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Credit Scores and Vehicle Financing

1023 messages,  Last post on May 07, 2013 at 3:37 AM

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What is this discussion about? Car Financing

Messages Page 100 of 103

#988 of 1023 Re: Credit denied after taken possession [timmy15] by Mr_Shiftright HOST

Aug 29, 2011 (10:45 am)

Replying to: timmy15 (Aug 29, 2011 7:34 am)
So they wanted an 840 instead of an 822? LOL!

#989 of 1023 Re: Credit denied after taken possession [timmy15] by verdugo

Aug 29, 2011 (12:27 pm)

Replying to: timmy15 (Aug 29, 2011 7:34 am)
. I think the whole thing was a scam for them to get out of the 0% financing.
 
Well, it kind of worked
 
Glad that you were able to pay it off. Enjoy your car and thank you for the follow up post. Most of the time, we don't get to find out what happened.

#990 of 1023 Re: Credit denied after taken possession [verdugo] by Mr_Shiftright HOST

Aug 29, 2011 (1:49 pm)

Replying to: verdugo (Aug 29, 2011 12:27 pm)
Well in most cases, that's still the cheapest way to buy a car, especially since putting your car money into a savings account isn't very fruitful these days.

#991 of 1023 Advertised financing rates - negotiable? by knight_ru

Sep 01, 2011 (10:07 am)

Out of curiosity - any tips on how to negotiate listed financing rates? I have excellent credit but do not want to pay the advertised 2.9% financing charge in this market.
 
thanks in advance.

#992 of 1023 Re: Advertised financing rates - negotiable? [knight_ru] by Mr_Shiftright HOST

Sep 01, 2011 (10:21 am)

Replying to: knight_ru (Sep 01, 2011 10:07 am)
Often the rates are pegged to other incentives, so if you want the incentives you have to pay the rate. This is all set up by the captive financing institution.
 
You can shop for money just like you shop for a car however. If you think you can beat 2.9% privately, go for it.

#993 of 1023 Re: Advertised financing rates - negotiable? [Mr_Shiftright] by knight_ru

Sep 01, 2011 (10:27 am)

Replying to: Mr_Shiftright (Sep 01, 2011 10:21 am)
For example - a regional bank is offering 2.5 for the same amount of months - If I bring that in, will they match it, or would I just be better off getting approval for that and bypass the negotiation process?

#994 of 1023 Re: Advertised financing rates - negotiable? [knight_ru] by Mr_Shiftright HOST

Sep 01, 2011 (11:55 am)

Replying to: knight_ru (Sep 01, 2011 10:27 am)
Well be on your guard here. They may *say* they'll match it, and even write it up at a lower rate, but the contract will read "subject to approval of credit" blah blah---and then you may find that the financing didn't go through even though they gave you the car. Not a good situation.
 
As long as the incentives/rebates on the car (if any) aren't tied to the dealer's financing, then it's a wash as far as I'm concerned. I've always used my own financing as I have access to local assistance if I need it.

#995 of 1023 Financing by superman5

Sep 01, 2011 (7:44 pm)

I have a question about financing.
 
I am planning to purchase a vehicle. My credit score is 738 (EXPERIAN) but I have CC debt about 40% of my available balance and income to debt ratio is about 24%.
 
I have obtained car loans previsouly, paid off two full term loans in last 10 years.
 
I am little worried that my debt might be a problem for me to obtain financing or get a horrible APR rate%.
 
Would it be better to try to get financed by a car dealer or through a bank?
 
Which lender would be easier/more favorable to obtain a loan with good interest rate?
 
I am thinking about applying through one of major banks such as b of a or chase and see what they offer but I dont want them to do a hard inquiry and hurt my credit rating.
 
Any advise would be greatly appreciated.

#996 of 1023 Re: Financing [superman5] by jwilliams2

Sep 02, 2011 (6:28 am)

Replying to: superman5 (Sep 01, 2011 7:44 pm)
Well, they will have to do a "hard inquiry" to approve you. The dealer should be able to get you a decent rate, but I would want to have my own approval as a back up and to make sure you get the best rate. Keep in mind:
 
"There is logic built within the FICO credit scoring system that treats multiple mortgage and auto inquiries as one search for credit (a.k.a. only one hard inquiry).
 
The goal of this logic is to prevent consumers from being penalized for being aggressive interest rate shoppers and only count the fact that they’re looking for one loan against them. The alternative is to have their scores negatively impacted for each and every individual inquiry.
 
Some of the versions of the FICO scoring credit-scoring models group inquiries into 14-day increments while others group them into 45-day increments. However, since you don’t know which version of the score you’re being scored with, it's best to do all of your shopping within a 14-day window."

#997 of 1023 Re: Credit denied after taken possession [Mr_Shiftright] by verdugo

Sep 06, 2011 (11:05 am)

Replying to: Mr_Shiftright (Aug 29, 2011 1:49 pm)
Well in most cases, that's still the cheapest way to buy a car, especially since putting your car money into a savings account isn't very fruitful these days.
 
I totally agree, but that wasn't the OP's original choice. If he had wanted to pay cash, he would've paid cash from the start.

Messages Page 100 of 103

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