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Really need some advice... please

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EyeCentric
Member

Really need some advice... please

So I'm trying to get a loan for an Audi that I've gotten priced to $38,800 ($42K after tax etc). NADA retail is $45000, so that should be working in my favor. I have $20,000 saved up for down payment but I would prefer to only use $10-$15K. My auto enhanced score is 619. For all three they are about 610 - 630. All of those were a surprise to me as credit karma said i was a 730 which is what I thought I had going in. I have an $800 medical charge, and one late payment to the state of Maine for my sons healthcare when my fiance and I weren't together (we are now together again). I make about $36K a year at my job, and I'm due to make more soon. I also freelance and make a lot of cash income doing graphic design and photography (so roughly double my income). Wells Fargo initially said they could do $25,099 at 12.140 APR for 72 (ugh), then after verifying my income with my job changed it to $12K for 72 (what a JOOOOOKE). The Lexus dealer I'm buying the used Audi at tried me with Chase, and BoA but both denied (One of them pulled twice, argh). And the dealer keeps asking for more and more stuff to try the loan at Toyota Financial (references, w2, blood samples, first born children). They finance guy says I might not get it and if I do it will be about 17.99% and the guy is barely trying, I put a $1K deposit on Monday, and now its friday and I still don't have an answer. I followed the advice of most, and when Wells Fargo said 12% for $25, I immediately went to the dealership and told him about the offer so he could beat it but he didn't seem to care at all. He basically said take it, we just want you happy and in the car.  

 

What am i doing wrong? I tried a local credit union and they basically laughed me out the door saying they most likely will deny and if I do get it the rate would be 18 or so. I see so many people getting approved in the 500's here and I've worked at dealerships before and have seen a million dead beats get cars. I'm really confused as to what I'm doing wrong. As far as the car goes, I know its expensive, but I have my other income and I plan on paying it off in 4 years or under, so I'll have plenty of equity so I'd prefer to keep the YOU'RE BUYING WHAT?!?! to a minimum if possible unless its constructive. Where do I go now?

 

Thanks everyone!

Message 1 of 43
42 REPLIES 42
EyeCentric
Member

Re: Having trouble getting a loan, not sure what do to!

Forgot to mention I have no rent and share the bills with my fiance, I don't have a cosigner (not even my fiance!!!). And, I was wondering how the inquiries work as of now I have 4? I guess... I have a 14 day window to shop around for auto loans so it counts as one pull right? I'm also looking to build up my credit (I'll be a regular here) should I wait after I get a loan to open a CC (if I get a loan). My goal was to get whatever financing and then start to build my credit and refi in 6 to 8 months.

Message 2 of 43
EyeCentric
Member

Re: Having trouble getting a loan, not sure what do to!

Anyone, please? I keep seeing people with subprime loans and I can't imagine my situation is that bad.

Message 3 of 43
StartingOver10
Moderator Emerita

Re: Really need some advice... please


@EyeCentric wrote:

So I'm trying to get a loan for an Audi that I've gotten priced to $38,800 ($42K after tax etc). NADA retail is $45000, so that should be working in my favor. I have $20,000 saved up for down payment but I would prefer to only use $10-$15K. My auto enhanced score is 619. For all three they are about 610 - 630. All of those were a surprise to me as credit karma said i was a 730 which is what I thought I had going in. I have an $800 medical charge, and one late payment to the state of Maine for my sons healthcare when my fiance and I weren't together (we are now together again). I make about $36K a year at my job, and I'm due to make more soon. I also freelance and make a lot of cash income doing graphic design and photography (so roughly double my income). Wells Fargo initially said they could do $25,099 at 12.140 APR for 72 (ugh), then after verifying my income with my job changed it to $12K for 72 (what a JOOOOOKE). The Lexus dealer I'm buying the used Audi at tried me with Chase, and BoA but both denied (One of them pulled twice, argh). And the dealer keeps asking for more and more stuff to try the loan at Toyota Financial (references, w2, blood samples, first born children). They finance guy says I might not get it and if I do it will be about 17.99% and the guy is barely trying, I put a $1K deposit on Monday, and now its friday and I still don't have an answer. I followed the advice of most, and when Wells Fargo said 12% for $25, I immediately went to the dealership and told him about the offer so he could beat it but he didn't seem to care at all. He basically said take it, we just want you happy and in the car.  

 

What am i doing wrong? I tried a local credit union and they basically laughed me out the door saying they most likely will deny and if I do get it the rate would be 18 or so. I see so many people getting approved in the 500's here and I've worked at dealerships before and have seen a million dead beats get cars. I'm really confused as to what I'm doing wrong. As far as the car goes, I know its expensive, but I have my other income and I plan on paying it off in 4 years or under, so I'll have plenty of equity so I'd prefer to keep the YOU'RE BUYING WHAT?!?! to a minimum if possible unless its constructive. Where do I go now?

 

Thanks everyone!


Ok, what I highlighted are the facts as they apply to your loan.  Since you were approved with Wells for one amount and then they dropped it to half after income verification it looks like you have a DTI issue.

 

The $36k you make - is that 1099 income or is it W-2 income?  If it is 1099 income, then the lender is reducing the amount they will loan you because they are taking out taxes and imputing certain expenses (rent and business expenses) to you. Ask Wells Fargo what they are using for your income,  I bet it is closer to $25k due to the expenses they deducted. Even with $20k down and a $25k verifiable income (for example)...you can't get approved for a $42k purchase with a $22k loan. Find out what the max DTI they will accept. You just might need to put down more than the $20k you have right now to get your DTI in line.

 

So the way to over come this when your score is lower is with a larger down payment. Go to a CU to finance your car. Go with your bank statements etc. The Lexus dealership is gong to stick it to you because they can...they have already set you up for it.

 

Are you claiming the freelance income on your income taxes (self employment)? If not, then it can't be used by any lender as additional income.

 

Have you had a recent repo or any repo at any time during the last 7 years? Is that what is holding your score down? Or are you maxed out on your cards? Find out what is holding your score down. If it is only the medical collection you can over come that with the CU, not with Wells and certainly not with the dealership finance dept.

 

Not all CU's are the same. Your local CU apparently has different criteria. Try DCU. But before you do, look at the body of your report to see what is causing the 619.

Message 4 of 43
Remember0
Valued Contributor

Re: Really need some advice... please

What is your real FICO? Creditkarma doesn't count...that is a FAKO. Pull like your EQ FICO from this site and tell us. Then we'll be able to see where to go.

 

Also your cash income...is it included in on your prior years' taxes? Like you can use taxes as verification instead of using paystubs...

Message 5 of 43
EyeCentric
Member

Re: Really need some advice... please

Ok, thanks so much for the help!

 

My income is W2, so no 1099. As far as expenses, I barely have any. I don't have to pay rent, and the bills are split so I only have to pay water, essentially a drop in the bucket (pun intended). 

 

The CU I tried is Mutual Security, not sure if that informs you of anything relevant. I don't claim the freelance income, but can produce invoices if necessary, should I still not bring it up to lenders? I also have over 2K in the bank as well, is that relevant info for the lenders?


As far as my score goes, I'm 29 years old and have only had one CC ever. A Chase card from 2003 till about 2009 or 2010. I used it maybe a dozen or two times, never ever late, and had about 15k limit or so. I've never been late on a car payment ever, so no repo's or anything ugly like that.  BUT, I do have that one late payment to the state of Maine for my sons health insurance through the state. That and the medical are the only things.

 

I don't really have many CU options near me, I live in Fairfield County, CT. I can try DCU, I didn't even consider them because everyone seems to say they like high credit scores. Do you think they will consider me with my score?

Message 6 of 43
EyeCentric
Member

Re: Really need some advice... please

All of the scores I listed are from the dealership when he pulled, he gave me copies to help me out. so the 619 auto enhanced is what he was sending to Chase, BoA, and Toyota Financial. I know credit Karma is FAKO or whatever, but I was surprised that credit karma said I was a 730 and I'm a 619... HUGE difference.

 

My income that is separate from my full time job is not on my prior year taxes. Although, I have been using my prior year taxes for verification of income since my paystubs do not list year to date earnings only year to date tax, medicare, etc. But, I made less money last year, shade over 30K, so that most likely isn't helping either

Message 7 of 43
Creditaddict
Legendary Contributor

Re: Really need some advice... please

I would apply at Capital One and then Roadloans if Capital One is declined.

You will get an approval for Roadloans but you might see that ugly interest rate you keeping get told about.

Message 8 of 43
EyeCentric
Member

Re: Really need some advice... please

I was thinking Cap One, but don't they only finance $30K for used? and it says you have to buy from their dealer network, the dealer I am working with is not on theirs.

Message 9 of 43
Creditaddict
Legendary Contributor

Re: Really need some advice... please


@EyeCentric wrote:

I was thinking Cap One, but don't they only finance $30K for used? and it says you have to buy from their dealer network, the dealer I am working with is not on theirs.


1. you need less than $30k with down payment, no?

2. you can buy from individual I thought so not sure why you coudln't buy from a dealer too.

Message 10 of 43
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