What auto loans should I apply for?

[Anonymous]

I was in a car accident in 2014, car was totaled. My insurance paid 95% of it off. Apparently I owed an additional payment and it went into collections. I did settle it while it was in collecitons. I have a couple of 30 lates on the auto loan. Prior to this I had an auto loan with all on time payments. I've been without a car for over a year, and am in need of one. The thing is, I am not sure where to apply for loan. It would be nice if I could get all the financing stuff out the way before heading to dealer. I bank with Webster Bank, but they don't have auto loans. I have a baddie on chexsystems, that I am currently disputing so I am afraid to apply for membership to a credit union. I was thinking of applying for Captial one, but I had a card with them last year with some lates. I ended up closing the card. So I am kinda not sure what do here. What other loans might be out there? 

Thanks for your help.

[Anonymous]

My Auto 8 scores are: EQ 608 Trans 660 EX653

[Anonymous]

I suggest trying to work with a credit union first, then Capital One is always an option.  Not sure what your income or DTI ratio is which will be a significant factor, high income and low DTI ratio increases chances of getting qualified. 

[Anonymous]

There are other companies besides Cap One out there.  Your scores are good.  Tell them what you're comfortable paying monthly and go from there.  Another thing to consider is gap insurance.  It's not much and can take care of these things. 

[Anonymous]

Thanks all.  Will do. 

[Anonymous]

My income is $31,000 and my DTI is 1%

[sparker256]

I am in the process of trying to get an auto loan as well so my opinion is just that, an opinion. 

Before you do anything I think it would be wise to do some homework. Many of the threads I have read is to never walk into a dealership and start with "I can pay $xxx amount per month" this sentence is sayed to be one of the worst ways to start car shopping at a dealership. Instead I would use calculators (that can be found practically anywhere online) and plug in some numbers to see what you can afford.  

Capital One has a pre-approval on there website that is said not to affect your credit score. I am trying it out to see how it works.

With money down it seems silly that a car lot wouldnt approve you if you shopped around some. My biggest warning (only got this info from reading different articles) is to not state your monthly payment because it will let them move bigger numbers around to make them more money when all the have to do is hit your monthly payment.

Please take all that with a grain of salt. I have not went through the entire car buying experience yet. Just my two cents from various readings.

Good luck! 

[Anonymous]

CapitalOne is a good option for your scores. I am sure you'll get approved. I have purchased an Audi Q5 last week. i was approved for 6.95% and upto $35,000 loan. I went to the dealership with this approval and allowed him to check my credit and beat this rate. He came back and said he couldn't get lower APR anywhere else but got back with negotiated APR of 5.02% with CapitalOne. I was happy and accepted the deal. But keep in mind the pre-approval process in CapitalOne is not a soft pull. I got a HP hit on all 3 bureaus to get the approval range $35,000 and 6.95% to 14.64% depending on the car I purchase.

[Anonymous]

Whoever will give you the best rate 

Seriously though, shop around. Multiple inquiries for auto loans will only count as 1 inquiry as long as they are made within a short period of time. DCU seems to be a favorite around here. Try your local credit unions as well. Just shop shop shop. No shame in it. It will save you a lot in the long run if you don't do like a lot of people and jump on the first approval you get.

[Anonymous]

Thanks all.  I am going to try my local credit union.  In addition to capital one, if needed.