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Is it just as hard to get an auto loan these days?


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Conditions are:

Self employed

May want to put some money down and may not want to.

May want a new car or may want a used one.

What do they want as proof of income? Does it have to be last years tax return, or can they use bank statements instead (which mortgage companies won't seem to do for reasons I don't understand).

Credit is perfect.

Thanks

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or can they use bank statements instead (which mortgage companies won't seem to do for reasons I don't understand).

Don't think they do this. I remember somebody else on this board trying to use bank statements for income and it did not work. Guess it wouldn't hurt to ask though.

Have you already been trying to obtain a loan and have been denied? Or are you just trying to get prepared for when you do?

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Don't think they do this. I remember somebody else on this board trying to use bank statements for income and it did not work. Guess it wouldn't hurt to ask though.

Have you already been trying to obtain a loan and have been denied? Or are you just trying to get prepared for when you do?

Wow, so you have to show a copy of your tax returns to get a loan these days?

I am just trying to get prepared. I can't stand the inquiries.

Thanks

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Why don't you call or email a few places and ask them about their income verification process? I personally love up2drive. They are the nicest people I have ever dealt with. I have also used Cap. 1 and HSBC for auto needs and they wanted TONS of documentation. I don't remember which one it was, but one of them wanted check stubs AND tax returns! :lol: And mine were refi's.

Were you looking for the online "blank check" thing or were you going to get financing from a dealer?

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Why don't you call or email a few places and ask them about their income verification process? I personally love up2drive. They are the nicest people I have ever dealt with. I have also used Cap. 1 and HSBC for auto needs and they wanted TONS of documentation. I don't remember which one it was, but one of them wanted check stubs AND tax returns! :lol: And mine were refi's.

Were you looking for the online "blank check" thing or were you going to get financing from a dealer?

Thanks!

Online blank check thing.

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I purchased a car last march and the dealer (Toyota, Scion) just needed 1 form of proof (tax return, paycheck stub, direct deposit receipt) . When I went there I wasnt thinking I wouldnt buy right then so I brought nothing. The sales manager called my boss to verify I was employed and that was it. 30 mins of paperwork later im on my way home with my new ride

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self employed is its own monster when it comes to lenders. some want 1yr tax return, well actually they just want to see schedule c line 30=).

however if you have "perfect" credit. id simply have to call the lender and have them waive the POI(proof of income). lenders are surprisingly started to give ease on restrictions. err at least in my dealership(toyota)

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cap 1 keeps sending me preapprovals, but I'm leery of apping (hate inqs/haven't found car yet/leery of credit environment right now). on the back, it says you need 1.8k/mo of income- they will take pay stubs. it says if you are self-employed, you need to provide bank statements. no mention of tax returns.

i have had these sales from cap1 in my store. and they are actually very legit. if you get one in the mail that says you are preapproved from cap1 (not prequalified) it is what it is. you simply bring your latest pay stub or last years tax return along with a utility bill(gas,electric,home phone) and you ride.

now dont get me wrong the dealer will probably tell you that you need additional down payment (a way to make more money) because cap1 will only go up to 125% wholesale value. in other words if the wholesale value of the car is $10,000 then they drive out price cant exceed $12,500 and that includes tax & tags.

so the morale of the story is you ARE apporved.:smile:

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My husband and I just applied for an auto loan with USAA. We were approved but the rate was 15.74%, our FICOs are 692 for EQ. Capital One approved us also and we are getting 7.93%. Yes they did want copies of our Drivers License and proof of income but I can deal with that.

Dee

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self employed is its own monster when it comes to lenders. some want 1yr tax return, well actually they just want to see schedule c line 30=).

however if you have "perfect" credit. id simply have to call the lender and have them waive the POI(proof of income). lenders are surprisingly started to give ease on restrictions. err at least in my dealership(toyota)

Do you know what toyota’s min. ficos are for the various financing options? Don’t know if location matters, but I’m in so cal. Just curious what dealers require for ficos these days.

Btw, thanks for the info on the cap 1 preapproval letters. They’ve sent them to me for mos., but w/the economy (+ being self-employed), I’ve been leery b/c these days, you never know if preapproved means ‘no, we just want you to think you’re preapproved, but really you aren’t’ lol

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Do you know what toyota’s min. ficos are for the various financing options? Don’t know if location matters, but I’m in so cal. Just curious what dealers require for ficos these days.

Btw, thanks for the info on the cap 1 preapproval letters. They’ve sent them to me for mos., but w/the economy (+ being self-employed), I’ve been leery b/c these days, you never know if preapproved means ‘no, we just want you to think you’re preapproved, but really you aren’t’ lol

The Toyota and Dodge dealerships in my home town have an ad that states " we approve anyone and anybody ! No one will be turned down ! " I went through Dodge and was approved for 4.75 % through Fifth/3rd Bank ! What are your FICO Scores if you don't mind me asking ! If you have anything in the 600's you will get approved for sure ! Also check Credit pulls or who gave me credit for Toyota ! Thanks :)

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Do you know what toyota’s min. ficos are for the various financing options? Don’t know if location matters, but I’m in so cal. Just curious what dealers require for ficos these days.

Btw, thanks for the info on the cap 1 preapproval letters. They’ve sent them to me for mos., but w/the economy (+ being self-employed), I’ve been leery b/c these days, you never know if preapproved means ‘no, we just want you to think you’re preapproved, but really you aren’t’ lol

the truth of the matter is you "can" get approeved at most dealerships(toyota incl.) with a score in the mid to high 500's (type of credit on file determines approval at lower levels). 720 is where you want to be for prime rates but you can and should still get prime+2 if your scores are in the high 600's(680 or so). as far as your scores for auto loans think of it like a see-saw. the lower your score goes below 680ish the higher your rate will go.

now there are exceptions to every rule. just use good judgement. if you have a 620 with 2 recent charge offs you may still have to pay a rate in the high teens. on the flip side there are people with i get approved for a 7-9% rate that their credit file looks like it was hit with a shotgun

(holes everywhere). i just happen to catch the buyer from the bank slipping that day. car dealers are shady.....blah blah blah. ive heard it all but the truth of the matter is if i can get a buyer from the bank to miss or overlook something and buy the loan, i will.

and in these economic times, trust me, i am pretty daamn creative lately.

as a bit of a confession, not a brag, and not intended to offend anybody-

i may be personally responsible for wells fargo bank no longer doing auto loans. i have made more money in the last 8 years than you could possibly believe mostly due to the lose lending of wells fargo. and i can assure you all that i took every advantage i could. now fast forward to the present and i wish i had been a better steward of my finances then. i am not here looking for entertainment, i am on my own personal repair journey.:oops:

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ficos are in the mid-high 600s (640ish last time I checked, but that was in june, so they've probably risen more). utilization is very low (1-9%, usually 5% or less). last baddie= '03, but it's a BIG 1 (unpaid tax lien). only issue is I am self-employed. I have some contract (w2) work I do ea. mo. so I can show about 2-4k/mo. on paystubs (depends on the mo.).

cosigner= not an option

don't want to show tax returns; would consider showing bank statements (cap 1 offer said I can do that), but don't really want to

can put down several $K in cash + trade ('97 honda accord)

prefer to have EQ or TU pulled as those are my highest

don't want a dealer to 'shotgun' me around for a loan so my reports get bazillion inqs

have an auto loan (w/great history) on my reports, but it was from '97-'03.

am looking to buy a used car- something like an '06 honda accord.

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ficos are in the mid-high 600s (640ish last time I checked, but that was in june, so they've probably risen more). utilization is very low (1-9%, usually 5% or less). last baddie= '03, but it's a BIG 1 (unpaid tax lien). only issue is I am self-employed. I have some contract (w2) work I do ea. mo. so I can show about 2-4k/mo. on paystubs (depends on the mo.).

cosigner= not an option

don't want to show tax returns; would consider showing bank statements (cap 1 offer said I can do that), but don't really want to

can put down several $K in cash + trade ('97 honda accord)

prefer to have EQ or TU pulled as those are my highest

don't want a dealer to 'shotgun' me around for a loan so my reports get bazillion inqs

have an auto loan (w/great history) on my reports, but it was from '97-'03.

am looking to buy a used car- something like an '06 honda accord.

With your scores and utilization if you cannot get approved then I will give you my New Dodge Quad Truck ! The tax lien might hurt your interest rate but I'm telling you Car dealerships are hurting ! Let me give you an example : I bought my truck in December ( damn I wanted a Charger but needed a truck ) and it was advertised as $16,000 off the MSRP plus a his and her watch or a toolset your choice! Now lets fast forward to January ! Same truck but now $17,000 off MSRP and a frickin 50" Hitachi Plasma TV !!!!! Do you think I'm pissed ? Trust me I tried to get the TV still :mrgreen: Your gonna have to go to the dealer and tell them not to run your credit like a 1,000 times and just see what Toyota tells you ! Any reason why you want to buy a Honda from a Toyota dealership ? :)

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With your scores and utilization if you cannot get approved then I will give you my New Dodge Quad Truck ! The tax lien might hurt your interest rate but I'm telling you Car dealerships are hurting ! Let me give you an example : I bought my truck in December ( damn I wanted a Charger but needed a truck ) and it was advertised as $16,000 off the MSRP plus a his and her watch or a toolset your choice! Now lets fast forward to January ! Same truck but now $17,000 off MSRP and a frickin 50" Hitachi Plasma TV !!!!! Do you think I'm pissed ? Trust me I tried to get the TV still :mrgreen: Your gonna have to go to the dealer and tell them not to run your credit like a 1,000 times and just see what Toyota tells you ! Any reason why you want to buy a Honda from a Toyota dealership ? :)

Thanks- your story gives me hope. I haven’t seen dealers here (So Cal) offering tvs, but the American dealers (esp ford) seem to be offering HUGE cash off incentives. All the horror stories on various credit boards about auto loan denials has scared me off a bit. I’ve also heard dealers hate self-employed people (for financing), so I don’t want to have to go through a FBI like exam just to get a loan.

No reason why I want to buy a honda from a toyota dealership, but I noticed that toyota dealerships around here are cheaper on used Hondas than Honda dealers are + also, Toyota dealers oddly seem to have more of a selection of used Hondas around here. I’m also thinking of a Toyota camry/maybe a RAV4 + Toyota dealers here (@ least based on their ads- no idea if it’s true) seem more open about working w/’credit issues’. My pie in the sky dream is to get a new Honda, but I think that would be a little bit too much of a stretch financing wise right now. Also, I don’t think my ficos are high enough for financing through Honda.

Tax lien stays on until 2013, so I am probably going to pay through the roof in interest, but I am hoping that a decent down payment + dealer desperation + the tax lien being old (filed in ’03) will work somewhat in my fav.

I’m hoping to get my new (used) car within a mo. By then, I’ll have saved some more $ + maybe dealers in so cal will become more desperate. Last time I visited dealerships (just before the holidays), dealers seemed kind of meh- nice, but not desperate. Hopefully that has changed.

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Thanks- your story gives me hope. I haven’t seen dealers here (So Cal) offering tvs, but the American dealers (esp ford) seem to be offering HUGE cash off incentives. All the horror stories on various credit boards about auto loan denials has scared me off a bit. I’ve also heard dealers hate self-employed people (for financing), so I don’t want to have to go through a FBI like exam just to get a loan.

No reason why I want to buy a honda from a toyota dealership, but I noticed that toyota dealerships around here are cheaper on used Hondas than Honda dealers are + also, Toyota dealers oddly seem to have more of a selection of used Hondas around here. I’m also thinking of a Toyota camry/maybe a RAV4 + Toyota dealers here (@ least based on their ads- no idea if it’s true) seem more open about working w/’credit issues’. My pie in the sky dream is to get a new Honda, but I think that would be a little bit too much of a stretch financing wise right now. Also, I don’t think my ficos are high enough for financing through Honda.

Tax lien stays on until 2013, so I am probably going to pay through the roof in interest, but I am hoping that a decent down payment + dealer desperation + the tax lien being old (filed in ’03) will work somewhat in my fav.

I’m hoping to get my new (used) car within a mo. By then, I’ll have saved some more $ + maybe dealers in so cal will become more desperate. Last time I visited dealerships (just before the holidays), dealers seemed kind of meh- nice, but not desperate. Hopefully that has changed.

Money down always help as well ! I just receved a call ths morning from my dealership for like the 5th time still trying to sell me extended warranties and GAP insurance which I already have. I even received an email from a delearship I visited about a Hummer I looked at that was still for sale. Whats weird is that it stated " we noticed you purchasd a new vehicle but if your still intersted in the Hummer we can get you out of your Dodge and into the Hummer for a lower payment ! " Maybe its just TX but they wanna sell my friend ! Keep us posted :D

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My husband and I just applied for an auto loan with USAA. We were approved but the rate was 15.74%, our FICOs are 692 for EQ. [...]

Dee

icon_eek.gif That's only the second comment that I've read about a USAA auto loan, but it's very similar to the other comment. May I ask .. when you went online to USAA's website, had you been receiving any preapproved auto loan offers ? The reason I was asking is that the first comment came from someone who said she felt like USAA had done a bait'n'switch on her. Her preapproved auto loan rate was down around 6%, and then when she applied the rate USAA gave her was quite a bit higher than that.

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My husband and I just applied for an auto loan with USAA. We were approved but the rate was 15.74%, our FICOs are 692 for EQ. Capital One approved us also and we are getting 7.93%. Yes they did want copies of our Drivers License and proof of income but I can deal with that.

Dee

With a 692 EQ score Penfed will approve you for 4.75 ! They only have one rate and your score is high enough. You just have to pay like a $1 or something to open an account and your set. They gave me a $15,000 CC as well and I have low 700 EQ sores ! Good Luck :)

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Ok, I decided to try Penfed, opened an account on line. Applied for the auto loan and was DENIED due to High balances and too many accounts with balances. :(

Oh well, at least we have an account there and maybe we will refinance in 6 months or so. I have 3 cc's that have balances at around $800. I will get those paid off and see what happens.

Dee

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I'm sorry to hear that Dee but it seems maybe Penfed is finally getting tougher on apps.... honestly I think your interest rate with Cap 1 is not bad at all and might be your best bet yet ! Penfed has been good to me but I took advantage of their balance transfers and I want to lower that CC before I ask them for anything else ;)

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