topic Re: Will a Dealership Finance me? in Auto Loans

Will a Dealership Finance me?

badinmyteenyrs — Wed, 29 Jul 2009 16:36:30 GMT

This is my first time buying a car on my own. FICOs in the low 500s. Looking at a new car approx $22,000 MSRP - asking for financing of approx $12,000. I may be able to come up with additional money toward DP to make it closer to the 50% of MSRP mark.

I have one auto loan in my history - signed Sept. 2000 for 5 years. 2 lates in 2001 (job loss) - and then paid off early (about 6 months early)

I just don't even know where to begin to get financing for a car. I am afraid of dealership finance departments because I always think that they are shady. On the other hand, with my scores I know that I will be getting a bad deal no matter where it comes from. But, I thought that the loan to value amount might help me some - and the auto loan history may help a bit, as well.

If anyone can tell me where to find information about this, or who I can ask for help, I'd really appreciate it.

PS - I did apply at the credit union of which I am a member. However, in a week and a half, all I have heard back from them is that I would need 50% down. This is not a problem (and was noted on my initial application for the loan), but they have not returned any of my messages asking for information and instructions since.

Thanks for any help!

-Clueless in Carloanland

Re: Will a Dealership Finance me?

llecs — Wed, 29 Jul 2009 17:29:39 GMT

badinmyteenyrs wrote:
This is my first time buying a car on my own. FICOs in the low 500s. Looking at a new car approx $22,000 MSRP - asking for financing of approx $12,000. I may be able to come up with additional money toward DP to make it closer to the 50% of MSRP mark.

I have one auto loan in my history - signed Sept. 2000 for 5 years. 2 lates in 2001 (job loss) - and then paid off early (about 6 months early)

I just don't even know where to begin to get financing for a car. I am afraid of dealership finance departments because I always think that they are shady. On the other hand, with my scores I know that I will be getting a bad deal no matter where it comes from. But, I thought that the loan to value amount might help me some - and the auto loan history may help a bit, as well.

If anyone can tell me where to find information about this, or who I can ask for help, I'd really appreciate it.

PS - I did apply at the credit union of which I am a member. However, in a week and a half, all I have heard back from them is that I would need 50% down. This is not a problem (and was noted on my initial application for the loan), but they have not returned any of my messages asking for information and instructions since.

Thanks for any help!

-Clueless in Carloanland

Personally I would focus on repair before buying. You'll get a lot better rate and you won't have to put down as much. Following the advice in these forums can easily bump your scores into the 600s by next month, with hard work.

The lates from 2001 should be removed by now. CRTP is 7-7.5 yrs and likely would have fallen off sometime last year.

In the interim, if you need some wheels, you can always buy a temporary clunker from somewhere. Seems like dealers have a cash for clunkers deal where you might even get a better trade-in later. Don't know the specifics though.

Re: Will a Dealership Finance me?

badinmyteenyrs — Wed, 29 Jul 2009 17:49:52 GMT

Believe me - I agree with you 100%. My situation is actually more awkward than it seems. My car (2000 Chev Blazer - 154,000 miles) is literally falling apart. Resale value under $1,000. Last week, the radiator cracked, and in the heat that is officially "no longer working". The repairs to band aid it back together are over $2,000 currently.

But, since my car is so old, I qualify for the Cash for Clunker program. My financial situation is more important to me than the type of car I drive, so once Chrysler started matching the rebates, I decided to take a closer look. Turns out, that I can buy a new car for less money than another used (and possibly also in need of expensive repair) car. The reliability is extremely important to me since I live by myself.

A newer used car would have an even higher interest rate, require much more cash out of pocket up front (assuming they also ask for a certain % in downpayment), and be more costly to insure. I do try to keep my eye on the total financial picture, but I do realize that this is a jam.

But, I have no idea how bad off I truly am. For example, if a finance manager told me that I'd need to put 55% down instead of just 50%, and also take out a longer loan than I had asked for at a rate of over 20%, I have no way of knowing if that is "fair" for my circumstances.

I don't even know if they would give me that, frankly. Or if they just say "NO". I'd hate to do one of those "Buy Here Pay Here" loans (because I don't really understand those either), but if it comes down to it, i guess i'll have to.

Re: Will a Dealership Finance me?

Anonymous — Fri, 31 Jul 2009 03:59:23 GMT

if your car is that bad and qualifies for the CARS program, then go in and fill out the paperwork for the new car you want. The CU already pulled your CR so any within 14 days shouldnt have any affect on your score. If the dealers financing cant do anything there are plenty of new cars out there in the amount that you have as a down payment and their rebates to pay for it without a loan.

And just a little heads up, i just got financed through nissan and they pulled TU.

Message Edited by hp44 on 07-30-2009 11:59 PM

Re: Will a Dealership Finance me?

Anonymous — Sun, 02 Aug 2009 02:51:23 GMT

Well im glad you got financed through nissan. I just applied for a new frontier 3000 in rebates 1500 to pay off trade and 1500 down from rebates. Im glad u said they used tu because my tu is 611 and my wifes is 612 if you dont mind me asking whats ur rate at that score since ours are comparable to yours?

thanks,

ryan

Re: Will a Dealership Finance me?

Anonymous — Sun, 02 Aug 2009 04:51:40 GMT

How much did you end up having to put down for your car? Which Nissan did you get?