topic Re: Can Dealer Ask For Car Back... in Auto Loans

Can Dealer Ask For Car Back...

Andy77 — Wed, 10 Apr 2013 21:00:17 GMT

So my FICO is 615, my credit cards are maxed, I have a discharged bk from 2009 and I applied for a loan with BMW Financial...I got approved for a 3.9 apr for 60 months on a 29k loan

I previously had a lease with BMW in 2004 that i paid on time and just finished paying a lease off with Toyota Financial on time, too.

I am now worried they will take the car back or jack up the rate

I just don't know how I humanly qualified for a rate this low

Any thoughts?

Re: Can Dealer Ask For Car Back...

Anonymous — Wed, 10 Apr 2013 22:21:45 GMT

@Andy77 wrote:

So my FICO is 615, my credit cards are maxed, I have a discharged bk from 2009 and I applied for a loan with BMW Financial...I got approved for a 3.9 apr for 60 months on a 29k loan

I previously had a lease with BMW in 2004 that i paid on time and just finished paying a lease off with Toyota Financial on time, too.

I am now worried they will take the car back or jack up the rate

I just don't know how I humanly qualified for a rate this low

Any thoughts?

Sounds like the proper rate for your situation. Did you put anything down or trade anything in?

Re: Can Dealer Ask For Car Back...

Anonymous — Thu, 11 Apr 2013 08:45:58 GMT

Applied, approved, signed?

If so, how could they take your car back?

Re: Can Dealer Ask For Car Back...

Anonymous — Fri, 12 Apr 2013 00:25:51 GMT

If the loan is not funded by the bank they have the right to take the vehicle back.

Re: Can Dealer Ask For Car Back...

Andy77 — Fri, 12 Apr 2013 03:18:18 GMT

I think BMW Financial uses Chase Bank

Anyway I just think credit scoring makes NO LOGICAL SENSE AND HERE IS WHY...

Back in 2006 I got a 35k loan on a Mercedes and had no lates or BK's on my credit report. My interest ratre was 8.5

Fast forward 6 yrs and now I have a BK and maxed out cards and I get a 3.9 APR

Makes no sense

Re: Can Dealer Ask For Car Back...

Sha80 — Fri, 12 Apr 2013 03:26:00 GMT

Was the 2006 loan your first car loan? If so it explains the higher rate

Re: Can Dealer Ask For Car Back...

Andy77 — Fri, 12 Apr 2013 03:33:28 GMT

No I had paid a 3 yr lease with BMW between 2003-2006 on time

Part of me thnks that a dealership can really do what ever they want at the end of the day...give you a high APR or low, as they did me...I think I got such a low one becaues this is my second car with BMW

BUT...that makes no "credit" logical sense that I would get a lower rate with a BK vs without

Re: Can Dealer Ask For Car Back...

Anonymous — Fri, 12 Apr 2013 14:38:57 GMT

@Andy77 wrote:

No I had paid a 3 yr lease with BMW between 2003-2006 on time

Part of me thnks that a dealership can really do what ever they want at the end of the day...give you a high APR or low, as they did me...I think I got such a low one becaues this is my second car with BMW

BUT...that makes no "credit" logical sense that I would get a lower rate with a BK vs without

The difference is that you have proven yourself to pay off your car loans. Your score will be higher after AutoEnhanced which helps A LOT, and you are funding from the same company that you have previously used. Overall be thankful you got the rate you did, I'm a little surprised as a 615 usually floats in the double digit rates.

Re: Can Dealer Ask For Car Back...

Anonymous — Fri, 12 Apr 2013 14:41:28 GMT

And one more note it isnt just about your scores, look at the interest rates offered at these different time periods. 03-06 is post Internet bubble and had moderately high interest rates. Rates are being held at all time lows right now by the Federal Reserve in order to push consumer lending. Its a great time to buy, and horrible time to save

Re: Can Dealer Ask For Car Back...

blk8 — Fri, 12 Apr 2013 17:40:31 GMT

@Anonymous wrote:
@Andy77 wrote:

No I had paid a 3 yr lease with BMW between 2003-2006 on time

Part of me thnks that a dealership can really do what ever they want at the end of the day...give you a high APR or low, as they did me...I think I got such a low one becaues this is my second car with BMW

BUT...that makes no "credit" logical sense that I would get a lower rate with a BK vs without
The difference is that you have proven yourself to pay off your car loans. Your score will be higher after AutoEnhanced which helps A LOT, and you are funding from the same company that you have previously used. Overall be thankful you got the rate you did, I'm a little surprised as a 615 usually floats in the double digit rates.

That depends if the 615 is his FICO or AUTO ENCHANCED FICO .... the AUTO could very well be off the charts compared to his standard.

Re: Can Dealer Ask For Car Back...

Anonymous — Fri, 12 Apr 2013 17:44:44 GMT

@blk8 wrote:
@Anonymous wrote:
@Andy77 wrote:

No I had paid a 3 yr lease with BMW between 2003-2006 on time

Part of me thnks that a dealership can really do what ever they want at the end of the day...give you a high APR or low, as they did me...I think I got such a low one becaues this is my second car with BMW

BUT...that makes no "credit" logical sense that I would get a lower rate with a BK vs without
The difference is that you have proven yourself to pay off your car loans. Your score will be higher after AutoEnhanced which helps A LOT, and you are funding from the same company that you have previously used. Overall be thankful you got the rate you did, I'm a little surprised as a 615 usually floats in the double digit rates.
That depends if the 615 is his FICO or AUTO ENCHANCED FICO .... the AUTO could very well be off the charts compared to his standard.

It very well could make a notable difference of 10-25 points in your score maybe a bit higher even, but it will not turn a 615 into a 680+.

Re: Can Dealer Ask For Car Back...

Anonymous — Sat, 13 Apr 2013 16:12:25 GMT

@Anonymous wrote:
And one more note it isnt just about your scores, look at the interest rates offered at these different time periods. 03-06 is post Internet bubble and had moderately high interest rates. Rates are being held at all time lows right now by the Federal Reserve in order to push consumer lending. Its a great time to buy, and horrible time to save

That was my thinking as well. 3.99% is not a good rate. That is double the going rate.

So, to me it looks like the proper rate for the buyer.

Re: Can Dealer Ask For Car Back...

DaBears — Sun, 14 Apr 2013 00:24:44 GMT

@Andy77 wrote:
I think BMW Financial uses Chase Bank

Anyway I just think credit scoring makes NO LOGICAL SENSE AND HERE IS WHY...

Back in 2006 I got a 35k loan on a Mercedes and had no lates or BK's on my credit report. My interest ratre was 8.5

Fast forward 6 yrs and now I have a BK and maxed out cards and I get a 3.9 APR

Makes no sense

+1, Installment loans have very little affect on fico scoring.