Meh...Looking for some insight here.

[Anonymous]

Congrats!

I've been emailing one of DCU's specialists inquiring about their auto loans (I plan on picking one up next year); so I would like to ask for some details pertaining to your DCU application process; if you don't mind 

-What APR did you qualify for?  1.74?

-How much were you asking for on the loan - did you aim for 30k and did they counter-offer 25k?  Or did you simply ask for 25k and received an approval?

-Was the money market account your decision or was that to be used as leverage towards any part of the auto loan?  (I read that you applied for it online, but I'm wondering if that had any affect on the approval and/or the terms) - may be rhetorical on second thought... I don't know.  I'm just throwing this question out there.  Lol.

-And I assume you applied by yourself?  Not joint, right?

[Anonymous]

1) I got approved at a 2.24 rate which isn't as low as I hoped but is still great all things considered.

2) I was pre-approved for 25,000 from the start. I never asked for a specific amount. For convience sake, I wish it was 30,000, because it would make a couple of vehicles I am looking at more feasible but by no means am I going to complain.

3) I just setup the money market account to become a member first before I officially applied for the loan just to get my foot in the door. Eventually I suppose I will just move all of my banking to DCU to simplify everything.

4) Yes, I applied by myself.

[Anonymous]

I have been following this thread and I am in nearly the same situation. I wanted to know what the threshold for first time auto loan. I have been declined by Capital One (which I have a card for over two years. (3500 limit); and denied from Chase (which I have a  Chase Freedom  - seven months old - 5000 limit).  So mi credit history is only 18 months old. Both reasons are "Insufficient Credit History". I have been rebuilding my credit which was nearly destroyed. All previous debt was paid off and my credit report is now clean. I checked my reports from all three bureaus, and there are no dings on either. My "My Fico" scores from all three are 735 - EQ; 745 - TU; 737 EX. (Even if they averaged out to be around 725 or so between the three, would that be good enough to qualify for a loan?) Since I have been shot down within the last couple of days, Is my only option is to join a credit union to get a loan? I have two choices which I can use:  American Airlines CU  or Alliant CU. I haven't tried them yet, I first wanted to use the people I am using first.  My DTI is about 7 to 8 percent. And my income is about 41,000 (will be getting a raise next month (about 2%). I am looking to buy a Subaru Crosstrek which should be about 25,000 (with the EyeSight option - which would be a help on the insurance rate). I wanted to pay the tax (about 1800) and registration (211.00) out of pocket, and probably put down about 2000 or so.   Also do I still have time to make more applications within the month before my score gets lowered due to the hard pulls?  I don't want to go to the dealer (which Chase recommended) without financing in hand. And I don't know what to expect at the F&I office.  Also what rate I would be good for with a 48 to 54 month loan?

I can use some help here on what to do.

Thanks.

[Anonymous]

---

@Anonymous wrote:

1) I got approved at a 2.24 rate which isn't as low as I hoped but is still great all things considered.

2) I was pre-approved for 25,000 from the start. I never asked for a specific amount. For convience sake, I wish it was 30,000, because it would make a couple of vehicles I am looking at more feasible but by no means am I going to complain.

3) I just setup the money market account to become a member first before I officially applied for the loan just to get my foot in the door. Eventually I suppose I will just move all of my banking to DCU to simplify everything.

4) Yes, I applied by myself.

---

Thanks SurgicalGloves!

You could give them a call about the rate or email them.  They mentioned that to qualify for their "Relationship Benefit" discount (the additional .50% off), you need to have all three of their qualifying services:  Direct Deposit your net pay, receive DCU statements electronically, have an active loan with DCU (I assume the auto loan once you enable it - otherwise their CC qualifies as an active loan).  You could also try to negotiate a higher loan amount at the same time.

Thanks again for keeping us updated.  Appreciate it!

[Anonymous]

---

@Anonymous wrote:

I have been following this thread and I am in nearly the same situation. I wanted to know what the threshold for first time auto loan. I have been declined by Capital One (which I have a card for over two years. (3500 limit); and denied from Chase (which I have a  Chase Freedom  - seven months old - 5000 limit).  So mi credit history is only 18 months old. Both reasons are "Insufficient Credit History". I have been rebuilding my credit which was nearly destroyed. All previous debt was paid off and my credit report is now clean. I checked my reports from all three bureaus, and there are no dings on either. My "My Fico" scores from all three are 735 - EQ; 745 - TU; 737 EX. (Even if they averaged out to be around 725 or so between the three, would that be good enough to qualify for a loan?) Since I have been shot down within the last couple of days, Is my only option is to join a credit union to get a loan? I have two choices which I can use:  American Airlines CU  or Alliant CU. I haven't tried them yet, I first wanted to use the people I am using first.  My DTI is about 7 to 8 percent. And my income is about 41,000 (will be getting a raise next month (about 2%). I am looking to buy a Subaru Crosstrek which should be about 25,000 (with the EyeSight option - which would be a help on the insurance rate). I wanted to pay the tax (about 1800) and registration (211.00) out of pocket, and probably put down about 2000 or so.   Also do I still have time to make more applications within the month before my score gets lowered due to the hard pulls?  I don't want to go to the dealer (which Chase recommended) without financing in hand. And I don't know what to expect at the F&I office.  Also what rate I would be good for with a 48 to 54 month loan?

I can use some help here on what to do.

Thanks.

---

Hi Moveandstore.  Same here.  I've been shopping around for auto loans for half a year or so.  Not in a rush, since I'm paying off student loans; but here's what I found doing my own research by trial and error: Many online applications for auto loans will automatically deny you if it can't find any auto history to evaluate.  I've had at LEAST 5 hardpulls/inquries on my credit report because of this.  Then they'll snail-mail or email you a page explaining the reason for the denial: limited or no auto history.  

Of the pulls (dealers/CUs/big banks included), my CU that I've been a member with for 8 years was the only one that qualified and offered me about $15k at 8%ish APR.  I called her and she told me that although my general FICO score was GREAT (high 700s at the time), she could only give me said amount at said APR due to the fact that I had absolutely no auto history.  Mind you, the car I was trying to qualify for at the time was a ~$20k Honda Civic with a $40k annual salary and the only thing that factored into my DTI was my student loans which are less than average. 

I recently checked in with DCU (did not fill out an online application, yet), but I explained my situation and minor frustration of trying to find a first time auto loan lender through e-mail.  Interestingly, the specialist I was talking to mentioned that they are much more welcome to first time auto loan applicants.  She mentioned counter-offering instead of instant denials - assuming your credit and financials are fine and dandy and the only issue is no/limited history.  She also mentioned that the rates would be based on my general FICO score (whatever my CC history and student loans had generated) - not the auto-enhanced scores, which are lower - for me.  I assume they would use an auto-enhanced score provided you actually had auto history.  My current income is nearly the same as yours; and they said they tend to go with 50% of your annual income as the loan limit.  There is wiggle room for negotiations, however.  That's why I told Surgical to push for more.  

Essentially, CUs would be preferred for first time auto loan applicants.  Go ahead and look into American Airlines and Alliant.  I wouldn't throw a SSN at them immediately in an online application; but Iook on their website, email, or call and ask to speak someone that's well-informed on the matter.  Some CUs actually have first-time auto loan programs that have low rates, but limited loan amounts as well.  Some demand a co-signer, and others do not.  They all vary; you just have to find the right one. 

TLDR:  Based on the info you provided.  I would say you can easily qualify for an auto loan around 20-25k at less than 8% APR up to 60mos.  Accept nothing less.  Inquire without having them pull your credit report first.  It doesn't have to be a CU, but there's a better chance.  Explain the details and they'll let you know basically what to expect.  With DCU, expect ~$20k and ~2% APR.  Don't go to the dealer looking for a loan unless it's one of their 0% APR promotions (even then, I'm not sure if one would qualify without auto history) or grad student promotions.  If you find something better, let me know!  I've still got a year to find someone that could possibly lend more at the same or lower rate.  

Hope this helps!

[Anonymous]

Thanks for the suggestions. I will look into DCU credit union, and AA CU (which is on my jobsite). And speaking to them on the phone instead of sending a online application. I would like to talk to someone on the phone first to explain my situation, and see what they can do for me. The car I really want is in the 22,000  to 25000 range, depending on what kind of deal I can get. That is no problem developing some kind of relationship with either.  If I told them (the CU's specialists) they car that I am looking to purchase, and the price range, would that help as well. Subaru (which Chase underwites their loans - and ironically that is my bank) was trying to refer me to the dealer, but I don't want to go to any auto dealre without check in hand. I have heard so many horror stories from the F&I office, I do not want to be a casualty.  I just want a loan with a fair APR. That's why I'm hoping 25000 @ 54 to 60 months. And put some extra on the principal (if it is allowed). This is very frustrating to be shot down by the banks you have been doing business with. Especially Chase (which I've been banking with almost a decade  - Washington Mutual). 

I will try Monday and see what happens.

[Anonymous]

---

@Anonymous wrote:

@Anonymous for the suggestions. I will look into DCU credit union, and AA CU (which is on my jobsite). And speaking to them on the phone instead of sending a online application. I would like to talk to someone on the phone first to explain my situation, and see what they can do for me. The car I really want is in the 22,000  to 25000 range, depending on what kind of deal I can get. That is no problem developing some kind of relationship with either.  If I told them (the CU's specialists) they car that I am looking to purchase, and the price range, would that help as well. Subaru (which Chase underwites their loans - and ironically that is my bank) was trying to refer me to the dealer, but I don't want to go to any auto dealre without check in hand. I have heard so many horror stories from the F&I office, I do not want to be a casualty.  I just want a loan with a fair APR. That's why I'm hoping 25000 @ 54 to 60 months. And put some extra on the principal (if it is allowed). This is very frustrating to be shot down by the banks you have been doing business with. Especially Chase (which I've been banking with almost a decade  - Washington Mutual). 

I will try Monday and see what happens.

---

Anytime.  Just sharing what I've learned through experience and from what other members here have taught me.

Another quirky thing I forgot to mention that SamsungHDTV told me.  The dealerships provide the weird indirect financing channels.  So, although Chase denied you through a direct application through their website... It's possible that Chase could actually approve you through the dealership.  Different rules I suppose; not sure why.  I'm also not sure about what the rates would be or any loan limits, but I think I would use this as an absolute last resort.  Get a definite loan amount and APR in hand first like you're planning on doing, then (if you don't mind more inquiries/pulls) see what the dealer grabs; but if the loan in hand is already at 2% APR, then I wouldn't be able to find any reasoning in letting the dealer add more to your credit reports. 

I don't think giving them a price range would help approve a higher loan amount.  Just aim for the maximum amount or give them an exact amount that a dealer quoted you.  If they offer you less than expected, try to haggle with them and/or prepare to make a larger downpayment.  

I agree, it's frustrating.  New world with lots to learn haha. 

Good luck Monday!  Updates please 

[Dj4Money]

 One reason dealers have more power is because they sell thousands of cars a year, providing a direct source of income for many lenders. As you correctly stated, there's no manual review with online applications so they glance at your credit report or at least a computer looks for certain wording. Dealers can do a manual review and then go directly to the lender, many of them no available directly to the public and say "C'mon this guy/gal looks worthy and I really want to sell him this car which cost $25K" but you only approved him for $20K.

 IE even though dealers get a bad rap, they will go to bat for you if it means a sale...

 Move's best bet if he's being denied is to try a CU and if that fails (like it did with me) go to the dealer, they'll find somebody. You might even get favorable rates.

[Anonymous]

I just wanted to know how bad my score will take a hit once the dealer starts "shotgunning" to find an underwriter for the loan. I heard there maybe like 10 to 15 pulls on my report. Don't know how true is that, but if I can't get financing thru those efforts, or get accepted for one at a very high rate. I know my score is in the mid 700's, and even if they use an "auto enhanced score", I don't think it should fall below 700. So I should get a favorable rate. What would be a rate I should qualify? I know that I won't qualify for the 1.75 that the dealer is advertising for the Subaru Crosstrek.  Just wanted to get some sort of idea since I'm new to this.

[Dj4Money]

 I have 22 hits from my adventure in buying a car. One way to prevent that is to get pre-approval. As I said some lenders a dealer may get you approved with are not available to the public directly as my lender is. That said INQ's are only an issue with pre-approval as I said no manual review, just a glance and applying with credit cards for the same reason.

 You will get 10-15 hits, maybe more but unless you are also going to apply for other forms of credit right after you buy your car then I would continue to find somebody that will give you pre-approval.

 Try Westlake or CPS