I can help, I manage a car dealership.

[UpNComing]

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@jrands wrote:

Hi UpNComing, thanks for replying. Sadly, I will not be going with VW again. The GTI is and has been a great car, however I am looking into getting either a 2012 Subaru Impreza hatchback (a bit more rugged plus better MPG) or possibly a Chevy Sonic (better MPG).

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I assume you're trading your GTI.  Are you upside down?

[jrands]

Yes, my best guestimate by about $1K to $1.5K. However, I do plan to pay the negative equity and not roll it into the new financing.

[jrands]

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@UpNComing wrote:

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@frogfan12 wrote:

I have a mortgage and student loans. My first SLs date back to 2006. I purchased my home in August 2011.

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You're golden!  Student loans never count.  The mortgage is key.  You'll qualify for the best rates available.

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So when running a credit check for an auto loan, student loans are never taken into account?

[genmic]

This thread has been so helpful for me, thanks UpNComping for posting all your advice! I do have a question that I haven't been able to find out for sure. Next week I am hoping to get a new car, and this will be my second car loan. How do guidelines for approval change when trying to have two autos at the same time? Will I be okay if the combined monthly payments are lower than 25% of my monthly income (the requirement for BMW's college grad program with one auto payment)?

Scores are good (EX FICO: 769), perfect payment history, AAoA is 2.5 years, length of auto history is 22 months...

[UpNComing]

Sorry for the delay.  End of the month is crazy in my business guys.  I'll catch up with your questions tomorrow morning.

[jrands]

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@UpNComing wrote:

Sorry for the delay.  End of the month is crazy in my business guys.  I'll catch up with your questions tomorrow morning.

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No problems UpNComing. You gotta do what you gotta do. Gotta feed the family right? Thanks again.

[UpNComing]

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@jrands wrote:

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@UpNComing wrote:

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@frogfan12 wrote:

I have a mortgage and student loans. My first SLs date back to 2006. I purchased my home in August 2011.

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You're golden!  Student loans never count.  The mortgage is key.  You'll qualify for the best rates available.

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So when running a credit check for an auto loan, student loans are never taken into account?

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They do if you're past due on them.  However they do not count student loans as established loan history when buying a car.  If I remember correctly this shouldn't effect you since you already have a period of time paying on your GTI loan.  IMHO you will fall somewhere in the lower A tier and upper tier B approval.  Thats going by VCI's standards, YMMV.

[jrands]

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@UpNComing wrote:

They do if you're past due on them.  However they do not count student loans as established loan history when buying a car.  If I remember correctly this shouldn't effect you since you already have a period of time paying on your GTI loan.  IMHO you will fall somewhere in the lower A tier and upper tier B approval.  Thats going by VCI's standards, YMMV.

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Thanks UpNComing! I know you're not the guarantor of anything , however you think that based on my credit history that I might manage an APR thats 7% or lower? For VCI, what rates would you get with a lower A tier or upper B tier? Say for example, there was a 1.9% for 48 month deal going on right now for a new Jetta. Based on the info I've given, what would my best guestimated terms be?

Also, as I mentioned, at the time I bought the GTI in Feb. of 2010, my FAKO score was 720 or something, but my auto FICO was only 667. Even though my normal FICO score is only at about 685-ish now, do you think my Auto FICO score might have gone up due to having a longer auto history (i.e., 2 years with the Subie, and about 2 years with the GTI) with no late payments? The only thing that is hurting right now is my CC utilization which is pretty high as I mentioned. How much does revolving debt accounted for? I'm in California by the way.

On a side and fun note, what's your favorite line you've heard from a potential buyer? Obviously you know what my favorite line is...lol

EDIT: Is it always a better idea to go into a dealer with an already pre-approved loan from like CapOne? I am thinking of applying for an auto loan with CapOne, US Bank auto, and/or MyAutoLoan.

[UpNComing]

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@jrands wrote:

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@UpNComing wrote:

They do if you're past due on them.  However they do not count student loans as established loan history when buying a car.  If I remember correctly this shouldn't effect you since you already have a period of time paying on your GTI loan.  IMHO you will fall somewhere in the lower A tier and upper tier B approval.  Thats going by VCI's standards, YMMV.

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Thanks UpNComing! I know you're not the guarantor of anything , however you think that based on my credit history that I might manage an APR thats 7% or lower? For VCI, what rates would you get with a lower A tier or upper B tier? Say for example, there was a 1.9% for 48 month deal going on right now for a new Jetta. Based on the info I've given, what would my best guestimated terms be?

Also, as I mentioned, at the time I bought the GTI in Feb. of 2010, my FAKO score was 720 or something, but my auto FICO was only 667. Even though my normal FICO score is only at about 685-ish now, do you think my Auto FICO score might have gone up due to having a longer auto history (i.e., 2 years with the Subie, and about 2 years with the GTI) with no late payments? The only thing that is hurting right now is my CC utilization which is pretty high as I mentioned. How much does revolving debt accounted for? I'm in California by the way.

On a side and fun note, what's your favorite line you've heard from a potential buyer? Obviously you know what my favorite line is...lol

EDIT: Is it always a better idea to go into a dealer with an already pre-approved loan from like CapOne? I am thinking of applying for an auto loan with CapOne, US Bank auto, and/or MyAutoLoan.

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jrands, it's hard to tell what your Auto Fico will be.  As long as you can show you have the income to support the heavy utilization you shouldn't be in too bad of shape.  Jetta is down to 0.9% 12-60 months now.  Numbers just came out.  Tier B adds 1.25%, tier C adds 3.75% and tier D adds 8.75%, but usually results in a decline.

My favorite was a customer that answered a cell phone that never rang in the middle of the conversation and proceeded with the worst acting job I've ever witnessed.  He had pretend phone call with another dealer that was offering the car for $800 less than I was willing to go.  And I was at the bottom of the barrel.  It was so bad his wife elbowed him and knocked the phone out of his hand.  She said "for the love of God will you knock it off!"  It took everything for me not to burst out laughing.

Walking into a dealer with a pre-approval is never a bad idea if you think you won't qualify for the top rates available.  You really don't have to go as far as to get the approval.  You can simply let the dealer know what rates your bank has available to you and ask if they can compete for the financing.

[Anonymous]

Hey UpnComing:

Questions:

1. What should I look out for when my auto broker is getting my cars? ( always wondered went on behind scene )

2. Someone else asked about getting two cars.

a. Broker said to do two different finance companies. IE: we cannot get two toyotas for example. - but said to get loans at the same time

b. Credit Union loan representative said to just do them 1.5 weeks apart. ( I could tell she was going out of her way to advise me but couldnt say as to why)

Which is correct??

Would the dealer be able to make it happen in his financing dept for two cars- 1 report?

Someone said here on the forum that it can take 12- 30 days for the first car to show on your report. Thanks all for that answer.

Not using credit union unless they will waive the needed 2 years tax returns.

Thank you thank you for the great thread!