topic Re: what is a "well qualified buyer" for automobile special financing 0% etc. in Auto Loans

what is a "well qualified buyer" for automobile special financing 0% etc.

startover03 — Fri, 04 Mar 2011 16:35:41 GMT

While I am sure I don't meet this criteria currently, I would like to know, does anyone have some numbers (fico) to share regarding these "well qualified buyer" interest special financing through dealerships (or other). I'd like to know what they're looking for? Anyone who has received this type financing, please share your scores/background? Thanks!

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

Anonymous — Fri, 04 Mar 2011 17:16:40 GMT

In all honesty, well qualified is another way to say "not all buyers will qualify" They cannot quantify it simply with a score since there are many other factors that are considered. Ihave seen 580s get a 0% rate due to how the deal was constructed.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

blackarsenic — Fri, 04 Mar 2011 19:52:22 GMT

Impossible

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

Anonymous — Fri, 04 Mar 2011 19:55:09 GMT

I qualified for Nissan's "well qualified" deal (1.9% for 72). TU FICO pulled by Nissan was 720, put $2000 down and had about $1000 in trade. Loan amount ended up right at $25K, a little under half of my gross income.

They weren't sure the could get me the rate because I'd never had a car loan, but after some tug and pull they got me approved : )

Basically the sales manager said a good prior auto loan history with a 680 could get the rate.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

Anonymous — Fri, 04 Mar 2011 20:06:12 GMT

@blackarsenic wrote:

In all honesty, well qualified is another way to say "not all buyers will qualify" They cannot quantify it simply with a score since there are many other factors that are considered. Ihave seen 580s get a 0% rate due to how the deal was constructed.

Impossible

Possible: Recovering from a BK, but had re-established, had an existing relationship with FMC with no blemishes, was a Ford Employee, put 3K down, and was a vehicle that Ford wanted to get off the lots.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

700orbust — Fri, 04 Mar 2011 23:25:47 GMT

I agree, its isn't always based on score...I qualified for BMW's 1.9% rate when I bought my M3, scores were around 675, util was high on a couple cards, but I was trading in a 24K BMW and put down about $4500. I also understated my income (wasn't sure what my distributions would add up to) so the purchase price was slightly more than my income - that was the only obstacle. But their qualification was a "pass/fail". Not tiered. Every lender/manufacturer is different.

Also, I have been told my numerous employees - Your score could be in the dumps, but if you've had a flawless payment history with the lender, you'll get another loan. I had a friend who had scores around 590 - but he paid his previous BMWFS loan like clockwork and they approved him for a new one.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

striders — Sat, 05 Mar 2011 18:54:03 GMT

In my experiences, "well qualified means" NO AUTO REPO for the last 4 years. Even if your score is 700, have low utilization, but you have had repo in less than 4 years, bank will decline the auto loan.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

cdtotten — Mon, 07 Mar 2011 13:01:59 GMT

Yes because most lenders use auto-enhanced scoring, so a repo is a death blow to any chances of a car loan. It is also extremely rare to see someone with a 700 ho had a car repo in the past 4 years... that's a big deal.

At least for Honda, their top tier usually requires a 720.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

striders — Mon, 07 Mar 2011 15:34:11 GMT

There IS still a chance though... I got a loan with 9.9% even with a repo record. Not the best APR, but definitely not a sub-prime either..
@cdtotten wrote:
Yes because most lenders use auto-enhanced scoring, so a repo is a death blow to any chances of a car loan. It is also extremely rare to see someone with a 700 ho had a car repo in the past 4 years... that's a big deal.

At least for Honda, their top tier usually requires a 720.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

Anonymous — Wed, 19 Dec 2012 22:22:40 GMT

In 2010, my wife and I were 3 years past bk, had a 700 FICO score and low utilization on 3 unsecured credit cards. We had financed our previous vehicle with Honda Finance and did not declare it in the bk but they were aware of it.

Our income was (and remains) 'fixed' based on SS (retirement for me, disability for her) plus a 18k annual disabily pension for her. We own our home and, in 2010, had a few store accounts open with low balances as well as a $5,000. credit limit on a Dell acct. opened in late 2008.

We financed a new (2010) Civic with only the equity in our trade-in (approximately $2,500) as a dp and received the 1.9% 'special' financing rate (on a 60-month loan).

This was our 3rd car loan with Honda Finance so that was probably a factor. I plan to purchase a 2013 Honda and expect to receive the 1.9% financing again on the basis of a perfect payment record with them and approximately $4,000. equity in my current Honda which will be my DP.

In brief, Honda Finance has been good to us and yes, there is life after BK.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

maiden_girl — Thu, 20 Dec 2012 09:57:27 GMT

@Anonymous wrote:
In 2010, my wife and I were 3 years past bk, had a 700 FICO score and low utilization on 3 unsecured credit cards. We had financed our previous vehicle with Honda Finance and did not declare it in the bk but they were aware of it.

Our income was (and remains) 'fixed' based on SS (retirement for me, disability for her) plus a 18k annual disabily pension for her. We own our home and, in 2010, had a few store accounts open with low balances as well as a $5,000. credit limit on a Dell acct. opened in late 2008.

We financed a new (2010) Civic with only the equity in our trade-in (approximately $2,500) as a dp and received the 1.9% 'special' financing rate (on a 60-month loan).

This was our 3rd car loan with Honda Finance so that was probably a factor. I plan to purchase a 2013 Honda and expect to receive the 1.9% financing again on the basis of a perfect payment record with them and approximately $4,000. equity in my current Honda which will be my DP.

In brief, Honda Finance has been good to us and yes, there is life after BK.

Usually if you are post BK and a company is aware of it but you haven't done anything to jeopardize your relationship with them...they will usually stay with you. This is true for most companies.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

Anonymous — Thu, 20 Dec 2012 13:03:00 GMT

The same with Honda's subdivision, Acura Financial. Last month I was approved with them for a lease with a 724 score. They told me the cutoff for tier 1 is 720 and that that was the score required for the advertised special that quoted, "for well qualified lessees".

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

Anonymous — Thu, 20 Dec 2012 13:07:20 GMT

I should add that Honda/Acura is very forgiving. I surrendered a 2003 Accord after reaffirming it after filing Ch 7 bankruptcy. After being approved through Acura Financial last month, I received a letter in the mail saying, "Welcome back to our family". So they still had my surrender paperwork almost 10 years later from Honda Financial.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

rjbales — Mon, 19 Aug 2013 22:01:34 GMT

Hello,

I have a very low score of 570. I just financed a brand new truck with not a dime out of my pocket, low payments at 72 monthes at an unbeleivable fixed APR of 1.9%. I asked the dealer how was they was able to pull it off with my credit score being sooo low. They replied by saying it was based on rebates they were offering combined with meeting the banks requirements (Ally Bank). The truck was not cheap either. It was the fully loaded Chevy Silverado LT costing $36, 900.00.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

azguy13 — Mon, 19 Aug 2013 22:04:44 GMT

@rjbales wrote:
Hello,
I have a very low score of 570. I just financed a brand new truck with not a dime out of my pocket, low payments at 72 monthes at an unbeleivable fixed APR of 1.9%. I asked the dealer how was they was able to pull it off with my credit score being sooo low. They replied by saying it was based on rebates they were offering combined with meeting the banks requirements (Ally Bank). The truck was not cheap either. It was the fully loaded Chevy Silverado LT costing $36, 900.00.

Congrats! Thats amazing

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

Ditovera — Tue, 20 Aug 2013 12:10:57 GMT

@Anonymous wrote:
@blackarsenic wrote:

In all honesty, well qualified is another way to say "not all buyers will qualify" They cannot quantify it simply with a score since there are many other factors that are considered. Ihave seen 580s get a 0% rate due to how the deal was constructed.

Impossible

Possible: Recovering from a BK, but had re-established, had an existing relationship with FMC with no blemishes, was a Ford Employee, put 3K down, and was a vehicle that Ford wanted to get off the lots.

POSSIBLE!!

I had an (auto) FICO score of 635!... traded in my car for $11500 and got 0% financing for 60 months on a $28,500 prius for a total finaced amount of $17,000 through toyota financial services. But i walked in with a preapproval from usaa with 2.49% apr and told the dealer only way id finance was if i got 0%

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

Anonymous — Sat, 15 Feb 2014 18:59:26 GMT

As a follow-up to my previous post (12/12) - we bought a 2013 Honda Civic in March, 2013 with the 1.9% 'preferred' interest rate. My FICO score was 762. My wife's was 720. I traded my 2010 and my equity was $3,200. which served as my DP (no cash down). I'm sure over 8 years of perfect payment history with Honda Finance was a factor as well as the (then) six-year time period past our 2007 BK. Our credit is well on the way to being solidly rebuilt and I'm sure when the BK drops off (in 2017) we'll be into the low 800 range.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

14IS4 — Sat, 15 Feb 2014 21:59:00 GMT

It's definitely possible to get 0% financing with any credit score. The dealer will take the money off the trade or put into the financed amount hidden in fees or whatever else they want to. I've seen plenty of deals were people in the 400's that had 0% interest. The dealer will say we need $4000 down to get 0% and that money will be used to pay the difference you would have paid in the interest rate they were going to give you.

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

Anonymous — Tue, 13 Oct 2015 01:47:38 GMT

Applied to Acura finance for 36 month lease advertised by acura national ad on tv. They pulled transunion auto score 4 which mine was 696 and was approved for " well qualified" In Pennsylvania.

Fico TU 745 EX 773 EQ 765

Re: what is a "well qualified buyer" for automobile special financing 0% etc.

Anonymous — Tue, 13 Oct 2015 17:53:50 GMT

Any experience with "well qualified" for borrower with 2 auto loans on record and 1 30-day late car payment 48+ months ago? Fico8 scores in 760s.