Approved for DCU and Vroom (Ally Financial) was much higher

[Anonymous]

Hi all,

I went ahead and applied for a used auto loan with DCU after reading this forum a ton the last week or so. DCU gave me an approval email within an hour - without terms - they wanted me to upload documents etc, so I called them at lunchtime - the guy on the phone told me he could give me my terms, which were 4.24% OR 3.74% if I direct deposited my pay each month into the DCU account (where the loan payment would draw from). I've been looking at maybe 3-5 different cars, same model ('17-18 Audi A4) and Vroom called me tonight to discuss a vehicle, and I gave them permission to try and match the DCU offer...figured (and read) it wouldn't hurt to have hard inquiries in the same day. They came back with a 7% rate! I was shocked. Is this usual? DCU was so much lower and I'd obviously take the 4.24%- if I  don't opt for the checking account. My question is - is this abnormal? Also, anyone else using DCU able to direct deposit merely the $$ monthly payment and still benefit from the lower rate?

my scores - WERE - before inquiries - 

Experian Fico 8 - 703

Equifax 699

TransUnion 696 

Income @ $72k, no auto loan history, 37% credit utiliziation, no black marks no collections and I'm 33 if that matters. 

[Anonymous]

I spoke to a loan officer @ DCU this afternoon, she said they need a copy of the Purchase & Sales Agreement to move forward - there are 2-3 vehicles I'm seriously interested in, and I'm sort of at a loss - the rate she quoted was 4.24% or 3.7% with a checking account direct deposit through DCU, but she also said the rate could / will change once they receive the purchase agreement? So my fear is that the rate will go up considerably from what I have been quoted, closer to Vroom's Ally offer of 7%... I'm not sure really how to proceed. 1 car is through Vroom, one is through a private dealer, should I ask for some documents I can send to DCU to make sure to lock in my rate below 5%? 

[TaylorTaylor]

I can't say for sure, but I highly doubt that the DCU offer would go up to 7%. The credit unions usually have much better rates than those offered by Vroom or Carvana, so the numbers you were quoted look correct to me.

I just recently opened a savings and bank account with DCU so that when I apply for an auto loan through them (hopefully in the next few months) I can take advantage of the 0.5% saving in the APR. I have my direct deposit set up so that 80% of my pay check goes to my main bank and 20% goes to DCU to take advantage of the discount.

From what I read on this forum an auto loan from DCU is highly favored.

[lhcole77]

@Anonymous  I don't have an auto loan with DCU yet (planning to apply in October) but I also can't imagine your rate going up to 7% after DCU sees the documents. I haven't seen this in their rates chart, but for some used car loans, some lenders will charge a higer APR if it is an older model. Perhaps DCU is waiting to see the year of the vehicle. Again, I don't see that listed in their rates, but I've seen it on a few other CU's websites.

@TaylorTaylor I've read that a 730 EQ5 score can qualify for the 1.99% APR (with checking account/direct deposit) 

[dunn2500]

applied to navy 7% 

and pen fed  3.39%

both are top CU people go to for auto loans and still quite a spread in rates....

[beutiful5678]

I refinanced my auto loan with DCU in September and got 4.24% (excluding the direct deposit discount). My EQ5 was 666 with a few derogatory accounts and late payments but lengthy history. With a clean report I think you should be good! I didn't do a lot of research with any other lenders because DCU had the best rates I found.

I can't speak to your question about merely direct depositing the payment as I haven't taken advantage of the discount but I believe they told me that if I want to change that in the future I will be able to get it once the direct deposit starts.