Question Regarding Applying For 3rd Car Loan

[Anonymous]

Hello.

It seems that I need a 'beater' type car for my upcoming business & daily. I currently have two open auto loans, one of which was recently opened. (March w/ BMWFS) The car that I'm going for is just a used car and just yesterday I applied for a certified 2015 Mercedes C300 with MSRP of 30k. Knowing that I already had two open auto loans, I offered to put $5k down. My DTI including the Mercedes' payments were around 35%. After a long 1 hour or so, MB Financial have said that they cannot give me a 3rd open loan. The thing that bothered me was how long it took them to reach a decision on my application.

My scores are:

TU - 733

EX - 720 

EQ - 728

CC Utiliziation is at 18%. I have perfect payment history, no baddies whatsoever. 

Given the information above, what do you think happened to cause MB to turn down my application? Did they need higher DP (because the salesperson didn't mention the stipulation)? I am at loss as to why I was rejected as that means I had an HP for nothing. 

Should I try other MB dealers that will fight for me? CarMax? Carvana? or perhaps even BMW considering I have an open loan with them maybe that will be another consideration for them? 

Insights would be extremely helpful! Thank you  

[Appleman]

A beater car that is a 'Mercedes'? Maybe go for a late model Accord and save some money. That is the practical side of me talking.

A car dealer wants to sell you that car, so not sure why MB Financial turned you down. The likely reason they took an hour was because they were trying to save the deal.

Try CapitalOne Auto Navigator and see if they come up with a SP pre-approval. I would think with the information you provided you would qualify for financing. You may want to try PenFed or another credit union to get financing before going back to a dealer.

I would recommend pulling a fresh 3B report and look at the various Auto lending scores and see how much they differ from the scores you listed. I know I have a fairly wide range between some of my auto scores and FICO 08 & 09 scores. I know this is related to a few personal loans and outstanding auto loans.

[Anonymous]

Hello and thank you for the reply! 

As far as the Mercedes being a beater thing, its more of a personal preference. I know I could save some money but I figure might as well enjoy it for being a beater though I agree with you. 

Honestly, the finance manager and the salesperson didn't seem friendly and they were just pretty robotic in their approach towards me while at the dealer. I've had lots of experience buying cars and their approach was the coldest one that I've experienced yet. BMW was friendly so was Honda. But anywho...

As soon as I got the word that I wasn't approved, the salesperson pretty much texted me multiple times to get in touch with a CU because she was 'sure' that I would get an pre-approval from them. But I didn't try again as I was still shaking my head why MB financial denied me. 

Was my two open loans something they held against me even though DTI still made sense? 

I tried Capital One Navigator and they didn't give me a pre-approval and I wouldn't expect them to because its too 'systematic'. If that makes sense. 

Right now I'm stuck in a limbo; should I try going to another MB dealer or would that be against me because MB financial already has a record of me being denied for a loan? Should I try getting another car? Because I heard that I'm allowed some HP in a week before they count towards me. 

I'm really stuck in a limbo! The previous scores I listed were regular scores. 

Auto 8: 

TU - 744

EQ - 734

EX - 744

Auto 9

TU - 759

EX - 773

EQ - 762

[Appleman]

Not sure why they could not get you approved. If someone treated me like you were treated, I would not reward them with my business.

Good luck!