Tried editing earlier but no dice.. "Inquiries matter for scoring more than anything." out of context of with the wrong emphasis is a bit misleading so let me clarify. Inquiries can affect you two ways... scoring and any kind of manual review (including flat out denials for too many inquiries). The second part is anybody's guess so that leaves score fluctuation being the prominent affect of new inquiries.
financing?
Started by
Medsport
, Apr 10 2012 12:20 PM
67 replies to this topic
#26
Posted 17 April 2012 - 01:26 PM
#27
MarvBear
- Admin
-
- 45,543 posts
Administrator
Posted 17 April 2012 - 06:57 PM
If you sell a leased vehicle, you better be prepared to pay sales tax, tag, title fees, if you live in a state that imposes a sales tax on the purchase of an automobile. And the lease contract may call for the payment of a disposition fee.
#28
Posted 18 April 2012 - 07:54 AM
Hey Marv, I wasn't aware of any of those fees. I called the lease company and they gave me a buyout amount and I just figured I could pay that and then turn it over to the guy that wants to buy (this current guy seems to be very serious about buying it too). I know there is a $400 disposition fee, but I thought that was only if you turn the car in at lease end. I obviously don't have the money to buy the car myself, so my plan was to have the other guy pay me first (approx. 18.5k) and then I would send the lease company a check for the buyout (approx. 16.2k)and then I would receive the title from them in about a week and turn the title over to the buyer. But I'm not really sure about all the legal aspects and now that I think about it can you even do it this way? I thought maybe we both could sign the check we send the lease company, but I guess I would have to technically sell him the car after they send me the title so how would be the best way to do this? Maybe write out a contract that I promise to sell him the car for x amount after I aquire the title and treat his payment to me like a loan?
If this is not possible and I have to end up paying sales tax, ect. it won't be worth it and I might as well just trade it in. The last dealer said he would give me about 15.75k for it plus a $750 competitive trade in so I would at least make a couple hundred bucks and that way and not have to deal with the headache of trying to figure out how to do the buy and sell to another person and then have to try to time the delivery just right so I will have a car to drive in the meantime.
Road2freedom, I'm still not sure I understand the inquires info? My main concern is if I keep doing credit pulls to try and find a better rate somewhere else will it effect the one loan I supposedly was already approved for if I end up trying to accept it in say 3-4 weeks after the initial acceptance? Also since it looks like I now have to deal with a different salesman at the dealership I was working with over the phone (which I still haven't heard from personally), could I go to a different dealership say a little closer and get the same deal from Ally? I'm assuming I would have to apply again and I don't know if I want to do that or not as I'm afraid of getting declined for some reason.
If this is not possible and I have to end up paying sales tax, ect. it won't be worth it and I might as well just trade it in. The last dealer said he would give me about 15.75k for it plus a $750 competitive trade in so I would at least make a couple hundred bucks and that way and not have to deal with the headache of trying to figure out how to do the buy and sell to another person and then have to try to time the delivery just right so I will have a car to drive in the meantime.
Road2freedom, I'm still not sure I understand the inquires info? My main concern is if I keep doing credit pulls to try and find a better rate somewhere else will it effect the one loan I supposedly was already approved for if I end up trying to accept it in say 3-4 weeks after the initial acceptance? Also since it looks like I now have to deal with a different salesman at the dealership I was working with over the phone (which I still haven't heard from personally), could I go to a different dealership say a little closer and get the same deal from Ally? I'm assuming I would have to apply again and I don't know if I want to do that or not as I'm afraid of getting declined for some reason.
#29
Posted 18 April 2012 - 09:25 AM
Road2freedom, I'm still not sure I understand the inquires info?
My main concern is if I keep doing credit pulls to try and find a better rate somewhere else will it effect the one loan I supposedly was already approved for if I end up trying to accept it in say 3-4 weeks after the initial acceptance?
It won't affect the loan if you were already approved. The exception here of course, is if the approval expires (varies by lender) and then you have to reapply. It's possible then, assuming you exceeded the shopping window for the scoring model used, that your score drops a few points. This may or may not change the approval terms - depending if they use score cutoffs alone for determining your rate and/or approval. Vague enough?
There are just so many variables out of your control so I would just shop the best deal and negotiate your tail off.
Also since it looks like I now have to deal with a different salesman at the dealership I was working with over the phone (which I still haven't heard from personally), could I go to a different dealership say a little closer and get the same deal from Ally?
That is entirely possible, especially if you tell them you want them to beat what the other dealer offered to earn your business. It will be another pull though, and you may not be placed with the same lender. If they can beat the terms though, who cares? Remember, even though you might feel a bit vulnerable, they want your business just as bad as you want to make the purchase. Let them work for you.
I'm assuming I would have to apply again and I don't know if I want to do that or not as I'm afraid of getting declined for some reason.
Yes you would. Don't sweat the declines, especially for auto purchases. There are tons of banks and CUs that bid through dealers and even people with awful credit get approved. Just get the best possible deal for yourself at terms you can afford and you should feel accomplished. Good luck!
My main concern is if I keep doing credit pulls to try and find a better rate somewhere else will it effect the one loan I supposedly was already approved for if I end up trying to accept it in say 3-4 weeks after the initial acceptance?
It won't affect the loan if you were already approved. The exception here of course, is if the approval expires (varies by lender) and then you have to reapply. It's possible then, assuming you exceeded the shopping window for the scoring model used, that your score drops a few points. This may or may not change the approval terms - depending if they use score cutoffs alone for determining your rate and/or approval. Vague enough?
There are just so many variables out of your control so I would just shop the best deal and negotiate your tail off. Also since it looks like I now have to deal with a different salesman at the dealership I was working with over the phone (which I still haven't heard from personally), could I go to a different dealership say a little closer and get the same deal from Ally?
That is entirely possible, especially if you tell them you want them to beat what the other dealer offered to earn your business. It will be another pull though, and you may not be placed with the same lender. If they can beat the terms though, who cares? Remember, even though you might feel a bit vulnerable, they want your business just as bad as you want to make the purchase. Let them work for you.
I'm assuming I would have to apply again and I don't know if I want to do that or not as I'm afraid of getting declined for some reason.
Yes you would. Don't sweat the declines, especially for auto purchases. There are tons of banks and CUs that bid through dealers and even people with awful credit get approved. Just get the best possible deal for yourself at terms you can afford and you should feel accomplished. Good luck!
#30
Posted 18 April 2012 - 09:30 AM
In some cases, facilitating the sale through a dealer could avoid having to pay tax twice (since technically you are buying the car from the leasing company then selling it to the other guy). Of course a dealer would want to get some money out of that.
#31
Posted 18 April 2012 - 11:52 AM
Thanks for the info guys. So I'm assuming I can do the sale pretty much how I explained, but will have to pay sales tax? I guess I could mention it to the dealer and see what they say about facilitating the sale or something.
#32
MarvBear
- Admin
-
- 45,543 posts
Administrator
Posted 18 April 2012 - 06:21 PM
approvals are good for 30 days, MEANING the contract has to be at the bank and cashed no later than 30 days from the application date.3-4 weeks
#33
Posted 19 April 2012 - 06:34 AM
Good so I sill have some time. I believe it has been going on 2 weeks. I don't know how long it will take it I pursue the private sale though. Does anybody know how you go about doing a private sale if you have a lease? Or where I can call or any links where I can look up the info? The leasing company isn't giving me much info. As far as sales tax, I believe the buyer has to pay it when he registers it at the DMV in Ohio, correct? btw, I still haven't heard from the new dealer so I may have to call them today or should I wait since they said he will be contacting me?
#34
MarvBear
- Admin
-
- 45,543 posts
Administrator
Posted 19 April 2012 - 07:52 PM
It would take me 3-5 days out of the 30 days to process the contract and get in the banks hands, then the bank must process it all before the 30 days are up.
Usually one purchases their leased vehicle thru the originating dealer, who can process the tag, title work, and collect and remit the sales tax(if any) due. Take your buyer with you and let the originating dealer handle all the paperwork in one fell swoop.
Usually one purchases their leased vehicle thru the originating dealer, who can process the tag, title work, and collect and remit the sales tax(if any) due. Take your buyer with you and let the originating dealer handle all the paperwork in one fell swoop.
#35
Posted 19 April 2012 - 08:09 PM
That's what I would think too Marv, but that isn't the case with this lease as I already asked them and they said I must send in the payment to the finance company and not the dealership to get the title. I did find out that it doesn't have to be my name on the check as long as the payment has the odo reading sheet and the correct amount, they will then send the title and I would have to get it transferred at the DVD. It looks like somebody would have to pay sales tax on the res. value too though.
Edited by Medsport, 19 April 2012 - 08:10 PM.
#36
Posted 19 April 2012 - 08:51 PM
It would take me 3-5 days out of the 30 days to process the contract and get in the banks hands, then the bank must process it all before the 30 days are up.
Usually one purchases their leased vehicle thru the originating dealer, who can process the tag, title work, and collect and remit the sales tax(if any) due. Take your buyer with you and let the originating dealer handle all the paperwork in one fell swoop.
Marv, dealers will do this for free?
#37
MarvBear
- Admin
-
- 45,543 posts
Administrator
Posted 19 April 2012 - 08:53 PM
It would take me 3-5 days out of the 30 days to process the contract and get in the banks hands, then the bank must process it all before the 30 days are up.
Usually one purchases their leased vehicle thru the originating dealer, who can process the tag, title work, and collect and remit the sales tax(if any) due. Take your buyer with you and let the originating dealer handle all the paperwork in one fell swoop.
Marv, dealers will do this for free?
Not me. No way, no how.
#38
Posted 19 April 2012 - 09:03 PM
It would take me 3-5 days out of the 30 days to process the contract and get in the banks hands, then the bank must process it all before the 30 days are up.
Usually one purchases their leased vehicle thru the originating dealer, who can process the tag, title work, and collect and remit the sales tax(if any) due. Take your buyer with you and let the originating dealer handle all the paperwork in one fell swoop.
Marv, dealers will do this for free?
Not me. No way, no how.
So how would that work? Flat fee or a cut of the sale price of the car?
Just curious.
#39
Posted 20 April 2012 - 10:13 AM
It would take me 3-5 days out of the 30 days to process the contract and get in the banks hands, then the bank must process it all before the 30 days are up.
Usually one purchases their leased vehicle thru the originating dealer, who can process the tag, title work, and collect and remit the sales tax(if any) due. Take your buyer with you and let the originating dealer handle all the paperwork in one fell swoop.
Marv, dealers will do this for free?
Not me. No way, no how.
Yeah but in my case I bet they would want to do it. They get to sell a 25k car and also probably make at least 3k on my car when they sell it. The one dealer offered me about 16k for it and I know they would put it on the lot for 19-20k. btw, it looks like that deal with the guy buying my car fell through so I may have to do something like a trade-in now. I'm still wondering if I would get a better deal at the Hyundai dealership for it. Every time I talk to the hot-head dealer there he always makes me want to go other places though.
#40
MarvBear
- Admin
-
- 45,543 posts
Administrator
Posted 20 April 2012 - 08:04 PM
When you trade in a leased car in the state I'm in, the consumer does not receive any tax related credit for the trade. We are required to charge sales tax on the selling price of the vehicle without consideration for the leased vehicle.
Your state may or may not treat sales tax differently than mine. It's something you might want to check on while you are waiting.
Your state may or may not treat sales tax differently than mine. It's something you might want to check on while you are waiting.
#41
MarvBear
- Admin
-
- 45,543 posts
Administrator
Posted 20 April 2012 - 08:08 PM
It would take me 3-5 days out of the 30 days to process the contract and get in the banks hands, then the bank must process it all before the 30 days are up.
Usually one purchases their leased vehicle thru the originating dealer, who can process the tag, title work, and collect and remit the sales tax(if any) due. Take your buyer with you and let the originating dealer handle all the paperwork in one fell swoop.
Marv, dealers will do this for free?
Not me. No way, no how.
So how would that work? Flat fee or a cut of the sale price of the car?
Just curious.
Depends on my mood. If I've had enough hibernation time, then I might be less grouchy, if not, you're in trouble cause you got to negotiate with me,and I have the upper hand.
#42
MarvBear
- Admin
-
- 45,543 posts
Administrator
Posted 20 April 2012 - 08:08 PM
It would take me 3-5 days out of the 30 days to process the contract and get in the banks hands, then the bank must process it all before the 30 days are up.
Usually one purchases their leased vehicle thru the originating dealer, who can process the tag, title work, and collect and remit the sales tax(if any) due. Take your buyer with you and let the originating dealer handle all the paperwork in one fell swoop.
Marv, dealers will do this for free?
Not me. No way, no how.
So how would that work? Flat fee or a cut of the sale price of the car?
Just curious.
Depends on my mood. If I've had enough hibernation time, then I might be less grouchy, if not, you're in trouble cause you got to negotiate with me,and I have the upper hand.
#43
Posted 22 April 2012 - 11:11 AM
Well it seems like the deal of the guy buying my car and also getting the mustang fell through. Change of plans with the buyer and there are no manual gt's let in the area. I guess I messed around too much. Oh well, probably not the best choice in a car anyway at least for gas and insurance purposes. I'm still thinking of looking at a V6, but first another genesis coupe. I tried truecar for one of those and a dealer called. He's a couple hours away but it sounds like they are very interested in my car (unlike the place I got it from) so hopefully they will offer me a good trade-in deal. If that deal doesn't go good I may check out the Chrysler 200 as my local dealership has a special of $129/m for a lease. It does say $2999 down in small print, but I would think even with 1-2k down it would still be around $200 or so? btw, if they have trouble finding a decent loan is it ok to tell them to try Ally that the Ford dealer used?
#44
MarvBear
- Admin
-
- 45,543 posts
Administrator
Posted 22 April 2012 - 03:21 PM
Ally is the financial captive for Chrysler dealers.
#45
Posted 25 April 2012 - 07:23 AM
Update: I went to see about the Chrysler 200 lease and did get approved, but it came out to about 275/m for a limited 4 cyl with about 1k down. He let me take one home overnight and its a decent car and has a lot of features, but the seats are flat and uncomfortable and it has almost no power so I took it back. He said I could try a 6 cyl., but that would put the payments in the lower 300 range and the more I think about it these are very common cars in this area and more of a "mature" car imo. Anyway, I noticed a couple base challengers on the lot that look really nice. They are only asking about $500 or so more for them than the 200 4 so I asked what kind of deal I could get for them. He looks it up and says about 340/m with 1k down for a 3 year term. He wanted to know if I wanted to test drive one of them and I'm thinking about it. I don't know, it would be a little less than the 375 I'm paying now, but those are bigger cars so gas mileage probably wouldn't be as good. Plus I had planned on buying and not leasing, but then again I would only have a 3 year commitment instead of probably 6 years on a loan and that would also cost a good 60-70 more a month. I just e-paid payment for my current lease as it was due today so it wouldn't be late so maybe that would know a little off and maybe I can talk him down a tad. I still think I should check out a couple more cars like maybe a near base V6 mustang or even a new genesis coupe. I know the genesis is probably a couple grand too much, but I would like to see if they might give me more for my car. The Dodge dealership is only offering buyout amount and agreed it is probably worth a couple grand more, but they have to do reconditioning on it and make a small profit too.
I'm still not sure what to do. I have yet to search for some "beater" cars to see if I can find anything halfway decent for 1-2k. That way I could drive it for say 9-12 months and save some money for a down payment for a nicer car next year around this time (and hopefully get financing easier and a better rate) or now I'm even thinking of buying out my lease and then take my time and try to sell my car privately over the next several months as I know it has a couple grand equity in it and it would be easier to sell if I own it rather than leasing it.
I'm still not sure what to do. I have yet to search for some "beater" cars to see if I can find anything halfway decent for 1-2k. That way I could drive it for say 9-12 months and save some money for a down payment for a nicer car next year around this time (and hopefully get financing easier and a better rate) or now I'm even thinking of buying out my lease and then take my time and try to sell my car privately over the next several months as I know it has a couple grand equity in it and it would be easier to sell if I own it rather than leasing it.
#46
MarvBear
- Admin
-
- 45,543 posts
Administrator
Posted 25 April 2012 - 06:53 PM
good luck in your endeavors.
#47
Posted 27 April 2012 - 12:51 PM
good luck in your endeavors.
That's not much advice what to do. I finally looked at a new Genesis coupe yesterday and liked it alot, but I think I messed up by not asking the price of the car. The whole think was messed up. First of all the salesguy lied to me over the phone. He said they would be aggressive with a good amount for my trade as they want my car. When I got there (after a 3 hour drive), he wasn't even there and they said they don't want my trade since its a lease and didn't even look at it. They did offer to pay what I owed (one payment and turn-in fee) for me so it would be like breaking even. Then we went right into payments and it started out around $500/m. I then asked if they were using the truecar quote and they said "what truecar quote" so I gave that to them and they dropped some off. Then after a couple hours of haggling, we financially got down to about 350/m lease for 36 months or 430/m buy for 72 months. I could do the lease since its about 25/m less than I pay now, but I'd be in the same boat in 3 years with no equity. Now if I did the purchase it would really strain my budget as I barely break even now and another $50/m would hurt. I know I could maybe cut cable and the paper and maybe not eat out as much or even get a part-time job. But as long as I could stick it out the majority of the loan term I would then be in a much better position as I would have several (hopefully 10 or so) grand to put down on a new car and then payments would be a lot more manageable. Is this reasonable thinking or am I off base?
#48
Posted 27 April 2012 - 02:13 PM
Rule #1 of car neogtiations: do not negotiate by payment alone.
Buying or leasing, negotiate the price of the vehicle separately. Then negotiate the credit terms and rate ( if going through the dealer). You can negotiate the trade before or after, but the numbers will work themselves out if you do your homework and know what price/rate/term you can afford.
I don't think Marv was trying to be unhelpful - you are just all over the place still and even I don't know what to tell you. I'll try again though.
First things first - figure out what you want to do with your existing car: trade, buy and sell outright, or just turn it in at lease end. Pick one and let it sink in.
Then figure out your actual budget (none of that "I might be able to swing a extra $50 if I do X"). What can you comfortably afford on a monthly basis, with insurance?
Then figure out what you can afford OTD price wise, with varying rates that are realistic to your credit situation. Add in any down payment and back out any fees and TTT. If your rate is higher than expected, then you have to rate shop, find some cash, or get a cheaper car, be it less options or something different altogether.
You have too many moving targets - you need to make some decisions to start nailing down some of these variables.
edit - stupid ipad formatting...
Buying or leasing, negotiate the price of the vehicle separately. Then negotiate the credit terms and rate ( if going through the dealer). You can negotiate the trade before or after, but the numbers will work themselves out if you do your homework and know what price/rate/term you can afford.
I don't think Marv was trying to be unhelpful - you are just all over the place still and even I don't know what to tell you. I'll try again though.
First things first - figure out what you want to do with your existing car: trade, buy and sell outright, or just turn it in at lease end. Pick one and let it sink in.
Then figure out your actual budget (none of that "I might be able to swing a extra $50 if I do X"). What can you comfortably afford on a monthly basis, with insurance?
Then figure out what you can afford OTD price wise, with varying rates that are realistic to your credit situation. Add in any down payment and back out any fees and TTT. If your rate is higher than expected, then you have to rate shop, find some cash, or get a cheaper car, be it less options or something different altogether.
You have too many moving targets - you need to make some decisions to start nailing down some of these variables.
edit - stupid ipad formatting...
Edited by road2freedom, 27 April 2012 - 02:16 PM.
#49
Posted 27 April 2012 - 02:15 PM
Buy a beater and save money.
If you're this stressed over a $20-30 difference in the payment, you can't afford the car.
What are you going to do if you can't grab an over time shift this month, gas goes up some more, groceries go up, an appliance breaks, etc if your budget is so tight?
If you're this stressed over a $20-30 difference in the payment, you can't afford the car.
What are you going to do if you can't grab an over time shift this month, gas goes up some more, groceries go up, an appliance breaks, etc if your budget is so tight?
#50
Posted 28 April 2012 - 01:25 AM
Good advice road and bostone. I think I really like the Genesis Coupe. I know it well because I've leased one for almost 3 years. It was a new model, but I've had pretty much no issues with it at all. The new ones are even better and I'm looking at a base instead of the more uplevel track I have now. I don't think I'd miss the extras like sunroof, push button start, wing, ect. and it has standard brakes which are much less expensive to replace than the Brembos. Problem is they raised the price by 2k across the board so even the base (with the additional auto trans which I love) is still around 26k or only 1.5k less than my 2010 track. I know I could afford a lease on one, but like I said that doesn't really get you anywhere in the long run. If I could get a purchase for close to what I'm paying now that would be awesome, but I don't know if its doable. The salesguy I got my current car found out I was shopping somewhere else so he wants me to stop by so they can take a look at my car and hopefully offer me a better deal. If they could buy my car out (which no one else wants to do) and I could get at least a grand out of it and put a grand or so down, I might be close. Plus I have an extra set of wheels for the winter and a couple mods I could sell and possibly get a few hundred to offset the money down. The only thing that concerns me is I noticed I've been spending about 200 more than I've been making the past couple months. Part of that is paying for the higher heating bill in winter and I got some new shoes and scrubs (which I only get maybe once every 6m-a year, paying for tax service, ect. Also somebody quit at work that was working weekends in which I was off and I'm not sure what they are going to do since it hard to find somebody to work only weekends. I was working 80 hrs a pay and all the other nurses are working about 72, so if they try to cut me back there is no way I'll be able to make it and I'll have to get a beater then or find another job. I've been apply for PT or as-needed in the area, but nobody has called me back so I don't know what to do if things don't work out with the schedule. btw, I don't really know where to look for a decent (dependable) beater anyway? I know the car lots are out because they are way overpriced and you don't know what your going to get. I did find a 97 Grand Marquuis for 2k in autotrader that says its super clean and runs perfect. That is kind of old though and would deplete pretty much all my savings. Although I could then start saving a couple hundred a month or so, but would take about six months to a year to get back to where I'm at now.
0 user(s) are reading this topic
0 members, 0 guests, 0 anonymous users
