topic Re: Approved for a car I didn't even want!!! Please advise! in Auto Loans

Approved for a car I didn't even want!!! Please advise!

glamchick — Wed, 05 Nov 2014 22:18:24 GMT

ok my current car is having major issues and out of warranty and I still owe on it. I found another nice used car and the sales manager was ready to give sell me the car. I decided to wait to think about it. Went back the next day a different sales manager said no cant get you a loan you still owe on your car. He told me to buy a new car with incentives to pay off my current car. Well I test drive a new car and totally hated it. The sales guy says let me just get you some numbers then he said congrats you were approved????? I never said I wanted the car nor did I sighn anything. I am sooooooooooo upset this people are scammers. What will this do to my credit?? Please help. Will this mess me up trying to buy another used car???

Re: Approved for a car I didn't even want!!! Please advise!

sccredit — Wed, 05 Nov 2014 22:41:50 GMT

If you are currently in the market just keep looking. It should not have a negative effect on your car shopping.

Re: Approved for a car I didn't even want!!! Please advise!

0REDSOX7 — Thu, 06 Nov 2014 00:20:48 GMT

Are you sure you never filled out an application? Even on the used car?

Re: Approved for a car I didn't even want!!! Please advise!

glamchick — Thu, 06 Nov 2014 04:18:42 GMT

Yes I filled out the application for the used car and they told me I would not be approved that I could only buy a new car. So I test drove a new car and when I got back they said I was approved. The car is 15000 more than the used car. But I can't afford it nor do I like the new car. I really wanted the used acura. They wouldn't sell it to me

i just wanted to make sure that when they said I was approved it wouldn't mess up trying to get a loan somewhere else that isn't shady

Re: Approved for a car I didn't even want!!! Please advise!

Anonymous — Thu, 06 Nov 2014 10:08:29 GMT

@glamchick wrote:
Yes I filled out the application for the used car and they told me I would not be approved that I could only buy a new car. So I test drove a new car and when I got back they said I was approved. The car is 15000 more than the used car. But I can't afford it nor do I like the new car. I really wanted the used acura. They wouldn't sell it to me

i just wanted to make sure that when they said I was approved it wouldn't mess up trying to get a loan somewhere else that isn't shady

whenever you fill up a credit app, dealerships will pull your credit.

Never give them your social until you are sure you are buying from them.

That being said, you ended up with a few inquiries. If they are coded correctly, they will be counted as 1, so your scores will drop 2-5 points. However, most delaerships / auto loan inquiries are not coded properly, so banks may sometimes regard them as individual separate inquiries, which means your scores dropped a little more and you now have more inquiries than before.

If you are shopping for a car, continue doing so. I think any auto inquiries within a 30 or 60 day period are supposed to be grouped together and count as 1 total.

if you are shopping for a used car, it's also better to arrange for your own financing rather than to let the dealership pull your credit. If you are sure you can get approved for the best rate or get approved by the car's manufacturer (assuming its a certified pre owned), then have the dealer apply with that manufacturer only.

Re: Approved for a car I didn't even want!!! Please advise!

glamchick — Thu, 06 Nov 2014 14:18:41 GMT

This is all awesome information!!!

I need to buy something now since my car is about to go and if it does go I can't use it as a trade-in . Im going to try another used car place tonight. I am anxious to here what they say.

So if I apply myself for a loan how does that work since I already have a loan out on another car that I am planning to trade-in?

And will the inquiry still count as 1 if I apply on my own?

Re: Approved for a car I didn't even want!!! Please advise!

StartingOver10 — Thu, 06 Nov 2014 17:36:10 GMT

You can apply with a credit union and that way you are approved before you step foot on the car lot.

You can take your car to CARMAX and get them to quote you a price to sell it to them Their quotes are good for 7 days. There are other places that will buy your vehicle running or not. Carmax is one of the legitimate ones and you don't have to buy a car there either.

A trade is usually the worst way to get value out of your old vehicle. You get the least amount from a trade (sometimes nothing because the dealership has a way of swapping around the figures so you pay more for the new to you vehicle and they get your trade for free.

Re: Approved for a car I didn't even want!!! Please advise!

Anonymous — Thu, 06 Nov 2014 23:37:52 GMT

@StartingOver10 wrote:
You can apply with a credit union and that way you are approved before you step foot on the car lot.

You can take your car to CARMAX and get them to quote you a price to sell it to them Their quotes are good for 7 days. There are other places that will buy your vehicle running or not. Carmax is one of the legitimate ones and you don't have to buy a car there either.

A trade is usually the worst way to get value out of your old vehicle. You get the least amount from a trade (sometimes nothing because the dealership has a way of swapping around the figures so you pay more for the new to you vehicle and they get your trade for free.

+1.

The best way to sell a vehicle is private party. However, if that's too much work, then sell it to carmax or auto nation direct. auto nation direct seems to give pretty good quotes as well, and they do match carmax. They will give you a quote over the internet, come to your place, inspect the vehicle, and do the paperwork on the spot if everything checks out fine. Certain used car places will match or better carmax's price as well, even by a few hundred. So the best way is to go to carmax first, and then have other places try to match or better it.

For auto loan, check out several credit unions and banks for their best rates. If you are buying a certified pre owned Toyota for instance, check out Toyota financial services' best rates for a CPO car. You can also drop in at a dealership and ask them the scores needed for each tier of financing, so you know the APR rates that you are going to get.

If you have a current car loan, the used car dealership that is buying your car will pay them off first, and any remaining money will go to you. If you are upside down on your loan, you will need to write a check or get a money order / cashiers check for that amount. Some dealerships may tell you that they will reimburse your old loan up to a certain amount if you are upside down, but READ THROUGH ALL THE PAPERWORK THOROUGHLY. If you do not understand the Math, then something is probably wrong. They usually do so by moving that amount onto your new loan or onto the price of the car you are getting.

Re: Approved for a car I didn't even want!!! Please advise!

Anonymous — Thu, 06 Nov 2014 23:40:40 GMT

@glamchick wrote:
Yes I filled out the application for the used car and they told me I would not be approved that I could only buy a new car. So I test drove a new car and when I got back they said I was approved. The car is 15000 more than the used car. But I can't afford it nor do I like the new car. I really wanted the used acura. They wouldn't sell it to me

i just wanted to make sure that when they said I was approved it wouldn't mess up trying to get a loan somewhere else that isn't shady

who approved you for the loan?

and were u shopping at a non acura or honda dealership?

Re: Approved for a car I didn't even want!!! Please advise!

Dj4Money — Fri, 07 Nov 2014 07:57:34 GMT

What was the new car they put you in and hated (which is a strong word and not to be used lightly)?

You mentioned an Acura, not the most exciting things on the planet, fancy Hondas. The TSX is the last "fun" car they sold and now it's merged into the TLX (TL + TSX = TLX)

I am going to assume you were not at a Honda/Acura dealership but someplace else. I will also echo what others have mentioned; if you MUST have a used car, get your financing first, if you can. Sell your car private party, if you want it done faster than that CarMax or Auto Naiton are the answer. You are likely to get more private party than through them, but unless you drive a popular car, it might take longer to sell it than anticipated.

Re: Approved for a car I didn't even want!!! Please advise!

glamchick — Fri, 07 Nov 2014 15:43:32 GMT

When I try trading the car in they only offer me 3-5000 and I still owe 9,000 on it. So you are correct I should just sell it to an individual, but I don't think i would get what I owe on in that way either.

I am really in a jam.

Re: Approved for a car I didn't even want!!! Please advise!

glamchick — Fri, 07 Nov 2014 15:46:56 GMT

Also I wanted to thank everyone for their response. I really appreciate all the help!

But to answer some of the questions. Yes I was at a ford dealership where they had the used acura I really like and was my price range. I went to an Acura dealer yesterday and they said my payment would be so high cause of my bad credit score.

I don't know if I should apply at a credit union because my score is under 600 right now.

Re: Approved for a car I didn't even want!!! Please advise!

Dj4Money — Sat, 08 Nov 2014 06:17:47 GMT

Most of the time even with good credit it's hard to get loans out of American Honda. Depending on what year the Acura is, you might want to try a Credit Union. I would still like to know what Ford model you hated and what model this Acura is.

You basically have two choices -

You can take a new small car loan (I am going to assume it was a Fiesta) with Ford Credit (Are you a first time buyer?), seems they approved you with a 600 score, is that your Experian score?

Credit Union or CarMax. In fact it's likely you can find the same Acura in Car Max's system.

Honestly you likely should wait 9 months to a year and fix whatever it wrong with your credit to cause a low score.

Re: Approved for a car I didn't even want!!! Please advise!

Anonymous — Sat, 08 Nov 2014 11:58:50 GMT

@glamchick wrote:
Also I wanted to thank everyone for their response. I really appreciate all the help!

But to answer some of the questions. Yes I was at a ford dealership where they had the used acura I really like and was my price range. I went to an Acura dealer yesterday and they said my payment would be so high cause of my bad credit score.

I don't know if I should apply at a credit union because my score is under 600 right now.

Dj4Money gave you really good advice.

The reason why the dealership couldn't get you the loan for the Acura was because it was Ford that was financing the loan, and they will only finance ford vehicles (new and CPO).

with a 600 score, it is going to be relatively hard to get a decent loan from any bank / manufacturer. Your rates are going to be high and I strongly advise against that because it's just too easy to become upside down on your car loan if the rates are too high. And the amount you owe in total after including interests is just not worthwhile for that vehicle. In most cases you can get something much better for hat amount of money you are spending.

My advice is for you to buy something that you can afford using cash, or something that is equivalent to the value of your current trade in. Drive that car around for a couple years, fix your credit report, and then get another car afterwards at a decent rate.