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Can I get financed by Honda or Hyundai?

HorseTears
New Contributor

Can I get financed by Honda or Hyundai?

I'm moving from a part of the country with great public transport to a part of the country with virutally none for, thankfully, a great new job.  I'm going to need to purchase a new car within 1-2 months of moving.  Right now, I'm largely focused on either a Honda Civic or Hyundia Elantra.  I'll be shopping in early October, so if 2018 models are hitting the lots, there should be decent deals on 2017 models.  

 

Auto loan history:

  • I have 2 prior auto-loans fully paid off, paid on time: one from Triad Finance (Honda Civic, paid off: 2005) and one from Toyota Finance (Toyota Camry paid off: 2009) -- neither of these are listed on credit reports at this point, but would they be "visible" to Honda or Hyundai finance?  
  • Unfortunately, I have a reposession on my record from Fall 2012 for a Toyota Camry Hybrid, financed via Toyota Financial.  It's listed as a "charge-off".  The original (30 day) deliquency date was in August 2012.  Up until that point, I'd been making payments successfully from June 2009 through August 2012.  6 months of unemployment after a layoff left me choosing between rent and the car payment and rent won out.  

Credit scores:

  • Currently, all three are hovering in the 670 to high 680s.  
  • I (optimistically?) hope that they will be in the low 700s by the time I apply

 

Credit Ratio:

  • Currently, high 30%s
  • By the time I apply for an auto-loan, by taking the steps listed below, I should be down to low 20%s.  

 

Installment Loans:

  • I do not currently have any installment loans.

 

Negative Items:

  • Item #1: A $2k balance from a payday loan (hey, I was desperate after getting laid off).  It was reported by a junk debt buyer, not the original payday lender.  I disputed it to the two agencies that had listed, Transunion deleted it after their 30 day investigation, but Experian declined to do so. 
  • Item #2: A $100 balance from TimeWarner, now reported by a junk debt owner.  TimeWarner charged me for an extra month of service when I moved.  I disputed it, but the dispute was denied.  
  • Note: the repo is not listed under the "negative items" section, but just as its own account.  I think this may be due to the fact that after Toyota reposessed the car, they sold it at auction and then sent me a check for ~$4,000 for the difference (in other words, they sold it for $4k more than the balance of my loan + late fees).  Then, several months later they sent me a bill for $1,500 saying that there were some repairs required on the car to sell it and so I had to pay that amount.  This was when I as laid off/unemployed, so I ignored this -- especially since they'd essentially cleared me with the $4k check.  So, it's this $1.5k unpaid amount which they reported to the bureaus.  

 

Number of present accounts (all credit cards or store credit):

  • 7 -- all with on-time payments and no overages

 

Steps I'm taking, or will be taking shortly, to get scores up include:

  • Reducing debt-to-credit ratio by paying down CC balances (I've also recently been approved for three new CCs which which will help with this ratio)
  • Paying off $100 item #2 negative item and asking debt owner to delete from all three reports
  • Attemping to negotiate for removal of Item #1 -- but only if they agree to a deletion as well
  • Following the instructions on here to establish a modest $500 savings account and installment loan from a credit union in order to establish a new installment loan payment history

 

Income (from new job starting in August):

  • $130,000/yr.  
  • I will have 2 months of employment history/paychecks by the time I apply for the loan
  • In case you're wondering, this is a significant jump up in compensation for me; my prior financial issues happened when I was earning considerably less

 

Down payment:

  • I have a ton of upfront relocation costs, but will be aiming to put down between $2-5k

 

Loan amount:

  • Depending upon deals, car trims etc. I''ll be looking to finance somewhere between $20-25k/

 

5 REPLIES 5
JGGM
Frequent Contributor

Re: Can I get financed by Honda or Hyundai?

I'd probably get approved ahead of time with a credit union - PenFed might be a good option. This way you know going in what kind of rate you're looking at and you won't have inquiries with 5+ different banks when the dealership shotguns your app everywhere. 

Current Score 7-1-21: TU: 812 EX: 805 EQ: 839
Goal Score:ACHIEVED - 800 Across the Board
In My Wallet: Cap1 QS - PenFed Power Cash Rewards - PenFed Promise - AmEx Delta Platinum - DISCO - NFCU Cash Rewards - Chase Sapphire Preferred

Message 2 of 6
Firemediii
Established Contributor

Re: Can I get financed by Honda or Hyundai?

Did you apply at Hyundai's website for financing and PreAPPROVAL. Then get PreAPPROVALs from someplace like capital one (soft pull) and someplace that pulls your highest score.

Toyota pulled equifax for us so I chose them because it was our highest score versus Nissan which pulls experian and was our lowest score (by a lot of points, need to talk to them about some untraceables they are using as negatives) and so tier 1 for Toyota (0% financing) and denied at Nissan.
Message 3 of 6
HorseTears
New Contributor

Re: Can I get financed by Honda or Hyundai?


@Firemediii wrote:
Did you apply at Hyundai's website for financing and PreAPPROVAL. Then get PreAPPROVALs from someplace like capital one (soft pull) and someplace that pulls your highest score.

Toyota pulled equifax for us so I chose them because it was our highest score versus Nissan which pulls experian and was our lowest score (by a lot of points, need to talk to them about some untraceables they are using as negatives) and so tier 1 for Toyota (0% financing) and denied at Nissan.

 

Good to know.  No, as I noted in my OP, I won't be in the market for the car until October and I'm not going to apply for any prequalifications at this stage because I don't start the new job until August (by October, I'll have several payroll periods of history) and because I'm taking steps right now to raise my scores -- hopefully into the low 700-720s by then.  I'm not sure why applying now, when I don't have income and have lower scores (670s-680s) would be a good idea.  

 

I'd love to hear from anyone who has had recent experience with Hyundai or Honda.  

Message 4 of 6
Firemediii
Established Contributor

Re: Can I get financed by Honda or Hyundai?

You can also check the approvals thread and see what score was pulled and what the approval score was with what APR. use the search term "Honda" or "Hyandai" or just scroll through.

Your right there is no point applying at this point. Be aware that year end deals will change or may not be plentiful depending on how fast they roll out 2018's or sell out of 2017s. End of the month, end of the model year is best time to negotiate.
Message 5 of 6
workingfor850
Valued Contributor

Re: Can I get financed by Honda or Hyundai?

I am a big believer in getting a preapproval with a credit union before doing any shopping.  Having a preapproval in hand gives you some leverage with the dealers finance department.  It gives them a interest rate to compete against, many dealers mark up interest.

Message 6 of 6
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