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Super Contributor
Posts: 8,183
Registered: ‎03-25-2007
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Auto Loans - what is a "well qualified buyer"

Auto companies keep advertising low rates for qualified borrowers, and the question keeps srising, what does that mean?  As an example I am posting the Toyota Scion definitions below.  Other companies may vary, they may use Auto-enhanced FICO, but I think this is a very good rough guide
 
Finance Rates           24-60 mo/ 66 mo/  72  mo/ 84 mo  
Zone 1+ Fico 720+         5.20%  / 5.50% / 6.00% /  6.75%  
Zone 1   Fico 719-690    5.50%  / 5.75% / 6.25% /  7.00%  
Zone 2   Fico 689-670    6.15%  / 6.55% / 7.05% /   N/A  
Zone 3   Fico 669-650    7.95%  / 8.50% / 9.10% /   N/A  
Zone 4   Fico 649-630   10.35% /11.10% /11.85% /  N/A  
Zone 5   Fica 629-610   11.75% /12.50% /13.25% /  N/A
Zone 6   Fica 609-580   14.75% /15.75% /16.75% /  N/A
Zone 7   Fica 579-520   16.75% /17.75% /18.75% /  N/A
 
Note - I think the change from Fico to Fica is probably deliberate
 
 
 
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Frequent Contributor
Posts: 430
Registered: ‎10-28-2007
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Re: Auto Loans - what is a "well qualified buyer"

[ Edited ]
MV.....is this with clean credit reports?  Or, just score driven?  By this I mean, no bk's or collections?
 
Do they pull from a certain CRA?
 
TIA!!!:smileywink:
 
**I lived in Cedar Rapids, IA for 11 years**


Message Edited by sunrise on 03-11-2008 06:21 AM
takin' it one day at a time
Super Contributor
Posts: 8,183
Registered: ‎03-25-2007
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Re: Auto Loans - what is a "well qualified buyer"



sunrise wrote:
MV.....is this with clean credit reports?  Or, just score driven?  By this I mean, no bk's or collections?
 
Do they pull from a certain CRA?
 

I just posted this a guide.  But for Toyata, it is pretty much score driven.  Both my local dealer and Toyota financial pulled EQ
 
But again - it was meant as a guide to the effect of score on rates - from a real world source!
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Frequent Contributor
Posts: 473
Registered: ‎03-06-2007
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Re: Auto Loans - what is a "well qualified buyer"



MidnightVoice wrote:
Auto companies keep advertising low rates for qualified borrowers, and the question keeps srising, what does that mean?  As an example I am posting the Toyota Scion definitions below.  Other companies may vary, they may use Auto-enhanced FICO, but I think this is a very good rough guide
 
Finance Rates           24-60 mo/ 66 mo/  72  mo/ 84 mo  
Zone 1+ Fico 720+         5.20%  / 5.50% / 6.00% /  6.75%  
Zone 1   Fico 719-690    5.50%  / 5.75% / 6.25% /  7.00%  
Zone 2   Fico 689-670    6.15%  / 6.55% / 7.05% /   N/A  
Zone 3   Fico 669-650    7.95%  / 8.50% / 9.10% /   N/A  
Zone 4   Fico 649-630   10.35% /11.10% /11.85% /  N/A  
Zone 5   Fica 629-610   11.75% /12.50% /13.25% /  N/A
Zone 6   Fica 609-580   14.75% /15.75% /16.75% /  N/A
Zone 7   Fica 579-520   16.75% /17.75% /18.75% /  N/A
 
Note - I think the change from Fico to Fica is probably deliberate
 
 
 


Wow this is the first I'v seen a dealership post something like this.  Boy you must need to have a 800 to get 0%
Super Contributor
Posts: 8,183
Registered: ‎03-25-2007
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Re: Auto Loans - what is a "well qualified buyer"



steelfan wrote:
 
Wow this is the first I'v seen a dealership post something like this.  Boy you must need to have a 800 to get 0%


That is for the Scion only.  At the momwent a lot of Toyotas offer 0% financing for 2-3 years for FICOs aver 720-730
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Contributor
Posts: 93
Registered: ‎02-12-2008
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Re: Auto Loans - what is a "well qualified buyer"

I just bought a Toyota Camry on Saturday.
I'm with Toyota Financial 72 months @ 10.6 %
Payments are $398.64
I am estatic!! My last auto loan was 22%
My scores are posted as well.
I plan to refi in 6-8 months with my NEW credit union!!
Thanks to my GREAT friends on here! : )   
10/2007 TU 545 EX 538 EQ 529
2/2008 TU 628 EX 608 EQ 587
3/2008 TU 636 EX 627 EQ 613
4/2008 TU 637 EX 618 EQ 621
Super Contributor
Posts: 8,183
Registered: ‎03-25-2007
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Re: Auto Loans - what is a "well qualified buyer"

I love toyta.  Our family has had 6!
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
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