topic Re: private party auto loan in Auto Loans

private party auto loan

Anonymous — Tue, 15 Jan 2013 23:47:32 GMT

I Just recently found this site and was working on my credit for the past few months.

I found a gorgeous car and it's a great deal, however they could not finance me through the dealership as it's an exotic dealership.

I've gotten almost all negative items removed the past few months through Lexington Law however I don't have any open lines of credit yet.

I don't have access to a cosigner. My last hope is a private party loan for someone with a 600 FICO

Does anyone know of a company I could go to or another way?

HELP!!

Re: private party auto loan

Revelate — Wed, 16 Jan 2013 07:12:38 GMT

Welcome to the forums!

The dealership has no financing partners at all? Strange. Private party loans are offered at a number of places, most likely CU's in the 600ish credit strata.

Also I would strongly encourage you once you figure out the car, to open 2-3 credit cards ASAP; you've cleaned up a bunch of negative history but don't have any recent positive history either from the sounds of it which is hurting your score.

Re: private party auto loan

Anonymous — Wed, 16 Jan 2013 16:08:50 GMT

Thank you for your response and the wlcome.

They do have financing partners but being the type of dealership they are they don't generally have to work with people with my credit issues.

They mostly sell Ferari's, Porsche and Aston Martin.

I recently opened a Card with Open Sky with just a $200 limit to start, I do want to open another Card or two after I get the car.

You hit the nail on the head with the positive credit being my issue, they told me that's why they couldn't ultimately finance me because I don't have any open lines.

I'll give a local CU a shot.

Thanks again!

Re: private party auto loan

Shogun — Wed, 16 Jan 2013 17:57:31 GMT

What kind of car are you looking at??? The opening of some new TLs is a good idea, but of course, not until after the auto loan is secured.

Re: private party auto loan

p- — Wed, 16 Jan 2013 19:26:42 GMT

@Anonymous wrote:
I Just recently found this site and was working on my credit for the past few months.
I found a gorgeous car and it's a great deal, however they could not finance me through the dealership as it's an exotic dealership.
I've gotten almost all negative items removed the past few months through Lexington Law however I don't have any open lines of credit yet.
I don't have access to a cosigner. My last hope is a private party loan for someone with a 600 FICO
Does anyone know of a company I could go to or another way?
HELP!!

Not to pick things apart too much... but there are some details missing here. What is your vehicle pricepoint, and monthly payment vs. income? Is part of the problem a ratio issue?

If you have the income to support an exotic car purchase, it might be smart to be patient and save, then buy when you have all or most down.

If you have recently returned from being behind financially, maybe it's time to be a little bit more conservative in the spending department.

Re: private party auto loan

Anonymous — Wed, 16 Jan 2013 19:33:37 GMT

I'm actually not buying an exotic car. it's a 08 Nissan Altima. I'm friends with the dealer and a buddy of his traded it in for a Porsche.

it only has 52,000 miles and approx $15,000 in after market upgrades, but because it's an exotic dealership and I'm friends with him he's selling it for $13,500.

All potential cosigners are having credit issues of their own and I was denied at the dealership because I don't have any open lines of credit. not much negative but nothing positive.

Re: private party auto loan

p- — Wed, 16 Jan 2013 19:41:19 GMT

@Anonymous wrote:
I'm actually not buying an exotic car. it's a 08 Nissan Altima. I'm friends with the dealer and a buddy of his traded it in for a Porsche.
it only has 52,000 miles and approx $15,000 in after market upgrades, but because it's an exotic dealership and I'm friends with him he's selling it for $13,500.
All potential cosigners are having credit issues of their own and I was denied at the dealership because I don't have any open lines of credit. not much negative but nothing positive.

That makes sense. No chance of becoming an AU on someone else's good card? Maybe your best bet is a credit union... you might get a better chance for approval with a good chunk of money down.

Re: private party auto loan

Anonymous — Wed, 16 Jan 2013 19:49:37 GMT

AU?

Re: private party auto loan

Revelate — Wed, 16 Jan 2013 20:09:08 GMT

@Anonymous wrote:
AU?

Authorized user.

Basically someone adds you as one on their (presumably quality) tradeline, specifically a credit card; if you have a family member who has a good history on a card (low utilization, long payment history and no late payments ever) then it can be a quick way to boost your score.

It may or may not help with getting the vehicle underwritten from a loan perspective, but it could so it's worth looking into.

How much do you have for a downpayment? If you have 20% of the vehicle's value that you're willing to put down, I think you can likely find financing from somewhere. Also I don't know if you absolutely need private party, there may be (suboptimal I admit) subprime options such as roadloans which could get the vehicle financed, and then you simply re-finance six+ months down the road.

There's an auto loan for just about everyone in America these days regardless of credit issues; it really comes down to whether you have enough skin to put into the game. You're not going to get a 0% down, but if you can do 20-30%, well frankly my report was worse than yours and a Wells underwriter simply stated "I guess I have thirteen thousand reasons to approve you" and subsequently did so on my own 30k car.

Re: private party auto loan

Anonymous — Wed, 16 Jan 2013 20:39:38 GMT

Ok I might be able to swing that, didn't even know it was possible.

I will check out roadloans and I have $3k to put down but I could come up with more if need be.

Thanks for the advice!!

Re: private party auto loan

Anonymous — Wed, 16 Jan 2013 21:27:43 GMT

applied through roadloans.com and was approved.... it's only for one of their approved dealerships. So just dinged my credit for no reason So pissed right now!!!!!!!

Re: private party auto loan

Revelate — Wed, 16 Jan 2013 21:32:38 GMT

@Anonymous wrote:
applied through roadloans.com and was approved.... it's only for one of their approved dealerships. So just dinged my credit for no reason So pissed right now!!!!!!!

Mea Culpa on that.

To be fair though, you'll likely generate a lot of inquiries going through this process as you're going to need to talk to a number of lenders. Any auto-loan related inquiry gets rolled up within a 30 day period under any modern version of the FICO algorithm to encourage people to shop around, so simply keep poking at lenders until you find one that will work you within that period.

Edit: technically it's two weeks for FICO '98 (rarely used anymore), 30 days for FICO '04 (very very common) and 45 days for FICO '08 (gaining traction in the market) for the inquiry roll-up, they'll still be listed individiually, but they will be scored as a single one.

Re: private party auto loan

Anonymous — Wed, 16 Jan 2013 22:29:01 GMT

Thank you Revelate

I'm going to make this happen haha