There are many places that use an auto enhanced score, including many credit unions.  Do some rate shopping on your own, find out what their prime rates are, and what credit tiers they have, and what bureau/model they pull.

 

Doing this I was able to find several places where I could get between 5-6% if I applied RIGHT NOW, as opposed to getting 8.5%+ like I had seen previously.  To give you an example, I don't see any reason why you wouldn't qualify for DCU at 1.99%.  It's EQ (Auto Enhanced according to their rep, but there's still a question out on that) and the minimum score is 675 for that promo.  65 month max.  With your income, there's not going to be any hurdles that I could see that would hold you up.

If you know what kind of car you want, call the major dealerships and ask if they have a special financing department. When I had bad credit, that was always the route I took and always got approved. For instance, I was able to get approved with a double bankruptcy on my credit report with zero down on a 2006 Altima. This was back in 2008, so the car was only two years old and mileage was still under warranty. Go in there and tell them your situation and what's derrogatory on your credit report and see what they say. Big dealerships with special financing departments often work with several subprime lenders, and after hearing your story, they know which one probably suits you. I just had to app once and I was approved. Good luck, let us know how it goes!

I didn't think the credit unions used auto enhanced scores...when they send out those letter, they were all FICO scores. When I applied for CAP1...their *denial* letter listed auto enhanced next to the score and it was wayyyyyyy lower than my FICO scores.

 

I'd look around and rate shop. Don't accept just anything and be stuck with crazy payment. Sometimes to fix that, you need to lower your UTIL and send GW letters if you have to...30 days from now, you'll be looking at more appealing rates!

 

GOOD LUCK! And keep us posted!

The only other thing I would say is try to find a subprime lender with a rate reduction program that starts at some APR but with on time payments, the interest is reduced by 0.5% every 6 months. I started out with 21% but ended with 14.5% APR.

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MovingForward_2012 wrote:
The only other thing I would say is try to find a subprime lender with a rate reduction program that starts at some APR but with on time payments, the interest is reduced by 0.5% every 6 months. I started out with 21% but ended with 14.5% APR.

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Heh, this isn't necessarily a "subprime" lender thing, DCU does it too actually though it's .25 every 3 months in their case.  Didn't mean much to me but it was a little entertaining to see the 5.99% -> 5.74% mail a few weeks ago.

Yeah I know but the OP's score isn't great and the OP is looking at high interest. Not all subprime lenders do a rate reduction program so my point was to find someone that does.

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MovingForward_2012 wrote:
Yeah I know but the OP's score isn't great and the OP is looking at high interest. Not all subprime lenders do a rate reduction program so my point was to find someone that does.

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True, though generally speaking you're better off just taking a car loan for whatever you get offered these days, and then refinancing 6+ months down the road assuming you've maintained a clean credit history during that time.  That's what I and many others have done with excellent success, in my case it was a 19.35% subprime loan from WFDS taken down to 5.99 with DCU 8 months later.

 

I'd eliminated my "first-time-buyer" penalty by that point, and my classic FICO's had moved by 50 points upward, probably my Auto Enhanced moved even further off the 551 Auto EX I originally had.  Rate reduction is useful if you're stuck in a credit strata like I am currently, but I had inferred from the OP's original post that this was likely their first auto loan, or possibly would be their first successful one judging from the score as you intimate.  

 

Either way, 6 months or a year of positive history can do wonders for even the most awkward of files, and a subprime auto loan doesn't have to be kept forever.  If you can afford the payments, and the car's needed, my own opinion is just wrap your arms around whatever lender will offer financing and then go find a quality refinance down the road which are often available these days.  Money is cheap currently, even the fiscal cliff isn't changing that.  Debatably from what I read today regarding Wells Fargo's balance sheet, it might even be even easier to get a loan now than ever before between the low federal funds rate, and the fact more and more people are dropping their savings into bank depository accounts than anytime in recent history apparently.

 

@Revelate. I totally agree, as my mom used to tell me, "Sometimes you have to go sideways to go forward."

 

What I've found, is that people want to get this fantastic car, but may not have the credit and/or income to support it, but they don't want to get just a "get by car" until they can really afford what they truly want. I was in a similar place when me and my ex-fiance broke up (this was many years ago). We were just a few years out of college, and when we broke up, I had no money, and prior to us breaking up, we were talking about buying a new car. Well, long story short. We broke up and my car was not going to make it. I financed a car (I would NEVER want to have for an extended period of time) for about 19% interest for a 7k loan; they gave me $1500 for my trade-in. I had that loan for about six months, and then got it refinanced through Capital One for about 12.95% for 36 months. I paid it off in about 18months (half the time). Drove the car for another year and a half, and then was approved for a brand new Honda Accord at my credit union for about 3%. I had the trade-in of the car I didn't really like, but it was paid off, AND they gave me 4k for it, plus I put 4k down, so that 24k car, I purchased for 16k w/3% rate. I had to wait a little bit, but I got what I wanted and didn't have horrific car payments. I have this thing, I won't pay more than $500 a month for a car payment and insurance a month (combined).

 

To OP, I think you should be alright with getting just any loan, as Revelate said, and then refinancing within 6 months or so. As long as you pay on time (and if possible, pay double payments or a payment and a half), you will be able to refinance to a better rate.

I see what you are saying in terms of refinancing. When I had bad bad credit, it was due to a double BK on my CR. Both a 7 and 13 two years apart from each other. Now only the 7 is there and will fall off in August. So I knew refinancing in 6-12 months wasn't an option. Some baddies are so bad, they stay for a really long time. So for me, finding a subprime lender with a rate reduction program was what I needed. My recovery has been snails pace. So by the time I could refinance, it was 4 years later and the car kicked the bucket so I tried for my dream car (a 2012 Acura TL) and got tier 1 financing. Car payment is $536. I know it seems high to a lot of folks but it is a luxury sports sedan with many bells and whistles that I absolutely love! I make almost 6 figures so it is easily affordable and insurance is only $113 a month and that is $100,000/300,000 limits plus $500 for comp and coll. the max limits are required for a leased vehicle.

If someone makes 40K a year, do I recommend this? No, absolutely not. There are folks that make $200K a year with a $1000/mo car payment on a Porsche Cayenne (sp?) but it is easily affordable to them but not to me. The initial payment without the extras was $461/mo but I wanted the maintenance protect plan, tinted windows, the leather stain mastered, etc, etc. so typically luxury cars will come with payments above $500 per month.

I consider myself very established in my 12 year long career and they worked me tirelessly over the years and the Acura TL gives me a sense of accomplishment and reward. I'm in my 30's now, getting older and wanted something to show for my hard work. Paying $600 a mo for a $26K car is a rip off (been there done that). But it is a good price for a $37K car. All relative Who knows? You might change your mind and get a luxury car in the future should your finances permit it.

I am more conservative when it comes to property though. I think the house will appraise for $181K. Built in 2000...3 bedrooms/3baths, just right for our family. Some folks will go big on a house, smaller on transportation. I guess I am opposite right now. While, a $300K house would be nice, my finances and family size doesn't justify it. Some by bigger houses to show accomplishment, others buy more luxurious cars. And many middle class Americans fall in the middle of it all. All is okay as long as the finances remain stable

Here is my Update:

 

My utilization down to 35% from 98% .. score is 613 Experian by roadloan 

 

got loan from capitalone (19%) and roadloan (11% with 4K down)  [ car i am looking to buy cost me around 20K have downpayment around 7K ]

 

planning to go to dealer and ask them if they can give me better rate.... either way i will refinance after 6-8 months

 

guys... give me some advice what might be my best course to take ..  I need to buy car within 10 days ..thanks