Im hoping some of you guys might have some feedback for me. My wife and I are in the market for a new car and have been looking for a loss leader when one that we liked popped up today. It's a 2012 dodge Durango awd sxt. The price will be $24999 with the rebates which is a smoking deal and leaves us with positive equity out of gate. These are my questions, 1. My credit history is poor but I recently refinanced my 2011 dodge ram for 7.5% so I am fairly sure we can get financed. The salesman called me to tell me that my experian and equifax scores were in the 590's and my tu was 669. He said that he got instant approval from some subprime lenders but they are working to get a lender to approve me on the tu score. Does this make sense? 2. He says that his f&i guy believes that ally will call with the best deal (based on tu). Does that sound right? 3. Does anyone know what kind of rate to expect and what ally's tiers are? Thanks in advance.
Starting Score: 500(06/11)
It sounds as if you may have some erroneous info reporting. Have you checked your reports from all 3 to see what they are?
FICO 9: 
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.
Goal: Gardening!
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.
Goal: Gardening!
I have no idea what Ally's tier structure is but they are the captive lender for Dodge so I would guess that the F&I guy could probably work a deal with them Especially since you are already a Dodge owner. If you don't like the rate they offer you then just check with a few lenders on your own. If your recent refi was with someone other than Ally check with them I would guess that the second auto loan might be a little higher percentage than the first to accommodate the risk factor unless your income is capable of supporting the both without stretching the DTI.
Well we bought the car and it was financed by capital one, the dealer arranged the financing and we got % interest which we aren't happy about but.....we will refinance here pretty quickly. Do dealerships make money by giving you a higher rate?
@cda710 wrote:
Well we bought the car and it was financed by capital one, the dealer arranged the financing and we got % interest which we aren't happy about but.....we will refinance here pretty quickly. Do dealerships make money by giving you a higher rate?
They can make a few points off the spread (difference between the bank offers them, and what you commit to). The highest I've heard is around 2%, and is part of doing business with dealer financing. That's part of the reason (if you can) to arrange financing beforehand, or at least know where you are from other lenders and may give you a better negotiating position.
Out of curiosity what rate did you get? It's not that much of a challenge to refinance in six months, if it's out of line with your score you might be able to do it sooner.
We got 10.8%. The score they used was in the 660's. The car was brand new.
