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Do we have a prayer?


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26 replies to this topic

#1 olemanwinter

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Posted 20 March 2012 - 05:47 PM

My wife has had the fortune to meet the finance manager of a whole string of dealerships. For a year he has been telling her, "Don't worry about it. No matter what your credit is I can take care of you".

We recently decided to take him up on his offer and he reiterated that it was "no problem", BUT I just signed up for myfico.com and her score is only 474. We have $2000 to put down on the vehicle. Maybe more if it made the difference.

I really don't want to waste his time or ours, and add inquires to our credit, if it is hopeless.

Has anyone here gotten a new car loan in the last couple of years with a score like that? Or heard of anyone getting one?

Thanks.



#2 MarvBear

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Posted 20 March 2012 - 06:06 PM

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#3 MarvBear

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Posted 20 March 2012 - 07:13 PM

yes

#4 olemanwinter

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Posted 20 March 2012 - 07:58 PM

The best three letters I've ever read :D

#5 hoapres

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Posted 21 March 2012 - 03:09 AM

Fill out MarvBear's credit app for a more definitive opinion. While perhaps extremely rare, I have seen cases of people with Fico scores below 400 getting loans. The issue is not likely to be approval provided the income is sufficient to support the loan along with a reasonable downpayment but the financing terms that are offered.

#6 olemanwinter

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Posted 04 April 2012 - 10:40 PM

In case anyone is interested, I thought I would update what happened and add a little to the collective knowledge.

We decided to go to another dealership as average shoppers before we met with my wife's connection.

First stop was a Kia dealership to look at their new flagship Optima. (a very nice luxury car at Kia prices.) At this dealership they first denied us any approval for the Optima and "showed us a car we could get" (Forte=junk) with $2000 down and 24% interest.

We balked and also offered a bit more down payment if we could move the conversation back to the Optima. They said they could get us into the base model Optima, but we insisted on the mid-level trim with the turbo motor. In the end the deal was as follows:

Kia Optima @ about $27,000
24% interest.
$4000 down payment.

That process took about 3hrs. We told them we would think about it.


The next day we went to the Mazda dealership where we had a connection. My wife's connection was much less help than she anticipated. I think he was so used to "helping" people that he expected us to sign just about anything that gave us a car. He was actually a "broker" who worked with many dealerships. Shortly after starting the negotiations we moved above him to a finance manager and never saw him again. I assume he got a cut of our eventual sale but I don't know for sure.

The Mazda 3 we wanted was a very high level trim package with a sticker price of about $21,000.
Their first offer to us was as follows:
Mazda 3 @ about $21,000
PLUS $500 GAP INSURANCE, PLUS $2000 EXTENDED WARRANTY.
24% interest.
$2500 down payment.

Going to Kia first proved to be a great idea because I called Kia from the Mazda dealership and asked them if they could match the $2500 down payment and keep their previously offered payment price the same. In essence this meant them cutting $1500 from the price of the vehicle. They balked and told me their offer was final.

But negotiating with mazda, them hearing the call, and my haggling, worked GREAT!

In the end I got them to do the following:

drop the interest rate to 21%
sell the extended warranty at $1000 (1k savings)
sell the gap coverage at $250 (250 savings)
- $500 from sticker price.
A few accessories purchased but INSTALLED FOR FREE.

I felt proud of the deal we got considering how poor our credit was. And the reduction of principle, more so than the interest rate drop, will be great when we refinance.

My wife loves her new car and I hope this info helps someone.

Edited by olemanwinter, 04 April 2012 - 10:43 PM.


#7 MarvBear

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Posted 05 April 2012 - 06:52 PM

congrrrrrrrrrrrrrrrrrrrrrrrrrrats


#8 Gwennie

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Posted 11 April 2012 - 09:15 PM

21% interest on a car!!?? I nearly had a heart attack when I saw that. I didn't even know that was legal.

Does the "congrrrrrrrrrrrrrrrrrrrrrrrrrrats" get passed out regardless of the validity of the celebration?

#9 MarvBear

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Posted 12 April 2012 - 07:18 PM

21% interest on a car!!?? I nearly had a heart attack when I saw that. I didn't even know that was legal.

Does the "congrrrrrrrrrrrrrrrrrrrrrrrrrrats" get passed out regardless of the validity of the celebration?



Original poster typed this

I felt proud of the deal we got considering how poor our credit was

Hence my congratulatory comment.

#10 UpsFeeder

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Posted 14 April 2012 - 10:51 AM

No offense, but what the hell are you doing. 21% on a new car. Your just not in a position to purchase a new car. Take that downpayment and pay cash for something. Get your credit and finances in order and then purchase something better. You're never going to get ahead making deals like this.

#11 LKH

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Posted 14 April 2012 - 01:31 PM

No offense, but what the hell are you doing. 21% on a new car. Your just not in a position to purchase a new car. Take that downpayment and pay cash for something. Get your credit and finances in order and then purchase something better. You're never going to get ahead making deals like this.



No offense, but that was completely classless for a first post.

#12 JWBurns

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Posted 14 April 2012 - 02:35 PM

I'll concur that agreeing to a 21% interest rate is asinine. And yes, that $2000 could have gone towards a very nice used car.

What's done is done..

Some of the worst car accidents happen on the showroom floor.

Edited by JWBurns, 14 April 2012 - 02:38 PM.


#13 mk_378

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Posted 14 April 2012 - 02:56 PM

How long is the loan?

Paying extra principal every month really saves a lot of money at high APRs.

I'd probably drop the warranty. With interest piling on, it's costing a lot more than $1000 by the time it could be of any use. (Third-party extended warranties also often prove worthless even if the car breaks and it ought to be covered). $250 for GAP is not a bad deal though.

Edited by mk_378, 14 April 2012 - 03:10 PM.


#14 road2freedom

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Posted 14 April 2012 - 03:03 PM

I may not agree with the rate, but perhaps they needed the vehicle or were not comfortable getting something unreliable as their sole transportation. In any case, bashing them for accepting a deal after it's done is pointless. They are happy with the results, they agreed to a contract they believe they can afford, what else is there at this point?

OP, congrats on the purchase and getting financed. I'm sure you realize the terms you accepted and I hope you can find a way to save yourself some money down the line. If you need any help, just ask. Enjoy the ride in the meantime. :wave:

#15 MarvBear

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Posted 14 April 2012 - 04:42 PM

No offense, but what the hell are you doing. 21% on a new car. Your just not in a position to purchase a new car. Take that downpayment and pay cash for something. Get your credit and finances in order and then purchase something better. You're never going to get ahead making deals like this.



People who post like this are not welcome in this forum. It's to help, NOT TO BE A JUDGE, JURY, AND HANGMAN ALL IN ONE. When you don't know all the circumstances.

So you can conform, or FOAD.

#16 King Leonidas

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Posted 14 April 2012 - 04:58 PM


No offense, but what the hell are you doing. 21% on a new car. Your just not in a position to purchase a new car. Take that downpayment and pay cash for something. Get your credit and finances in order and then purchase something better. You're never going to get ahead making deals like this.



People who post like this are not welcome in this forum. It's to help, NOT TO BE A JUDGE, JURY, AND HANGMAN ALL IN ONE. When you don't know all the circumstances.

So you can conform, or FOAD.


I'm brand new here, but I think even I have figured out what FOAD means lol

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#17 road2freedom

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Posted 14 April 2012 - 08:45 PM


No offense, but what the hell are you doing. 21% on a new car. Your just not in a position to purchase a new car. Take that downpayment and pay cash for something. Get your credit and finances in order and then purchase something better. You're never going to get ahead making deals like this.



People who post like this are not welcome in this forum. It's to help, NOT TO BE A JUDGE, JURY, AND HANGMAN ALL IN ONE. When you don't know all the circumstances.

So you can conform, or FOAD.


Posts like this make me wish we had a "like" button. :P

#18 olemanwinter

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Posted 29 April 2012 - 11:50 AM

Never expected this thread to become a flame fest. Oh well. I will think twice about posting anything personal here again. I'll just take what info I can as a lurker.

I can assure you our decision was well thought out and we know buying a new car off the showroom floor (AT ANY PRICE OR RATE) is a losing proposition. However, for a variety of reasons I won't share with the trolls we felt it was the best thing to do right now. Paying on this loan as agreed and quickly refinancing should help ease the burden both on this loan and improve our overall credit.

#19 MarvBear

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Posted 29 April 2012 - 02:31 PM

Well, we are sorry for the trollish posts in YOUR THREAD.

I can assure you that both LKH and myself rarely forget an insult slammed at one of our members.

People often reveal their true natures on a public internet forum.

However with that being said, you have my congrrrrrrrrrrrrrrrrrrrrrrrrrrats
for your new vehicle. Don't let the naysayers take from your pleasure and hard work.

#20 Credithater

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Posted 30 April 2012 - 10:40 AM

Yes congrats!!!!

I used to have bad credit too, and thanks to Marv he helped me get a car with a terrible rate lol

I paid my dues for a while and my credit improved..

#21 prakas

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Posted 01 May 2012 - 09:14 AM

You got a car you wanted financed, so congrats!!!!

The interest rate might not be the best, but you can always try and refinance in a year or two. Enjoy the ride :)

#22 playa1125

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Posted 03 May 2012 - 06:43 PM

Never expected this thread to become a flame fest. Oh well. I will think twice about posting anything personal here again. I'll just take what info I can as a lurker.

I can assure you our decision was well thought out and we know buying a new car off the showroom floor (AT ANY PRICE OR RATE) is a losing proposition. However, for a variety of reasons I won't share with the trolls we felt it was the best thing to do right now. Paying on this loan as agreed and quickly refinancing should help ease the burden both on this loan and improve our overall credit.


nah dont do that....we were all in the same place once... if not we wouldnt be on here...I bought a 2011 Hyundai Sonata with 19% interest back in october 2010...and with this board and some hard work I just today refinanced at 5.5%...use this board as a springboard to repairing your credit

#23 Credit Please

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Posted 05 May 2012 - 11:46 PM

Never expected this thread to become a flame fest. Oh well. I will think twice about posting anything personal here again. I'll just take what info I can as a lurker.

I can assure you our decision was well thought out and we know buying a new car off the showroom floor (AT ANY PRICE OR RATE) is a losing proposition. However, for a variety of reasons I won't share with the trolls we felt it was the best thing to do right now. Paying on this loan as agreed and quickly refinancing should help ease the burden both on this loan and improve our overall credit.



I Congratulate you as well, I know 1st hand you cannot buy a GOOD used car for 2K even at an auction. I think you made the best choice for your family and I dont know anyone with poor credit who have ever negotiated a lower interest rate and appreciate you sharing your experience and I think it would be a tragedy if you didn't share your empowring events with people who are in your shoes or worst. There are a lot of people who never post but read looking for a way out of their situation and I believe this post is one of those post that empower people in a difficult situation.


I wanted to add when I first found CB and began my credit journey, I was in a very difficult situation ended up buying a car from Drive time $1200 down payment, I kept the car 8 months interest rate was between 24% to 29% paying on time. It took me 3 to 4 months to get my credit score up to 620 give or take went to ford and they bought my car for 7k and I owed 2k give or take, ford had a bunchof incentives and I paid nothing to get into a brand new car 1st owner and a payoff on a buy here pay here loan in less than a year my interest rate went from 24% -29% to 9% if Im not mistaken. so I was happy, to heck with what people say, if you are focused face those insane interest rates and come up from beneath the damned interest rates, then you are doing good.

Thank you OP

Edited by Credit Please, 05 May 2012 - 11:59 PM.


#24 Labyrinthine

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Posted 06 May 2012 - 11:15 AM

I just wanted to chime in and say congrats. I am in a bad place credit wise (for varies reasons) and while it is getting better I had to finance a car at an obscene interest rate. Buying a cheap used car outright was not an option as I needed something very reliable. I cannot believe people would come here, of all places, and judge you like this.

Please do not stop sharing your journey. CB is here to help and the best way it can be of help is by people reading about the success of someone that was once in their shoes. Ignore the trolls, they have nothing better to do than criticize you and that makes them sad.

#25 Tusin

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Posted 06 May 2012 - 02:33 PM

Please don't take this as a troll post. And congrats on the new car! My concern would be others in a credit situation like yours, reading this and doing the same thing.

I really hope buying a brand new car was 100% a need and not a want. But as your kept looking at higher trim levels, I am not to sure. All the options you just paid for, are 21% more expensive now.

I will leave it at this, if you are going to buy a car at an extremely high interest rate, get the cheapest, most reliable car as possible. Also get something that holds it he highest resale value (remember at 20%+ interest rate, unless your are doubling your payment, it will take a long, long time before you make even a small dent in the principle). KIA's are getting better with their resale, but still have a long way to go. Not a knock against KIA at all (I own a 2011 Hyundai Tuscon). Oh and the mind set of "I can just refinance in a year", all I will say is good luck! At a sub 500 credit score, you need to be doing more than just paying on the car loan. Maybe a secured credit card, and of course making sure there are no errors on your CR, and if there are taking the proper steps to correct them.

Anyways, congrats on the car, hope you enjoy it, and everything works out for you!




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