The problem isn't getting the loan, it's getting the right financing.  You shouldn't have any problem getting the loan but you want it at a decent rate.  Do you belong to a CU?  They often offer the best rates on car loans.   Just a thought.  And have fun car shopping!

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Starting Score: 504

Current Score: EQ FICO 819, TU08 775, EX "Who Knows?" Quizzle 756
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

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ds3 wrote:

I have been reading some of the posts today, and am wondering what some of you might think. My wife and I are coming out of a rough patch...she lost her job in the banking industry 5 years ago and just recently got a new job. I have a long (19 year) employment history, but a score in the 600+/- range due to collections and charge offs that are all a few years old because of the loss of income after she lost her job. We now make $130k a year, and have a combined debt to income ratio of 19% or so, which is almost entirely mortgage debt. My last auto loan was 7 years ago. What are our chances of getting a somewhat decent rate on a $35k car with 10% down? It seems to me that we are in ok shape, but I really want to avoid a ton of hard hits to find out. Any help is greatly appreciated...thanks! 

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Honestly, your best hope of getting a decent rate is probably to buy down the loan. Front a larger downpayment and the lender is more likely to reduce the rate. Some captives are locking into a no tier bump policy though (VW Credit in particular), so it pays to shop around. If possible, offer to front a 10% downpayment and have the F&I guy shop it to all of his buyers. See what happens.

If you still have collections, charge offs, etc. (and if you can hold off on buying for a bit), you may want to try to clean up as much as you possibly can with PFD and GW letters to try to maximize your score for a lower interest rate.

Good luck.

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Starting Score: 634 EQ-FICO (4/20/12) 579 EX-FAKO (4/30/12) 629 TU-FICO (5/6/12)
Current Score: 698 EQ-FICO (11/26/12) 705 EX-(11/21/12) 698 TU-FICO (11/26/12)
Goal Score: 720 (for starters)

Take the FICO Fitness Challenge ~ In the garden until June 2013!

Thanks for the replies. I do belong to a CU, so I'm going to hit them up at the end of the month and see what happens. I know the rate won't be great, but my CU does automatic rate drops each year based on credit scores, they offer a .75% reduction for auto pay, and I can buy the loan down almost 2 points with 10% down. If I can get close to 10%, I'll be happy. I plan to pay $1,000 a month on it regardless what the payment is to pay it off sooner, the rate will just determine how much sooner. 

Sounds like an excellent plan!    Let us know how it goes.

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Starting Score: 504

Current Score: EQ FICO 819, TU08 775, EX "Who Knows?" Quizzle 756
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

So I got impatient and decided to test the waters with a dealer. First try...Experian Auto adjusted 616, offer of 20.99%...uh, no thanks. Dealer #2...Experian Auto adjusted 675, offer of 10.19%, VW Finance. Bought a 2013 Passat TDI SEL Premium...worked out well overall. Now I'll wait to hear from my CU tomorrow to see what they can do to beat it.

Looks like a new car for you.  Hope CU comes through.  Good luck!

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Starting Score: 504

Current Score: EQ FICO 819, TU08 775, EX "Who Knows?" Quizzle 756
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Congrats on the new car!  

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Starting Score: 632 (TU) 02/2011
Current Score: TU08: 743 (12/12) EX: 742 (Amex Pull) 09/2012
Goal Score: 780

Take the FICO Fitness Challenge

My CU came through with 8.99% at 95% funding of MSRP. They also automatically drop the rate by .5% each year the loan is current with no lates. I am amazed at how easy it was to get financed, and thank you all for your advice.