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Smart Shopper Credit Scores and Vehicle Financing
935 messages, Last post on Jul 28, 2009 at 1:12 PM
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My experience is that creditors look at the total package....not just credit score, but history, employment history, the type of job you have and your assets. Truth be told, there are some people with too high a credit score. Say what? Businesses look at this all the time. Having too high a score means that you may not be leveraged enough and taking advantage of deals available to you. Credit score, while important, is just one factor. If it is over 750, you really are in great shape shape no matter what. And, if you have income and solid history, you will be able to do a lot more then someone with a 790.
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Replying to: waterdr (Jan 19, 2008 9:04 am) With that said, I would not be comfortable with a payment over $450, so that limits me to moderate priced cars. I could qualify for 1K, but it would stretch me significantly. Now, many people with scores in the 500's or 600's (not all, but some), think that if they qualify for the loan then they can afford it. I know it is not true. Heck, if I wanted to, I could go into 90K debt on the cards in my wallet right now. |
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Replying to: waterdr (Jan 19, 2008 9:04 am) Banks start w/ the score. If your score isn't right, even if its only 1 point below the tier you want, you aren't getting that tier. For the captive lenders, GMAC, Ford Credit, American Honda etc, score is secondary. If everything else is in line, someone w/ a lower score can still achieve an A rate. Finally, I have NEVER heard of anyone having too high a score.  Absent other factors of course. A college kid could have a $500 VISA card that they pay like clockwork, but unless they have a big downpayment and a good job, they aren't getting bought. |
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The people I can't understand are the people with BAD credit who still think anybody is going to finance them. We don't do "special" or subprime car loans. That is a dirty business that we stay away from. Once in awhile I'll get someone with HORRIBLE credit or a recent BK that just can't understand why they can't get a car loan! ????
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Replying to: isellhondas (Jan 29, 2008 6:41 am) We don't solicit for the business but are capable of handling it if they come in. Any beacon score 520 or better does not worry me. I can get you done on A (maybe not the one you want) car as long as you don't have a repo on your last auto loan and are not past due on your house. There are sources for the sub 500 scores but the buy fees are usually in the $1000's of and we opt not to mess with them. The only person they benefit are the lender, not us or the customer. |
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I recently purchased a new car for aprox. 26K OTD. Even though I have a credit score close to 800 I was worried about financing because my income varies from month to month and is hard to document (cash business). So hat in hand I approached my credit union. To my surprise I found that they were falling over themselves to loan me almost any amount I wanted. I gave them a conservative estimate of my income over the phone and was approved. It was their top tier rate too. They had a higher rate listed as well but that was for "You know, those people who don't pay their bills." Why they would lend money to some body who didn't pay his bills was beyond me. Fast forward to the car dealer. I noticed that they were offering 0% interest for 48 and 60 months. I asked about this and the salesman almost offhandly said "Those rates are only for top tier customers, especially the 60 month deal." I showed him my most recent FICO score and I swear he let out a gasp. From there everything was fine. I didn't need to show proof of income or anything. Just $100 on my credit card and a few days later I drove the car away. As I was signing the paperwork I commented how smoothly everything had gone. To this the salesman commented: "You would not believe some of the deadbeats who come in here looking to finance cars. It sometimes takes weeks to get someone to loan them money." He went on to say that the bulk of his ups these days had bad to terrible credit. What is wrong with people today?
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Replying to: oldfarmer50 (Jan 29, 2008 9:49 am) Guy comes to me for "free advice" on how to prevent BK. Had $300k mortgage and $60k in car loans of a $60k income. I told him to sell his cars and move down into a cheaper used cars and that his house is out of line with his income. "Maybe *YOU* can live like that, but I am not going to." When I bought my new car last year, I was EXPECTING the hard sell on a financing deal. However, when I told the guy I was paying cash, he looked pretty relieved that the deal would go through quickly. |
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Replying to: oldfarmer50 (Jan 29, 2008 9:49 am) |
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A national newspaper is looking to speak to consumers who have had a tougher time getting a car loan recently. Please respond no later than Feb. 15 with your daytime contact information to Chintan Talati at ctalati edmunds.com.
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Hey guys i have fell on hard times but in the time that i will get another car is the issue. I am in a lease 07 Accord will be done in 2010. Anyway my other credit got screwed up in oct 07 lost my job now i am back working and will be getting caught up. So the billion dollars question is will it affect me in 2010 seeing that i have flawless car credit i think that may help or will It?? If you do lease is it a auotmatic you can get another auto to lease or buy???
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