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Higher approval odds for luxury cars. 798 credit score


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What are lending options for luxury cars no more than $70k?  My credit score between the 3 bureaus fluctuates between 798 and 804.  I already have a 40k personal loan, salary 68k and live with my fiancé but no other bills

 

Any advice so I can avoid the dealer shopping me around with multiple credit pulls

 

Also my last car purchase was 13 years ago..I know I tend to keep cars, so Justice (who I have the personal loan with) told me I had limited credit exposure (only credit cards) and would only finance up to $50k

Edited by creditRehab
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Can you define how many pulls you would deem reasonable?   Keep in mind the dealer must pull being the financial source, and each lender to which submitted will also pull.

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Where have you looked for financing besides your kredit younyun?  

 

If you buy a $70,000 car, put 20% ($14,000) down, and finance the rest at 3% for 36 months, your payment is going to be $1,629.

 

Even if you stretch it to 48 months, you're still looking at $1,240 a month, or 22% of your gross monthly income just for your car payment.  

 

Separately, no one cares about inquiries.  Focus on saving the most money on your APR.

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Posted (edited)

I saved about $11k-ish for the taxes, title, etc so reallllly didnt want to put anything down 

 

..and only looked at the one credit union.  I thought about Navy but I already have $50k in credit cards (zero balances) so thought I would run into the same thing so wanted to get advice before submitting apps

Edited by creditRehab
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You can ALWAYS limit the dealership to one pull.  They can either agree to your term on that or they can say NOPE!

 

Much depends on the company for who makes the most sense.  My definition of luxury may be different than yours, which means a captive might exist or it may be a local lender that gets a lot of the business.  When I bought my F-Type, we ultimately agreed to write the paper through Chase, which is who does the backbone for JLR financing.  There were a few local/regional banks the dealership had a relationship with but they tended not to like out-of-state deals (I bought in a different State and the dealer flat-bedded the vehicle to me). 

 

Even ~15 years ago when I financed another vehicle out-of-state, we modified the application to reflect that they could ONLY use Ford Credit and that no other submissions were authorized by me.  That was due in part to Ford incentives PLUS the fact that, in that era, you could pay a Ford Credit account online with a credit card, making it a win-win that saved me money.

 

If we know who the manufacturer is that you are considering, other guidance may be available.  After all, shopping for an Aston or a Lotus is very different than a Lexus or Genesis (yeah, some DO consider those luxury cars). 

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3 hours ago, cv91915 said:

Where have you looked for financing besides your kredit younyun?  

 

If you buy a $70,000 car, put 20% ($14,000) down, and finance the rest at 3% for 36 months, your payment is going to be $1,629.

 

Even if you stretch it to 48 months, you're still looking at $1,240 a month, or 22% of your gross monthly income just for your car payment.  

 

Separately, no one cares about inquiries.  Focus on saving the most money on your APR.

Since they referenced JFCU, they were at 2.64% for 36 and 2.94% for 48 months yesterday...not a huge difference on the APR, but still...

 

(Justice is ALSO very quick at calling if you access some element of the loan structure while logged in...multiple times, I have had a call inside of a day asking if I needed any help even when I was just poking around the site).

 

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3 hours ago, centex said:

If we know who the manufacturer is that you are considering, other guidance may be available.  After all, shopping for an Aston or a Lotus is very different than a Lexus or Genesis (yeah, some DO consider those luxury cars). 

 

You're right.  I guess anything over $30k is luxury to me.  Its a used 2020 lincoln aviator 

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3 hours ago, centex said:

Since they referenced JFCU, they were at 2.64% for 36 and 2.94% for 48 months yesterday...not a huge difference on the APR, but still...

 

(Justice is ALSO very quick at calling if you access some element of the loan structure while logged in...multiple times, I have had a call inside of a day asking if I needed any help even when I was just poking around the site).

 

 

JFKY already told OP that they weren't willing to squeeze out a big enough nugget, so I didn't bother to look at their rates. ;) 

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5 hours ago, creditRehab said:

I suppose 3 seems fair.   Again I've not purchased a car in 13 + years so not sure how it goes but I guess no point in working to improve credit it you're afraid to use it 🙂

So, you are willing to give the dealership one pull, and the opportunity to submit on your behalf to two lenders. (for a total of three).  Very generous of you.

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17 hours ago, creditRehab said:

On another note, if you're applying for an auto loan and they need to pull 3 before approval, do all inquiries remain or only the pull from the lender that approved?

 

You are worrying WAY too much about inquiries.  First, they don't matter.  Second, for scoring purposes they will be treated as 1 inquiry.  Third, if you are getting denied for too many inquiries that is not the reason, just a space filler.  Fourth, inquiries don't matter.

 

If you are already a member at NFCU, they will do car loans for the level you are asking (whether or not you would qualify is another story).  I did a loan for north of $80k with them, simply and easy process. Approval was instant, had my check in 2 days, and I had a $50k CC with them and $15K CLOC (both at $0).  Get approved there and then let the dealer try to match/beat the rate.  It isn't like your credit is shit, they don't need to shotgun you to 15 lenders to hope to get an approval.  They'll know where the best odds lie and go that route.  Worst case you end up with 3-4 INQs spread across a couple of different bureaus...but again, IT DOESN'T MATTER.

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23 hours ago, creditRehab said:

 

You're right.  I guess anything over $30k is luxury to me.  Its a used 2020 lincoln aviator 

If you are buying from a Ford/Lincoln dealer, it may be worth looking at whether Ford Credit is even close on rate.  Nothing would preclude you from a re-fi at a later date AND if the vehicle is already in your possession, it COULD be easier for discretion to be used by a CU underwriter if you still wanted to go that route (and presuming you had a local branch close to you). 

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What do you think about my odds with Navy considering what Justice had to say?  I'm not sure if it's just because I only make $66k and don't have a home loan and havent had a car loan for 13 years and trying to get a car for $70k

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3 hours ago, creditRehab said:

What do you think about my odds with Navy considering what Justice had to say?  I'm not sure if it's just because I only make $66k and don't have a home loan and havent had a car loan for 13 years and trying to get a car for $70k

I don't know anything about Navy on their underwriting...never did business with them and likely never will.

 

If you have a branch near you, I would HIGHLY suggest going in and speaking to a loan officer to see where you stand before a formal app is done.  That is part of their job- dealing with customers.  However, very few people seem to be willing to try to conduct business in person, even before the nonsense of the past year. 

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8 hours ago, creditRehab said:

Makes sense.  I'll give that a try I have a mask and work in heathcare so had both shots so not as uncomfortable with in person contact.

Some stores are doing business over the phone just for this reason. Depending upon location of course.

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Anyone run into this...

 

Credit unions algorithm calculated I pay 2800 monthly in student loans because there was no payment listed.  I presented documentations and checking withdrawals indicating my student loan is only 368 a month.   She said my DTI was on 17% but still wanted a co-signer because they told the dealership they "felt" I had more monthly debt??  

 

No, my husband makes significantly more than I do so he pays all the household expenses and I pay my student loan and $900 personal loan and $50 cell bill but that's it.  Very confused by that statement and wondered if anyone else encountered this language?

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4 hours ago, creditRehab said:

Anyone run into this...

 

Credit unions algorithm calculated I pay 2800 monthly in student loans because there was no payment listed.  I presented documentations and checking withdrawals indicating my student loan is only 368 a month.   She said my DTI was on 17% but still wanted a co-signer because they told the dealership they "felt" I had more monthly debt??  

 

No, my husband makes significantly more than I do so he pays all the household expenses and I pay my student loan and $900 personal loan and $50 cell bill but that's it.  Very confused by that statement and wondered if anyone else encountered this language?

I encountered a similar instance when i was selling my first house.  We were under water (thanks housing bubble) and were borrowing money to pay off the negative balance.  Because I didn't have the loan set up as of yet, the U/W was putting in a minimum payment of 5% of the borrowed amount as the payment for DTI purposes.

 

I ended up getting the loan for the balance (which had a 1% payment), then went with another lender for the mortgage.

 

Long story short, if the lender sets the rules for their calculation.  If you don't like them, find another lender.

 

As an aside, any reason you can't/don't want your husband as a co-signer if he makes significantly more? 

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6 hours ago, creditRehab said:

Anyone run into this...

 

Credit unions algorithm calculated I pay 2800 monthly in student loans because there was no payment listed.  I presented documentations and checking withdrawals indicating my student loan is only 368 a month.   She said my DTI was on 17% but still wanted a co-signer because they told the dealership they "felt" I had more monthly debt??  

 

No, my husband makes significantly more than I do so he pays all the household expenses and I pay my student loan and $900 personal loan and $50 cell bill but that's it.  Very confused by that statement and wondered if anyone else encountered this language?

 

It isn't that uncommon for lenders to use formulas to synthesize payment amounts when sufficient info isn't present or available on a credit report or credit application.  

 

If this kredit younyun's policy is to calculate a payment according to a specific formula when the credit report doesn't list a payment amount, then you have the choice of going somewhere else (as @CTSoxFan suggested), or get someone at your kredit younyun to override the decision to use this calculation method on your application.

 

Kredit younyuns, as a class of businesses , have a long and well-deserved reputation for being inflexible with these things, and also for making really conservative decisions about how much debt they think you should have. 

 

It wouldn't surprise me at all if someone sitting on the loan committee decided that $70,000 is just too much for someone to pay for a car, and therefore no one including you should have one.

 

Separately, will $368 a month retire the student loan(s) by the end of the scheduled loan terms?  If you are on an income-based repayment plan or have some loans in forbearance, this is still indebtedness that needs to be fully considered when looking at your capacity to repay a new loan.  

 

 

 

Edited by cv91915
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On 4/8/2021 at 9:38 AM, CTSoxFan said:

I encountered a similar instance when i was selling my first house.  We were under water (thanks housing bubble) and were borrowing money to pay off the negative balance.  Because I didn't have the loan set up as of yet, the U/W was putting in a minimum payment of 5% of the borrowed amount as the payment for DTI purposes.

 

I ended up getting the loan for the balance (which had a 1% payment), then went with another lender for the mortgage.

 

Long story short, if the lender sets the rules for their calculation.  If you don't like them, find another lender.

 

As an aside, any reason you can't/don't want your husband as a co-signer if he makes significantly more? 

We were thinking about getting another house next year and the loan officer said if he co-signed it would appear as if he had the debt and would count towards his DTI as well.  Right now our mortgage is only 1545 but not sure how much house we want

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