first auto loan

[Anonymous]

My fico scores are 600-627 and I have never bought a car with a loan.  I just finished my master's degree last May and make a good salary and my only expenses are student loans (my job requires me to live on a college campus so I do not have to pay rent/utilities).  I tried to get a loan at CarMax (they said that I should not have any problem) and was DENIED.  I do not have anyone who can co-sign....I can put 2000 down....does anyone know if anyone might finance me.  I dont know if having a lower score is keeping me from being financed or if it is because I have never had a auto loan or if it is both.  I have heard that honda and toyota are still financing....should I attempt to apply with them.  My fear is that all these inquiries will kill an already shaky score.

PS  I live in Texas and roadloans does not finance texas residents

[203bravo]

Does CARMAX only attempt financing with their own lender or attempt to shop the loan around.  The good news is that by FICO standards is you can shop around for a loan within a 14 day window and it only counts as 1 inquiry as long as they are coded for auto financing.

You don't specify how much of a car you are looking to purchase, but lenders are more likely to finance you if you have a larger equity stake in the vehicle.   

[Anonymous]

I am looking at a new toyota yaris or honda fit.  Both are good cars and are around $14000 new.  I have $2000 right now for a down payment. 

Carmax shopped it around to wellsfargo, cap 1 and 3 other places.  They told me that I would need a co-signer, but I do not have a family member who can. 

Im crossing my fingers that someone will see my financial potential and give me my 1st auto loan.  I bring home $2300/m after taxes and I have no living expenses since my job pays for those.  My credit was wrecked 6 years ago, but I am 6 years older and have a master's degree...I can and would make the payments.

[Anonymous]

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@Anonymous wrote:

I tried to get a loan at CarMax (they said that I should not have any problem) and was DENIED.  I do not have anyone who can co-sign....I can put 2000 down....does anyone know if anyone might finance me.  I dont know if having a lower score is keeping me from being financed or if it is because I have never had a auto loan or if it is both.  I have heard that honda and toyota are still financing....should I attempt to apply with them.  My fear is that all these inquiries will kill an already shaky score.

PS  I live in Texas and roadloans does not finance texas residents

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Will they be mailing the reasons for denial?  They should give you something.  Assuming you started your job and good salary in May, they might be turned off by the short history combined with a lower score.

Two thoughts.. Maybe you could print off your reports and work with a credit union.  They might be more willing to work with you either giving you the loan or giving you conditions to meet to get a loan.  Second thought, spend a few months working on your credit and squirreling away money.  Your down payment will help, but a bigger one won't hurt.  Check with the Rebuilding Your Credit before touching anything with your credit, as there are good ways and bad ways to handle some things.

Good luck!

[Anonymous]

Celebrate!! 

Toyota is financing me!!! They asked for $3000 down, but are working with me because I only have $2000 right now and will have $1000 on feb 2nd.  I will be driving off in a 2009 toyota yaris tomorrow.  I am glad someone was willing to take a chance...this will be a great opportunity to drive a nice car and rebuild my credit (with an apr and monthly payment I can afford)

[Anonymous]

Super Congrats!  I loved my Toyotas -- best of luck with it!

Beep beep!

[Anonymous]

Congratulations!

I wish I had your luck...I have 660-690 scores and have been denied everywhere I have applied to. Maybe I'll try Toyota next...Happy and safe riding in your new car!!!