topic Re: I guess i'm sunk.. in Auto Loans

I guess i'm sunk..

kahmyah — Tue, 06 May 2008 18:18:58 GMT

well i went ahead and did it. i applied for a new car autoloan online with capital one. now mind you, i haven't had a car loan in 15 years..my credit scores are not that great i admit - exp -637, eq - 662, and trans - 626 at my last check of them which is daily through My Fico. Anyway, i had a lot of accounts in my past that i have paid of satisfactorily through settlement agreements. i only have 3 open accounts, all in current status with no balances at all on two of them and most recent about $143 on the last one which i paid in full before my due date. i have a job which i have been at for two years now going into my 3rd year. so with that history and again, i know it doesn't sound rosy, i went ahead and applied for a new car loan being that i haven't had a new car in 15+ years. So I figured I would apply to Capital One being that I have an account with them thats current with no balance on it and I have had for about 3 months or more now. I got an email from them telling me about their auto buying process so I figured I would take a chance. I applied online was nervous the whole time i was putting in my info and before I hit the send/apply button, I said a prayer, lit a candle, offered to be extrra good for a whole week etc etc etc. ok i am joking but the truth was i hoping it would go through without a snag. Yes in 15 mins or less just as they advertised I got my response back. Drum roll please!!.. A resounding depressing NO! I was so bummed. But mentally i had prepared myself for the worst. Its odd. Now what.. Even if i do manage to find someone to approve me, i am looking at very high interest rate. But seriously, even if i do manage to find someone or bank kind enough to take a chance or a reformed credit card holder, the best rate i think i would get would be in the neighborhood of what 10+ percent..i might as well go visit the Godfather and have him give me one of his ahhh, how do i say it "make me an offer he won't refuse" kind of rates. its so depressing and i'm sunk. i mean i am doing everything right from all the research i have done. paid everything i have on time or ahead of my due date. i have a job, a credit history (ok its not stellar but at least i have one)...ah to pay for your sins of the past. they come back to haunt you. ah, i'm sunk..any advice besides a gun or some hemlock..

Re: I guess i'm sunk..

kahmyah — Tue, 06 May 2008 19:27:54 GMT

well thats encouraging..so i at least have a chance..but not at 26..oh my gosh..hmm..any other suggestions..i thought about roadloan, and eloan. anyone heard anything on these guys..and there is always hsbc..oh my gosh..like i said, any other suggestions will be hugely appreciated..thank you all in advance...

Re: I guess i'm sunk..

sonogirl — Wed, 07 May 2008 03:03:48 GMT

Try Americredit, they approved me with scores in the 500's it was a sucky rate but you could always refi. By the way your scores aren't that bad call them and ask them why you were declined.

Re: I guess i'm sunk..

kahmyah — Wed, 07 May 2008 15:02:45 GMT

thank you so very much for the heads up..i will give them a try as well..its so frustrating..i'm trying just about everything rather than going through the dealer..thanks..

Re: I guess i'm sunk..

kahmyah — Wed, 07 May 2008 15:06:14 GMT

also, what does it mean when your referred to as an "opt-In"..i got an email message that says my application was under review or something to that effect. however, they forwarded (Roadloans, eloan i am assuming) to another dealer (preferred or one of their other partners) who could possibly help me. however, its a volkswagon dealer. mind you i don't have anything against volkswagons. but its not the car that i am looking to purchase. so why send me there if its not the model or make i am interested in..plus what does opt in mean in the car business..man this is confusing..

Re: I guess i'm sunk..

Schoolbuskid — Wed, 07 May 2008 15:56:14 GMT

Hey could you not join a credit union and apply with them, your scores are not bad, i would consider them fair. Anyways credit union are alot more lenient and are willing to help more! My credit union offer its highest APR at 11.75% so thats not too bad! Good Luck! If you have high util on some of your cards it might be a good idea to bring them down the best you can! You should see a score boost from that! Wish you the best!

Re: I guess i'm sunk..

shyboy — Thu, 08 May 2008 03:45:58 GMT

Like the person above said, i would try a credit union.

Re: I guess i'm sunk..

Anonymous — Fri, 09 May 2008 14:36:36 GMT

@kahmyah wrote:
well i went ahead and did it. i applied for a new car autoloan online with capital one. now mind you, i haven't had a car loan in 15 years..my credit scores are not that great i admit - exp -637, eq - 662, and trans - 626 at my last check of them which is daily through My Fico. Anyway, i had a lot of accounts in my past that i have paid of satisfactorily through settlement agreements. i only have 3 open accounts, all in current status with no balances at all on two of them and most recent about $143 on the last one which i paid in full before my due date. i have a job which i have been at for two years now going into my 3rd year. so with that history and again, i know it doesn't sound rosy, i went ahead and applied for a new car loan being that i haven't had a new car in 15+ years. So I figured I would apply to Capital One being that I have an account with them thats current with no balance on it and I have had for about 3 months or more now. I got an email from them telling me about their auto buying process so I figured I would take a chance. I applied online was nervous the whole time i was putting in my info and before I hit the send/apply button, I said a prayer, lit a candle, offered to be extrra good for a whole week etc etc etc. ok i am joking but the truth was i hoping it would go through without a snag. Yes in 15 mins or less just as they advertised I got my response back. Drum roll please!!.. A resounding depressing NO! I was so bummed. But mentally i had prepared myself for the worst. Its odd. Now what.. Even if i do manage to find someone to approve me, i am looking at very high interest rate. But seriously, even if i do manage to find someone or bank kind enough to take a chance or a reformed credit card holder, the best rate i think i would get would be in the neighborhood of what 10+ percent..i might as well go visit the Godfather and have him give me one of his ahhh, how do i say it "make me an offer he won't refuse" kind of rates. its so depressing and i'm sunk. i mean i am doing everything right from all the research i have done. paid everything i have on time or ahead of my due date. i have a job, a credit history (ok its not stellar but at least i have one)...ah to pay for your sins of the past. they come back to haunt you. ah, i'm sunk..any advice besides a gun or some hemlock..

I got turned down by Capitol One, too, but then when I started shopping at the major car dealers, all of them were able to offer me a good loan. I ended up getting a loan for 11K on a 2 year old car, with a 6% interest rate from Eastern Bank. The dealers have a lot of pull with the banks, so its better to go through them.

Re: I guess i'm sunk..

kahmyah — Tue, 13 May 2008 15:41:13 GMT

well finally i got some good news..i did get approved by Capital One..it took a lot prayer even after i got rejected the first time, but they went back and reviewed it again and i got approved. now mind you the rate was at 9.3. i am still shopping around to see if i can get a lower but its good to know that i have at least one just in case everything else falls apart. woo hoo.. also, i must say, the capital one auto buying program. if you haven't used it yet, i will say DO IT. its very simple and easy. once your approved, they ask that you fax in some pay stubs for income verification. once those check out, your good to go. very simple and easy..the people you talk to on the phone are very nice friendly and courteous. they couldn't understand why i got rejected the first time but they walked me through again to see what went wrong and it worked. good program.. nice people. so give it a try is my recommendation..also, one last thing..i would like to personally thank each and everyone one of you for your positive, upbeat kind words of encouragement. that means or meant a lot to me through this whole process..also, i would like to thank you all for all the great information and pieces of advice you offered. it helped me so much through this whole thing. thank you all again..

Re: I guess i'm sunk..

Watchmann — Fri, 16 May 2008 04:10:05 GMT

9.3% on a car loan isn't THAT bad. Could be worse. See if the dealer can beat it, if not use the approved loan.

Re: I guess i'm sunk..

kahmyah — Sat, 17 May 2008 23:15:15 GMT

ok, i went to some dealerships today..i went to one and i didn't tell him i already had my financing lined up however, he said he had some incentives out there. one was he could possibly put me into a luxury vehicle operative word being luxury for a rate of 3.9 with 3K down. now i was tempted considering the rate i got from cap one was 9.34..i was skeptical because i want to make a good decision and good deal. when i heard 3.9 i was skeptical. if it sounds to good to be true then something doesn't smell right..plus as of last check, my credit scores were tu-681, exp-676, equif-676. Now grant it, they are not in the 700 range but i still find it hard to believe that someone would give me that rate with my scores. I got a feeling a bate and switch thing is coming or they will inflate the numbers somewhere. he said my monthly payment would be in the 680 range but i just didn't feel comfortable with it..something didn't feel right..any ideas or comments..do u think i should try for their dealer financing or stay with cap one deal..

Re: I guess i'm sunk..

demo18c — Sun, 18 May 2008 18:38:45 GMT

I would go with the dealers 3.9 but at the same time make sure nothing extra is put into the contract. You can always back out if they try something fishy. Dealers are feeling the economic crunch also so some of them seem a tad desperate. I bought a 2008 Subaru Tribeca a month ago. i was already approved thru capitol one so when I went into the dealership i gave them my terms. I told them what APR I wanted and what credit report to pull. They complied even with my TU score being 670.

Re: I guess i'm sunk..

Anonymous — Mon, 19 May 2008 05:14:13 GMT

Since you are stating they gave you a payment around $680 per month I assume this is a 3.9% 36 month term..... That sounds like a Honda incentive........

If you can comfortably afford $680 a month go for it, if not take the Rebate (which I am sure is the other option instead of the APR incentive) and get yourself a 5 year term at 5.9% and pay off early if you can.

Re: I guess i'm sunk..

kahmyah — Mon, 19 May 2008 14:26:07 GMT

5.9 still is better than 9.3..i will agree with you there..i don't expect them to give me that 2.9 considering my credit situation. i'm being more realistic about it. at least as i said i have as a last resort, financing in place from cap one at 9.3. not thrilled with it, but at least its better than some and better than nothing. however, if the dealer, and i am still a little leery about using dealer financing, can get me a better rate with my credit history with the car i want then its a win win. that would be fantastic. i just get the feeling that some how they will try and take advantage of me and give me a ridiculous high rate. maybe i am being paranoid about it and if so, i apologize. but i am trying so so so so very hard not to make mistakes when it comes to stuff like this. i have come to far in cleaning up halfway my credit life to have setback occurr..

Re: I guess i'm sunk..

Anonymous — Mon, 19 May 2008 17:40:08 GMT

kahmyah wrote:

5.9 still is better than 9.3..i will agree with you there..i don't expect them to give me that 2.9 considering my credit situation. i'm being more realistic about it. at least as i said i have as a last resort, financing in place from cap one at 9.3. not thrilled with it, but at least its better than some and better than nothing. however, if the dealer, and i am still a little leery about using dealer financing, can get me a better rate with my credit history with the car i want then its a win win. that would be fantastic. i just get the feeling that some how they will try and take advantage of me and give me a ridiculous high rate. maybe i am being paranoid about it and if so, i apologize. but i am trying so so so so very hard not to make mistakes when it comes to stuff like this. i have come to far in cleaning up halfway my credit life to have setback occurr..

Go to the dealership with confidence. They can't take advantage of you if you don't let them. Remember you hold all the cards here. You can walk out the door and buy the car somewhere else. That car salesman is probably desperate to make the sale. Good luck!

Re: I guess i'm sunk..

kahmyah — Tue, 20 May 2008 23:13:06 GMT

ok we are at the negotiating stage now. the dealer asked what would it take for me to but the car..i said 36K with taxes tags everything included in that price. if then replied if i could get you that would you take the deal. i still get the feeling something is not right. if he could do that i would be inclined to do it..even at the 9.34% cap one gave me. if he could give me that along with a lower interest rate, then yeah deal or no deal..i would take the deal. thoughts everyone..i hope to have this wrapped up by the end of the week..i just pulled my scores..one went up by 14 points..i tu and experian at 676..equifax - 692.. i have had a few dings removed from my report lately so maybe thats why things have improved..whew..any ideas..thoughts..

Re: I guess i'm sunk..

kahmyah — Wed, 21 May 2008 15:28:08 GMT

as a follow up to my previous note. this was all due through the internet sales manager and all done through email (it does work)..so after i presented my offer, he is checking with his boss to see if its doable. any thoughts, input or guidelines you wish to share would be greatly appreciated..thank you

Re: I guess i'm sunk..

kahmyah — Sun, 25 May 2008 10:55:46 GMT

Like a new born baby, its arrived! Finally, its over. I got my new car today. Now maybe I can relax just for a little while until I start making my payments. First of all, I would like to thank EACH AND EVERYONE ONE OF YOU who gave me advice throughout this whole process. I tried to follow each thing that everyone mentioned on this forum and it worked! Oh my gosh. I can't thank you all enough! To summarize, I went in with a loan from Cap One of 9.34 (which I too am grateful and thankful to them as well). Found the car that I wanted, a new one at that, was nervous the whole time and was thinking of every single possibility on why I should and shouldn't do this and preparing myself mentally when something bad was going to happen. Well, the whole process went so smooth. Thank the Lord. Thank God and you all. Well, as I whipped out my Cap One check to sign for the car (hands a little shaking of course, heart racing, and by this time I am beginning to feel Excedrin headache number 1 come on), the finance manager comes out to me and ask the usual questions of what kind of rate, how much, yadda yadda yadda. They wanted to know if I would be interested in leasing which i was opposed to. The beginning of the end I can see it coming. Well I told him no to leasing, and i remember what everyone said on here about don't negotiate on the payments, think or stick to the price of the car. Don't pay MSRP and have all your researched which I pulled out (in a huge folder I might add which contained, every invoice price and "what others said I should pay"- from Edumunds from my research on the net). I explained my price point which included all my fees, taxes and I wanted the invoice price which was about 900 less than what the dealer was offering - invoice not msrp. hmm, well he went back did some maneuvering and talking. The other good thing I had going for me besides my huge folder of research, was that I had met the gm on several occasions and we talked a few times and developed a pretty good rapport. we also communicated through emails a lot so that kind of helped. bottom line is he knew where i was coming from. oh also, i remembered everyone on here saying about don't just shop for a car, shop for a dealership and be up front about it. well i told them that i was still in the "interviewing" stage (which has been going on for well over 2 months checking out all the various dealerships and all) even told them the dealership where i was going to "interview" next whipping out their rivals brochure and what i was going to ask them for as proof of being up front when i was leaving there to go see them. well the gm and finance guy sat down and said let us look into see if we can get the financing for you. well, they came back with a rate of 7.9 beating Cap Ones 9.3. Hmm..To me something smelled fishy. I went over in my head with everything you all had said. Double checked it mentally. then whipped out my folder and went through every possibility I had research on the internet and price point. I looked over my spreadsheets which I created, what options i wanted at what price, all the research from the net on price options with the car, taxes and tags, the works. everything was there. Needless to say they couldn't believe the size of the folder and all the research. Then I started asking a ton of questions to see if anything was hidden. Nothing. they even brought up Gap insurance, which lucky for me I had saw a post on that up here a day or two early and remembered it. So I was prepared there. Still I kept grilling over and over to make sure nothing was hidden. Finally I was satisfied and I signed. I let out a huge sigh as they did too. So the moral of the story, as everyone on here said, DO YOUR RESEARCH (ESPECIALLY WITH INFO FROM EVERYONE ON HERE). GO IN ARMED WITH ALL YOUR POSSIBILITIES. STICK TO YOUR PRICE POINT NO MATTER WHAT. "INTERVIEW" THE DEALERSHIPS BEFORE YOU EVEN BEGIN TO DISCUSS CARS. ASK ABOUT THE SERVICE DEPT. DURING THAT INTERVIEW STAGE (WALK IN AND LOOK AROUND LOOK AT THE CARS, ASK FOR A BROCHURE) and walk away move on to the next one. but this is critical, before you walk away ask about the service dept, go look at it see how they work in terms of how they treat customers, sat hours if available loaner car policy, etc. ask about incentives, (in terms of after purchase items, etc). This is all during the interview process. Then walk away. trust me, they will give you their card and want your email address.. Do most of your talking through email. its so much easier and makes them work harder and less stress on you. as everyone said, buy at the end of the month. the last week preferably. close the deal then. again, they work harder for you as it gets closer to that time frame and if they have a lot of cars just sitting there on their lot looking pretty and no where to go. finally, and i can't stress this enough, PRAY. say what you want, but hey it works. look nothing is perfect i know. and i am sure somewhere along the way after i look back on it, i know i missed something or got taken on something. but overall, again through everyones help as a resource, and most importantly a lot lot lot lot of praying thank God. It turned out ok better than I had hoped. Thank God and thank you all again. OH and one final thing. i know i know i keep saying this, but i promise this is the absolute last thing With the rate, my credit score went up big points on EXperian (673 - 695) WOO HOO.. They didn't even pull my credit report for the new rate (so they said but i checked it later and no new inquiries were made against or showed up recently and trust me i have signed up with every monitoring system out there. so if it happened or would have happened i would know about it by now). So thats another plus..EXperian 695, Transunion and Equifax both at 676..THANKS AGAIN as you can see I am grateful and take care everyone.

Re: I guess i'm sunk..

kahmyah — Tue, 27 May 2008 14:26:24 GMT

sorry..i must say this. i mentioned that they didn't pull my credit report on my new rate. well i was mistaken and i am sorry that i mentioned it otherwise. i did receive an alert saying that it was done only after the process was completed. again, i apologize, but i still got the new rate and overall i am pretty happy with everything. thank you all again...

Re: I guess i'm sunk..

Anonymous — Tue, 27 May 2008 15:38:47 GMT

GREAT job! You really did your homework and it paid off. WTG!