What are my Chances for a car next week?

[sekada]

OK, I last pulled my scores about six weeks ago -- hoping they've gone up a little since then, since I've been trying to keep balances down a little.

Scores last I checked were 647/635/616 (Experian has a tax lien on there that should've been off, I wrote them but nothing yet).  That's up from the mid-500's about six months ago.  DTI is around 35%, and I have pay stubs showing me on track for $100k+ salary this year. I can put around $2k down if I have to, but my trade will probably only be worth $500.  I'm looking at cars ranging from $17k-$22k.  Looking at Ford, Honda, Toyota AND Nissan to get the best car for the money.

My credit cards were 90%+ full for a long time, paid them down to between 75% and 80%, that's the problem. Oh and my only 2 car loans prior, about 10 yrs ago I had a repo/chapter 13 and the last one I was 30-60 late 3 times.  (I was NOT making as a good a salary then... obviously!)

What are my odds for a loan and at what interest?  I'm hoping not to pay over 12%.  Also, should I appy online for loans, or try to finance at the dealers? Also, how do I know which score a dealer will pull -- is it kosher to ask them to pull a certain one, or ask which one they will pull and shop accordingly?  And finally, how do I know I'm really approved or not -- I know they'll SAY I'm approved, but I want to be SURE!

Thanks for any advice!

Message Edited by sekada on 12-07-2008 08:39 AM

[Anonymous]

First off, from my experience, Toyota has the best non Tier A financing (if you can't get a loan at a local CU) becuase they don;t "farm" out your loan to a subprime lender, they offer higher risks loan themselves.

Utilization will continue to be a factor until under 30% (and preferably under 9).  I don't think you will get a score boost paying down from 90 to 80% UTIL. 

My main concern would be what your Auto Enhanced FICOS are.  With a repo and lates, your auto FICOS are going to be lower than your scores from here more than likely.  No way to know until you apply.

I do not know if you can get under 12% interest with the repo and lates, as well as this economic time.  Go into either a credit union or a local dealer and find out is all I can say.  Call and talk to the finance manager beforehand because they might have some info for you.

Last, go during the week, earlier in the day if you want to make sure you do nto drive off the lot with a car that does not have full approval.

[Scuba]

Good tips about arriving early in the day..  What do you think about applying on-line first with Ford. Honda or Toyota?   Then you would know if you would be approved and the multiple inquiries only count as one anyway.

[Anonymous]

Online apps suck.  They always carry way stricter guidelines than in person.  They do not allow for anything beyond tier 1 or 2 credit.  So, under 700 and these things are hard to get through.   With midscores in the low to mid 600's and a repo on report, internet app with reject.

If you go into the dealeship (try your local credit union first though) and apply, just tell them to give you a no bull**bleep** answer.  None of the "well, we think we can get you these terms"  If you go dueing the week and prior to normal closing hours for banks/lenders, they can give you a very accurate rate and terms and the finance guy will actaully get confirmation from his lender (and be able to push a little here and there for the rate you need.)  

[sekada]

OK, to be clear, the repo/bankruptcy are no longer on my credit report -- they fell off years ago.  But will they still be notified of the repo, since it was a car loan?  The repo was 12 years ago.

[guiness56]

I have to disagree.  My FICO Auto Enhanced is only 500, I have 2 repossessions, the newer one from 06 and several collections.  I did one application online.

I got 7 calls.  I was approved on my own merit before I went to the dealer.  I told them I did not want to waste their time nor they mine. 

I saw what they had to offer and asked my mom to co-sign (she has a 822 FICO) and she agreed (citing death if I defaulted). 

I did get a better deal as far as interest.  They knocked $4000 off the price and gave me a 5 year extended warranty.  The vehicle I got is worth the $12,400 they were asking.

Message Edited by guiness56 on 12-08-2008 06:17 AM

[sekada]

WOO!  I just recalculated my DTI and it's down to 20%!  So that should help, right!?