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Bamaguy

Follow up on getting a car loan - big bank or specialty lender?

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I have a friend willing to co-sign a loan for me.  I am looking at the $12-$15k range for the loan.  I don't want to do too many hard pulls, so I am going to try to get pre-approved.  So, my question is should I try to get pre-approved from my personal bank (Wells Fargo) or go with one of the specialty lenders like CarFinance.com or Auto Credit Express?  

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You might complicate matters if the co-applicant does not reside at the same address. Why do you think you should have a co-applicant?

Sent from my SM-P580 using Tapatalk

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13 hours ago, Bamaguy said:

I have a friend willing to co-sign a loan for me.  I am looking at the $12-$15k range for the loan.  I don't want to do too many hard pulls, so I am going to try to get pre-approved.  So, my question is should I try to get pre-approved from my personal bank (Wells Fargo) or go with one of the specialty lenders like CarFinance.com or Auto Credit Express?  

Don't let the irrational fear of inquiries drive your decisions. 

 

https://www.myfico.com/credit-education/credit-reports/credit-checks-and-inquiries

 

Your one and only purpose is to get the best rate and terms you can.  

 

I would advise your friend to reconsider co-signing, and just give you the money (and hope you repay it).  I would rather donate a kidney to someone than co-sign a loan.

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1 hour ago, cv91915 said:

Don't let the irrational fear of inquiries drive your decisions. 

 

https://www.myfico.com/credit-education/credit-reports/credit-checks-and-inquiries

 

Your one and only purpose is to get the best rate and terms you can.  

 

I would advise your friend to reconsider co-signing, and just give you the money (and hope you repay it).  I would rather donate a kidney to someone than co-sign a loan.

THIS!

 

Since you think you need a co-signer, you must have some credit issues.  As our resident bear has always suggested, when you have credit issues you're much better off going to the dealership, picking a car and letting him/her try to arrange financing for you.  They have contacts with the bank and can fight on your behalf.  You may not even need a co-signer which would be a win-win (especially for your friend who is considering co-signing).

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There are two primary reasons why I need a co-signor.  

 

First, my TU score is 617, however, with both Experian and Equifax I have no score.  This is because I haven't had any credit accounts (except for one co-signed car loan from 2013 to 2015) since 2011 when I had a foreclosure and a repossession.  Just a bit earlier this year those two things came off my credit report.  The reason cited for no score on EX and EQ is lack of credit history which I understand is as bad or worse as a low score.

 

Second, I am the CEO of a start-up company.  We are pre-revenue.  I have been paid as a consultant (1099) for several years.  There have been breaks in getting paid when we had to raise more money.  It has been pretty steady for the last 15 months or so, but there was a six month break in my income last year earlier in the year.  As such, I don't have the typical "pay stub" that lenders love to see. 

 

For those reasons, I believe I will need a co-signor, but I am completely open to - and appreciative of - the expertise on this Forum.   Let me know your thoughts again, please, in light of this info.  Thank you!

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There are two primary reasons why I need a co-signor.  

That's cause you think like a typical consumer.   You don't think like someone from the auto business.  You said you have one paid off car loan still reporting if I read your post correctly.  That's enough in the right hands to land a new loan.

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OK.  Thanks again for the info, gents.  Here is the latest.  My buddy, rather than co-sign, is providing me some cash (it's actually a share purchase of our company stock).  I will use that cash as a down payment and it should amount to about 50% down payment.  I will ask the car dealer to find me a loan that doesn't require a co-sign, and even if the rate is high, I should only be financing about $8k ro $9k.  Wish me luck!  I will report back my results.

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