Auto Loans

[jimbo831]

---

Gvalencia wrote:

Equi- 694

---

Two more questions:

• Do you have any existing relationships with any credit unions or any that you know of that you would be eligible to join?
• Do you have any auto loan history, and if so, what was your payment history like on them?

ETA: Sorry, I just noticed you mentioned not being able to get with a CU due to being on Chex Systems.  Have you tried contacting WF or Chex Systems to see if you can pay that debt and get removed from there?

High mileage cars are much tougher to get financing for.  Your credit score is pretty good, although not great.  What is the Blue Book value of the car you are looking to purchase and what is the potential purchase price? 

[Gvalencia]

I used to have an acct when I was a teenager at a credit union but I dont remember the name. I was too young to understand all their fees so I tried closing the acct. That ended badly. But that was 15 years ago.

I checked with wells fargo & they refused to remove me.

As for the car. I have a title loan I did a few years back and am still in good standing with today. This will be my first car purchasing legitimately for the record.

The car is valued at 17.7k. KBB

[jimbo831]

---

Gvalencia wrote:

I used to have an acct when I was a teenager at a credit union but I dont remember the name. I was too young to understand all their fees so I tried closing the acct. That ended badly. But that was 15 years ago.

I checked with wells fargo & they refused to remove me.

As for the car. I have a title loan I did a few years back and am still in good standing with today. This will be my first car purchasing legitimately for the record.

---

I am not too familiar with title loans, but I don't think auto enhanced FICO scores would count those as auto loans.  So most likely your auto-enhanced score is a little lower than your regular FICO with no auto history.  What is the purchase price and value of this car?

If it is low enough, perhaps a personal loan with your current bank might be your best bet?  It will be tough to find a lender wanting to take a loan on a vehicle with that many miles.  Your score is decent though, so you could find a personal loan, depending on how much you need.  Hopefully someone else can chime in, but in my experience, most auto lenders don't like to finance cars with high mileage.  Cap One for example sets the limit at less than 7 years old and less than 70k miles.  I can't find anything on my CU's website.

If a CU is out of the question, I'm leaning towards trying to find just a regular personal loan, starting with your bank.  What do some other people think?

[Gvalencia]

The car is valued at 17.7k. KBB

Seller asking 23k obo.

I'm shooting for 21

[jimbo831]

---

Gvalencia wrote:

The car is valued at 17.7k. KBB

---

From a dealership or private seller?  If it is for sale at a dealership, I would expect you would be approved, although probably not at a great interest rate.  That is a pretty big loan for a high mileage car, so any interest rate you get on an auto loan would likely be high.  Not sure if you could get a personal loan for that much though, I was expecting a much lower value.  Must be a sweet ride!

[Gvalencia]

Thanks. Good to know. Guess I'll keep working on it

I appreciate the help.

[FrugalRican]

He is more than likely at the mercy of dealer financing then.

Being a high mileage car, a lot of the banks will actually probably pass since it's over 75,000 miles or even over the 5 year mark (I'm guessing it's a little older due to mileage, but just a guess).

A personal loan would be best if the rate he is going to get at the dealer is anything over 15%, but then again, banks stricter lending policies since 2008 make it almost impossible to get a personal loan for that amount. Almost, being the key word.

A smaller community bank or even a credit union would probably cap the personal loan at a maximum under the amount the OP is asking for.

I'd still ask around anyway. Someone WILL give him a loan, but the rate, it's quite unsure.

OP, if you have a current banking relationship with anyone, I'd go and ask just for general information about car loans.

Ask if they have a date limit (5 years or less) and a mileage limit and give them an estimate of your FICO Equifax. They probably can't pinpoint a rate for you, but might be able to point you in the right direction.

[Gvalencia]

It's a private owner...

[FrugalRican]

Just wanted to post that I re-read the original message again, a little more thoroughly. OP, if you can pay whatever is thrown at you, why not then try anywhere within a 30 day window, get the best deal and then eventually try to refinance between 6 to 12 months after?

Also, forgot to ask, do you have anything that you can throw at it for a downpayment?

[Gvalencia]

From what I remember dealers really dont like giving someone more than 3 years to pay of the car. So I'm guessing 36 mos tops.