Was basically denied today, any input?

[awp317]

OK so, I went car shopping today, found an suv I liked and dealer said to apply today to lock in their 0% for 60 month deal they had going. I told him I really want to wait until my old car (which I sold privatly) is showing as paid off, and that a couple of my cards that were used heavily for my move last month that I just paid off are also reporting as paid. He talked me in to it and I applied. 

I will admit I was dealing with a large number here. Vehicle im purchasing is 90k, I would be putting down 30k. However there was also 7k in taxes, fees, etc thats not included in the sticker price. After applying he came back about 10 min later and said "were having trouble getting an approval" and I politely but annoyinly said "should I have waited until those balances were showing paid off, told me he was going to have the finance guy come out and talk to me. Finance guy in a nut shell said "doenst matter what you do, your income more than over comes any debt showing on your profile, the only reason were showing denials are due to lack of history. I about fell out of my chair. I have had credit since I turned 18, I have 5 closed auto loans on my profile, no negitives ever, my score when he pulled it was 742 from transunion (highest) 729 experian (lowest). To be clear, I was approved, but not at 0%. They came back with 4% at 72 months as a counter offer. I would rather just pay cash than pay interest for an auto loan. He then reccommended leasing again, but I really want to purchase this go round. 

So should I try a different dealer, or is this bank related. Ergo will another dealer just ask the same banks and get the same response? I do unfortuantly have quite a few new accounts, I dont know if this makes my credit look newer by relation to the age of the new accounts. Also this car I just sold is one I bought in october and only have 7 payments showing on that lease. I dont know if maybe I should have waited longer before doing this.  Thanks for input! 

[Remember0]

I think they are yanking you around. Leases are more profitable for them, so they really want you to lease. And I've never seen a situation where the amount is approved but a 4% with a 700+ FICO. Auto loans typically use income/history for amount and FICO to determine rate. Honestly, I think that 4% is dealer participation. See my write up on what participation is in the financing section, dealer participation subsection here:

http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289...

Go to another dealer. Also by the way, for a lease is this dealer going to magically get you the promo 0 MF? Key sign it's participation right there...I almost never see lease approvals at lower APR's (APR = 2400 * MF) than finance approvals on the same car.

I'd do this: tell him either make 0% work (or something trivial like 1%), or you're going to see another dealer. And actually go see another dealer and see what he says. If asked, don't mention the 4%, say you're shopping around, you want the best price and APR the new dealer can offer. My thread has some tips on negotiating price too, but it's harder to do it online for luxury brands because they know they have you and you aren't price sensitive (heck, you're buying a 90k suv).

Bringing me to the irrelevant question, what sort of suv is this?! 90k? God I can't even imagine spending that much on an SUV haha...sports car, okay, but SUV? Also is the price you're paying essentially MSRP of the car?

[awp317]

It felt a bit fishy. The suv in question is the new Range Rover. The next closest Land Rover dealer is about 90 min away so I guess I will take a trip out there this weekend. Appreciate the input. Didnt realise they made more money on leasing.  To make a correction its 0.9 financing not 0%, but still 3% difference is nuts. The promotional offer is through land rover financial. They are the ones who gave me that reason. The banks that approved were outside banks like wells fargo and bank of america. 

The reccommending the lease thing I guess was to keep the payment lower, also I was asked a bunch of questions about how much I drive per year, how long I keep vehicles, etc and based on my answers is when they said "we reccommend you lease instead of finance" 

[Creditaddict]

I would just call the dealer before driving there.

I also agree with calling this dealership back... I call big BS on a 742 and income not an issue not qualifying for 0% (What would they like it to be, that is tier 1 in any universe we live in!!)

further more with cash down you are talking... WTH... if he isn't lying he needs a new job for being TERRIBLE AT IT... So Id go with lying!

you coudl get 1.24 through DCU but why when you should have 0% in about 30 seconds.

[Remember0]

Do NOT apply to DCU. They aren't approving loans more than like 15k at the moment. They aren't going to do 60k!!!

But I agree with creditaddict. Start lying so that a lease becomes impossible. For the next dealer, say you drive A **bleep** TON! Let's say you drive 25k/yr and want to keep a car for at least 4 years. Heck say you do off roading too on top of the 25k/yr so you don't want to risk lease damages. At that point if they suggest lease, obviously they're ripping you off. Make it CLEAR to the first dealer it's you're buying, not leasing, at 1% or going elsewhere...his wish.

Also is the price you got at the first dealer close to or even at MSRP for the car?

[09Lexie]

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@Remember0 wrote:

Do NOT apply to DCU. They aren't approving loans more than like 15k at the moment. They aren't going to do 60k!!!

But I agree with creditaddict. Start lying so that a lease becomes impossible. For the next dealer, say you drive A **bleep** TON! Let's say you drive 25k/yr and want to keep a car for at least 4 years. Heck say you do off roading too on top of the 25k/yr so you don't want to risk lease damages. At that point if they suggest lease, obviously they're ripping you off. Make it CLEAR to the first dealer it's you're buying, not leasing, at 1% or going elsewhere...his wish.

Also is the price you got at the first dealer close to or even at MSRP for the car?

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Unless you know this for sure, you should quantify this statement.  A simple phonce call to DCU Loan Dept should clear up any rumor of a hard limit.  I would think if they are instituting a limit, if asked point blank they woukd say yes.  Just like asking what their current interest rates are, should be made public.  

[ObieGrad]

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@09Lexie wrote:

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@Remember0 wrote:

Do NOT apply to DCU. They aren't approving loans more than like 15k at the moment. They aren't going to do 60k!!!

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Unless you know this for sure, you should quantify this statement.  A simple phonce call to DCU Loan Dept should clear up any rumor of a hard limit.  I would think if they are instituting a limit, if asked point blank they woukd say yes.  Just like asking what their current interest rates are, should be made public.  

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This is not true.  I was approved just now for considerably more than that (though they placed a cap of $25,000 on a first time loan).

Perhaps there is a $15,000 cap with some credit score/income combinations?

[09Lexie]

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@ObieGrad wrote:

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@09Lexie wrote:

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@Remember0 wrote:

Do NOT apply to DCU. They aren't approving loans more than like 15k at the moment. They aren't going to do 60k!!!

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Unless you know this for sure, you should quantify this statement.  A simple phonce call to DCU Loan Dept should clear up any rumor of a hard limit.  I would think if they are instituting a limit, if asked point blank they woukd say yes.  Just like asking what their current interest rates are, should be made public.  

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This is not true.  I was approved just now for considerably more than that (though they placed a cap of $25,000 on a first time loan).

Perhaps there is a $15,000 cap with some credit score/income combinations?

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Curiosity got to me, I called DCU and was told by a loan consultant that there is not a $15k cap or any cap for that matter as long as the dti qualifies.  Assuming, his information is accurate, I would tend to agree with you. 

[DevotionToU]

When I signed up for DCU last week, it gave me a pre-approval for 25k, which I did not take at the time, as my scores are currently not as high as they will be in a month or so.  Have a lot of utilization being freed up from paying off quite a bit of debt this month, so the DTI (which factors in minimum payments right?) will be much better.  I figured it was worth the wait if I can get a better rate from them.  I started to get worried when everyone started talking about how they would recommend people stop using DCU.

[09Lexie]

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@DevotionToU wrote:

When I signed up for DCU last week, it gave me a pre-approval for 25k, which I did not take at the time, as my scores are currently not as high as they will be in a month or so.  Have a lot of utilization being freed up from paying off quite a bit of debt this month, so the DTI (which factors in minimum payments right?) will be much better.  I figured it was worth the wait if I can get a better rate from them.  I started to get worried when everyone started talking about how they would recommend people stop using DCU.

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This is precisely why I became concerned.  Rather you choose to go with DCU or another lender, the choice is yours.  Unless  we have definitive proof that DCU changed their auto lending policy- it's unwise to make blanket statements.

I would have preferred confirmation from the lender, they certainly would have no reason to be dishonest.