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


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How did you guys get into Penfed? Don't you have to be in the Army, Air Force, Coast Guard, Homeland Security ect?

I wish I could get in there.

FE all you have to do is open an acct with them for like $5 and your in ! I'm an educator but thats not why they let me in. Check out their website and somewhere it states that by just opening an acct you can become a member ! Good Luck :)

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  • 4 weeks later...

I have poor credit and was approved for a car loan this week by Capital One. Although it's slightly over 10% I've shopped around and it's the best that I can find from a 3rd party.

I can afford the car payments for the car I have in mind (Hyundai) at that rate. I'm going to walk into the dealer with at least that loan and see if they can offer me an even cheaper interest rate.

I read that the Experian FICO score won't be available after Feb 14th so you may want to pull your credit report from the 3 agencies prior to that date.

If I can get a loan, I'm sure a lot of folks can.

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I have poor credit and was approved for a car loan this week by Capital One. Although it's slightly over 10% I've shopped around and it's the best that I can find from a 3rd party.

I can afford the car payments for the car I have in mind (Hyundai) at that rate. I'm going to walk into the dealer with at least that loan and see if they can offer me an even cheaper interest rate.

I read that the Experian FICO score won't be available after Feb 14th so you may want to pull your credit report from the 3 agencies prior to that date.

If I can get a loan, I'm sure a lot of folks can.

Is that approval for a new or a used car? Did you apply online or call them? I'm now in the market for a car so I want to explore what options I can. My EX score is 530 (Yikes!) and I have the BK-13 on my report. I will also have about $800 to put down and will transfer my tags to the next vehicle.

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Interesting reading here about auto loans. Seems as just like everything else 'credit related', your at the mercy of whichever way the wind blows on any given day.

Last November I applied for an auto loan for a Dodge Pick-up. I put down $2500 and the dealer gave me $2500 towards my trade-in, which put me right at 25% down. I am considered self-employed (independent contractor) but work full-time for a company, so I receive 26 bi-weekly wire transfers into my account per year. The lender would NOT accept my 2008 bank statements showing the wire transfers. So I provided 2007 and 2006 tax returns (the rub here is that as a 1099 worker, you try and take full advantage of the law by using all the legal exemptions allowed.of course, this makes your income look considerably less than you may really have). They were fine with that but THEN wanted a PROJECTION of my 2008 tax return provided by a 3rd party, ie, my accountant!..It was at that point and after 3 weeks of back and forth that I told them enough is enough, that I would not provide any more documentation, and just walked away.

Granted my FICO's are in the mid 600's (but steadily climbing thanks to CIC!) but I had an easier time getting a mortgage than a freakin' $15k auto loan! I believe the fact that I am self-employed in an uncertain economy hurt me more than my FICO scores did..All that being said, I got my deposit back, kept my trade-in and will try again this fall when my scores should be right around 700.

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I'm in the same situation. I get 26 "pay checks" from the company that I am in independent contractor for. Luckily they don't have direct deposit, so I have all my paystubs AND my returns for both 07 and 08. I just wanted to know what my options were based on my EX credit score and my bk-13.

I always count my oldest daughter's SSI and child support for both children when figuring income because they are the largest sources.

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Hello everyone, what is the magic number to get approved now a days. My scores are 680trans union 613exp 658 equi, would I qualify at this point? My income is just under 100k with 2 jobs. Between trade and cash down I figure I could come up with 4k. The most I would want to finance is 16k. Thanks

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  • 3 weeks later...

I just came back from the Ford dealer and they were able to get me approved for a used car at 7.9% with $1000 down. Roadloans wanted 13.99%. I also found out that myfico.com scores were very different from the scores the auto dealers use. I was still able to get this rate with a Ex 644 and EQ 594.

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I just came back from the Ford dealer and they were able to get me approved for a used car at 7.9% with $1000 down. Roadloans wanted 13.99%. I also found out that myfico.com scores were very different from the scores the auto dealers use. I was still able to get this rate with a Ex 644 and EQ 594.

Congrats on the new car! :)

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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

Great questions everyone! I'd like to add one please, as I am seriously in the market/want/NEED for a car this year for SURE...

In 2007, I made a much higher income (double) than I do now, (2008 tax return-current), 2007 is out of the question right? I can't take a 2007 Tax Statement in that shows boat-loads of income and fool the salesman can I?

At any rate... I would love to hear more about Car Loan Companies people have went with, their experience, and what they demanded for proof of income. I am still of course employed making an ok income, and my credit is flawless aside from the apartment complex collection from 2008 on my CR...

Also, one last question... since we share a vehicle (wife and I) can I include her income also when applying for a car loan? THANKS! :)

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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:

Is this the consensus out there for new/used car loans? The required proof is always latest stub and a utility bill (why the util bill)? Also, what if I just got a big bonus last week and bring that pay-stub in?

Oh, and are car lots truly bending over backwards to give loans since car sales are worst since World War 2, or is this just a "fallacy" that we all are being "sold" over the airwaves? (Are they more desperate on ALL loans, or only NEW car loans????) :)

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  • 2 weeks later...

My SIL has a BK13....and she wasn't able to get a loan. Her credit is mid-600's.

My brother has credit is the high 500's and he was able to get a Ford Loan for $22,000 at 9%. He said it was very easy. No problems.

I want to refinance both my vehicle's in one loan. My truck is at 4% and my car is at 10% (I think b/c it's a 99 model) My husband tried once...but the company said there was no way they could beat the 4% on the truck. Any advice? The car was the biggest regret bill we have ever made.

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My SIL has a BK13....and she wasn't able to get a loan. Her credit is mid-600's.

My brother has credit is the high 500's and he was able to get a Ford Loan for $22,000 at 9%. He said it was very easy. No problems.

I want to refinance both my vehicle's in one loan. My truck is at 4% and my car is at 10% (I think b/c it's a 99 model) My husband tried once...but the company said there was no way they could beat the 4% on the truck. Any advice? The car was the biggest regret bill we have ever made.

Wow, a new Ford with FICo in the 500's? That's good news for everyone :) Although, 9% on $22,000 isn't exacltly chump change.

I'm no expert by a light-year, but I believe in the used-car arena of financing, you are not going to be as competitive on rates as you would be with new vehicles; especially these days. My thoughts are simply that new car lots and the manufacturers are hurting the worst in decades upon decades, and simply want to 'empty' these cars onto the consumer, but used cars are popular still because of the savings and people being frugal; plus the fact used cars are seen as higher risk by lending institutions... I could be very off-base, but that's my opinion. :)

PS: By Jetscarbie's post, would everyone agree that BKO is the largest hurdle these days in getting a loan? I remamber reading that someone said "they'll give a new car to a fetus these days," but maybe BKO is still that one hurdle that can't be overcome? I've never had BKO, so maybe those of us that haven't, the silver lining is all we have to do is show up and we'll get approved? (I still believe in shopping around - a LOT! The FICO rules state that your score will not be altered or affected for 30-Days delay if shopping for a home or car loan, and even then those shopping 'sprees' are grouped together as a single inquery and don't shift your FICO nearly as much as shopping for example 8 credit card rates within 30 days... am I right about that?)

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I believe so, FICO, but you are doing the right thing in shopping around. Continue to shop around until you find the car that's for you, and then you can apply for the credit loan.

It's also good to know your up-to-date FICO score before going into the dealership (as you might already know this).

Whenever I was shopping for my used car, it took me about 2 months to finally settle on the car that I wanted. I made sure my credit was cleaned up as possible, and that my major credit cards had low balances on them.

While I waited, I saw an increase in my credit score and I went in and got the car that I wanted. It was a goal for me, and I drive around in my car as an reward; not a burden.

So in anyone's case, if you are going to drive a car and pay an outrageous payment and interest rate, make sure it's a car that you want to pay for each month.

I'm sure having a BK on your credit report (current/recently), you might have some trouble getting approved for a car loan, or you are going to be paying a buttload in interest.

Some companies already have a print out of the range of interest rate you will get depending on your FICO score. I would ask for that before applying for a car loan.

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Thanks a lot Esq, those are all really good points. I recently learned that car loans are concerned with a different calculation/variation of your standard consumer FICO score, called the Auto-Enhanced Score, or the FICO Auto Industry Score. And you're right, I believe any dealer that won't show you a clear tiered display of where you fall and their own requirements for lending money is not someone I would ever do business with!

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Glad I could help out with my experience. It was my first car to purchase, and I did a lot of reading on these boards before settling for it.

Let us know (if you do get a car) how it all worked out! :)

Did you notice that all the creditor/lendors you applied for/at honored the 14 day buffer period for lumping all your auto rate inqueries into one single inquery... and also the 30-day delay period until your first inquery is reported on your CR?

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This was my car buying experience 3 months ago. My scores are in the mid to high 500s depending on which CRA you look at.

I had a very difficult time & despite just paying off my last auto loan 10 months previously with always on time payments couldn't get the same CU to finance me again nor anyone else. The dealer was surprised to get me financed at all he said with my scores. Most places wanted huge amounts of money down and/or co-signer.

They checked a ton of places (some of which I didn't authorize & had they asked I would have told them would not finance me like Cap 1, etc) & finally got me financed with Nuvell (division of GMAC) for 21% interest. They told me it was 19% & I didn't realize until I signed the final paperwork that it was 21+% interest plus 6 years instead of 5, but I had been there all day long, it was 12 degrees outside, & I absolutely had to have a car before I left that day.

BUT one good thing that came out of all of the above is that in order to get me financed they had to knock off over $4,000 on the price of the vehicle. I've never had any luck with a dealer lowering the price ever. I knew when I signed the paperwork that I would re-fi it some day so I think really getting that much knocked off was almost the same as me putting that much down cash so hopefully if I can get re-fi soon I won't be upside down in the car at all.

So actually if I had gone for a cheaper car (which I really couldn't do seeing that we have 4 dogs & they are too big to fit in a little sedan LOL) they wouldn't have knocked anything off & I would have been stuck paying what they wanted & still got junk financing.

Also because of the financing I got a nicer car. I was looking at SUV/crossovers & after test driving a bunch of stuff the closest thing I liked was the Pontiac Torrent (I had a Blazer & would have liked a Trailblazer but way too much $$$$$) but they claimed they couldn't get me financing on it. The price was around $13,900. It was just the basic model, etc So anyway somehow they were able to get me financing on a super nice Chevy Equinox (its the same car as the Torrent but its Chevy) & it was around $18,500. It had all the bells & whistles too for options. (leather, CD player, etc etc) So anyway as I said to get the financing through though they had to knock the price down to around $14,100. So I think all things considered & assuming I am able to re-finance I may have come out better in the end.

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Did you notice that all the creditor/lendors you applied for/at honored the 14 day buffer period for lumping all your auto rate inqueries into one single inquery... and also the 30-day delay period until your first inquery is reported on your CR?

I actually only went to one lender: credit union. Plus, I didn't pull my credit report after this...maybe I should have; sorry I don't have any experience/advice to give ya.

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When you are buying a car play the dealers game the smart way...

The more fight you put up the better the deal u r gonna get. Most dealers will use a time scale to drop pricing. they will drop the car price x$$ amount per each additional hour you put up a fight.;)

Well that is true, but its not an actual mathematical equation based on time, it's always up to the GM's discrepency. I sold cars for a while at a large dealership, and it was grueling, but I learned a lot from it. I should have actually created a notebook about all the little things I learned, ha!

Actually, the best thing to do is NOT to argue for hours on end and get tired, heated, and angry wasting all your time in one shot... walk away and calmly say "That's not going to make me commit to anything today" and they will call you back the next day, AND THE DAY AFTER THAT. I have seen it in action, take my word for it ;)

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