topic Re: denied, denied, denied in Auto Loans

denied, denied, denied

Anonymous — Sat, 24 Sep 2011 13:07:41 GMT

well, we were approved at one dealership, but they wanted $9500 down!!!! the total price of the car was $18k! unreal! two other dealerships turned us down, and one said based on his experience, we would be denied and he would not push through the application so that he wouldn't waste our time. really? so we're stuck. we have a 2007 Chrysler Town and Country with over 103k miles on it, no warranty, we're upside down, it's not running great, it's guzzling gas like crazy, and we need to get rid of it!! we can

't afford the gas, can't afford to fix it if something goes wrong. we need a reliable car with a warranty, that has good gas mileage. are there ANY options for us at all??? we have $3300 to put down. my husband's credit is in the low 500's. they can't use mine because i have no income. (he works, i stay home with the kids). pretty soon we'll be stuck with a van that doesn't run but we'll still have to make monthly payments on it. help!

Re: denied, denied, denied

m29 — Sat, 24 Sep 2011 13:26:47 GMT

If you have a good credit score (but no income) you can get qualified if you are the main borrower and use your husband as a cosigner so that you get the benefits of his income! My wife had pretty decent credit but was a stay home mom (no income) She was able to get financed as the primary borrower and they added me as the cosigner (with bad credit) so she would qualify with my income.. There are also Buy here pay here programs some dealers offer! Good luck to you!

Re: denied, denied, denied

Anonymous — Sat, 24 Sep 2011 13:28:52 GMT

unfortunately, my credit is bad as well. thanks though.

Re: denied, denied, denied

haulingthescoreup — Sat, 24 Sep 2011 16:23:33 GMT

Are you eligible for a local credit union?

Re: denied, denied, denied

Anonymous — Sat, 24 Sep 2011 18:36:23 GMT

not sure. i know we meet the requirements as far as residency, etc., but do you need to have a certain credit rating to join? do they tend to be more lenient for loans regarding credit?

Re: denied, denied, denied

haulingthescoreup — Sun, 25 Sep 2011 02:56:29 GMT

Well, first you become a member, and then you apply for a loan.

Many (certainly not all) credit unions pull a Beacon 5.0, which is the Equifax FICO score that you can buy here. You might want to pull your EQ FICO here, print it out (report + score), and visit your CU. You can show them the report (tell them it's a Beacon 5.0), and ask if in their opinion, you would qualify for any financing through them, or membership, for that matter.

CU's are a great way to recover from credit problems, but they also want to make sure that you will be able to make your payments. CU's pool their members' money to make loans, so they do give you a good hard look. At the same time, they are motivated to help people improve their credit, and they're non-profit.

Even if you can't qualify for any loan products now, it might be a smart step on your rebuilding path to get in with a credit union.

Re: denied, denied, denied

cdtotten — Sun, 25 Sep 2011 12:26:18 GMT

I think a credit union is going to balk at lending to you as well unfortunately. Scores in the low 500s indicate serious credit issues, and you have already stated you are upside down in your current car... lenders are not going to let you roll that into the new loan.

My suggestion:

1. Save up enough money to cover the negative equity in your car (how much are you upside down?). Once you can break even on your new car... you are a big step ahead.

2. Visit a buy here pay here car store. The terms are not going to be great, you are not going to be able to pick the car you want, and they will repo your car immediately if you miss a payment, but that is your best option. With scores that low, you are just going to have to accept whatever you can get.

Re: denied, denied, denied

Anonymous — Sun, 25 Sep 2011 15:14:57 GMT

"we have a 2007 Chrysler Town and Country with over 103k miles on it, no warranty, we're upside down, it's not running great, it's guzzling gas like crazy, and we need to get rid of it!! we can

't afford the gas, can't afford to fix it if something goes wrong. we need a reliable car with a warranty,"

Your van is only four years old with only 100k on it. You do not need a warranty You WANT one.... Why go deeper into debt on another car. You have $3000 use that for the van if it happens to need any repairs. You probably get about 20-22 miles per gallon how much better mpg do you think you are going to get..... the cost of gas is way cheaper versus a car payment. Agian your van is ONLY 4 yrs old with 100K.... it still has 100k 50-100k left in it.

Re: denied, denied, denied

GregB — Sun, 25 Sep 2011 19:29:01 GMT

Actually, it probably gets more like 15mpg BUT trying to justify a new car, with higher registration fees, higher insurance cost, etc. just to save money on gas is usually impossible. People who want a new car do seem to try to justify it that way. Also, you are reminded of the gas cost every time you fill it up so it keeps eating at you.

It does seem like keeping the existing vehicle is likely to be the best way to avoid digging themselves into a deeper hole financially.

Re: denied, denied, denied

tooleman694 — Sun, 25 Sep 2011 23:31:51 GMT

I was in the exact situation as you a few months back.. back in may my scores were in the 400s..

I wanted a new car, but I was upsidedown on my current one and no one would give me any kind of loan..

So I started doing some repairing and paying things on time, and just a couple months later BAM im in the 600s and was able to get out of my old car..

Re: denied, denied, denied

Mike360 — Tue, 27 Sep 2011 04:12:24 GMT

I'm sorry but why would you even think of doing this...you have no income and your husband has horrible credit. almost no one will give you good rate on a trade in that your already upside down on.

you know what happened to me. my score is only 650ish and i could have gotten a brand new car with 11% rates but they wanted $3K down. You know what i told them? NO! I used my brain and walked away from the situation and bought a nice used car decent mileage and have owned it for a year with no issues except the A/C went out which was a easy fix.

I know you trying to do the right thing but in the end all your doing is making it alot worse.

Re: denied, denied, denied

Anonymous — Thu, 29 Sep 2011 23:45:39 GMT

You're in a real pickle no doubt. I think many of us on this board can say we have all been there! Credit scores have no feelings and auto dealers maybe doing you a huge favor by saying no! IMO car loans are easier to get than credit cards or at least good credit cards. If the dealer thought there was anyway possible he could get you into a newer car he would, after all unless they're doing the financing they still get paid! Some dealers, not all will shop your loan all over the country looking for someone to take the risk ,for you this may drop your credit score even more with more than considered normal inquirys.

You feel boxed in with no options, but if you have $3300 put it into keeping the current car running and make your payments on time for the remainder of the loan. Get a secured credit card for around $300 and never charge more than $30 for the next couple of months. Your score will begin to rise. Make sure you go through your credit report and make sure there are no negative items on your report that shouldn't be there and I know from personal experience I had accounts on my CR that belonged to my ex-wife from many years ago. I disputed the errors and they were taken off within 14 days and my score began to rise pretty quick. I am not a financial or credit expert but I can tell you if get a car from a buy here pay here you will only compound your agony. The majority of their cars are worn out and regardless of how the outside looks you will soon discover how $10 dollars worth of AmourAll and a coat wax can make a terd look like a candy bar, but when you take a bite it's still a terd!

I wish you all the very best and don't give up hope. Time and on time payments will help you get on the road to financial freedom. It may sound stupid but I treat my credit like a fantasy football team. I am always looking for way to raise my score and it really is fun once you educate yourself on your credit score and how it works for you or against you! In 2006 my credit was a miserable 503 and I decided to take back control. I hope to see your post in the auto loans approved forum in the future!

Re: denied, denied, denied

Cloudlb — Fri, 30 Sep 2011 17:56:49 GMT

I feel your pain, but the above posters have given some good advice. You are not ready for a new car yet., but you can take steps now to improve things in, say one year.

Order your credit reports and scores, take action to improve your scores -- lots of info on here for that. Keep your van, keep it running, make sure your tires are inflated properly and you are not lugging around extra weight (both things affect your gas mileage.) Make your payments on time (so you will have a nice auto payment history for the next one), save money for a bigger downpayment. In the meantime, look for other transportation options -- carpooling will help you save on gas, public transportation, bicycling or walking, etc. (From your mileage, it seems your husband has a long commute, so I'm not suggesting he walk!)

Sucks, but realize you are not "entitled" to a new $18K car.

Re: denied, denied, denied

Anonymous — Fri, 30 Sep 2011 23:12:59 GMT

@pj421fly-thanks so much! i really appreciate that!

Re: denied, denied, denied

Anonymous — Fri, 30 Sep 2011 23:15:17 GMT

thank you all so much for responding. i really appreciate it. we'll stick it out and try to repair our credit. it's hard because i'm temporarily disabled while awaiting major knee surgery, so i can't work. so we're struggling financially right now trying to make it on one income. it's hard to make a dent in collections, etc, when our first priority has to be mortgage, car payment, food, utilities, etc. anyway, thanks again.

Re: denied, denied, denied

Anonymous — Mon, 03 Oct 2011 15:38:11 GMT

You're very welcome!

Re: denied, denied, denied

Anonymous — Thu, 06 Oct 2011 19:00:35 GMT

Look on craigslist.org for a certified ASE mechanic to work on your car, get a few references from him and a written estimate. My son is an ASE mechanic who does side work for about 1/3 the cost of a shop. He guarantees his work, and passes along his parts discount to clients. If you don't have anything 'major' wrong with your current car I 'm pretty sure repairs would not exceed $500 or $1000., and you might get better gas mileage with a tune-up. Use the rest of your $3300 to pay off some existing debt, particularly anything that is past due.

You said you have 103k miles on a 2007 car, I'm not sure if you bought it new or if you are putting 25k miles a year on a car, but if you are- you might look at some ways to reduce the miles you are driving, i.e. car pooling, consolidating shopping trips. Remember, the sales tax alone on that new $18,000 car @7% is $1260, and license fees could be $300-$500. My suggestion is that 'if' you can at some point get out from under the car you currently have, buy an older car for cash and break the cycle of buying new cars and rolling over the balance you owe on your old one to a new one, it's a vicious cycle.

Re: denied, denied, denied

CreekNative — Thu, 06 Oct 2011 21:50:12 GMT

When the world comes crashing down, relax.... A secured card may help your husband build hi credit score, it takes several moths to a year to build. I had numerous medical bills that killed my credit; I paid them off, and got a secured card from B of A about 6 months later.

After having the secured card a year, my credit score broke the 700 barrier. I was able to get a second credit card a few months later.

We are all individual when it comes to our credit score, our usage, or payments, is not exactly alike. As for the car, it may be in need of repair. Carttalk.com has a forum to ask repair-related questions; also, you may have a good, certified auto mechanic in your local area.

If the Chrysler is fixable without wiping out your funds, fix it. If you get a secured card, by all means, do not charge more than you will
be able to pat off in a month. Secured cards are offered by Capitol One, and the other major banks. I hope this helps.

Re: denied, denied, denied

Anonymous — Fri, 07 Oct 2011 02:36:29 GMT

I agree with most here. You still need a higher score to get a car loan. Fix up what's bogging your credit down. Keep paying everything on time, not even ONE day late, get a secured card for s minimal amount. And just keep paying. You'll be surprised how fast you can raise you score! Happy driving a new car!

Re: denied, denied, denied

Anonymous — Fri, 07 Oct 2011 15:36:30 GMT

Hello Kelly:

Some of the popular dealers known to help people buy a car with bad credit include DriveTime and JDByrider. Both of these car dealers specialize in selling used cars to individuals with no credit or bad credit. Both JD Byrider and Drive Time have locations across the United States, especially in major metropolitan areas.

A better option is to opt for a local "buy here, pay here" dealer. These small, locally owned and operated dealers are known to provide customers with in-house auto financing solutions. This means that the dealer will finance the car themselves and benefit from the additional profit generated by the financing terms. Unfortunately, this also means that they carry more risk in their business which results in higher sticker prices and interest passed on to the buyer. However, both offer people with very bad credit the opportunity to buy a car.

Try looking at low priced new cars, Nissan has 2 @ $15K, Fords 2012 Focus base with A/C frt PW can be found for @ $16K. Don't give up ask what will it take to get me financed ? I bought a car at Carmax with no credit years ago but they did ask for $4500 down on a $16K van. I had to present paystubs and tax returns / bank statements to qualify.

Always ask why you were denied, then you can work to correct that issue.

DON'T GIVE UP !!