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Credit Scores and Vehicle Financing

943 messages,  Last post on Dec 05, 2009 at 10:26 AM

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What is this discussion about? Car Financing

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#5 of 943 Re: Credit Union [ingridr] by danf1 Mar 15, 2005 (2:06 pm)
Replying to: ingridr (Mar 15, 2005 1:54 pm) Credit unions make up their own rules and criteria. They can be very different than standard banks. I would definitely look into it if you have one available to you.   You definitely don't want to run too many inquiries in a short period of time. I would say to check into the credit union first, then try a dealer, if all else fails you have a pre approval in hand already.   As far as rebuilding your credit rating, it won't matter where the loan comes from as long as it reports to your credit. Ask about that at the credit union because not all of them do. If they don't than you will not be helping yourself in the future by saving a few dollars today.   Feel free to ask questions. I may need a lawyer someday.
#6 of 943 Re: Credit Union [ingridr] by kirstie_h HOST Mar 16, 2005 (6:01 am)
Replying to: ingridr (Mar 15, 2005 1:54 pm) Hi ingridr, Many years ago, we were in a similar situation as my S.O. had just moved to the United States - he had no credit history at all here, but had a job and had started to establish a few credit cards. Still, his credit score was way low. We worked with some dealerships and we were up-front about our credit situation. The F&I guy at the store was extremely helpful, and talked with Volvo Finance to approve us at a reasonable rate (~7%) for any used vehicle with under 60K miles.   Obviously, everyone's situation is different, but if you go to a dealership, the most important thing is to be honest with them like you have been with us. They will be more willing to go the "extra mile" to try to help you if it is clear you're not trying to be deceitful.
#7 of 943 Re: Sub Prime Financing by cwpost Mar 16, 2005 (7:56 am)
I am no expert but I got financing 2.5 years ago via Toyota Financial with a 605 credit score. The interest rate was 12% but I refinanced with my CU within one year and got that knocked down to 5.1%. I was approved from Ford with a similar score for up to $33K. The mortgage on your credit should definitely help since that counts as a major purchase. I beleive Ford, GM, and Chrysler will offer you a rate of no more than 9%, which is high but not as high as 16%. Good luck. Please let us know how things work out.
#8 of 943 Re: Credit Union [ingridr] by macarshopper Mar 16, 2005 (12:48 pm)
Replying to: ingridr (Mar 15, 2005 1:54 pm) Hey Ingrid. I'm no credit expert but will throw in my 2 cents. I just recently financed a new car purchase and am very glad that I pulled all 3 credit reports prior to seeking financing. Luckily I did. There was an error that was not there when I'd pulled the reports the previous year.   I found some useful info on the impact of inquiries here. There are some allowances made for several inquiries over a 2 wk period when auto or loan rate shopping. See the "What to know about rate shopping section".   http://www.myfico.com/CreditEducation/CreditInquiries.aspx?fire=5   Hope this helps and good luck! Replies to this message: kirstie_h (Mar 16, 2005 1:45 pm) macarshopper (Mar 19, 2005 1:31 pm)
#9 of 943 Re: Credit Union [macarshopper] by kirstie_h HOST Mar 16, 2005 (1:45 pm)
Replying to: macarshopper (Mar 16, 2005 12:48 pm) Thanks so much for sharing that information. I'm sure it will be helpful to many of our members! Replies to this message: macarshopper (Mar 19, 2005 1:31 pm)
#10 of 943 Your score has a great effect by cadillacmike Mar 16, 2005 (2:12 pm)
on your offerred rates.   We got a mailing from our (former) mortgate /(current) car lender with an offer of $50,000 pre-approved out of the blue in Dec. This was while I was "between jobs" too.   The only reason I can think of was our credit score and history. When I called them about it it was for real (ended up spending about $35,000.00 at 4.3%) not "great" compared to some "new car" rates, but this was for a "pre-owned" car and I didn't have to bother with F&I at the dealership. Replies to this message: monicab (Mar 10, 2007 10:02 am) cadillacmike (Apr 22, 2007 3:33 pm)
#11 of 943 Thanks! by ingridr Mar 16, 2005 (2:25 pm)
Thanks for all the info/advice! I am printing it out and following up on it. Keep it coming
#12 of 943 Re: Credit Union [kirstie_h] by macarshopper Mar 19, 2005 (1:31 pm)
Replying to: kirstie_h (Mar 16, 2005 1:45 pm) Any time! Glad to help. I have received great info from these boards myself.
#13 of 943 More numbers by cti Mar 19, 2005 (3:13 pm)
It's obvious that you have done your homework on what you can afford. I ran some numbers through Excel and $6000 financed for 36 months at 16.49% is $212 per month.   I was curious about how much of the loan would be interest. For 36 months, your total interest paid using the above numbers would be $1650 - 27.5% of the loan amount and $2250 for 48 months - 37.5% of the loan amount. Saving 10% of the loan amount by reducing the term one year is pretty good.   Also, by reducing the interest rate to, say, 10% - possible from a credit union - you reduce your interest paid to $970 on a 36 month loan and to $1300 on a 48 month loan. The savings are 11% and 15% of the amount financed!   Add the savings up and by getting a better rate from a CU and shortening the term, you can save $1280 with a 36 mth/10% loan vs. a 48 mth/16.49% loan - all for $22 more per month.   So - Get to a CU and get a low interest rate loan NOW.   Also, there are many knowledgeable people here that can point you in the direction of a good used van (or are you looking for a minivan).   Lastly, where are you in Montana? I lived in Billings for 15 years.   Jason
#14 of 943 21% ??!!! by realtorguy Mar 19, 2005 (3:42 pm)
I was just at a dealership and I'm still in shock! I had a case of identity theft a few years back and got it all sucessfully removed.    In the meantime though I haven't been using credit and now have no history.     I was told on a 14,000 car I would have to put down 5500.00 and accept 21% interest!!    Is this really what I'm up against? This was a reputable toyota dealership and a salesman my family knows personally. I hope there are other options for me. Replies to this message: rroyce10 (Mar 19, 2005 5:18 pm)

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