I was just pre-approved w/AHFC..now what?

[Anonymous]

Newbie here so I apologize if this question has been asked a million times.

I was pre-approved w/AHFC for $22,950 which is great, however, the website says that I have to contact my local Honda dealer for current interest rates? I thought by pre-qualifying that I wouldn't have to go round and round with some finance person at the dealership. So could someone please explain to me what I'll be facing when I go and purchase my new car (2008 Honda Civic Coupe EX).

Thanks.

Side note - this website is great!

[Anonymous]

what is your Credit score and what credit agency did they pull from? Just curious. How long did it take to get the approval? Was it instant?

[Anonymous]

Hi iamcreditworthy,

First of all, Congratulations on being pre-approved by AHFC!

Second, pre-approval is conditional approval. In your case, it means that

the maximum amount has been established but you need to contact the

Finance Manager at the dealership to determine an interest rate. The higher

your FICO score, the lower the rate you'll pay. Also, high-volume Honda

dealerships (those that sell the most cars) have more leverage from a

financing perspective than lower-volume dealerships. This allows them to

cut you a better deal with rates...which is another reason you should speak

to the finance manager.

If you had received full approval from AHFC, they would have given you a

maximum amount, interest rate, terms and sent you the loan documents

and actual check right to your home. Then you could have walked into the

dealership and picked out the car you wanted...in essence, a completely

hassle-free experience.

So since you're pre-approved, my advice is to call the finance manager

and get all detals nailed down BEFORE you set foot in the dealership.

Also, ask if AHFC is offering customer rebates on Civics. If so, don't use

that money towards a downpayment. Instead, keep it and then use it to

make your first couple of monthly payments. They're giving you the money,

so put it to its best and highest use. Additionally, when the loan shows up

on your credit reports the tradeline will reflect the first couple of payments

already made as "paid as agreed"...and you will have used Honda's money

to make this happen. How cool is that??!!!!

When you get right down to it, you're not really buying the car....you're buying

the financing. So get that straight first before you venture into the dealership.

Then - and only then - should you go and pick out your vehicle.

Hope this helps. Please keep us posted on your progress.

Enjoy the weekend!

CanDo

"The right attitude is everything"

[Anonymous]

Tebs -

I did an online app that was pre-approved in about 10 min. They pulled EX.

My scores are: EX 763, EQ 744, TU 738.

Message Edited by IAMCREDITWORTHY on 08-17-2008 05:50 PM

[Anonymous]

Cando,

I bought my car last Thursday. Felt pretty good about the deal @ the time but, the more I think about it, the more I think I could have tried for a better deal. However, there's no buyer's remorse. I love my car.

Here's the deal:

    18,903 cost of car (w/o tax, license & reg)

    5.24 apr w/Honda Financial (my credit union was 5.75) Initially they tried to give me 6.99 (my decent

    credit score didn't warrant that type of apr.)

    $329 per mo.

    60 months - I know this is a bad thing. I will have the car paid off in 48 mos.

    $2500 trade-in (got hosed on the trade - I should have insisted on at least 3k  - '99 Ranger w 74K)

Overall, I'm okay with this purchase.

Thanks for your input.

[Anonymous]

Super Congrats iamcreditworthy!!!

5.24% for 60 months thru AHFC is a phenomenal deal!

It looks like Honda is really trying to go above and beyond

the call of duty when it comes to financing customers.

I'm sure you're thrilled and I hope you're enjoying the car.

Congrats once again!!!!

CanDo

"The right attitude is everything"