#sadface Minor setback?

[Anonymous]

Just as I was going to fire off a few emails to various Honda dealers hoping to buy my car this weekend, I suffered a minor setback.  I entered my info into Capital One's pre-qualification tool hoping that my hard work paying down my CCs and raising my scores would pay off and I'd at least see whether or not I'd get financing for the car I want (2016 Honda Accord EX-L Coupe) through them.  Alas, that was not the case.  It actually gave me around the same amount it did a few months ago when my scores were at least 100 points lower.  I'm wondering if they used an old softpull to generate the amount.  

Anyhoo, now I'm scared and not sure I'd be able to secure the financing I need to purchase said car this weekend, since I figure it's prime car selling/buying time due to the holiday.  I haven't applied to my employer's credit union yet or DCU (I was going to give them a whirl since they're spoken of highly) but now I'm not sure it'd be worth the effort.

It's all so disappointing.  I'm not sure what my auto-enhanced scores changed to since paying down the CC debt so I don't know if that's a factor at all or if Cap 1 is just being a poopoo head.  

I'd love to hear the community's thoughts and maybe I can get excited about a new car again.  Le sigh.

Peace and hair grease.

[Anonymous]

whats your salary?

[Anonymous]

Sadly, slightly less than the price of the car. My DTI is very low as I paid off all my debt. I don't pay a mortgage or rent so that's not an issue. I understand I'm reaching a bit for this car. But darnit, my salary supported rent in excess of what I figure my payments would be for years. I may just need to wait and build up a bigger down payment.

[Anonymous]

i know how you feel, the car i want is 35k and i make 40k a year, even with my DTI being at 8% I cant get approved for a high enough loan. It must be the salary holding us back

[Anonymous]

Have you tried a credit union?  I haven't officially done anything to generate a hard inquiry yet.  I did the Cap 1 pre-qual to test the waters since my scores are higher now.  I'm hoping my scores and a little hush money aka down payment will do the trick.  I'd had it set in my mind I'd pay cash for the TTL/fees based on a quote a few months ago, that would be about $3000 and I'd just finance the car's price.  Back to the drawing board for me I guess. 

[RonM21]

---

@Anonymous wrote:

Have you tried a credit union?  I haven't officially done anything to generate a hard inquiry yet.  I did the Cap 1 pre-qual to test the waters since my scores are higher now.  I'm hoping my scores and a little hush money aka down payment will do the trick.  I'd had it set in my mind I'd pay cash for the TTL/fees based on a quote a few months ago, that would be about $3000 and I'd just finance the car's price.  Back to the drawing board for me I guess. 

---

Looking into a CU might not be a bad idea. Usually they can get you better terms if they approve you.

[Anonymous]

That's what I'm looking into today, RM21. I really hope something works out!

[Dj4Money]

 Hold on...

 Capital One is better with those with average and lower credit (under 670). Dealers and Credit Unions will beat them regularly on interest rates, loan amounts and terms.

 Pre-approval is recommended, go ahead and take whatever offer Capital One is giving you. Chances are the dealer will ask the captive (Ford Credit, Honda Finance, etc) for a higher amount and as long as it all checks out, they will approve it.

 There is no reason to be scared or disappointed.

 Again, a captive or even another bank will beat those terms. As long as you make $1,500-$2,000 a month you'll get approved for a $20,000-$30,000 car, especially something as affordable as a Honda Civic.

 You only want pre-approval so dealers are less likely to move the APR around on you which they are allowed to do by law. With 700+ scores you'll get .9% from Honda Finance....

[Anonymous]

Dj4Money wrote:

 Hold on...

 Capital One is better with those with average and lower credit (under 670). Dealers and Credit Unions will beat them regularly on interest rates, loan amounts and terms.

 Pre-approval is recommended, go ahead and take whatever offer Capital One is giving you. Chances are the dealer will ask the captive (Ford Credit, Honda Finance, etc) for a higher amount and as long as it all checks out, they will approve it.

 There is no reason to be scared or disappointed.

 Again, a captive or even another bank will beat those terms. As long as you make $1,500-$2,000 a month you'll get approved for a $20,000-$30,000 car, especially something as affordable as a Honda Civic.

 You only want pre-approval so dealers are less likely to move the APR around on you which they are allowed to do by law. With 700+ scores you'll get .9% from Honda Finance....

---

Well, I hope that holds true because I don't want the Civic.  I've got my eyes set on the Accord.  I went ahead and started asking for quotes because I can't see a dealer letting me walk out the door without keys in hands (at least that's what I'm hoping happens lol). 

[Dj4Money]

 Of course a dealer won't let you walk out without keys, that isn't the point.

  1) You don't want to over pay. Invoice is the MOST you should pay. If you pay more you just wasted money.

  2) You don't want to pay any old finance rate either, it will cost you money. Why pay 2.9% when you could have gotten .9%?

 Your scores are 700+ across the board. You likely don't need Capital One Pre-Approval anyway, if the managers are honest you will get .9%