved though.  It really depends on why your score is 617.  If your debt to income is out of whack then you might be looking at a decline.  If everything is ok on your CR other than the old collections you shouldn't be too bad on rate.  Under 10% I think."

 

Sorry, I should have clarified that.  I plan to pay off my current auto loan (balance is 6k) because I think I can sell my car privately for more than I'd get trading it in (because of the mileage).  My debt to income is really good - the only debt I have is the 6k balance on the auto loan, and $100 on my BofA card. I think a big part of my score being 617 is a thin credit file.  When I got my current loan 5 years ago, my credit was bad - around 540 fico.  I cleaned it up, paid almost everything off, and swore to never use credit cards again!  Ha!  Well, what I didn't realize was that by not having any open credit cards, I was actually hurting myself.  So I opened two secured cards (BofA and CapOne), and in the last 3 months my score went up almost 70 points.  Based on that, you still think I have a good shot?  Once again, my current auto loan has not been late, ever.  Also, do you think BMW Finance would give me a shot?  Thanks!!!

Starting scores 2/13/12: TU - 575; EQ - 555; EX 590 (EX was BofA pull)
Current Scores 6/07/12 TU - 713, EQ - 628, EX 663 (All lender pulls)

EQ Fico jumped 48 points in one month by adding BofA secured card (Had no revolving accounts on CR at all at the time)
Established Contributor
Posts: 684
Registered: ‎05-02-2008
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Re: I can help, I manage a car dealership.


tps7c wrote:

"The question is, what are you planning on doing with the open auto that you currently have?  A lender may stipulate that you trade or pay the open auto loan.  You have a decent shot at getting approved though.  It really depends on why your score is 617.  If your debt to income is out of whack then you might be looking at a decline.  If everything is ok on your CR other than the old collections you shouldn't be too bad on rate.  Under 10% I think."

 

Sorry, I should have clarified that.  I plan to pay off my current auto loan (balance is 6k) because I think I can sell my car privately for more than I'd get trading it in (because of the mileage).  My debt to income is really good - the only debt I have is the 6k balance on the auto loan, and $100 on my BofA card. I think a big part of my score being 617 is a thin credit file.  When I got my current loan 5 years ago, my credit was bad - around 540 fico.  I cleaned it up, paid almost everything off, and swore to never use credit cards again!  Ha!  Well, what I didn't realize was that by not having any open credit cards, I was actually hurting myself.  So I opened two secured cards (BofA and CapOne), and in the last 3 months my score went up almost 70 points.  Based on that, you still think I have a good shot?  Once again, my current auto loan has not been late, ever.  Also, do you think BMW Finance would give me a shot?  Thanks!!!


I'm not a Fico expert, but I'd bet once your secured cards graduate to unsecured and a little aging of course you'll see another sizable jump in your score.  I think based on what you've said you have more than a decent chance of getting your car. 

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
Established Member
Posts: 22
Registered: ‎02-13-2012
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Re: I can help, I manage a car dealership.

"I'm not a Fico expert, but I'd bet once your secured cards graduate to unsecured and a little aging of course you'll see another sizable jump in your score.  I think based on what you've said you have more than a decent chance of getting your car. "

 

Thanks for the help UpnComing!  I have one last question (promise this is the last lol).  Last time I got my car at Carmax, so there was no negotiating process.  Since this car is at a BMW dealership, I'm hoping they will come down a bit.  It's listed at $39,985.  Would I insult the salesperson by offering $37,985 as an opening?  I'm not expecting to get it for that, but who knows.  I guess what I'm concerned with is making an offer too low, that comes across as 'insulting', and then we start the whole deal off on a bad foot.  Basically I suck at negotiating!! 

Starting scores 2/13/12: TU - 575; EQ - 555; EX 590 (EX was BofA pull)
Current Scores 6/07/12 TU - 713, EQ - 628, EX 663 (All lender pulls)

EQ Fico jumped 48 points in one month by adding BofA secured card (Had no revolving accounts on CR at all at the time)
Valued Member
Posts: 28
Registered: ‎05-09-2012
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Re: I can help, I manage a car dealership.


UpNComing wrote:

dwmaso001 wrote:

Hello I have a couple questions. I hope to try to obtain an auto loan in a few months and my scores are mid-600s. I have some 5 year old derogatories, but everything in my past has been paid off. I haven't had any late payments in a few years. The thing is I don't have a very high income. My income is only 26k. My only debt that I have is a few CCs with low balances and limits, and a $4571 student loan that just reported and is in deferment.

I am wondering if lenders will be looking at my student loan when evaluating my debt to income, even though its in deferment. I know since my income is so low, debt to income is going to be a big deal. Another thing, I have a past auto loan on my reports that has a perfect payment history, 0 late payments. I will have around $3k to $4k as a down payment, and am hoping to get something in the $15kish area. Ideally I'd like to lease a vehicle, but I know thats probably out of the question with my situation.

So, all things considered, what are my chances of getting a decent vehicle?



The student loans arent a huge factor.  With your down payment and a perfect paid auto loan in your history a lease is not out of the question.  You certainly wouldn't qualify for the best lease payment but I think you have a good shot at one.


Ahh thanks for the encouragement I really hope I can qualify for a lease. I've heard before that your credit must be squeaky clean for a lease, but I suppose there are different tiers. Do you know if applying for a lease works the same way as applying for a loan, in that multiple apps will only count as one for fico scoring?


Starting Score: 622 EQ Fico
Current Score: 654EQ 658 TU Fico
Goal Score: 720


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Established Contributor
Posts: 684
Registered: ‎05-02-2008
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Re: I can help, I manage a car dealership.


dwmaso001 wrote:

UpNComing wrote:

dwmaso001 wrote:

Hello I have a couple questions. I hope to try to obtain an auto loan in a few months and my scores are mid-600s. I have some 5 year old derogatories, but everything in my past has been paid off. I haven't had any late payments in a few years. The thing is I don't have a very high income. My income is only 26k. My only debt that I have is a few CCs with low balances and limits, and a $4571 student loan that just reported and is in deferment.

I am wondering if lenders will be looking at my student loan when evaluating my debt to income, even though its in deferment. I know since my income is so low, debt to income is going to be a big deal. Another thing, I have a past auto loan on my reports that has a perfect payment history, 0 late payments. I will have around $3k to $4k as a down payment, and am hoping to get something in the $15kish area. Ideally I'd like to lease a vehicle, but I know thats probably out of the question with my situation.

So, all things considered, what are my chances of getting a decent vehicle?



The student loans arent a huge factor.  With your down payment and a perfect paid auto loan in your history a lease is not out of the question.  You certainly wouldn't qualify for the best lease payment but I think you have a good shot at one.


Ahh thanks for the encouragement I really hope I can qualify for a lease. I've heard before that your credit must be squeaky clean for a lease, but I suppose there are different tiers. Do you know if applying for a lease works the same way as applying for a loan, in that multiple apps will only count as one for fico scoring?



Same same.  An inquiry is an inquiry.

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
New Member
Posts: 4
Registered: ‎05-30-2012
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Re: I can help, I manage a car dealership.

Thanks for all the great advice, reading through 72 posts for the past few days.

 

My situation, have 1 secured CC less than 10% utilizations 5 months, no credit score will pull (waiting for that 6th month reporting), 2 unpaid collections $170 total from 6/2009. Income $41K  What will I need to get a approval for a new auto loan without a cosigner?  Have $4k-8k for downpayment.  Really, really need a new vehicle...my 2000 Toyota Sienna has 198K miles and is fading fast.  Paid this vehicle off over 8 years ago. Would like to buy in 3-4 months.

 

Thanks!!

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Posts: 8
Registered: ‎04-03-2010
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Re: I can help, I manage a car dealership.

I currently owe $19,685.51 on a 2008 Toyota Tundra Crewmax, with approx 34,000 miles on it. There is no liner in the bed so it is scratched up, the rest of the exterior is in good condition, a couple of scratches and a ding. No issues with the interior. Have $750 in revolving credit, 35% usage. BK Chap 7 and state lien in 8/05, paid collection in 2/07 to be removed 4/13. No lates since the BK. Have a closed, paid account with Ford Motor Credit, no lates. My income is $56,000. Looking to purchase a 2012 Prius, if possible the V. Truck is financed through my credit union at 6.7%. I was pre-approved thru the same credit union for $30,000 , new 7.99%, used 8.49% both for 72 months. The rates are good for 60 days. I do not have a down payment and I know there may be negative equity. C.U. said they would match rate if I found a lower one. Should I actively look at cars, or wait for scores to increase and let pre-approval expire. I'm in Northern California. Any advice would be greatly appreciated. Thank you. EQ 696 TU 683
New Member
Posts: 1
Registered: ‎05-23-2012
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Re: I can help, I manage a car dealership.

Ok, so I have been shopping around for a new car and my credit is not great (myfico EQ 584) - had some major stuff back in 2007 and never really rebuilt.  Anyway, I was told at the Nissan dealer that my Beacon score was not horrible at 630, but he needed explainations for the 2007 incident and all the recent inquires.  I explained both and the recent inquires were because of the loan shopping.  I did this backwards and didn't narrow down the actual car I wanted, instead I was so freaked out about the financing that I was just looking for whomever would finance me.  I think I have settled on a new 2012 Hyundai Sonata, so I need to see their finance department.  My question is, how hard are they to get a decent rate?  What rate am I looking to pay?

 

I have very stable 10+ year employment history with a good salary (in case that matters).

 

I look forward to your feedback.

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Posts: 259
Registered: ‎06-11-2008
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Re: I can help, I manage a car dealership.

[ Edited ]

Question about Leases for UpNComing: 

 

Are credit requirements stricter for leases than purchasing the vehicle? Thanks for any light you can shed on the leasing process.   :smileyhappy:

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