Advice on auto loans - no history...

[disdreamin]

This will be our first time trying for an auto loan, and I'm wondering what will factor in to a lenders decision.  Since we have no history as far as auto loans, any idea how our auto-enhanced FICO scores will look?  Our classic scores are good, but I'm assuming the auto ones will be considerably lower. 

DH and I are considering a car that would end up requiring us to borrow around $20K, maybe slightly more (nothing upward of $25K).  In a perfect world, we'd like to buy new and qualify for one of those super-low interest deals through a dealership (if it's still around, 0.9% or lower...just as close to zero as possible) which is why I'm so concerned about how our scores will look.  I'm sure you have to have pristine credit for those deals, but neither of us have ever had an auto loan before. 

[nathan]

Not all lenders use auto enhanced scores. Most cu dont, if if i were you i will try credit unions first. A score of 720+ will likely place you in tier one financing with most lenders. Some even go as low as 700.

[disdreamin]

Thank you for the reply!  I tried my cu, but their rate for new cars was far above what I see advertised at dealerships.  I was looking at a Honda not long ago and they had a 0.9% deal for up to three years, I think.  I don't know if those kind of deals will swing around again, but that would be what I was thinking of.  That's why I'm worried about them pulling auto enhanced scores.  If they differ significantly from the regular, I wondered if it would dump me out of being able to go through the dealership.

The cu was more like mid-4's, I think, at the same time.  I should probably stop in again, but I am doing a refi on my home, and their rate for it was almost half a percent higher than the local bank I went through.  I don't know if it's just that cu or what, ya know?!

[ngerasimatos]

What are your scores?

[disdreamin]

Current scores - as of 6/11 - for DH are 808 (EFX), 808 (TRU) and 811 (XPN) and 806 (EFX), 815 (TRU) and 814 (XPN) for me.  No way of knowing how the hard pull affected them at this point.  I am hoping they stay above 800, but the real concern is not having any auto loan history since the classic/Beacon scores are fine. 

[Anonymous]

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@disdreamin wrote:

This will be our first time trying for an auto loan, and I'm wondering what will factor in to a lenders decision.  Since we have no history as far as auto loans, any idea how our auto-enhanced FICO scores will look?  Our classic scores are good, but I'm assuming the auto ones will be considerably lower. 

DH and I are considering a car that would end up requiring us to borrow around $20K, maybe slightly more (nothing upward of $25K).  In a perfect world, we'd like to buy new and qualify for one of those super-low interest deals through a dealership (if it's still around, 0.9% or lower...just as close to zero as possible) which is why I'm so concerned about how our scores will look.  I'm sure you have to have pristine credit for those deals, but neither of us have ever had an auto loan before. 

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When it comes to an auto loan prior auto history is desired from most lenders. It is not to say they won't finance you but, they usually like some commitment from you in the way of $$$$. Captive lenders such as the one offering those low rates through the manufacture tend to be be more flexible than 3rd party fin. institutions too.