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Help with new car loan.

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.

Help with new car loan.

I have a bit of a problem. Over the weekend I found a new car I liked. The MSRP was 83k. I applied to finance 70k at the dealership, got approved for 72 months at 4.99%. I was going to pick the car up this week, but found another dealer that gave me a way better deal on ordering a 2020 that has the options I actually want. So I put down a deposite and ordered the car, it wont be here until September or November though. Then I applied to a credit union and Chase bank for the loan, they both denied me stating that I have no history of making large auto loan payments. I did have one auto loan (lease @270 per month) in 2014 24 months 7k total. The credit union did counter and offer me 30k. But I don't want to have 50k tied up in the car right away. I have a 736 TU/Experian, but I have no debt, no rent and 13k a month income. 


What are my options besides basically paying cash for the car? Take the 30k loan, put down 50k, make payments for a year, then refiance it? Keep shopping, if it doesn't hurt my score? Is there any way to check my credit report and see who the dealership submitted me to? I hate to go back there and ask, I doubt they'd say; they're pretty steamed that I backed out. Also I have about 3-4 months before I need the loan if there's anything I can do in that time, perhaps do some kind of installment loan to boost my profie in that area? Seems like it wont matter though because they just want to see a history of making large auto specific payments. I could also get my fiancee to cosign, but she also doesn't have an experience with large auto loans. She has an 800+ score and income that is ~3x mine though.

Message 1 of 5
Frequent Contributor

Re: Help with new car loan.

In my opinion co-signing should only be used as a last resort to get basic transportation not to get nicer transportation.  It's really an unfair burdeon and just in case you two split it gets ugly.


You can try to negotiate the first dealer down, find out where he submitted your app and have 2nd dealer do the same.


Also consider Certified Pre-Owned.  Often a far better deal.  My Audi had low mileage and 4 years unlimited miles on it.  That's better than the new car warranty and the savings was very significant.


You can also try other credit unions like DCU or Visions FCU.  I just refinanced at Visions 3.75% for 72 months.


Just my thoughts.

Message 2 of 5
New Member

Re: Help with new car loan.

To answer your question as to who they submitted you to or approved you, the simple answer is yes you can find out...... check your credit reports for the inquiries. For a loan that size, I don't think there would be many banks that would entertain that, so that should give you the answer pretty quickly.


Footnote on that..... not all dealers have all the same lenders, so your new dealer may not have a relationship with the bank that approved you.



Message 3 of 5
Valued Contributor

Re: Help with new car loan.

Several years ago I had a new car on order and it was on the boat from Germany when I had a sudden and unplanned change in employment.  I ended up paying cash for the car instead of financing it because the timing was not great.  A few months later I simply financed it with Penfed and sent them the title and I got a check for my cash back.  Point is you could take the 30k loan, put the rest down in cash and in 6 months refinance the loan to get most of that cash back.  I am sure a dealer would put together a finance package to get this done with minimal down but the interest will not likely be as favorable as your credit union offer.

Message 4 of 5
Established Contributor

Re: Help with new car loan.

Go back to the first dealer and give him a number your comfortable with as well as dealer trading for the car w/ options you want.

" EX 698 EQ 701 TU 695 MMS 695"
Message 5 of 5