Auto Loans

[UpNComing]

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CasperJack14 wrote:

So happy I found this thread!  I currently have a 2008 Chev Cobalt (2 door) with 72,000 miles on it.  When I had it appraised in April, it was appraising for pretty much the same as I owe on it.  I'm hoping to get a new (or newer used) vehicle in the next 6-12 months - this car is just not meeting my needs now.  Right now I'm looking at the Chev Equinox, and when I was at the dealership in April - they quoted me at around $27,000 for the vehicle (new) at the time.

My FICO is 539 currently, although the dealer pulled it in April at 473.  I have several baddies on there from 2-3 years ago that I am trying to get cleaned up right now (CA's that I'm attempting PFD's on, 3 late payments from 2010 on my auto loan that I sent GW letter on).  I also have a mortgage that is in the foreclosure process - that is what is REALLY dragging my credit down (home was bought on 2 incomes, post-divorce I could not maintain it on mine alone).  I've been trying since the divorce to sell it, maxed out resources, and it became late in Dec. 2010.  When they tried to finance me in April, GMAC was the only lender that would finance me - but it was for 18% rate and they wouldn't finance more than a $500/month payment - so I could not get the vehicle I was looking to buy. 

I guess my question to you is - what are my chances of my getting my FICO up enough to get a better interest rate and afford the Equinox in the 6-12 month time frame?  Due to a recent significant pay increase, my income is $4,167/month gross ($3,200 take home pay), and my expenses (rent/util/auto loan/etc) are only around $1,000.  I'm hoping to put down $5,000 minimum for a downpayment.  I've added a consumer statement about the post-divorce foreclosure, but there isn't much more I can do about that at this point.

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Was your GMAC approval before or after the pay increase?  If it was before the bank may be willing to raise that payment level now.  The rate is very fair considering your scores.   As far as improving your credit, it sounds like you're on the right track.  12 months could mean a world of difference if you remain diligent with those PFD and GW letters.

[UpNComing]

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calisean wrote:

Experian - 630

Equifax - 647

Transunion - 567 (Dunno why this one is so much lower)

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I see no reason you'll see a decline.  You're going to pay a higher rate but you could most definitely get a loan.

[CasperJack14]

GMAC was after the pay increase. I think part of it is that they are factoring in a $795 mortgage payment with my DTI since the mortgage doesn't actually show as foreclosed yet - my rent is actually $400/month now. Since the approval, I have opened a secured card with Cap One that I am paying off in full bi-weekly with payday. My mother has also offered to put me on as an authorized user for a couple of her cards so that I can use her excellent credit to help get a boost, too.

How much do you think I would need to raise my FICO to qualify for this vehicle?

Thanks for your input!

[calisean]

Thanks for the replies.  One quick question.  If I wait for those two baddies to fall off would i see a better rate?   Does auto-enhanced FICO see repossesions after the 7.5 year statute of limitations?

[UpNComing]

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CasperJack14 wrote:
GMAC was after the pay increase. I think part of it is that they are factoring in a $795 mortgage payment with my DTI since the mortgage doesn't actually show as foreclosed yet - my rent is actually $400/month now. Since the approval, I have opened a secured card with Cap One that I am paying off in full bi-weekly with payday. My mother has also offered to put me on as an authorized user for a couple of her cards so that I can use her excellent credit to help get a boost, too.

How much do you think I would need to raise my FICO to qualify for this vehicle?

Thanks for your input!

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Getting into the 600's would help but I think no matter what, you're going to have your loan stipulated for income.

[CasperJack14]

Is there any way to get the lender to take a closer look and factor in my actual rent I'm paying ($400) instead of what's listed for a mortgage payment ($795) since the house is going through foreclosure?  Just curious - totally understand if it can't work that way...

[UpNComing]

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calisean wrote:

Thanks for the replies.  One quick question.  If I wait for those two baddies to fall off would i see a better rate?   Does auto-enhanced FICO see repossesions after the 7.5 year statute of limitations?

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I'm no expert on the auto FICO process.  IMO the baddies were so long ago that they really won't effect your score very much.  But you will definitely get a better rate with no baddies showing.

[UpNComing]

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CasperJack14 wrote:

Is there any way to get the lender to take a closer look and factor in my actual rent I'm paying ($400) instead of what's listed for a mortgage payment ($795) since the house is going through foreclosure?  Just curious - totally understand if it can't work that way...

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It depends on the lender. But it's really not out of the question.

[johnnymac5]

Thanks for all the info UNC. I'm a first time buyer who would probably qualify for the top-tier financing (770s TU/EQ, decent salary). I'm looking at a new 2012 GTI 2-dr...undecided on the trim. I've never negotiated a car purchase so I'm curious about the wiggle-room available in new car purchases. I realize this may be dealer-dependent (in the SF bay area FYI) and is probably also model-specific. Could you give a general answer about wiggle-room on new GTIs, thanks!

[JasonBourneOfCredit]

HELLO UpNComing!!

I'm looking at VW's so I hope you can help!

I'm in Louisville, KY.  Was originally looking at a '10 Golf 2.5 but then the '11 seems more appealing because in 2 dr manual it gets 33 mpg hwy over the '10's 30. I think they changed the gearing.

Anyway, the VW dealership (Bachman) is asking $17985 for a '11 w/17k miles. That price is $20 more than when the car was brand new! Edmunds says retail should be $15,700 for certified "True Market Value." What do you think I can walk out of there with on the price?

Problem with wanting a Golf is that there just arent any for sale. I want a 2 door manual 10 or 11 and theres like 5 within 200 miles. Its crazy.

Details that may or may not matter:

715-720 fico

CU pre arranged credit

4-6k down depending

Good negotiator