topic Re: Score qualifies but history does not in Auto Loans

Score qualifies but history does not

Anonymous — Fri, 04 Oct 2013 21:15:50 GMT

I am in the process of buying a new car and when the dealership pulled my scores they said I would qualify for their top teir rate at 3%. I asked them to run the numbers and see what my note would be... they came back and said that because I had a couple of 30 day lates on my previous auto loan from 2009 that they could only offer me a rate of 13%!!!!!! They said my scores were EX 670 TU 695. I asked the finance manager to reconsider but they won't budge. Should I try another dealership or will this be the case anywhere?

Re: Score qualifies but history does not

sccredit — Fri, 04 Oct 2013 21:29:43 GMT

Absolutely try another dealer

Re: Score qualifies but history does not

sccredit — Fri, 04 Oct 2013 21:30:03 GMT

@sccredit wrote:
Absolutely try another dealer

AND CREDIT UNIONS

Re: Score qualifies but history does not

Anonymous — Fri, 04 Oct 2013 21:58:10 GMT

To me it sounds like they are trying to rate hike you. Two 30 day lates from 3+ years ago will not push you over a 10% interest rate (yes, even considering your score(s)).

Are you willing to get pre-approved for an auto loan? Although it will cost you more inquiries, it greatly favors you in negotiating at the F&I office.

@sccredit wrote:

AND CREDIT UNIONS

+ on Credit Unions

Some banks that could have some favorable rates: PNC, Bank of America, Capital One

Re: Score qualifies but history does not

Revelate — Fri, 04 Oct 2013 22:09:10 GMT

@Anonymous wrote:
To me it sounds like they are trying to rate hike you. Two 30 day lates from 3+ years ago will not push you over a 10% interest rate (yes, even considering your score(s)).

Are you willing to get pre-approved for an auto loan? Although it will cost you more inquiries, it greatly favors you in negotiating at the F&I office.

@sccredit wrote:
AND CREDIT UNIONS
+ on Credit Unions

Some banks that could have some favorable rates: PNC, Bank of America, Capital One

Inquiries if they are clusted for auto loans count as one. It's expected by every underwriter that there will be several inquiries shopping for an auto loan or for a mortgage. Absolutely go check with a couple other lenders and get a good rate as I agree with the others, the one you got is pretty uncompetitive.

FWIW I always recommend finding out from a couple of lenders what they will offer before I walk into the dealership. Not only does it tell you what you can expect, but also gives you some idea on the reliability of the dealership too. When I bought my last car, it was priceless to see the salesperson tiptoe in with a 19.35% APR, but when the rest of the offers I'd gotten were in the 20-22% range, I simply smiled and signed because it was exactly what I was expecting.

That's not the case here OP, go talk to someone else as it doesn't sound like your credit report is bad at all, and this is one area where the FICO algorithm is designed with consumers being the priority: take advantage of that and rate shop.

Re: Score qualifies but history does not

Mike360 — Sun, 06 Oct 2013 01:58:35 GMT

They were giving you the run around. I had 2 30 late day in '09 from a prior auto loan when i got my car earlier this year and i got 3.9% for 72 months. Go somewhere else.

Re: Score qualifies but history does not

Anonymous — Mon, 07 Oct 2013 17:05:07 GMT

Thank you all for the replies. I will stop by the credit union this afternoon and see what they say. I know my scores aren't amazing, but I don't think they are terrible. Fingers crossed

Re: Score qualifies but history does not

Anonymous — Tue, 08 Oct 2013 12:52:02 GMT

Try the dealer and set your limit, if they can't reach it be willing to walk away