Large Loan needed for Diesel Truck

[azguy13]

Hello Everyone. I am in the market for a newer diesel truck. Now, for the model year I am looking at the price is around $40,000. My FICO scores range from 631-691 which may be a problem. My income level on the other hand is $175,000 annually. In your opinion, is there a reputable bank that will loan me the money at a decent APR? I could put a $10K-$15K down payment on the vehicle. I only ask this because I do not want multiple hard pulls on my CR just to find out I either do not qualify or have a ridiculous APR. 

Thank you

[lajntx]

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@azguy13 wrote:

Hello Everyone. I am in the market for a newer diesel truck. Now, for the model year I am looking at the price is around $40,000. My FICO scores range from 631-691 which may be a problem. My income level on the other hand is $175,000 annually. In your opinion, is there a reputable bank that will loan me the money at a decent APR? I could put a $10K-$15K down payment on the vehicle. I only ask this because I do not want multiple hard pulls on my CR just to find out I either do not qualify or have a ridiculous APR. 

Thank you

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The best reputable bank that will give you a decent APR is always the non national chain local bank/ or local CU  you find to do your banking buisness with and get to know the lending officers. After that, then there are the bigger CU`s on here that are mentioned here quite frenquently: PenFed, NFCU, etc. At your income level a good local small banker is going to know how much money you keep there, know your needs, and realise they will keep you as a customer by being fair and upfront with any kind of loan with them.

Also, coming into play here is what manufacturer you are looking for? If it`s Chevrolet or Dodge, then I would say yes... Secure your financing first from an outside lender, and then take a few extra inquiry hits and let the dealerships finance manager try to get his lenders to beat it as neither has it`s own captive lender anymore. If it`s a Ford, ( and you havent burnt them in the past ) then you would definately want to consider them as FMC can be quite competitive - and esp if you are looking to buy a 2013 F-250/350 that is nearing a year end clearance.

[azguy13]

Hey lajntx, I appreciate the response. I am pretty set on the Dodge 2500 Mega Cab Diesel (with standard trans to get rid of the weak link). I was considering a model year ending F-250 SuperCrew diesel as well. I have never burned Ford. I currently have a $16000 loan through Wells Fargo that will be paid off completely by October. I will be waiting until that is paid off and reporting on my CR before I apply for financing on a new vehicle. I currently bank with Chase and have been banking with them for about 5 or 6 years now. 

I'll take a quick look to see what Ford is offerring through their website. 

[lajntx]

Nothing wrong with Chase Bank, and it is easy to Bank with them if you travel around A LOT, but the downside of course to banking with a large bank like that is the loan officers are merely "paper pushers" with not much real authority. When you get the loan paid off, you can wait that 30-45 days for the system to do its job a report to all 3 Bureas. My experience in having auto loans reported as paid off is that it generally doesnt help you score boost wise. In some cases the score may go down if its your only non revolving tradeline. You will probably have the same result taking the letter you would be getting from Wells Fargo stating the loan was paid off to show the next place you are buying from that pulls your credit and sees that loan listed as open that it is indeed paid in full should underwriting have any issues with it.

The really nice thing about Ford Credit is that if you treat them well and dont tick them off with late payments, defaults, and/or a repo -- They will be there for you if at some point in the future your overall credit is trashed - but you paid them.  In some cases once you are an established customer with them I am told they will sometimes upgrade you to the next best financing tier. That was the big selling point for me in switching from GM to Ford because even though I never defaulted on them ( GMAC/ALLY ), the fact that I experienced some major losses in 2007 and had my credit trashed -- They turned me down in 2008 when I needed to replace a no longer functioning car because of "bad credit" and they had also severly tightend their lending standards. Of course everyone else turned me down as well, and I ended up having to go to JDByryder because at that point in late 2008 hardly anyone was underwriting bad credit auto loans. Had I bought Ford those years prior, then I doubt I would have had an issue in buying a reasonable new car for around the same amount JDByryder charges for the second hand worn out rentals.