Auto Financing While Rebuilding

[Anonymous]

Long story short, I commute to my University/work and my old car died. I need a car yesterday.  My SO offered to cosign, I know the risks involved with that. I myself have been burned by an ex more than once and learned my lesson, you really NEVER know someone do you? My FICO auto score is 586, which I'm assuming is what lenders are going to use. I'm going to be using my bank SF Federal Credit Union to apply and my income is around $2,600. Im looking at a car around $26k-$27k, I have 5k as a down payment. So loan total ~23k with taxes and fees.
Random note- Something that could possibly help my FICO auto score immensely is ATTEMPTING a goodwill letter to WFDS; I was current in payments for 4 years at the end was behind 4 months when I lost my job, so I have a 30/60/90 on there. I don't know if the risk vs. reward for that is worth it in the end, which would mean I'd have to wait and see if they even did anything. Haven't heard any good success stories about goodwills from WFDS.

I guess my question is.. what option is most logical? I tried to make this post concise, but auto buying and auto financing is a gray area for me.
Option 1- Send in the app and see what happens. If it's denied or the APR is crazy, use my SO as a cosigner (His FICO ~730, income around 3k a month).
Option 2- Don't even bother with sending the app because you're going to get a high APR or denial for sure.
Option 3- Stick it out and try the goodwill.. (this option sucks because I'm using his car to commute, putting miles on his precious car that he loves... crazy bad gas mileage and tolls, this is costing me around $380 a month right now... and with a new PHEV will be around $100 with my HOV eligible vehicle and charging, just seems like I'm throwing money away). 

[sccredit]

Try the Capital One Auto Navigator for a SP preapproval.  

[Anonymous]

Yeah I tried that and they offered me around 12% interest, which sucks but I was curious what ballpark I was gonna be in. Just hoping my relationship with my CU will help there.

[KLEXH25]

I was going to have a co-signer because I thought I wouldn't get any good approvals or rates, but that didn't turn out to be the case. So if you need a car yesterday and are already loan/car shopping, I'd try applying in a few places first to see where you're at. I got the Cap1 Auto pre-approval as well as a loan approval from DCU (& I wasn't even a member). Then I went to the dealership and had them try. They ended up coming up with the best deal.

I'd suggest a similar strategy. If in the end, you're still not not happy with the rate they get you, you can use your SO as a co-signer for a better rate. In my case, I was prepared to do it on my own regardless of the rate, and refinance if necessary (which is what I intend to do).

[Anonymous]

So I went in with my SO to my Credit Union, applied with him as a cosigner and was flat out DENIED. On their end my fico score was 599, his 750. Was really let down, really wanted to go through them.  They also seemed kind of annoyed and really didn't wanna offer any other solutions, one of their reasons was "lack of recent installment loans" which is a very weird reason and one I've never heard before? So after sitting at home for a bit we decided why not just try the Toyota dealership, I had nothing to lose right? Well we applied as co applicants and got a 5.9% rate, which was pretty okay in my book! He offered to just buy the car and I would make payments since he was offered 0.9% alone, but I want this car in my name, for credit reasons and to feel a sense of ownership. So I'll be picking up the car tomorrow and HOPEFULLY don't experience any financial yoyo-ing, which has happened to two of my family members...(one with a prius and one with a sequioa). They basically drove the cars for a week and then the dealer called back and asked for more money! Both happened with Toyota Financial. Nightmare. Anyways, hopefully everything goes well from here and going to refinance and take my SO off ASAP!

[KLEXH25]

Congratulations on your car! Toyota Financial is also the one that approved me (even though I bought a Mazda lol).

[Anonymous]

Oh really? Nice! I was really really bummed about my CU not even wanting to work with me. They weren't even nice about it...she was almost sneering at my credit score? I'm sorry I've been a broke college student and my score is 599? Geez. The people at Toyota were really really nice, and I live 5 minutes from that dealership too. They also could have been nice because they get a nice commission lol. Regardless, I visited 3 dealerships and the first two every salesman was either mean or super weird and didn't even wanna talk to me. There are so many places to buy cars and if a sales person or someone seemed off I just left. So weird, it seems like buying cars is different now. When I bought my first car 6 years ago every salesman was so pushy and ready to do a deal; but now I got the feeling I was 'wasting' their time by being there. Anyways, went with the more friendly neighborhood Toyota. Should have started my day there!

[Anonymous]

She'd say "OH! You had a balance with Chase?... Oh nvm you settled... Okay... You paid that ... alright" Just pretty much nagging anything I had on my score. I felt attacked lmao. And kind of embarassed, because who wants to talk about that once you've changed and are making more positive strides you know?

[Anonymous]

Gratz 5.9% is great considering your in the process of rebuilding. 

Wells Fargo new car loans start at 3.90%
Amplified CU (where I have mine) start out at 3.59%

DCU starts out at 3.74%

Lightstream starts out at 3.09%
Current U.S. Bank dealer auto loan rates are as low as 4.11% APR (based on a 36-month new car loan at 90% or less loan-to-value and a FICO score of 800)

Randolph Brooks CU as low as 3.350%

Navy Federal CU from 2.89%
USAA CU as low as 2.99%

You get the picture. 5.9% is not shabby! CONGRATS!

[Anonymous]

Haven't had any weird or sketchy calls yet from the dealer asking for more money. I even received my plates and a letter notifying me that they've received my financing. Guess this means it's a done deal, what a relief.  Now to play the waiting game with my credit to refinance and get the loan solely in my name! Thanks everyone!