Auto Enhance FICO Score

[max1111]

Here is my situation. The last car I bought was 17 years ago and I paid cash for it. My company provided a company car until recently dut I still have my 17 year old truck which runs fine. So basically I do not have an auto loan on my report. I do have an active mortgage and a past paid in full mortgage loan. My scores are as follows from My Fico: TU/757 EQ/767 and Experian 781 (Lender Pull). I have 8% credit utilization.

Can I expect a really good rate even though I do not have a car loan on my CR?

[apandabear]

When I purchased my first car, I financed 100% of it.

The lender pulled my score at 716 and I got 5.4% financing.

You should get a great rate with your credit scores. Auto-enhanced or not. Your mortgage history should show that you can responsibly manage long-term loans. Just my $0.02

[Revelate]

Having a mortgage offsets or even completely obviates the issue of not having an auto loan reporting from a "first time buyer" issue.  

I wouldn't sweat it, I'd be surprised if you don't qualify tier 1 from any manufacturer's financing arm.

[Creditaddict]

They don't always hand out tier 1 car financing like they use to but they are also more desperate to sell now then when it was free for all but over a 750 there is just no way you would have a problem and if you did I would take my business elsewhere.

Now at same time if you are buying new, research rates for purchases at dealership and as a promotion from the actual car maker.

I would kbb your fair price on a model that your looking for... I have seen that work within $500 2 or 3 times now.

if you are buying used, I would go to your personal bank, maybe a local credit union and get pre-approved and the rate... the dealership is going to try to beat it and many times at least match it... if they are going to match I would still think 2 about taking it over using your credit union or current bank.

The relationship with your credit union is going to FAR outway what say NISSAn Financial can do.

My friend had BMW offer to match his CU rate but I told him he should really take the credit union because of the relationship and all that... in the end he did that and when he went to sign papers the rate was even lowered more with auto draw of of savings, and something else... Credit Unions are best!

[Revelate]

Dunno CA, from what admittedly little I've looked, since I don't buy cars new traditionally, T1 financing for secured loans starts in the 700-720 range.  I just don't think the OP's score is going to drop that much on an auto-enhanced pull.  Interest rates are so low these days anyway, I think he'd have to try really hard to get even 3.5% financing at a maximum on a used car.  Just too many lenders will tag him as a sure thing and he'll qualify for their gold-plated rate.

[Creditaddict]

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@Revelate wrote:

Dunno CA, from what admittedly little I've looked, since I don't buy cars new traditionally, T1 financing for secured loans starts in the 700-720 range.  I just don't think the OP's score is going to drop that much on an auto-enhanced pull.  Interest rates are so low these days anyway, I think he'd have to try really hard to get even 3.5% financing at a maximum on a used car.  Just too many lenders will tag him as a sure thing and he'll qualify for their gold-plated rate.

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I agree... I didn't go back up to look but was I having a cloudy moment and typed something stupid!? LOL

My friend is currently buying a 2010 Lexus and he got 5.24% through Lexus Financial... The guy says this is the best available and he could not get a better rate at any other bank... I can find him 3% at VERY BEST through a local CU where he is...

My point is unless they are just not offering any specials on used cars then I don't see why you would pay more than the 3% range... and if you went new and purchased, you should be 0-2.9% without looking specifically at maker web page.

[max1111]

Thanks all! Now all I have to to do is gather the fortitude to deal with car sales persons. I do not drive that much anymore so I was thinking about a lease. Does that factor into the equation at all?  

[Creditaddict]

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@max1111 wrote:

Thanks all! Now all I have to to do is gather the fortitude to deal with car sales persons. I do not drive that much anymore so I was thinking about a lease. Does that factor into the equation at all?  

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Leases are harder to get but again just don't think you would have any issues.

Now lets talk about lease and of course the "Sales Person Part"

What Make, Model do you want to purchase? What area (zip) of the country are you in?

Wht additional options are important or must have? (Leather, Sport Package, Tech Package, Heated Seats, etc.)

Might even want to start new thread with "Leasing with (insert make and model here) and wonder about payments, money down, and approval)

[xiownthisplacex]

Leases aren't that hard to get, they have tiers as well. You can actually lease with a 640 score, but at that point the APR wille be high, so it probably wouldn't make sense to lease. The first car I got I leased, without any auto loan history, got Tier 2 lease (hyundai doesn't have tier 0, starts at tier 1).

OP, you have a high enough score to get 2.99%, if not 1.99% from a CU for 72 months with 110% financing. If the manufacturer offers less, even better