So I walked into the showroom, got myself a salesmen, and took about 8 different vehicles on test drives. And I needed financing. Oh God. The face-to-face application. I started sweating.
As is usual of me, I got all worked up for nothing. It was stupidly easy. I got the cheap money from GM (I'm a GM man...it runs in the family). It's thru Ally Credit Canada, which is what GMAC is now called. I was nervous as hell talking to the F&I lady, but she was good at putting me at ease. I actually worked with her years ago when I worked in the auto industry. We're not friends, just acquaintances. (To be honest: I barely remember her working in the same dealership I did, but she definitely remembers me.) She laughed when she asked me to rhyme off my credit cards for the financing application. I just kept going...and going...and going...and going.
I didn't get instant approval because it's difficult for me to prove income. They needed to verify. Less than an hour later I get a message on my cell phone that I was approved. Longest hour of my life! Now I wish I would have bought the better model! ahahahahaha.
I did have a good chat with her about Ally and what they expect. She seemed on the level and I have no reason to think she was bullshitting me. I'm just passing along what she told me, so take it with a grain of salt.
First of all: Ally pulls Transunion.
She said if Ally sees anything less than a 620 credit score it means you won't qualify for any cheap money deals they have going. They will send your file over to some other 'deadbeat' department where the rates can fall anywhere between 5% and 25% depending on how much of a deadbeat you really are. Not very many people are flat out denied credit. It's just a matter of what kind of interest rate you're prepared to pay.
Other than the 620 cut-off, Ally isn't very concerned about your actual score. Having recent late payments isn't necessarily a deal killer, but if you have more than a couple then they'll take a long second look at your application. Your chances of approval dropped a bit if that is the case. Any lates over a couple years old are glossed over (i.e. ignored), as long as it wasn't a constant stream of late payments that stretched for months and years at a time.
The same goes for charge-offs and/or collections. If they're small amounts and over a couple years old then Ally is fairly forgiving. As long as there isn't a ton of them and you're not talking BIG BIG dollars then you should be fine.
She said they just want to know whether you can pay them back. If you have a steady job and don't live beyond your means then you should be all right. They don't like to see a DTI ratio more than 32%, and they don't consider your mortgage/rent payment when they calculate it. They will accept a DTI up to the high 40's but it takes a very clean report and a decent income to do that.
Anyways, it was a fun experience (in hindsight). This is the first time I've ever bought a new vehicle. And the first time I've ever financed a vehicle too.
edit. I pick it up next week.
Edited by Stu.Padaso, 31 March 2011 - 06:08 PM.
