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malayna

Going in to finance this afternoon - super anxious - do I need to pull my FICO scores?

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I did the prequalification thing through Cap One.  I found a used car that I want to buy and negotiated the price down.  (already checked it out it in person, just had to call to negotiate with salesperson. )  I'm supposed to go into the dealership this afternoon to do the financing.  Now I have anxiety.  I have low scores, but Cap One prequal gave me a decent interest rate with a payment I can handle.  I'm just nervous about getting in there and them telling me that Cap One won't actually finance me after all and I'll have to go with some other company that wants to give me a high interest rate because of my credit score.  Is that a possible scenario, or will Cap One for sure honor the prequalification amount since I have that? (according to all of the "free" monitoring I have, my scores have gone up since I applied for the prequal through Cap One, but I know those aren't "real" scores)   Would it help me at all to pay for my FICO scores and have them with me when I go in to do the financing?

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The dealer will actually have to submit your deal particulars to Cap One for the actual approval.   That means the dealer will have to pull your credit file(s), and when they do they should provide you with a credit score disclosure notice which will explicitly state your FICO score.  A prequalification will not absolutely guarantee any particular APR.

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So... my prequal for this particular vehicle gave me 0 down with a payment of $307.  The first financing offer they brought me was $2500 down with a $435/month payment!  I was shocked.  I told him I didn't plan to put anything down and he left and came back again with $0 down and again a $435 monthly payment.  After that, I pulled out my prequal letter and told him that this is what I was expecting.  He came back with exactly what was in my prequalification.  Maybe I should've lead with that, but I was thinking that they might be able to get me an even better deal on financing than what was in my prequalification.  I did go ahead and pull scores from myfico ahead of time so I would know what I'm dealing with in general, but they didn't ever mention my scores.

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Posted (edited)
10 minutes ago, malayna said:

So... my prequal for this particular vehicle gave me 0 down with a payment of $307.  The first financing offer they brought me was $2500 down with a $435/month payment!  I was shocked.  I told him I didn't plan to put anything down and he left and came back again with $0 down and again a $435 monthly payment.  After that, I pulled out my prequal letter and told him that this is what I was expecting.  He came back with exactly what was in my prequalification.  Maybe I should've lead with that, but I was thinking that they might be able to get me an even better deal on financing than what was in my prequalification.  I did go ahead and pull scores from myfico ahead of time so I would know what I'm dealing with in general, but they didn't ever mention my scores.

no down? drive slow and pay fast... enjoy the new wheels

 

so how much longer of a term did you have to get for the $307? in general, you should never be a payment buyer.

Edited by hegemony

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Posted (edited)

neither.  The prequalification I went in with from Capital One is exactly what I got.  I'd put in my negotiated price in the calculator when I printed my prequalification form.  The purchase price is what we'd agreed on before I started trying to get financed.  The interest rate is exactly what was on my prequalification.  I don't know who they were using for that first offer they came to me with, but it wasn't Capital One.

 

You don't think they're going to come back to me in a few days and tell me that didn't actually get approved, and I need to come up with a huge downpayment or something, do you?

Edited by malayna

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I believe they were both 72 months.  The paper they brought in to me with the $435 per month payment didn't include an interest rate and when I asked what interest rate that was, I was told he didn't know, but that they'd tell me that back in financing.

 

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72 months is a terrible deal for a used car loan but I hope it works for you. How old is the vehicle? It also seems strange that the original dealer financing offer would be, net, more the $9,000 higher than the crap1 offer over the 72 month term. Something isn't adding up in the math

 

I hope the loan you expect closes and that this dealer isn't giving you a spot delivery scam.

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What it sounds like to me is they probably were able to get your approved at a few different lenders, and presented the lender which was most beneficial to them first (meaning they were able to earn the most kickback), when you balked, they came back with an option B, and then used yours when you balked again.

 

Glad you got a loan that worked for you.  You should be looking for ways to pay more than the minimum to reduce the term and total interest paid if possible.

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CTSoxFan - that was my thought, but I only know enough to be dangerous, so I wanted to see what everyone else's take is on it too.  I hope you are right!

 

I know that a 72 month loan on a used car is not ideal (to put it mildly) - especially with my interest rate, but I need a car now and won't get my bonus until March.  My bonus may be enough to pay it off right then, but... even if it won't pay it off entirely, it will definitely pay off more than half of what I will owe at that point, so it may not be as bad as it seems

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20 hours ago, malayna said:

I know that a 72 month loan on a used car is not ideal (to put it mildly) - especially with my interest rate, but I need a car now and won't get my bonus until March.  My bonus may be enough to pay it off right then, but... even if it won't pay it off entirely, it will definitely pay off more than half of what I will owe at that point, so it may not be as bad as it seems

Financial decisions should NEVER be made on an expectation of some future windfall.  Taking a crappy loan product and then being stuck with it will not be a good thing if the bonus failed to materialize.  And yes, plenty of people hoping for bonuses have been disappointed...

 

Needing a car now is NOT a good reason to take terms that are not good...one would be better served to find a decent hooptie for less than $3.5K that gets you through to the point of a better and more stable financial footing.

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On 8/21/2019 at 2:33 PM, malayna said:

I believe they were both 72 months.  The paper they brought in to me with the $435 per month payment didn't include an interest rate and when I asked what interest rate that was, I was told he didn't know, but that they'd tell me that back in financing.

 

That is a violation,  If you as a consumer are quoted a payment, you must be told the total amount financed, the term and APR.   That dealership would utterly fail an audit.

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11 minutes ago, MarvBear said:

That is a violation,  If you as a consumer are quoted a payment, you must be told the total amount financed, the term and APR.   That dealership would utterly fail an audit.

I had a dealer once try this with me. Said 488 a month payment including trade inequity. I asked for int rate and term, told me finance had the details. I demanded my keys back and left. 

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