Ok, I am new to the site so please bare with me. I have been working for 6months to fix my credit. A lot of my dad's info was on mine, etc, etc. Long story short score went from 565 to 697 as of this morning. I am looking to purchase a car this weekend. I make around 1800 month, have no bills what so ever, and have no debt being owed to anyone. The car I was looking at purchasing MSRP at 32000 but will get it for 28500 due to the Employee pricing plus being done by dodge this month.
I applied directly through the top dealership in my area and the guy is telling me that because my first car ,which I bought back in 2001 and payed of in full a year ahead of schedule, is not on my credit report that is is causing a problem with me getting approved. Now I have bank statements showing I have been financed for a car before and the car was indeed payed off, but he keeps telling me it needs to be on my report. I know income is not an issue because when I tried to get approved back last december at a different dealership they told me that it was my credit score, but now it is 697 so that cannot be an issue.
I told the guy I am not planning to put any money down because I already get over 10% off the vehicle due to the EP discount and I have no plan to put anymore down on the car.
What I need to know is, is this guy baiting me to try and put more money down, or is the fact that my first car is not showing up on my credit really that big of a deal? Shouldn't a dealer be able to get me approved with my credit score and me being able to provide proof of my previous car loan through bank statements, or is this guy fool of it and I should just go deal with another dealer? Also, given my situation with my car not showing on my credit should I try other financing options and if so, what?
Sorry for the long post, but would like to get a deal done this weekend and kinda short on time, thanks in advance
Full Version: Is the dealer playing around
As a long standing finance manager, I could care less whether you put down $10.00 or $10,000.00.
Having bank statements that allegedly prove a prior car loan is not really proof. It being on your actual credit file would of course be proof, but evidently you dealt with a lender who does not report to your credit file.
I deal with Daimler Chrysler daily. Your score is certainly not the only thing they evaluate.
With Daimler Chrysler decision time is usually < 30 minutes.
If you have no prior historical credit ON YOUR FILES that is comparable, then IMO a lender would be justified in requestion the consumer make a cash investment REGARDLESS of the price paid for the vehicle, even if due to current incentives the price may be to the consumer particularly attractive.
At the end, the loan package to the lender, sans downpayment may not be a viable risk that they can live with.
Having bank statements that allegedly prove a prior car loan is not really proof. It being on your actual credit file would of course be proof, but evidently you dealt with a lender who does not report to your credit file.
I deal with Daimler Chrysler daily. Your score is certainly not the only thing they evaluate.
With Daimler Chrysler decision time is usually < 30 minutes.
If you have no prior historical credit ON YOUR FILES that is comparable, then IMO a lender would be justified in requestion the consumer make a cash investment REGARDLESS of the price paid for the vehicle, even if due to current incentives the price may be to the consumer particularly attractive.
At the end, the loan package to the lender, sans downpayment may not be a viable risk that they can live with.
Thanks for the quick reply, so basically your saying I need to get my first car loan reported on my credit report.
I know it is on my Exp. but the dealer only pulled EQ because here in GA the lenders mostly pull EQ. So should I tell the dealer to pull my Exp just to show that I have had a car loan before. My Exp score is not as high as my Eq and I would rather have the dealer use my EQ for a better APR.
The thing that gets me is that when I bought my first car I was 19, fair credit, never purchased a car before and was able to buy a brand new car for $24,000, no down payment, at 8.5% for 60 months back in July 2001, which I payed off in Aug of 2005.
Now the car I want to buy has a MSRP of 32000 with a discount bringing it down to 29000. Now should I put more money down on the car to get the dealer to overlook my previous car not being on my CR and if so How much more should I put down. Or should I just let them pull my Exp since my car loan is on that? Can they verify my previous car loan using my Exp but use my EQ for financing or does the financing having to be done all through one credit file?
Marv what is the best course of action I should take given my situation. I really don't want to have to wait to try and get my previous car loan on my EQ file because I have spent the last 6-7months fighting with the CRA's just to get the things reported on my credit files that was not mine taken off. I have requested my previous lender to report the loan numerous of times but feel that because the loan is paid I am the last person they are worried about. I would really like to get this car this weekend. Thanks in advance
I know it is on my Exp. but the dealer only pulled EQ because here in GA the lenders mostly pull EQ. So should I tell the dealer to pull my Exp just to show that I have had a car loan before. My Exp score is not as high as my Eq and I would rather have the dealer use my EQ for a better APR.
The thing that gets me is that when I bought my first car I was 19, fair credit, never purchased a car before and was able to buy a brand new car for $24,000, no down payment, at 8.5% for 60 months back in July 2001, which I payed off in Aug of 2005.
Now the car I want to buy has a MSRP of 32000 with a discount bringing it down to 29000. Now should I put more money down on the car to get the dealer to overlook my previous car not being on my CR and if so How much more should I put down. Or should I just let them pull my Exp since my car loan is on that? Can they verify my previous car loan using my Exp but use my EQ for financing or does the financing having to be done all through one credit file?
Marv what is the best course of action I should take given my situation. I really don't want to have to wait to try and get my previous car loan on my EQ file because I have spent the last 6-7months fighting with the CRA's just to get the things reported on my credit files that was not mine taken off. I have requested my previous lender to report the loan numerous of times but feel that because the loan is paid I am the last person they are worried about. I would really like to get this car this weekend. Thanks in advance
QUOTE
So should I tell the dealer to pull my Exp just to show that I have had a car loan before. My Exp score is not as high as my Eq and I would rather have the dealer use my EQ for a better APR.
Most of us are smart enough to bureau surf to find the qualifying criteria and request the lender to pull another bureau.
You actually don't have a choice who they pull. Once you signed a credit application, they can pull whomever they wish and submit to whomever they wish.
More money down is not a bad thing if it helps you qualify for a better loan. Just make sure that the price of the car stays where you negotiated it and the dealer applies your money down properly rather than jacking something else up. The money down will reduce the amount financed, which especially combined with a lower APR will reduce the total of payments by much more than the amount you put down.
Mm.. $32k dodge .. could that be a nicely equipped Charger? 
I am looking into one as well 
I am looking into one as well
1800 a month isnt much to handle a payment even at 72 months for 29k with or without tax. even if you have no debt by the time you deal with insurance you could be looking at 40-45% of your income going to maintain the car. that is a rather large amount in my eyes.
Well, 1800 is just the income that I am able to verify. I get an extra 1500-2000 a month from other sources. Being as I have no debt and all my living expenses are covered each year, I have no other use for my money right now but to save it and feed it into my business.
I did want to update everyone on my situation. The dealership wanted me to provide a co-signer and I was not feeling that. So i went to wachovia which is who I have banked with for the past 5yrs and have personal and business accounts with them. I was approved on the spot for the original price that was on the car which was $32,000, and I was going to put down 10%, and they would cover the tax,tag, and title,
but when the dealer sent over the purchase agreement it had an extra $1000 in accessories that the dealer added to the car upon delivery from the factory. Being as the amount the dealer sent over was different from the amount I requested, my financial advisor told me they had to re-run everything and I can close on the terms and everything on monday and take the bank draft to the dealer to take delivery.
I called the dealership and spoke with the sales manager and told him that his sales associate did not tell me about the added fees before hand and that I felt it was very shady that he added on there behind my back when sending the purchase agreement to my financial advisor. They ended up removing one of the fees which was $500 for added paint protection coating and the other fee was $500 for the spoiler they added to the vehicle which I got them to drop to at cost. Had them send over the new purchase agreement, and my financial advisor tells me they should be abe to finance upto 95% of the amount, so I just have to worry about the other 5%. Other than that he doesn't see any other road blocks.
I won't rest easy though until I walk out of that bank with the bank draft in my hand. I have to go back up there monday morning, I will post here again later that afternoon to update you all on the situation. Thanks, for everyone's advice and help.
I did want to update everyone on my situation. The dealership wanted me to provide a co-signer and I was not feeling that. So i went to wachovia which is who I have banked with for the past 5yrs and have personal and business accounts with them. I was approved on the spot for the original price that was on the car which was $32,000, and I was going to put down 10%, and they would cover the tax,tag, and title,
but when the dealer sent over the purchase agreement it had an extra $1000 in accessories that the dealer added to the car upon delivery from the factory. Being as the amount the dealer sent over was different from the amount I requested, my financial advisor told me they had to re-run everything and I can close on the terms and everything on monday and take the bank draft to the dealer to take delivery.
I called the dealership and spoke with the sales manager and told him that his sales associate did not tell me about the added fees before hand and that I felt it was very shady that he added on there behind my back when sending the purchase agreement to my financial advisor. They ended up removing one of the fees which was $500 for added paint protection coating and the other fee was $500 for the spoiler they added to the vehicle which I got them to drop to at cost. Had them send over the new purchase agreement, and my financial advisor tells me they should be abe to finance upto 95% of the amount, so I just have to worry about the other 5%. Other than that he doesn't see any other road blocks.
I won't rest easy though until I walk out of that bank with the bank draft in my hand. I have to go back up there monday morning, I will post here again later that afternoon to update you all on the situation. Thanks, for everyone's advice and help.
they are asking you to put more money down to lower the total amount financed, which in turn will lower your month payments that the bank deems that you are able to handle given your budget. I know a bank that won't finance you at a payment more than 16% of your income.. given that, you qualifiy for a $288 payment, regardless of if you have bills or not.
I sell mazdas, and unless it's a very unique circumstance like a prior BK or low credit, or missed payments in the past, or no credit, etc, they really aren't that tedious about your income level.
With that said, if Crysler is telling you that, you might want to listen
I sell mazdas, and unless it's a very unique circumstance like a prior BK or low credit, or missed payments in the past, or no credit, etc, they really aren't that tedious about your income level.
With that said, if Crysler is telling you that, you might want to listen
they are asking you to put more money down to lower the total amount financed, which in turn will lower your month payments that the bank deems that you are able to handle given your budget. I know a bank that won't finance you at a payment more than 16% of your income.. given that, you qualifiy for a $288 payment, regardless of if you have bills or not.
I sell mazdas, and unless it's a very unique circumstance like a prior BK or low credit, or missed payments in the past, or no credit, etc, they really aren't that tedious about your income level.
With that said, if Crysler is telling you that, you might want to listen
I sell mazdas, and unless it's a very unique circumstance like a prior BK or low credit, or missed payments in the past, or no credit, etc, they really aren't that tedious about your income level.
With that said, if Crysler is telling you that, you might want to listen
Chrysler did not ask me for a co-signer because of my income, they asked me to have a co-signer because my previous car loan was not on my credit reports. They wanted a co-signer because I told them I was not putting any money down and because my car was not on my reports it makes me seem like a first time buyer. And being as the only other thing I had on my credit was student loans it made it seem like I have not been loan that amount of money before.
I have bank statements for my previous car loan which was a $24,000 loan for 60 months, which I payed off a year ahead of schedule. Wachovia allowed me to submit my bank statements as proof of this, while chrysler claimed they needed it on my report. They told me if my previous car was on my credit then there would have been no issue with gettinkg me approved but because it wasn't they needed a co-signer for reassurance.
Now becuase I have an extensive relationship with wachovia both personal and business, it probably helped me out some, because I know they are considering at least 50% of my verifiable income to be put towards the expenses of the car. I think between my history with wachovia because I deposit more money into their bank than I make each year and my payment history on my previous car may have helped put this loan through. Which just goes to show if you have a good history with your bank try them first before the dealership.
The monthy payment on my last car was around $450, the monthly payment on this one is only going to be $100 more unless I do 72 months then it will be about $480. So wondering if I can make the monthly payment each month should be a mute issue with the bank because my income has not changed much over the past couple of years and I payed my other car off a year early.
As far as down payment, the only thing that is coming out of my pocket is $400, the bank is financing the rest, including tax, tag, and title. I got my first car at 19yrs old without putting any money down, and now I am getting my second car and only putting $400 down, which is only because the dealer is charging me for a spolier they put on the car after receiving it from the manufacturer. I have three people to thank for this happening, the first being God becuase he makes all things in my life possible, the second being my girlfriend because she told me about this site, and the third being everyone on here, because without yall's help, advice, and experience, I would still be fighting with the CRA's to get my father's accounts of my credit which was killing my score.
I can honestly say I have been spending the last 6yrs (since I turned 18) fighting to get my dad's stuff of my credit and it has been an up hill battle, and it took only 3 months after reading and using information gathered from this site to do what I have been trying to do for the last 6yrs. My credit score went from a 560 to 697. So, I would like to say thanks to everyone.
I will post tomorrow when I drive off the lot, because I won't feel relieved until then.
I have bank statements for my previous car loan which was a $24,000 loan for 60 months, which I payed off a year ahead of schedule. Wachovia allowed me to submit my bank statements as proof of this, while chrysler claimed they needed it on my report. They told me if my previous car was on my credit then there would have been no issue with gettinkg me approved but because it wasn't they needed a co-signer for reassurance.
Now becuase I have an extensive relationship with wachovia both personal and business, it probably helped me out some, because I know they are considering at least 50% of my verifiable income to be put towards the expenses of the car. I think between my history with wachovia because I deposit more money into their bank than I make each year and my payment history on my previous car may have helped put this loan through. Which just goes to show if you have a good history with your bank try them first before the dealership.
The monthy payment on my last car was around $450, the monthly payment on this one is only going to be $100 more unless I do 72 months then it will be about $480. So wondering if I can make the monthly payment each month should be a mute issue with the bank because my income has not changed much over the past couple of years and I payed my other car off a year early.
As far as down payment, the only thing that is coming out of my pocket is $400, the bank is financing the rest, including tax, tag, and title. I got my first car at 19yrs old without putting any money down, and now I am getting my second car and only putting $400 down, which is only because the dealer is charging me for a spolier they put on the car after receiving it from the manufacturer. I have three people to thank for this happening, the first being God becuase he makes all things in my life possible, the second being my girlfriend because she told me about this site, and the third being everyone on here, because without yall's help, advice, and experience, I would still be fighting with the CRA's to get my father's accounts of my credit which was killing my score.
I can honestly say I have been spending the last 6yrs (since I turned 18) fighting to get my dad's stuff of my credit and it has been an up hill battle, and it took only 3 months after reading and using information gathered from this site to do what I have been trying to do for the last 6yrs. My credit score went from a 560 to 697. So, I would like to say thanks to everyone.
I will post tomorrow when I drive off the lot, because I won't feel relieved until then.
I know this is exactly what you DON'T want to hear, but I'm going to pretty much plead with you to not buy this car unless you can get favorable rates and get it placed with a prime lender.
Eight years ago I was in your shoes. Only half of my income was verifyable (day job) and the income from my small business on the side was not. I made about $40K per year, but only $19K was verifyable.
I got the car - but I also ended up in a bad credit auto loan with 21% interest. I was young and dumb and it was by far the worst mistake I've ever made financially.
To borrow a term from Dave Ramsey, it sounds like you're inviting Murphy (of Murphy's Law fame) to move into your spare bedroom. As soon as you get this car and are saddled with the huge payments it sounds like they're setting you up for, bad things will start to happen.
In my case, it was a 1-2 punch. I soon lost my job and had to relocate to find work in my field. The small business I had built had to be rebuilt in another town and that was a slow process.
My income was cut in half - punch #1. Then came the KO punch - the car I bought was a lemon. As soon as the 36,000 mile warranty was up, pretty much anything that could break did - computer went out, valve lifter in the engine, axle bearings, transmission, you name it... When you're suddenly living on $20,000 and you have a $550 car payment, and a $2,000 repair comes up you're pretty much sunk.
I'm convinced - there is no bigger curse than purchasing a vehicle you're not comfortably equipped to pay for - particularly when the only way you can qualify for it is with a bad credit auto loan.
Knowing myself 8 years ago - young, entrepreneureal, unafraid of anything - I know you're going to buy this car if they let you - regardless of what anyone tells you.
I only hope Murphy is kinder to you than he was to me.
Eight years ago I was in your shoes. Only half of my income was verifyable (day job) and the income from my small business on the side was not. I made about $40K per year, but only $19K was verifyable.
I got the car - but I also ended up in a bad credit auto loan with 21% interest. I was young and dumb and it was by far the worst mistake I've ever made financially.
To borrow a term from Dave Ramsey, it sounds like you're inviting Murphy (of Murphy's Law fame) to move into your spare bedroom. As soon as you get this car and are saddled with the huge payments it sounds like they're setting you up for, bad things will start to happen.
In my case, it was a 1-2 punch. I soon lost my job and had to relocate to find work in my field. The small business I had built had to be rebuilt in another town and that was a slow process.
My income was cut in half - punch #1. Then came the KO punch - the car I bought was a lemon. As soon as the 36,000 mile warranty was up, pretty much anything that could break did - computer went out, valve lifter in the engine, axle bearings, transmission, you name it... When you're suddenly living on $20,000 and you have a $550 car payment, and a $2,000 repair comes up you're pretty much sunk.
I'm convinced - there is no bigger curse than purchasing a vehicle you're not comfortably equipped to pay for - particularly when the only way you can qualify for it is with a bad credit auto loan.
Knowing myself 8 years ago - young, entrepreneureal, unafraid of anything - I know you're going to buy this car if they let you - regardless of what anyone tells you.
I only hope Murphy is kinder to you than he was to me.
I just wanted to update everyone on my situation. I didn't get approved for the loan yesterday, but I got approved for it today. The bank wanted me to verify my additional income which I did and I closed out on it today at 7.5% for 72months. Almost didn't get the bank draft in time, because paper work did not get finalized until just before the bank was about to close. So tomorrow I will be taking delivery of my brand new car. Thanks to everyone here on creditboards for there help and advice. Man I can't wait to drive off the lot tomorrow.
CONGRRRRRRRRRRATS
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