03-18-2011 08:20 PM
I'm looking for an SUV or spacious car around 15K with 2K as down-payment. I applied online through a local Toyota dealership last night. They called me and said I was very do-able. I had a BK discharged in '02. I have 1 old collection that's going to fall off in November of this year, so no point of paying it off. For the last year, I got 2 cc and been paying in full each month, on time! My score is in the low 600s. He didn't tell me much about how much I was approved for or who approved me, he just said I was "do-able". WTH does that mean?
I make 50K a year.
Do I have a good shot? I was thinking carmax if Toyota doesn't fall through? Any idea where would be a good place to apply? Please share you experiences and/or advice! Thanks!
03-19-2011 04:09 AM - edited 03-19-2011 04:10 AM
Yes, in the automotive sales industry almost all sales are "do-able" (achieveable), BUT what they didn't tell you is what it will take to get there.
Since automobiles ARE considered collateral because they can easily repossess them, if needed -- it's pretty easy to get approved.
Your ideal purchase is an SUV around 15k with 2k down. The way I see this going is either you will need a larger downpayment, they will stretch the length of the loan to the max (around 72 months, etc), interest will be on the high-end, or they might come at you with the co-signer suggestion (note: don't fall for the co-signer line). Either way, something will be worked out in order for you to get into that vehicle. So yes, it is "do-able". It may not be with Toyota's financing, but another tier finance company / bank they do business with who will buy the loan.
03-19-2011 06:19 AM
Yes the loan is doable, no, not at the terms you are going to like. We do need some more information though.
What is your current util, when was your last lates, how long you been at your current job, past automotive loan history?
With scores in the low 600, you will get financed, but it's not going to be an attractive rate and they will likely want a co-signer depending on the overall situation. It appears this will be for a used vehicle, which will always carry a higher interest rate than new. Your best bet may be to check with your local credit union and see what they can do. You will usually get a much better interest rate from them without the need for a co-signer.
03-19-2011 08:18 AM
Yeah, cdtotten, they will get financed and as we both stated -- not at their ideal terms. I don't think we need to collect additional information such as util, lates, job, etc. because even the worse-case-scenario can get approved for an auto loan. You know the ones... "Got a Repo? Got 6 months on the job? Got Bk? Well, come on down to CRAZY CARL's for Guaranteed Approval!!!" Even Toyota have alternate finance options.
03-19-2011 01:34 PM
Umm TOYOTA is not doing anything.
The dealership believes they can get you financed. If that involves Toyota' financing arm, or an actual Toyota vehicle over something used on the lot is completely different.
03-20-2011 08:34 AM - edited 03-20-2011 08:34 AM
Hey guys! Thanks for the help! Ugh, got the worst interest rate! Went for an '04 4runner with 94K miles on it. Salesman said that the interest rate would have been better if I went for something newer but this was the only SUV within my range. The car was $13K and I put $1500 down and was financed through Toyota for 48 months for 17%. OUCH! My payments are $400 a month! Can I refinance later at a better rate? Thanks for the help everyone.
03-20-2011 09:05 AM
You might have a bit of a problem refinancing. Most places have specific criteria such as: 1) Must be less than 6 years old 2) Must have less that 70k miles
I would have went for a newer vehicle with the $1500 down and THEN did a refi with my local credit union -- they treat their own members very well with lower interest. You can really control the monthly payments by writing "Apply toward Principle" on the check or money order.
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