topic Re: Approval Question in Auto Loans

Approval Question

fxtrader — Thu, 29 Oct 2015 23:43:10 GMT

I submitted an app today for a 2014 Jaguar F-Type V8 S, $69,995, 2,300 miles.

Down payment: $6-7k required

Monthly payment: $1,200

Interest rate: 7%

The dealer tells me he has me approved but can't disclose the lender until I say yes to the payment. He states the F&I manager did not inform him of the lending company or my credit score. I submitted an app over the phone. I don't even know what amount he is financing, how many years, etc..I was never told this over the phone..I purchased my first car in March 2015 (2015 Toyota Corolla). Any thoughts? seems shady...

Re: Approval Question

bstone — Thu, 29 Oct 2015 23:57:56 GMT

He's just playing control games with you.

Tell him yes to the payment, it's not binding until you sign the contract and take delivery anyway.

Everything is negotiable, even the rate. Tell him you want to put 0$ down and your bank told you 3% (let him call your bluff). The dealer can charge you a higher rate than you are approved for, I got my rate down 3% but just telling them no way and getting up to leave. Worst that happens is he doesn't budge, if you're good with the payment and rate you sign for it, best case scenario is you get a better deal.

Re: Approval Question

fury1995 — Fri, 30 Oct 2015 00:25:35 GMT

@fxtrader wrote:
I submitted an app today for a 2014 Jaguar F-Type V8 S, $69,995, 2,300 miles.

Down payment: $6-7k required
Monthly payment: $1,200
Interest rate: 7%

The dealer tells me he has me approved but can't disclose the lender until I say yes to the payment. He states the F&I manager did not inform him of the lending company or my credit score. I submitted an app over the phone. I don't even know what amount he is financing, how many years, etc..I was never told this over the phone..I purchased my first car in March 2015 (2015 Toyota Corolla). Any thoughts? seems shady...

Joe.. is that you? I thought I said it was 72 months when we talked on the phone earlier..

(kidding)

Yes, just say "I think that should work" doesn't matter really..

Curious.. you apped over the phone? No signature, no electronic consent? No privacy statement?

Re: Approval Question

fxtrader — Fri, 30 Oct 2015 00:30:08 GMT

The app didn't go through the Jaguar dealers website so we did it over the phone. No income verification (only stated income on the app. they didn't call my job). I consented over the phone to pull my credit. Do you think I should speak directly to the F&I manager? I'll know in a day or two who they submitted apps to once I receive the credit inquiry alerts..I was surprised I was even approved.

Re: Approval Question

fury1995 — Fri, 30 Oct 2015 01:23:48 GMT

@fxtrader wrote:
The app didn't go through the Jaguar dealers website so we did it over the phone. No income verification (only stated income on the app. they didn't call my job). I consented over the phone to pull my credit. Do you think I should speak directly to the F&I manager? I'll know in a day or two who they submitted apps to once I receive the credit inquiry alerts..I was surprised I was even approved.

Well.. I will say this is my forte.

Many reasons.

I own a Jaguar F-TYPE.

I am in the car business.

9 years at a Jaguar Dealer.

That said, what are you Fico Scores.. Auto Fico's? What is the model F-TYPE you are buying (for values)? If you are above 620, they submitted you to Jaguar Financial (Chase underwrites Jaguar Financial). Is this certified?

We'll start there...

Re: Approval Question

fxtrader — Fri, 30 Oct 2015 01:28:20 GMT

Scores are 680-690 FICO. Not sure what my Auto Enhanced is. 2014 F-Type V8 S convertible. I prefer the non-convertible. List price is $69,995. 2,200-2,300 miles. He told me Jaguar denied the app. He wouldn't tell me who approved..

Re: Approval Question

fury1995 — Fri, 30 Oct 2015 01:37:42 GMT

@fxtrader wrote:
Scores are 680-690 FICO. Not sure what my Auto Enhanced is. 2014 F-Type V8 S convertible. I prefer the non-convertible. List price is $69,995. 2,200-2,300 miles. He told me Jaguar denied the app. He wouldn't tell me who approved..

Your scores are more than enough to buy this Jag if your income supports. How is your previous car credit? That rate is too high for this deal.

Re: Approval Question

fxtrader — Fri, 30 Oct 2015 01:41:51 GMT

I purchased my first car in March 2015 for a family business (Toyota Corolla). No negatives on my reports. He said one out of the three approved me but only with a 6 or 7k deposit. 7% rate and 1,200 monthly. Seems high. We haven't discussed pricing yet. What do you suggest?

Re: Approval Question

fury1995 — Fri, 30 Oct 2015 01:54:44 GMT

@fxtrader wrote:
I purchased my first car in March 2015 for a family business (Toyota Corolla). No negatives on my reports. He said one out of the three approved me but only with a 6 or 7k deposit. 7% rate and 1,200 monthly. Seems high. We haven't discussed pricing yet. What do you suggest?

You said this is a Jaguar dealership correct? I don't seem to place the car...

$70K is on the high side for a non certified Jag going into winter..

There are currently 52 2014 F-TYPE V6 S's for sale in the US...

Is this a local trade in? Have you seen Carfax? Is it on their website?

Re: Approval Question

fxtrader — Fri, 30 Oct 2015 01:58:23 GMT

It's at a dealer on Long Island, NY. The car has been removed from the site but the Jag website still saves the history. It's listed as sold on the history section. I think it is a CPO.The car is a 2014 V8 S . No trade.

Re: Approval Question

fury1995 — Fri, 30 Oct 2015 02:07:43 GMT

@fxtrader wrote:
It's at a dealer on Long Island, NY. The car has been removed from the site but the Jag website still saves the history. It's listed as sold on the history section. I think it is a CPO.The car is a 2014 V8 S . No trade.

Got it..

Don't know where I assumed V6 S but my mitake.

Looks to be sold 23 months ago. Local area owned serviced nearby dealer..

Looks like they just got it earlier this month.

Low miles for two years for sure. Nice color combo but I like mine in white.

These are the wholesale numbers for V8 S right now, they are actual transactions.:

09/10/15 PALM BCH Regular $68,000 7,617 Above BLACK 8G A Yes
09/24/15 RIVRSIDE Lease $68,000 7,969 Above WHITE 8G A Yes
09/30/15 DALLAS Regular $63,000 14,259 Avg WHITE 8G A Yes
10/07/15 PALM BCH Lease $66,000 5,736 Above DKGRY 8G A Yes
10/14/15 ATLANTA Regular $65,000 8,232 Avg BLACK 8G A Yes
10/28/15 NASHVILL Lease $56,700 13,907 Below RED 8G A Yes

If it is indeed certified.. you have a good car. Price is good but you can always work that a little more as this was a trade, they have room.

You need to work on that loan. Do you have any access to a credit union at all?

Is your income supporting this easily and documentable (to get a much better rate)?

Re: Approval Question

fury1995 — Fri, 30 Oct 2015 02:18:03 GMT

I really am having a hard time with this deal being turned down at Jaguar Financial..

If this car is certified, it would have a lower APR at 2.9% for 60 months (670) is the qualifier. Trans Union is Jaguar Financial's primary bureau in New York. They WILL use an alternate bureau for a higher score.

The difference? A lower flat fee paid to the dealer for the loan...

I would talk to the Used Car Manager, not the Finance Manager

Re: Approval Question

fxtrader — Fri, 30 Oct 2015 02:25:48 GMT

I stated $65,000 income..not sure if this was enough? I'm putting down 7-8k. I'd buy it from your dealer if possible haha.

Re: Approval Question

bstone — Fri, 30 Oct 2015 11:29:59 GMT

7% is high. I have 8% with a BK discharged five months prior to the loan and scores in the low 600s. No reason your rate should be so high.

And my income was technically stated as well, they never asked for proof.

Re: Approval Question

Anonymous — Fri, 30 Oct 2015 14:14:37 GMT

that interest rate is too high. The interest itself is another car.

Re: Approval Question

fxtrader — Sun, 01 Nov 2015 07:12:08 GMT

I actually was approved at DCU for only $48,000 at 2.74%-3.74% (need to submit paystubs and purchase agreement). I'm waiting on a decision from Penfed.

What do you think of single-pay leases? I'm thinking about going this route for a lease offer on a F-Type V6s coupe or the V8r coupe. Maybe use the loaned money from the credit union towards the single payment of the lease and make payments to the CU..I would save hundreds per month if I did this vs. leasing directly from Jaguar (if I qualifed).

I'm assuming since a one time payment is in play, the monthly payment used in the calculation will be lower than the lease offer stated on Jaguar's website? Tier rating would not be a factor? How would GAP insurance protect me in the event of an accident?

Re: Approval Question

fury1995 — Sun, 01 Nov 2015 14:04:21 GMT

@fxtrader wrote:
I actually was approved at DCU for only $48,000 at 2.74%-3.74% (need to submit paystubs and purchase agreement). I'm waiting on a decision from Penfed.

What do you think of single-pay leases? I'm thinking about going this route for a lease offer on a F-Type V6s coupe or the V8r coupe. Maybe use the loaned money from the credit union towards the single payment of the lease and make payments to the CU..I would save hundreds per month if I did this vs. leasing directly from Jaguar (if I qualifed).

I'm assuming since a one time payment is in play, the monthly payment used in the calculation will be lower than the lease offer stated on Jaguar's website? Tier rating would not be a factor? How would GAP insurance protect me in the event of an accident?

You cannot borrow money from the credit union to pay forthe single pay lease UNLESS the money is from an unsecured (personal) loan.

If the loan from the credit union secures the Jag as collateral, they will expect to have the ONLY lien onthe vehicle.

Single pay lease will name Jaguar Credit as the lien holder as they will hold the remaining balance of the vehicle (residual).

To answer the other questions..

Single pay leases do have a (figurative) lower monthly payment as the money factor is reduced.. sometimes to almost nothing. Usually tier is not a factor for single pay lease.. either you qualify or don't.

GAP is always included in the lease as the lease bank is technically/legally the owner and is the one at risk in the event of a total loss of the collateral.

Re: Approval Question

Anonymous — Tue, 16 Feb 2016 15:30:46 GMT

Fury1995-- Are you still with Jaguar? Question...I realize all states are different, but do you know the tiers and credit scores for each tier? Also, do you know anything about employee/VIP/Business associate purchase plans, like TrueCar, etc.? I believe my company has "arrangements" with all the car companies, which offers us dealer invoice pricing, plus any incentives. Mostly every company I go drive a car at has told me that we get a better deal than actual dealership employees. #sorrynotsorry. Thanks for any help you can offer.