PAYMENT HISTORY TRANSFER

[izach26]

November 2015 I purchased a 2015 Camaro I was approved for the loan but at at 8.99% finace rate, My brother was with me and said add my name to the loan at the rate dropped to 5.99%. which was still high when we ran my brothers name alone he was approved for 0%. so he got the loan ALONE in his name but i have been making the payments everymonth Using auto pay from my checking account. 

My question is if we provide GM finacncial documentation that I have been paying the loan this entire time will they give me a more favorable rate when its time to trade

Thanks in advance for all the help 

[izach26]

Everypayemnt has been deducted successfully never late, im actually 3 payments ahead, yet Im not getting any payments history credit for this loan..

My thought is if I provide GM documentation saying look - everypayment on time coming from a my checkin g account when its time to trade they can use that as payment history 

[Anonymous]

Every decision has a pro and a con and in this case the con for the 0% pro is that you do not legally own the car at all. If you default it is entirely on your brother and in the same token your payments are helping your brothers credit report. You will not be talking to executives at the financing bank at trade in, you will be talking to a finance manager who will not be authorized to override governing rules/laws. It was nice thing for your brother to do but you have essentially no ownership at all.

[izach26]

i undertstand that at this time i have no ownership, my question is at the end of the loan , dealing direclty with GM financial and providing documentation that I made all the payment will they concider providing me with a loan and using the payment history i have provided at a resource

[Anonymous]

No they will not do this, even with all the proof in the world, you were not the one who signed the contract. In addition, I don't think GM Financial would be very happy knowing that they gave your brother a loan with the intent of you driving it and being the "owner". Most lenders consider this a straw purchase, when an individual finances a vehicle in their name for someone else's use, which is strictly prohibited by most lender's.

[StartingOver10]

OP, it would be different if you had remained on the loan as a co-signer. But as pointed out above, no lender allows a straw buyer. It''s considered loan fraud so you probably don't want to bring this past history up to a new lender at all.  This time around if you have a higher than market rate, within reason, take the deal and let all those good payments land on your report.  You would be better off going to a CU rather than having the dealership do it anyway.  

[Anonymous]

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@izach26 wrote:

November 2015 I purchased a 2015 Camaro I was approved for the loan but at at 8.99% finace rate, My brother was with me and said add my name to the loan at the rate dropped to 5.99%. which was still high when we ran my brothers name alone he was approved for 0%. so he got the loan ALONE in his name but i have been making the payments everymonth Using auto pay from my checking account. 

My question is if we provide GM finacncial documentation that I have been paying the loan this entire time will they give me a more favorable rate when its time to trade

Thanks in advance for all the help 

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You should have a nice long time before you're needing another car, so I would work on building/rebuilding your credit and not even need this payment history to buy another car by then.

If you don't currently have an installment loan in your name, you can get a shared secured loan to satisfy that component of your credit score. Lots of info about it on these forums.

[Anonymous]

You would have been better off paying the interest for 6-12 months and then refinancing it to a lower rate, sure you would have paid interest but you would have a credit history which has tremendous value.  No GM nor anyone else will give you credit for making the payment if your not on the loan.