Getting Approved for financing

[BlackRS]

Has anyone had trouble getting approved for GMAC financing? normally, I wouldnt be concerned, but I already applied for an auto loan with my own bank and they denied me, saying i have "insufficient credit history". I dont see how thats possible, i am 25, but I have a student loan, 3 credit cards with low balance, and I previously financed a car through GMAC, all while never missing a single payment. go figure. the dealer said i got nothing to worry about but with this recession you never know i guess. and anything that comes between me and a new Camaro will bother me. lol

[SSOOCH]

I know that being in good with GMAC helps. GMAC actually got me a better rate than my own bank. I asked the finance Manager why and he said, "you're in good with GMAC on all your other car loans with them, past and present, they like repeat business" So....

[69Bird]

I had no problem with GMAC but I currently have a car with them that is almost paid off. My credit wasn’t great when I got that loan my score was around 650 back then. I think because all the credit problems and economy in the toilet they are being much more selective these days. GMAC is not offering the best rates right now so I choose to go with my regular bank USAA.

[Banshee]

I financed with PenFed at 3.99% over 60 months 100% financing. A credit union will be way more leinant and if you do your homework, some will get you GMU or supplier pricing on the Camaro.

GMAC has incredibly high finance rates and insane insurance rates. Reason? Tightening up due to bankruptcy. I have an 800 mean FICO score and my rate with GMAC was 1.2%higher than PenFed Credit Union. Many, many guys here financed through them for their Camaro.

I suggest you check your FICO score first at www.myfico.com and go from there for rate shopping. An informed consumer is a dangerous consumer, especially when it comes to buying a new car and saving you thousands of dollars on finance charges.

[69Bird]

Originally Posted by Banshee

I financed with PenFed at 3.99% over 60 months 100% financing. A credit union will be way more leinant and if you do your homework, some will get you GMU or supplier pricing on the Camaro.

GMAC has incredibly high finance rates and insane insurance rates. Reason? Tightening up due to bankruptcy. I have an 800 mean FICO score and my rate with GMAC was 1.2%higher than PenFed Credit Union. Many, many guys here financed through them for their Camaro.

I suggest you check your FICO score first at www.myfico.com and go from there for rate shopping. An informed consumer is a dangerous consumer, especially when it comes to buying a new car and saving you thousands of dollars on finance charges.

Very true the more you know the better the deal you can get.

[BlackRS]

oh yes, my credit score is north of 800, and I am putting $6500 down in cash, so I would assume I'm golden. I had 3.5% on my last GMAC loan for my Cobalt (in 05), so I am hoping for around that. my bank doesnt even offer that.

[rudack]

Originally Posted by BlackRS

oh yes, my credit score is north of 800, and I am putting $6500 down in cash, so I would assume I'm golden. I had 3.5% on my last GMAC loan for my Cobalt (in 05), so I am hoping for around that. my bank doesnt even offer that.

Lowest rate GMAC has right now is 5.25%. Just changed yesterday.

[69Bird]

Originally Posted by rudack

Lowest rate GMAC has right now is 5.25%. Just changed yesterday.

They have come down some I believe the dealer quoted me 6.1%.

[SSOOCH]

Well in April of 2008 I bought a 2008 HHRSS and got 2.75% through GMAC, the best rate I could get with them in June of 2009 for my Camaro was 5.9%.....so.....

[Banshee]

Originally Posted by 69Bird

They have come down some I believe the dealer quoted me 6.1%.

Thats insane..5.25% or 6.1% with an 800 score. Calculate the difference between a 3.99% rate and a 6.1% rate over 5 years... That is almost 24 months of insurance for the Camaro for me...Seriously..

[nova]

Originally Posted by SSOOCH

I know that being in good with GMAC helps. GMAC actually got me a better rate than my own bank. I asked the finance Manager why and he said, "you're in good with GMAC on all your other car loans with them, past and present, they like repeat business" So....

If thats true then GMAC might actually be better than my CU would be.

Financing my wife's malibu through GMAC might end up helping me after all...

[amyroxs]

Honestly it depends...My first car I was financed though GMAC with no issues. I went to one dealership for a camaro and GMAC turned me down (My credit score is about 750). Basically they wanted me to put down an additon 8,000 plus my trade in, and I said "screw that noise" . Then I went to another dealer ship about 45mins away and the finance manager got me approved for GMAC with 7.00% intrest rate and I put down 5,500 plus my trade in. I think it depends who is willing to work with you. I am hoping to refinance my car though USAA in a year with a lower intrest rate. My issue is my credit is only 3 1/2 yrs old.

[Banshee]

Originally Posted by amyroxs

My issue is my credit is only 3 1/2 yrs old.

You have a 750 credit score...your credit length is accounted for that in that number.

I suggest shopping around...My credit score is 797 and I have a 6 year credit history as I stupidly cancelled a few cards opened up in 1991.

Each bank, lending institution or credit union has it's own criteria.

Stealerships WANT you to finance with them and have MANY practices and questionable antics that make you think with a 750 score you can only get 7.1% with your trade AND $5500 down. That is INSANE!!!

I financed 100% of a car with 3.99% and zero down..with (at that time) a 749 FICO score.

The reason dealers WANT you to give them money, plus trade in your vehicle PLUS finance with them is that every one of those is a GREAT way to increase stealership profits.

1. Sell your car privately..You can get more for it than what a dealership will give you, trust me. The used car market is Booming.

2. Keep your money! Stealerships use that ploy because they know you want the car AND you have not opened up your options.

3. Finance out of the stealership. When you go looking for a loan, find the best rates/terms and apply with 3-5 lending institutions within a month as to not lower your score. You apply over 2-4 months, the inqueries can hurt. You don't want that. I recommend a large stable bank as Chase, or PenFed, or any major longstanding credit union. I particulary prefer credit unions...always lower rates and terms.

By following what I suggest, you could get more for your car and secondly, save big, big money by shopping for a loan. A 750 score is great these days. Not stellar, but it got me a loan with Penfed 3.99% 60 month 100% financed.

And I shopped..sold my Trans Am for $2600 more than 2 dealers were willing to give me and saved $2600 in finance charges versus a major bank at 6.2% and 3.99%

Off my soapbox...

[homerlex]

Originally Posted by rudack

Lowest rate GMAC has right now is 5.25%. Just changed yesterday.

My dealer told me I could get 4.89% through GMAC