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Pre Approved Auto Loan


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So my girlfriend is buying her first car soon and i was doing some research for her on the vehicle a 2009 Honda Accord LX-P. All the sites said that i should get pre-approved for a car loan first so when i walk into the dealer less games will be played.

I kinda ran into a wall and can not find the answer anywhere. I am also new to the car buying world so this may be an easy question that is why i cant find an answer for it.

I was going to apply online at autocreditexpress.com to get her financing because she has basically no credit at all, i applied on up2drive.com and she was denied it said her credit score was 230 (not sure how when credit scores are based on 250-900) but after doing research autocreditexpress claims they finance people with no or bad credit.

The car she wants we will most likely be negotiate to $14,000 and she can be approved up to 15K. And we will try to get at least $1,500 for her old car. Which will make the total cost $12,500,

My question is as follows:

If she is approved for the $15,000 and the car does cost $14,000 i can just fill in the check for that amount (i think) but would i be required to leave a down payment with the dealer or does the pre approval include everything and i would just negotiate the total cost fo the car and the trade-in value?

Also has anybody hear ever used autocreditexpress before? i know they are in the BBB but would liek a personal experience with dealing with them if you have before.

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IMO this is not the place to get an auto or an auto loan. They are already setting you up for some huge interest rate by saying she has a score of 230! This type of dealer is looking for a consumer with bad credit that is so desperate they will take their loans that are designed to take advantange of the consumer. The rates are high and generally the vehicles are of low quality. Don't do it.

Your girlfriend would be much better served by going to a credit union and getting her financing lined up there first and then go out to buy a vehicle.

She is putting the cart before the horse by looking at vehicles and not knowing how much she can afford or whether or not she can be financed. If she wants a vehicle, the very first step is getting the financing from a third party (her bank or credit union) and then going to a regular dealership to buy it after she researches the vehicles she can afford.

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yes i told her she was moving to fast for the car.

Well i applied online and called the guy today and he told me good news she has been financed for 29.99% APR i laughed and was like that is way to much. We also had to go and buy the car at thir dealership which doesnt work for the car se wanted anyway.

Tomorrow we are going around to the local banks to see what she can get on her own and if she cant get anything we will just have to add a cosigner to her loan to try and get a good rate.

Thank you for all your help.

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Make sure to try a credit union.

Even if you and she don't belong to one, research tonight on line the various credit unions in your area and see what their qualifications are to join. Many of them now have very easy qualifications to join...like you live in the same county that the CU serves for example. :mrgreen:

I have found CU's have the lowest financing other than the subvented financing offered by new car dealers (and that nets out to a higher payment because of the price of the vehicle). In general, you get a much better deal at a credit union and they actually work with people that have no credit or a low score. Also, they will tell you your actual FICO scores.

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Thanks.

We went to the bank today to check out the situation.

The bank was shocked we actually came in for an auto load and said everyone does it online these days lol.

I gave hime all the information i had on what has been happening and what we need the loan for and he said she would need a cosigner and 2 pay stubs. He also gave me what the interest rate should be if she does get approved (They work on pass fail rates).

So now we will go to the dealer and see if he gives us the same or similar interest rate then we can go with them, if all the pricing and negotiating works out.

Will keep you posted.

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Glad you got the info you needed.

If you do it online, you don't get the info - like the rate, the items required and a few tips that you get when you chit chat with the loan officer.

When you are getting a loan in your girlfriends position, the chit chat is the info you need! I do almost everything online, but when it comes to getting a loan when there may be issues, in person is best, IMO. Good luck.

BTW, don't let the dealer bully her or you into a higher rate or into a bunch of add ons to the contract. Make sure you have researched the car she wants before you go. Earlier this yr when I bought my new (to me) used vehicle, I had researched every vehicle I was interested in before I went to the dealer. The online prices are much lower than the windshield prices at the larger dealers - I was surprised to see that. You actually start out negotiating at a much lower amount. Naturally I had blue book values and carfax reports for each vehicle (on my phone). Despite that, I still had to walk out of 4 large/well estatblished dealerships before buying from one that wouldn't play the payment game and other typical car dealer sales games. So your work is just beginning. Go in armed with info! :)

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Yes, i already have all the info i need. I researched the vehicle she wants for like 24 hours straight and the price online is $4K less then what the dealers sticker was so i will go in an let them kow where the negotiatiosn will begin and if not we will get up an leave. WHen she went alone last week they were running circles around her and they were negotiating monthly payments instead of car price, googd thing she didnt buy the car then. After hearing all this i will now go with her to be the negotiator of the car and if my terms are not met then i will just leave.

Also another thing this dealer did was she called to reschedule and he was like yelling and screaming at her so when i go on Monday i will just tell him this. "There is good news and there is bad news! Good news is my GirlFriend is ready to bu a car soo Bad News is it will not be with you!!" and if he asks why i will tell him because he is very unprofessional in the way he conduccts his business and we would like to deal with a more professional sales rep.

I agree completely after talking with the loan officer we have a better feel for what her APR should be so i will be sticking to that number.

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  • 10 months later...

I had an actual FICO auto enhanced score of 664 for a credit union and they told me that since you are not financing anything anymore (no cars, furniture, installments) we cannot provide you with the credit.

What exactly in your opinion is Actual Fico Score???

Make sure to try a credit union.

Even if you and she don't belong to one, research tonight on line the various credit unions in your area and see what their qualifications are to join. Many of them now have very easy qualifications to join...like you live in the same county that the CU serves for example. :mrgreen:

I have found CU's have the lowest financing other than the subvented financing offered by new car dealers (and that nets out to a higher payment because of the price of the vehicle). In general, you get a much better deal at a credit union and they actually work with people that have no credit or a low score. Also, they will tell you your actual FICO scores.

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