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Have Auto Loan questions???

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annies
Member

Have Auto Loan questions???

Got approved with a bank through Volvo (they have not told us the bank) for a pre owned car (financing 23,000) w/ 2500 down with a low credit score of - 580. We have about a month and half before our current lease is up and we were just nervous about getting approved so we went to talk to someone at Volvo. Is there a time limit from when you are approved? Does anyone know? I kind of feel pressured from the dealer to pick a car ASAP because they shopped so hard for an approval for us. Also that I may have taken away some of my negotiating power? Thoughts anyone?
Message 1 of 11
10 REPLIES 10
203bravo
Established Contributor

Re: Have Auto Loan questions???

It is important to remember that your FICO score is a snapshot of your credit file at a certain point in time.  Thus most lenders do have a window of time to finalize the loan before you must repeat the entire process. 

 

My best guess is that no lender is going to leave an open loan on the table for 1.5 month.  Too many things can change in 45 or more days and they will want to reassess.

 

More and more lenders are starting to reassess even when a customer changes decisions about specific cars.  This leads to getting a credit decision for one, then something else catches your eye and they will have get a whole new credit decision.

 

 

Message 2 of 11
annies
Member

Re: Have Auto Loan questions???

Hi, 

Thanks for the reply. I was just thinking 2 wks not the whole month and half. Also before I really did not negotiate the car price now I want to go back and get the price down a little. The dealer came 1000 off the selling price of 26,900 to 25,900. I think they should come down another 1000 in this market, is this realistic? Also I have seen this exact car (2 others) (same cond) with a little less miles at other local Volvo dealers within 30 miles for 24,900 (still available). But of course I want to buy a car from my local dealer that I have leased 3 cars from and who got me an a approval.

How much should I expect to get off the price in this economy? 

Message 3 of 11
marty56
Super Contributor

Re: Have Auto Loan questions???

My CU is 60 days.  I do not know if they pull again at the time you are ready to purchase.
1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 4 of 11
Anonymous
Not applicable

Re: Have Auto Loan questions???


@annies wrote:

 

The dealer came 1000 off the selling price of 26,900 to 25,900. I think they should come down another 1000 in this market, is this realistic? Also I have seen this exact car (2 others) (same cond) with a little less miles at other local Volvo dealers within 30 miles for 24,900 (still available). But of course I want to buy a car from my local dealer that I have leased 3 cars from and who got me an a approval.

How much should I expect to get off the price in this economy? 


If you can bring a printoff with some details or something they may be willing to match the prices you found.  Some of our local dealers are willing to do that.  Worth a try.

Message 5 of 11
Anonymous
Not applicable

Re: Have Auto Loan questions???

Hello ann,

 

Was it an actual approval or a pre-approval?  I know Capital One's online auto approvals are good for 45-days once they cut you the check, I checked with PenFed CU about a 'blank check' auto loan. She said their auto approvals were good for 90-days from approval, Another CU I joined is good for 60-days.

 

Without knowing what vehicle you're pricing out, it's hard to know what price to pay.  A good starting point is to look at the NADA trade in values (and ignor the mileage positive adjustments, if it's a negative adjustment use it though  Smiley Happy

 

I know you said you want to keep your business with your local dealer, but DO NOT be afraid to make those guys mad at you by going elsewhere.   I've almost had a 'finance guy' hit me cause he tried to sneak a bunch of products into the contract and I called him out on it as I was checking the contract to see why my wifes new 2002 Dodge Intrepid was costing me 26-K+TTL instead of the 22-K+TTL we'd agreed on.   As you posted, other dealers are advertising lower prices, so from your post, your guy is not giving you a good deal.  If he got you approved, somebody else likely will also.

 

Did they tell you what apr that loan would be at? 

 

Also, don't forget to check carfax or autocheck to see the ownership record,  If they bought it at auction, you should defineltey make a lower offer.

Message 6 of 11
annies
Member

Re: Have Auto Loan questions???

Yes they did buy it at auction-- they just buy those cars dirt cheap?
Message 7 of 11
WhirledPeasPlease
Moderator Emeritus

Re: Have Auto Loan questions???

They definitely buy them cheap -- think 'foreclosed car'.

 

Also make sure to run the VIN to make sure it's not a lemon and that it hasn't been 'totaled out' and resold.

~*~*~*~*~*~*~*~*~*~*~
From 700 in 2008 to 498 in 2012...
4/23/12 -- BK 13 date of filing EQ = 505
4/18/12 -- EQ 498
12/5/13 -- EQ 669
Here we go.... back on track.
Message 8 of 11
Anonymous
Not applicable

Re: Have Auto Loan questions???

""Yes they did buy it at auction-- they just buy those cars dirt cheap?""

 

The auction sale reason should be listed, It could have been a repo or an off-lease sale, and depending on the market when they bought it, I'd say they paid 60-70% of the NADA trade in value for it.  So  if NADA trade value is 22, they probably paid 15,

 

 

I don't know the market for Volvo's, Try looking thru Volvo forums to see what others are paying.   My recent (and current) used car search has been for a 2003/04 Ford Mustang with the Mach 1 package.

 

I've been following several Mustang forums and those will show you what a truer current value of the car market and I can say unequivocally, the market for those Mustangs has cratered over the last 6-months,  Guy's were asking 17-K back in the summer can't give them away at 13 today.  (One used car wholesaler posted he'd recently bought two low mileage Mach 1's for 8,500 each at acuction, and would hang a 14,995 price on them on his lot.) 

 

I found a nicely modified Mach One back around Christmas a young man came down to 12 (from 16,5), however he price-jacked me and said he couldn't take less than 13 after I got my PenFed used auto loan and the associated 6-point FICO drop.

Anyway, didn't mean to thread-jack, Good Luck,

 

 

Message 9 of 11
annies
Member

Re: Have Auto Loan questions???

OK so the dealer has taken another 1000 off the price but the APR is 15.85 (!) because of our credit scores. We carry a lot of my husbands work expenses-- so the amount of debt is high (easy to explain and his salary is high 500+). So should I shop this around maybe to a CU or put more down like 5000-- would that bring down the interest rate? Score today- TU 645,EQ-599,EX 610.

Unfortunately our scores are at an all time low for us about the same time we have to do something about a car.

 

Thanks for your help-- 

Message 10 of 11
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