Limited Credit History – Auto Loans

[Heracles 417]

Did you try a credit union?

I did!.. they said yes but... get a co-signer which is great if I had one, which I don't. I'm hoping more cash up front might tempt them! I'm hoping if I do this I can do it near the end of next month... maybe get a few extra $$ off if they are trying to move all the 09's out the door!

That is bloody ridiculous that you still have so many conditions. Illegals have no problems getting mortgages, yet you cannot get a car loan.

Edited October 8, 2009 by Booyah!

[Dan J 277]

Did you try a credit union?

I did!.. they said yes but... get a co-signer which is great if I had one, which I don't. I'm hoping more cash up front might tempt them! I'm hoping if I do this I can do it near the end of next month... maybe get a few extra $ off if they are trying to move all the 09's out the door!

That is bloody ridiculous that you still have so many conditions. Illegals have no problems getting mortgages, yet you cannot get a car loan.

That was back when all you needed to get a mortgage was a pulse (In some cases even that was optional).

[thepizzadude 26]

If your credit score is 700 and the dealership can't get you into a new car with 25% down #######. I sold new and used vehicles for 8 years at one of the biggest Chevy/Honda Dealerships in the country. I gotta say if the dealership can't get you financed you need to go to a different dealership, these guys have pacts with different banks and they can shop your info to 6 or 8 different lenders, they GOTTA be able to get it done or else THEY SUCK at their job. There is no way in the world that they should not be able to get a bank to do the loan with that kind of a down payment, did you ask your credit union what if you put 25% down?

I haven't let the dealership try just yet as I'm trying to limit as much as possible any hits on my file. I've had 2 in the past month. The problem isn't that I could put 25% down, actually it's almost 30% or that I couldn't make the payments I make more than the car's cost a few times over per year.. the issue seems to be my credit file runs for only 2.5 years. I did ask my credit union could I borrow x for a car and their response was yes get someone to co-sign and your ready to go.

I am going back to them to say look what if I put 25% down up front, I'll also take that to the bottom feeder and ask them the same question. I've no doubt the dealership could put me in a car tomorrow but the lenders they have will want to trap me into short loan, high interest and penalties for paying off early or refinancing. I've asked and they said once your in it's not easy to get out of their loans they actually said try your bank first! Credit union is my first choice dealer is tied second with the bottom feeders. I can't afford a loan so short my payments are more than my rent but perfer the average 3 years if I can get it. I can pay it off early but not if I'm hit with "fee's" for doing so. I'm trying to get the best I can with what I've got.

I should just turn around and say to the credit union here look if I don't pay my 401k is yours that will easily cover the cost of the stupid car but not by a lot as I've only been working 3 years over here in the US lol. Well between that and my 25% the car is basically paid for.

If I were you and young like you are I would use your 401k and borrow the money from it and pay yourself back with whatever the plan makes you pay back. I don't remember exactly but I had the ability to borrow off my own 401k and pay myself back when I had one back in the day before I spent all my $$ on my pizza shop

[aidan80 9]

I agree a few years ago with my credit rating they'd have threw the money at me.. now they are so tight I can hear their arses squeak as they walk. I might just borrow against the 401k if I can. From those pictures it looks like the pizza shop is doing well.. I actually wouldn't mind one of those (can't be good for you lol) stuff crust pizzas!

[aidan80 9]

Is something wrong with the board or is some of my posts not posting? Thats the second time I've noticed a post I've made that went up has vanished? Either I'm going insane or something is badly wrong here?

[William33 110]

I fully agree with the below statements. A dealership is best postured to get you financed at competitive rates. Let them run with you application and know that your credit will be hit with several hard pulls, given the multiple lenders they will persue. Future lenders realize that you were shopping for the best loan rate at the time and will not penalize you for it.

You could also limit the companies that the dealership makes contact with, for example Nissan Finance only.....

In my case, I got a better rate with American Honda than my CU could offer....In fact, much better... A down payment is a huge advantage with the manufacturers Bank.

If your credit score is 700 and the dealership can't get you into a new car with 25% down #######. I sold new and used vehicles for 8 years at one of the biggest Chevy/Honda Dealerships in the country. I gotta say if the dealership can't get you financed you need to go to a different dealership, these guys have pacts with different banks and they can shop your info to 6 or 8 different lenders, they GOTTA be able to get it done or else THEY SUCK at their job. There is no way in the world that they should not be able to get a bank to do the loan with that kind of a down payment, did you ask your credit union what if you put 25% down?

[aidan80 9]

I fully agree with the below statements. A dealership is best postured to get you financed at competitive rates. Let them run with you application and know that your credit will be hit with several hard pulls, given the multiple lenders they will persue. Future lenders realize that you were shopping for the best loan rate at the time and will not penalize you for it.

You could also limit the companies that the dealership makes contact with, for example Nissan Finance only.....

In my case, I got a better rate with American Honda than my CU could offer....In fact, much better... A down payment is a huge advantage with the manufacturers Bank.

If your credit score is 700 and the dealership can't get you into a new car with 25% down #######. I sold new and used vehicles for 8 years at one of the biggest Chevy/Honda Dealerships in the country. I gotta say if the dealership can't get you financed you need to go to a different dealership, these guys have pacts with different banks and they can shop your info to 6 or 8 different lenders, they GOTTA be able to get it done or else THEY SUCK at their job. There is no way in the world that they should not be able to get a bank to do the loan with that kind of a down payment, did you ask your credit union what if you put 25% down?

Well I'm giving the credit union another go I offered them 25% up front of the current price of the car which I believe I can further reduce before putting ink to paper. If I get the ok from the credit union I'll let the dealer run a check and give me some rates. If I get a better deal through Nissan I may take that but in all honesty at the minute I'd be happy if the credit union said yes! With some luck I'll know next week and that'll give me a month to sell the car I'm driving now. I'm planing on holding out on buying until right near the end of November... well that's the plan right now anyway

[christeen 966]

I fully agree with the below statements. A dealership is best postured to get you financed at competitive rates. Let them run with you application and know that your credit will be hit with several hard pulls, given the multiple lenders they will persue. Future lenders realize that you were shopping for the best loan rate at the time and will not penalize you for it.

You could also limit the companies that the dealership makes contact with, for example Nissan Finance only.....

In my case, I got a better rate with American Honda than my CU could offer....In fact, much better... A down payment is a huge advantage with the manufacturers Bank.

If your credit score is 700 and the dealership can't get you into a new car with 25% down #######. I sold new and used vehicles for 8 years at one of the biggest Chevy/Honda Dealerships in the country. I gotta say if the dealership can't get you financed you need to go to a different dealership, these guys have pacts with different banks and they can shop your info to 6 or 8 different lenders, they GOTTA be able to get it done or else THEY SUCK at their job. There is no way in the world that they should not be able to get a bank to do the loan with that kind of a down payment, did you ask your credit union what if you put 25% down?

Well I'm giving the credit union another go I offered them 25% up front of the current price of the car which I believe I can further reduce before putting ink to paper. If I get the ok from the credit union I'll let the dealer run a check and give me some rates. If I get a better deal through Nissan I may take that but in all honesty at the minute I'd be happy if the credit union said yes! With some luck I'll know next week and that'll give me a month to sell the car I'm driving now. I'm planing on holding out on buying until right near the end of November... well that's the plan right now anyway

Have you considered one of the peer to peer lenders like prosper.com or lendingclub.com ? These are where the site/company backs and services the loan, and investors fund the loan as investments (like $25, $50 bucks) and the lenders get a return. My cousin got a peer to peer loan through lendingclub to pay off their high interest credit cards... the loan starts out at a certain rate and lenders bid down the loan... But you have take the time to outline your worthiness to fund the loan and not default (like explain how you are putting 25% down, responsible shopping, had home loan, etc...)... Just and idea

[Hilarious Clinton 452]

Buy used.

[William33 110]

Buy used.

If you have faith in the former owner....I don't. People are lazy at most levels and therefore I buy new. I would rather pay up front for asset depreciation, rather than break down on the highway due to some dumb azz not taking care of the vehicle...to each, his own...

[HYENA 4]

If your credit score is 700 and the dealership can't get you into a new car with 25% down #######. I sold new and used vehicles for 8 years at one of the biggest Chevy/Honda Dealerships in the country. I gotta say if the dealership can't get you financed you need to go to a different dealership, these guys have pacts with different banks and they can shop your info to 6 or 8 different lenders, they GOTTA be able to get it done or else THEY SUCK at their job. There is no way in the world that they should not be able to get a bank to do the loan with that kind of a down payment, did you ask your credit union what if you put 25% down?

I can't get a credit card now and my score is over 800; no kidding. I was in disbelief!

[William33 110]

If your credit score is 700 and the dealership can't get you into a new car with 25% down #######. I sold new and used vehicles for 8 years at one of the biggest Chevy/Honda Dealerships in the country. I gotta say if the dealership can't get you financed you need to go to a different dealership, these guys have pacts with different banks and they can shop your info to 6 or 8 different lenders, they GOTTA be able to get it done or else THEY SUCK at their job. There is no way in the world that they should not be able to get a bank to do the loan with that kind of a down payment, did you ask your credit union what if you put 25% down?

I can't get a credit card now and my score is over 800; no kidding. I was in disbelief!

You have misstated your score then, because with 800, you would have the best of cards and rates.. Stop spamming, OK?

Thanks,

VJ Moderation.

[HYENA 4]

no kidding, my score is over 800. The reason is a BK 14 years ago they're saying no. I used to issue credit...everything has changed!

I have no ads, I don't sell anything, no spamming here!

easy to discount unless you've been on the receiving end. I have no reason to mislead. I posted cause it baffled me.

Edited October 11, 2009 by HYENA

[aidan80 9]

no kidding, my score is over 800. The reason is a BK 14 years ago they're saying no. I used to issue credit...everything has changed!

I have no ads, I don't sell anything, no spamming here!

easy to discount unless you've been on the receiving end. I have no reason to mislead. I posted cause it baffled me.

BK 14 years ago.. what's that? my soon to be former wife has a score of 720 and one default for a sizable sum on a credit card she couldn't repay about 4 or 5 years ago and she can still get credit? What knocks me out is my limited credit history not really my rating so much. At least that's from the research I've done trying to figure our how they figure us out lol

[aidan80 9]

Buy used.

If you have faith in the former owner....I don't. People are lazy at most levels and therefore I buy new. I would rather pay up front for asset depreciation, rather than break down on the highway due to some dumb azz not taking care of the vehicle...to each, his own...

I agree, I'm actually a good owner I take pride in my car I like it (well most of the time lol) and I like to ensure it's always going to get me from A to B without any issues and it always has. I have the oil done every 3 months or 3,000 miles (on my now 11 yr car) I have the tries rotated, balanced and aligned when needed, filters are changed on time, car is clean inside and out.. it's washed every other month depending on how dusty or how many insects are out lol. I even wax it now and then to help protect it from the sun here in Florida.

On the other hand there are plenty of people that do nothing to their car until it either makes some very funky noises, that check engine light stays on for a long time or till it dies on the side of the road.

It's a 50/50 at best with used.. perfect example my former wife bought a used 98 saturn 82k on the clock from a small dealer for $2,500 runs perfect only thing it ever wanted was tires and oil.. now at 150k and still running strong! I bought a used Mercury 75k on it from the same dealer ran perfect.. till the A/C went out, then the motor mounts, timing belt went not long after that.. then the battery died!!.. I found a vacuum leak which i fixed with a $2 bit of rubber hose.. then I had an issue with the brakes, had a tire get a hole in the sidewall.. i just put 4 new tires on the thing and had the tie rods replaced.. it runs perfect, smooth but but I've easily spent as much on fixing it as I did to buy it.

For me at least it's time to buy a new car and at the prices new vs slightly used.. I don't mind spending the extra $2,000 or $3,000 on new.. plus there's so much competition out there right now to get business and at the end of the year/month I could come away with a really nice deal.