cancel
Showing results for 
Search instead for 
Did you mean: 

New auto loan approval question

Valued Member

New auto loan approval question

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)
Current Score: 645 (04/12)
Goal Score: 680


Cap 1-500, best buy MC-300, orchard bank MC-300, first premier-300, amazon-600. All new since July '11 no late payments and carry no balances.

Take the FICO Fitness Challenge
Message 1 of 7
6 REPLIES
Moderator Emeritus

Re: New auto loan approval question

It sounds as if you may have some erroneous info reporting. Have you checked your reports from all 3 to see what they are?

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Message 2 of 7
Valued Contributor

Re: New auto loan approval question

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.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

Starting Score: 500's
Current Score: EQ 701 (FICO) TU 721 (FICO) EX 715 (Quizzle)
Goal Score: 760 ALL


Take the FICO Fitness Challenge

Message 3 of 7
Valued Member

Re: New auto loan approval question

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?

Starting Score: 500(06/11)
Current Score: 645 (04/12)
Goal Score: 680


Cap 1-500, best buy MC-300, orchard bank MC-300, first premier-300, amazon-600. All new since July '11 no late payments and carry no balances.

Take the FICO Fitness Challenge
Message 4 of 7
Moderator

Re: New auto loan approval question


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.

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Message 5 of 7
Valued Member

Re: New auto loan approval question

We got 10.8%. The score they used was in the 660's. The car was brand new.

Starting Score: 500(06/11)
Current Score: 645 (04/12)
Goal Score: 680


Cap 1-500, best buy MC-300, orchard bank MC-300, first premier-300, amazon-600. All new since July '11 no late payments and carry no balances.

Take the FICO Fitness Challenge
Message 6 of 7
Established Contributor

Re: New auto loan approval question

Looks like they made a few bucks off the financing to make up for whatever they gave up on the sales price.  You should be able to do better when you refinance.


Starting Score: 500's
Current Score: 773 EQ(DCU), 757 TU(Barclay), 788 EX(Credit.com)
Goal Score:760 X 3


Take the myFICO Fitness Challenge

Message 7 of 7