topic Re: Chances of New Auto Loan For a Lexus RX in Auto Loans

Chances of New Auto Loan For a Lexus RX

sghosh5 — Thu, 15 Aug 2013 12:01:39 GMT

I am new in Auto Loans Forum. I am planning to buy a new Lexus RX sometime around next year (Mar/April). I am still paying for an existing car loan which i had several missed payments in past. Last worst status was in Nov, 2011 (120 Days Late). My current scores are in my signature. Dont know anything about Auto enhanced scores.

myFICO shows my future credit scores may go upto max 710 after 9 months of on time payments. Thats when I am planning to buy the car. My question is, even if my scores go upto 700 and having a good income can they deny loans or still ask for high APR?

lexusfinancial shows they will offer 4% APR for 700+ scores. But not sure how much my past late payments on current Auto Loan will hurt me.

Any idea/suggestion will be appreciated.

Re: Chances of New Auto Loan For a Lexus RX

sccredit — Thu, 15 Aug 2013 16:11:56 GMT

The problem will be those late payments will affect your Auto Enhanced Score, likely bringing it well below 700.

Re: Chances of New Auto Loan For a Lexus RX

Anonymous — Thu, 15 Aug 2013 17:14:56 GMT

Is your current auto loan with the late payment history with Lexus? If so then they are probably going to penalize you. If not then having the late payments far enough in the past you may be OK. And if you go to a credit union who you have an affiliation with then they do not generally use an "Auto Enhanced" FICO scoring and the lates will not add any extra effect because they are on an auto loan. The Auto Enhanced is generally only the dealers and specific auto financing companies (e.g. Capital One auto, Wells Fargo auto, etc.)

Re: Chances of New Auto Loan For a Lexus RX

sghosh5 — Thu, 15 Aug 2013 18:20:50 GMT

My current auto loan is not with Lexus. its with Santander. I had so many financial difficulties in past that i have 20 missed /late payments showing on my report with them. But from Nov 2011 my payments with them are all on time. I once talked to CHASE while reconsidering my CHASE Freedom application, the representative said if i wait till November 2013 credit decisions will be much in favor for me.

I always bank with CHASE and though my credit scores were bad and i had lates they approved Credit card because of my good banking relationship with them. I will try apply for auto loan directly with them. Does anyone have any experience of applying auto loan with the bank directly and not with dealer?

Re: Chances of New Auto Loan For a Lexus RX

sccredit — Thu, 15 Aug 2013 19:04:30 GMT

I've doen it with Credit Unions and its pretty easy if they approve.

Re: Chances of New Auto Loan For a Lexus RX

Anonymous — Thu, 15 Aug 2013 19:56:29 GMT

The primary objective of getting a pre-approval through the bank or credit union is so you know where you stand. Then you can approach the dealer and tell them to beat that offer if they want the financing portion of the deal. A lot of times, they do!

Re: Chances of New Auto Loan For a Lexus RX

sghosh5 — Sun, 18 Aug 2013 15:04:47 GMT

The only thing I am worried about how i handled my present auto loan in past. My present auto loan is 24.9% rate. I have 20 missed payments on my current auto loan from 2009 - 2011. Since 2011 till date its showing all 'Paid on time'. I am working too hard for making my credit good. My gross yearly income is six figures now. Do you think even if I cross 700 mark in credit score i can be denied because of my past loand handling pattern?

Re: Chances of New Auto Loan For a Lexus RX

webhopper — Sun, 18 Aug 2013 20:01:10 GMT

If you have a really poor payment history on the auto loan, you may want to check with a lender such as a CU who will loan based on FICO scores and not Auto enhanced FICO scores.

Re: Chances of New Auto Loan For a Lexus RX

sghosh5 — Sun, 18 Aug 2013 20:19:04 GMT

By CU, do you mean like directly applying through a bank's website for an auto loan? Like CHASE / Capital One ?

Re: Chances of New Auto Loan For a Lexus RX

webhopper — Mon, 19 Aug 2013 03:05:54 GMT

I mean like joining a credit union and applying directly with them

Re: Chances of New Auto Loan For a Lexus RX

azguy13 — Mon, 19 Aug 2013 12:21:30 GMT

@webhopper wrote:
If you have a really poor payment history on the auto loan, you may want to check with a lender such as a CU who will loan based on FICO scores and not Auto enhanced FICO scores.

Great point. Your Auto Enhanced is going to be well below your FICO shown here. I think I read somewhere that Chase did not pull an auto enhanced on a member here. OP, I can let you know in a few months who did or did not pull my auto enhanced

Re: Chances of New Auto Loan For a Lexus RX

sghosh5 — Mon, 19 Aug 2013 12:25:02 GMT

Thanks please keep me posted. I bank with CHASE (primary) & Capital One 360 & CitiBank (Secondary).

Re: Chances of New Auto Loan For a Lexus RX

azguy13 — Mon, 19 Aug 2013 12:33:42 GMT

@sghosh5 wrote:
Thanks please keep me posted. I bank with CHASE (primary) & Capital One 360 & CitiBank (Secondary).

I will for sure. I was 100% set on a new F-350 diesel or Ram 3500 Mega Cab Diesel but lately I have been hooked on the Infiniti FX37. Maybe I can convince the wife to trade in her car (its paid off) for the infiniti and I can still get my truck, haha.

Re: Chances of New Auto Loan For a Lexus RX

sghosh5 — Mon, 19 Aug 2013 12:35:55 GMT

haha..i got my wife convinced to get Lexus RX 350. She insited using her credit as joint applicant, as her scores and history are perfect but then i want to get qualified on my own

Re: Chances of New Auto Loan For a Lexus RX

azguy13 — Mon, 19 Aug 2013 12:43:10 GMT

@sghosh5 wrote:
haha..i got my wife convinced to get Lexus RX 350. She insited using her credit as joint applicant, as her scores and history are perfect but then i want to get qualified on my own

I just googled it. Very nice looking vehicle. I may have to take it for a test ride when I get home. Doesn't look like there is a big difference between the RX 350 and RX 350 F Sport. I drove an Infinity G37xs for awhile and loved it, thats why I was looking at infinity.

Re: Chances of New Auto Loan For a Lexus RX

sghosh5 — Mon, 19 Aug 2013 12:48:00 GMT

Yes I might end up going for sport edition too. Just hoping to get my scores up to 670/680 range by start of next year before go for loan application. Hate the situation of messing up credit in past and now when i can actually buy a nice car but can very well be denied for a loan...but oh well

Re: Chances of New Auto Loan For a Lexus RX

azguy13 — Mon, 19 Aug 2013 12:56:11 GMT

@sghosh5 wrote:
Yes I might end up going for sport edition too. Just hoping to get my scores up to 670/680 range by start of next year before go for loan application. Hate the situation of messing up credit in past and now when i can actually buy a nice car but can very well be denied for a loan...but oh well

I totally understand. From the age of 18-22 I royally screwed up my credit to the point that I was in the very low 500s. Once I got most of the collections taken care of and off my CR, my score jumped to the low 600s. From there I GW'd for a long time and now I am in the low 700s (lender pull for CC).

The worst thing I did as a teen awas have a auto loan CO from USAA. I paid it all off and GW'd them and they took it off my CR. Per my CR, I have a perfect history for auto loans so my enhanced score should be pretty good.