topic Re: Chase approved, but... in Auto Loans

Chase approved, but...

Anonymous — Fri, 06 Aug 2010 07:25:07 GMT

I was approved for an $8000 auto loan through Chase. Yay, except for a few things.

First and foremost I don't have a driver's license. I don't drive. My fiancee does all the driving and I have no interest in ever joining. Not sure why not, just don't. Anyway, I'm wondering how much of a problem this will be come time to close the deal. I have a feeling the answer is "a lot" or "big" or something similar.

Secondly, I'm wondering if I wouldn't be better off just getting a personal loan for a slightly lower amount. I know the rate on my auto loan was approved at 6.28% (no prior auto loans). What are the odds a personal loan would have a similar rate? Chase apparently doesn't offer personal loans so I'd have to go with another bank. Any recommendations? CitiFinancial has been innundating me with letters indicating their ecstatic joy at the prospect of me being a customer... do they suck right now or what?

Re: Chase approved, but...

chasmith — Fri, 06 Aug 2010 11:23:16 GMT

A personal loan will probably have a higher rate because it is unsecured. The bank knows it will get some of it's money back from repossessing the car, but for a given credit position an unsecured loan will usually have a higher rate than a secured loan.

Re: Chase approved, but...

MarineVietVet — Fri, 06 Aug 2010 23:24:41 GMT

I could be completely wrong but I don't think Chase or any other lender cares at all whether you have a license or not.

I've had many, many car loans over the years and have never been asked for a driver's license.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772

You can do the same thing with hard work

Re: Chase approved, but...

laz98 — Sat, 07 Aug 2010 05:54:38 GMT

@MarineVietVet wrote:
I could be completely wrong but I don't think Chase or any other lender cares at all whether you have a license or not.

I've had many, many car loans over the years and have never been asked for a driver's license.

really? wow, i thought that would be a big hurdle! i'm glad you posted that

Re: Chase approved, but...

Anonymous — Sat, 07 Aug 2010 14:15:54 GMT

@MarineVietVet wrote:
I could be completely wrong but I don't think Chase or any other lender cares at all whether you have a license or not.

I've had many, many car loans over the years and have never been asked for a driver's license.

Excellent! I hope this is the case with Chase. We'll see...

Re: Chase approved, but...

Anonymous — Wed, 11 Aug 2010 03:42:39 GMT

@MarineVietVet wrote:
I could be completely wrong but I don't think Chase or any other lender cares at all whether you have a license or not.

I've had many, many car loans over the years and have never been asked for a driver's license.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772

You can do the same thing with hard work

To OP

I just tested this theory yesterday at AutoWest Honda in Roseville, CA. Because although I have bought several cars, I never thought about not having a DL.

Went in and wanted to buy the new Honda Insight, had my financing and all. (The only reason I bought a new car because I had to suspend the mortgage process for about 2 years because of travel, and needed a Hybrid.)

I knew that if I said I wanted to test drive a car they would ask for my license, so I skipped test driving, (just for the theory, but test drove later). Even when you have financing approved you still have to do an OFAC report, commonly called a 5 liner. This is a credit application, but they do not actually run your credit. They make sure you haven't robbed a bank, or you are not a terrorist of any kind. They need your ID to run this report, more import. they ask and need a Driver's License, not just an ID.

You could try to and see what they say, as when they went to run the OFAC, that is when they needed, my license. (You cannot drive a vehicle off their lot without a DL, but that doesn't stop someone else from driving it off for you.) I had actually signed all the documents prior to the OFAC being ran.

For those that have questions about Auto Dealers, and why they need you to fill out a credit application even when you have financing, that is why. They need to run the OFAC report, and they will not actually run your CR, unless you have some nasty people working there. And sometimes, your financing may fall through.

Also, for those on the west coast. There is this company called autonationdirect.com. They are amazing people. I have worked with them several times. They negotiate the price of the car for you. Yesterday, I got the insight about 300 above dealer cost, (they have to profit too) with TTL included. This is important because there are 3 prices and several other numbers you need to factor when buying a car

1. MSRP.- You should NEVER EVER pay this price

2. Dealer Invoice - Most people pay this, as it is usually a 3-8 percent profit for the dealer

3. Dealer Cost. - Which is about 300-3000(depend on the car and incentives)below Invoice.

It is very important to know those numbers so you do not get screwed on the price if you end up getting screwed on financing. You actually have some negotiation room between dealer cost, and dealer invoice, so don't be suckered into paying dealer invoice, and if you pay MSRP, i feel bad for you!

Other 'numbers'- are rebates and incentives. Unless you search for this dealers often will not tell you about this because is is profit margin for them.

So if you do live on the west coast, it wouldn't hurt giving them a try(ITS FREE), if you are not a strong negotiator, they can get you the best price for the car you are looking for, new or used. I wouldn't recommend them if they weren't good.

My recent finance was yesterday, Aug 6th

Lender USAA

Rate 3.99 (best rate for new auto loan of 48-60th months.)

Dealer could only beat at 3.75, it wasn't worth not going with USAA 180 dollars over 5 years isn't nothing, but great payment history with strong USAA is priceless.

Honda 2010 Insight 22550.00 out the door.

Also, those using USAA, although not technically a credit union, they fall under the credit union guidelines. Found this out from USAA yesterday.

Good Luck!

Re: Chase approved, but...

MarineVietVet — Sat, 07 Aug 2010 17:52:19 GMT

There will be different experiences for everyone. It might depend on where you live and that state's laws. I don't know.

You're right of course that a DL is required for a test drive but for applications where I live you only supply your SS#. That's the only ID I've ever been asked to give for a car loan.

As always YMMV.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772

You can do the same thing with hard work

Re: Chase approved, but...

Anonymous — Sat, 07 Aug 2010 21:12:49 GMT

I'm actually planning on purchasing a used car from a private party, so some of this may not apply. What I'm mostly concerned about is Chase's reaction. Whether or not they'll have a problem with this arrangement.

Re: Chase approved, but...

Anonymous — Sun, 08 Aug 2010 01:24:55 GMT

@MarineVietVet wrote:
There will be different experiences for everyone. It might depend on where you live and that state's laws. I don't know.

You're right of course that a DL is required for a test drive but for applications where I live you only supply your SS#. That's the only ID I've ever been asked to give for a car loan.

As always YMMV.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772

You can do the same thing with hard work

MV, you could be right about sate laws. I have only bought cars on the west coast. So that could hold true! Something to be tested!

To OP, if that is the case you are going private party, not to stir you up or anything. My problem wouldn't be the DL situation, it would be the auto LTRV, or Loan to Retail Value. If the car's retail isn't worth as much as they are selling it for. There should be FINE print in the terms and conditions about this with your approval.

Example: Chase LTRV is 110% (Not sure what it is, but you should find out for sure, and I am using this as an example).

You are buying a car that has a retail value of 5000.

Car price:8000

Cars retail value: 5000

Chase Loan to Retail Value: 110%

Bottom line. Chase will finance 5500, you would have to pay 2500.

This is one of the reasons I do not go private party. Not because I am not getting a good deal, it is because of loan ratio, and there is no warranty, just a matter of luck, and honest selling.

The best way to make sure you know the retail value is to get it appraised. You can use Kelly blue book to get an idea, they are usually close.

The only rule that I have noticed that LTRV to increase is on new cars because depending on the car they depreciate about 20-48% percent once you drive off of the lot.

I have seen some LTRV's go to about 140%, but this was a new car, typical is about 120%, but some are only 100%.

Make sure you look online what the retail value of the car is going for, as this is negotiating power so you do not have to go out of pocket to cover the rest of the loan.

Good luck with your purchase!

Edit:

Now thinking about it, another concern has caught my eye. I am not familiar with Chase or it's loans, nor state laws governing your registration, and insurance.

Possible concerns:

Car insurance:

Registration:

Not all states require you to have a drivers license to register the car, but you have to have a DL to insure it, unless you have someone else insure the vehicle if they are driving it. Some states may require both to be in the same name or a power of attorney doc signed with registration paperwork.

That is worth checking out, as you do not want to violate some laws.

Not sure why you don't have a DL, and won't ask, but it could make your life simpler even if you chose not to drive, just my.02

Re: Chase approved, but...

Anonymous — Wed, 11 Aug 2010 15:40:15 GMT

Thing is that you will need full coverage insurance and there is, I don't think, any way that you can get car insurance without a dl. Could be wrong but I sure don't thinkso. If you get a personal loan you would still need liability insurnace and again you will find yourself in the same boat. Soooo even if you never drive, you need to get a dl or you will never be able to buy and legally have anyone operate the vehicle. You could do a personal loan and then just have the gf own the car. That gets around everything except you will have bought a car for someone else and if use were to leave for some reason. You will have the debt and she will have the car. v

Re: Chase approved, but...

Anonymous — Fri, 13 Aug 2010 16:30:13 GMT

For the record, Chase told me to screw off when I asked about a car loan. I was told that I *HAVE* to have the car insured in MY name. Also, they don't do personal loans anymore. According to the banker "NOBODY does personal loans anymore."

Right.

Anyways, I'm back to being completely screwed. Yay.