topic Re: Please help urgent questions about Auto Loans in Auto Loans

Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 05:05:46 GMT

Hi. My Fico scores are 694 and 703. I'm 24 and looking to purchase a Toyota with OTD estimation is $22,800. I plan to put down $5,000. Toyota is having a promotion 0% for 48 months, and 0.9% for up to 60 months.

Do you guys think I'll be qualified for the 0.9%?

Should I get pre-approval from USAA and Penfed first? What are other Credit Unions?

Does it hurt to get many pre-approval?

Thank you.

Re: Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 05:09:46 GMT

@Anonymous wrote:
Hi. My Fico scores are 694 and 703. I'm 24 and looking to purchase a Toyota with OTD estimation is $22,800. I plan to put down $5,000. Toyota is having a promotion 0% for 48 months, and 0.9% for up to 60 months.
Do you guys think I'll be qualified for the 0.9%?
Should I get pre-approval from USAA and Penfed first? What are other Credit Unions?
Does it hurt to get many pre-approval?
Thank you.

Assuming that your auto enhanced score is anywhere near your FICO scores, you will get the Toyota special financing. If you get lots of preapprovals it just means you will have lots of auto inquiries on your reports. This won't hurt your scores but can hurt your credit in other ways.

Re: Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 05:34:43 GMT

Thanks. Penfed offers 1.99% up to 5 years and DCU offers 1.29 or 1.49 i think. Do you think I should apply ahead of time or wait until Toyota Financing gives me an answer?

All Auto Loans are fixed rate right? No matter what will happen, it will be the same rate?

Re: Please help urgent questions about Auto Loans

EddieK — Fri, 30 Jan 2015 05:37:26 GMT

@Anonymous wrote:
Thanks. Penfed offers 1.99% up to 5 years and DCU offers 1.29 or 1.49 i think. Do you think I should apply ahead of time or wait until Toyota Financing gives me an answer?
All Auto Loans are fixed rate right? No matter what will happen, it will be the same rate?

DCU's rate with auto payments is 1.49%. I wouldn't apply to them beforehand in your case since you most likely will be able to get the promo financing with Toyota. No need to waste 2 hard pulls.

Re: Please help urgent questions about Auto Loans

Revelate — Fri, 30 Jan 2015 07:55:36 GMT

@EddieK wrote:
@Anonymous wrote:
Thanks. Penfed offers 1.99% up to 5 years and DCU offers 1.29 or 1.49 i think. Do you think I should apply ahead of time or wait until Toyota Financing gives me an answer?
All Auto Loans are fixed rate right? No matter what will happen, it will be the same rate?
DCU's rate with auto payments is 1.49%. I wouldn't apply to them beforehand in your case since you most likely will be able to get the promo financing with Toyota. No need to waste 2 hard pulls.

Even if I were gold plated I'd always arrange financing beforehand: never know what can go wrong and then if you're ready to go out the door and the F&I guy offers a crappy loan... meh. Can use the DCU offer as a shield to the usual dealership antics, both I think are worth losing a single inquiry over which is utterly trivial especially when we're talking auto inquiries for rate shopping which everyone should do.

Re: Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 08:28:28 GMT

Some people said many inquiries within 30 days count as 1. Is that true? If that's the case, does DCU give instant approval on auto loan? How does it work if I apply for the auto loan today and buy the car tomorrow?

Re: Please help urgent questions about Auto Loans

Revelate — Fri, 30 Jan 2015 08:42:48 GMT

@Anonymous wrote:
Some people said many inquiries within 30 days count as 1. Is that true? If that's the case, does DCU give instant approval on auto loan? How does it work if I apply for the auto loan today and buy the car tomorrow?

Two weeks is the gold standard since EX Risk Model 2 is still '98 and that's part of the mortgage trifecta. DCU sometimes gives instant approvals yes, but typically that's exactly what you do, apply for the loan, get approved, then go down to the dealership.

Re: Please help urgent questions about Auto Loans

StartingOver10 — Fri, 30 Jan 2015 12:37:08 GMT

@Revelate wrote:
@EddieK wrote:
@Anonymous wrote:
Thanks. Penfed offers 1.99% up to 5 years and DCU offers 1.29 or 1.49 i think. Do you think I should apply ahead of time or wait until Toyota Financing gives me an answer?
All Auto Loans are fixed rate right? No matter what will happen, it will be the same rate?
DCU's rate with auto payments is 1.49%. I wouldn't apply to them beforehand in your case since you most likely will be able to get the promo financing with Toyota. No need to waste 2 hard pulls.
Even if I were gold plated I'd always arrange financing beforehand: never know what can go wrong and then if you're ready to go out the door and the F&I guy offers a crappy loan... meh. Can use the DCU offer as a shield to the usual dealership antics, both I think are worth losing a single inquiry over which is utterly trivial especially when we're talking auto inquiries for rate shopping which everyone should do.

+100. ^^^I like that phrase Rev used: "use the DCU offer as a shield to the usual dealership antics,..." Exactly right. Walking into a dealership without a pre-approval from another lender is walking in unarmed and defenseless. In fact, even if the dealer offered a nominally better rate, it might not be worth the hassel to have them run your credit for the deal. You only have one INQ with DCU or other outside lender (usually) - but with dealers you get a bunch of INQs ...is it worth it to save a nominal amount? Not for me.

Re: Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 16:53:32 GMT

As of now, DCU has the lowest rate right?

Re: Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 17:24:26 GMT

Dcu gives me 1.99%. Do i choose "Accept Rate" or not?

Re: Please help urgent questions about Auto Loans

EddieK — Fri, 30 Jan 2015 17:37:26 GMT

@Revelate wrote:
@EddieK wrote:
@Anonymous wrote:
Thanks. Penfed offers 1.99% up to 5 years and DCU offers 1.29 or 1.49 i think. Do you think I should apply ahead of time or wait until Toyota Financing gives me an answer?
All Auto Loans are fixed rate right? No matter what will happen, it will be the same rate?
DCU's rate with auto payments is 1.49%. I wouldn't apply to them beforehand in your case since you most likely will be able to get the promo financing with Toyota. No need to waste 2 hard pulls.
Even if I were gold plated I'd always arrange financing beforehand: never know what can go wrong and then if you're ready to go out the door and the F&I guy offers a crappy loan... meh. Can use the DCU offer as a shield to the usual dealership antics, both I think are worth losing a single inquiry over which is utterly trivial especially when we're talking auto inquiries for rate shopping which everyone should do.

Then you walk out and get the loan from DCU and come back the next day. Although I went the DCU route, in OP's situation I wouldn't feel the need to waste HPs. Which in the big picture are not 'trivial.'

Re: Please help urgent questions about Auto Loans

EddieK — Fri, 30 Jan 2015 17:44:11 GMT

@Anonymous wrote:
Dcu gives me 1.99%. Do i choose "Accept Rate" or not?

Yes, that is their best rate. You get a .50 reduction when you DD and set up auto payments.

Re: Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 17:49:05 GMT

@EddieK wrote:
@Revelate wrote:
@EddieK wrote:
@Anonymous wrote:
Thanks. Penfed offers 1.99% up to 5 years and DCU offers 1.29 or 1.49 i think. Do you think I should apply ahead of time or wait until Toyota Financing gives me an answer?
All Auto Loans are fixed rate right? No matter what will happen, it will be the same rate?
DCU's rate with auto payments is 1.49%. I wouldn't apply to them beforehand in your case since you most likely will be able to get the promo financing with Toyota. No need to waste 2 hard pulls.
Even if I were gold plated I'd always arrange financing beforehand: never know what can go wrong and then if you're ready to go out the door and the F&I guy offers a crappy loan... meh. Can use the DCU offer as a shield to the usual dealership antics, both I think are worth losing a single inquiry over which is utterly trivial especially when we're talking auto inquiries for rate shopping which everyone should do.
Then you walk out and get the loan from DCU and come back the next day. Although I went the DCU route, in OP's situation I wouldn't feel the need to waste HPs. Which in the big picture are not 'trivial.'

Personally I think I tend to agree with EddieK here. There is no reason that if they don't give you the special financing or play games that you just can't walk out and come back or even go to another dealership. No one can force you to sign anything if you have some backbone and know what you're doing. You might not even have to walk out but just say ' Either I get the special financing or I'm looking elsewhere for financing' . Even though they don't make much money on the special financing deals they make some and it's better than what they get if you use outside financing. You can be prepared ahead of time by knowing your scores without wasting a HP or two.

Re: Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 19:01:19 GMT

If the dealer and I agree on the sale, should i let toyota check my score for their special financing? I know my scores in paper and from Honda

Re: Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 19:31:33 GMT

@Anonymous wrote:
If the dealer and I agree on the sale, should i let toyota check my score for their special financing? I know my scores in paper and from Honda

Yes but tell them you have your own similar financing set up even if you don't

Re: Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 21:55:26 GMT

I need to be a member of DCU right? Can I just select Reach Out For Schools and pay $10?

Re: Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 21:57:10 GMT

@Anonymous wrote:
I need to be a member of DCU right? Can I just select Reach Out For Schools and pay $10?

Yes. That allows you membership into the CU

Re: Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 22:02:18 GMT

Do I really need to join it? Or I need to be member to finanlize the loan? They approve me 1.99% for 17k

Re: Please help urgent questions about Auto Loans

EddieK — Fri, 30 Jan 2015 22:13:29 GMT

@Anonymous wrote:
Do I really need to join it? Or I need to be member to finanlize the loan? They approve me 1.99% for 17k

Yes, you need to join(become a member) before they will fund the loan.

Re: Please help urgent questions about Auto Loans

Anonymous — Fri, 30 Jan 2015 22:18:24 GMT

During the process of joining membership, it says I'm pre-approval for auto loan up to $20k. Should I apply it again or not?