Need advice - got screwed over on paperwork.

[MARINE1991]

Originally Posted by GaBoy25

That's a hell of a beacon score for little credit history...hell of one.

yea does not make any sense....

[StangKiller-SS]

Co-signer/Co-owner, all seems the same to me. That's why it is co-signed because that way if you don't pay then they can turn to your relative for it, and because he has that responsibility as co-signer then it would appear on his credit as well. As long as he is the co-signer he is also co-owner of the loan. But maybe that's just the perception I always had about how those deals work.

[HufferSS]

Originally Posted by T3hlulzkiller

Thanks for the replies guys. I wish this was further explained to us before though as we had brought up this concern and they said "oh no don't worry about it".

Also, my credit score is 750, I make more than 10xmine the car payment a month and have almost no other expenses. I couldn't qualify for the 1.9% loan without a cosigner due to limited credit history (I've only had credit for two years)

Lol...if you actually have a 750 credit score then you could have bought the car, a truck and a motorhome to go with it.....all without a co-signer.

[Tysen]

Originally Posted by HufferSS

Lol...if you actually have a 750 credit score then you could have bought the car, a truck and a motorhome to go with it.....all without a co-signer.

[T3hlulzkiller]

I've focused on building up my credit score thoroughly over the last two years, keeping an optimal percentage of debt/income ratio, paying balances in full month to month etc. However the dealership said my credit history was too limited and that I would need a guarantor.

[DG24FAN]

Another thing no one has brought up yet is the fact that your father's name being on the title makes him financially responsible in the event of an accident. He can be sued if you are under insured.

[driyac]

Go to a credit Union. they should be able to finance you

[GearheadSS]

Originally Posted by HufferSS

Lol...if you actually have a 750 credit score then you could have bought the car, a truck and a motorhome to go with it.....all without a co-signer.

No necessarily. I've seen plenty of people with a good score but no car credit history to back it up. Just because you have a couple of credit cards and score over 700, doesn't mean you're going to get a loan on a brand new car.

You have to have some sort of credit history to show you can make the payments. Banks look at what you have financed in the past and if you're looking to finance a car for $25k yet the most credit you have is like a $1000 or $2000 in credit, they're probably not going to give you a loan.

[T3hlulzkiller]

Originally Posted by GearheadSS

No necessarily. I've seen plenty of people with a good score but no car credit history to back it up. Just because you have a couple of credit cards and score over 700, doesn't mean you're going to get a loan on a brand new car.

You have to have some sort of credit history to show you can make the payments. Banks look at what you have financed in the past and if you're looking to finance a car for $25k yet the most credit you have is like a $1000 or $2000 in credit, they're probably not going to give you a loan.

This is exactly what the case was. Thank you for clarifying

[H0peful1]

Originally Posted by driyac

Go to a credit Union. they should be able to finance you

+1. As a longtime member of a couple credit unions, they generally have more favorable lending practices.

[fielderLS3]

Originally Posted by T3hlulzkiller

Also, my credit score is 750, I make more than 10xmine the car payment a month and have almost no other expenses. I couldn't qualify for the 1.9% loan without a cosigner due to limited credit history (I've only had credit for two years)

If you don't mind me asking, if you make over 10 times the payment and have almost no other expenses, why did you need a loan to begin with?

[HufferSS]

Originally Posted by T3hlulzkiller

I've focused on building up my credit score thoroughly over the last two years, keeping an optimal percentage of debt/income ratio, paying balances in full month to month etc. However the dealership said my credit history was too limited and that I would need a guarantor.

We know how it works.....and you don't get to 750 without a pretty lengthy history. You could have easily bought any car you wanted with a 750 score.

[HufferSS]

Originally Posted by GearheadSS

No necessarily. I've seen plenty of people with a good score but no car credit history to back it up. Just because you have a couple of credit cards and score over 700, doesn't mean you're going to get a loan on a brand new car.

You have to have some sort of credit history to show you can make the payments. Banks look at what you have financed in the past and if you're looking to finance a car for $25k yet the most credit you have is like a $1000 or $2000 in credit, they're probably not going to give you a loan.

You don't get to 750 without a credit history....I know how it works....my wife is in lending for crying out loud. You do not get to 750 with 1k dollars worth of credit card history.

[PQ]

Did you get grounded? :(










Sorry, had to.

I can see the loan not being approved for as high an amount as he asked for but to not be approved at all is kinda surprising.

[GearheadSS]

Originally Posted by HufferSS

You don't get to 750 without a credit history....I know how it works....my wife is in lending for crying out loud. You do not get to 750 with 1k dollars worth of credit card history.

Well I've been in the car business for 12 years and I've seen it. People come in with 700+ scores and only credit card history or credit history where the dollar amount they borrowed was much less than what they're trying to buy. So, neener neener!!

700 isn't what it used to be either. Back 10 years ago, 700s were about as good as it got and you rare saw a score in the high 700s. Now though, 800s are the best credit out there. Also, different bureaus have different scoring. One might be a high 600 while one of the others might be mid 700.

[speedmon]

So the dealer and the lender took advantage of your and your father's? lack of experience......
So what's new? Welcome to life....they'll do it again if you let them.

? is what to do

Its about priorities. Whats more important? Your camaro? Or your father's need to refi the home?

You could.....
Sell the car and take him off the loan.
Or tell pops he should have known better, he's stuck and you have the car.

Only two choices......what will you do?
If your father has a pressing need to refi.....allow me to help with priorities...HOUSES are more important than CARS.
I know this can get confusing when you look at this site and see new ZL1s parked in a driveway of a barely middle class home, but you'll be better off throughout life if you remember HOUSES>CARS.

And BTW.....my wife would say I'm the worst offender of this rule....but I have 3 houses...so I can bend the rules a bit.

[T3hlulzkiller]

Originally Posted by speedmon

So the dealer and the lender took advantage of your and your father's? lack of experience......
So what's new? Welcome to life....they'll do it again if you let them.

? is what to do

Its about priorities. Whats more important? Your camaro? Or your father's need to refi the home?

You could.....
Sell the car and take him off the loan.
Or tell pops he should have known better, he's stuck and you have the car.

Only two choices......what will you do?
If your father has a pressing need to refi.....allow me to help with priorities...HOUSES are more important than CARS.
I know this can get confusing when you look at this site and see new ZL1s parked in a driveway of a barely middle class home, but you'll be better off throughout life if you remember HOUSES>CARS.

And BTW.....my wife would say I'm the worst offender of this rule....but I have 3 houses...so I can bend the rules a bit.

My father has only ever been helpful to me before. I would/will obviously choose his needs over mine and a car without batting an eyelash. Which is why I came here to see what other members may have experienced during a similar situation. I bought the car because I can afford it, and a house ontop of it (although have no need to purchase a house at this stage in my life), with zero intention of negative impact on my dads plans. I'm not some 20 year old fly guy dick that everyone seems to presume.

[T3hlulzkiller]

Originally Posted by fielderLS3

If you don't mind me asking, if you make over 10 times the payment and have almost no other expenses, why did you need a loan to begin with?

To further my credit history in preparation for a home purchase in ~4 years. As everyone has mentioned, paying a larger summed loan over a few years does alot to prove your creditworthiness. I put over 15k cash down on the vehicle prior to taking out the loan, and only have monthly payments of ~250. Yes, they denied me a loan with over 50% equity in cash.

Originally Posted by HufferSS

You don't get to 750 without a credit history....I know how it works....my wife is in lending for crying out loud. You do not get to 750 with 1k dollars worth of credit card history.

I don't know man, ask Amex they just approved me and sent me the score they used to do so.

Originally Posted by PQ

Did you get grounded? :(










Sorry, had to.

I can see the loan not being approved for as high an amount as he asked for but to not be approved at all is kinda surprising.

that's the strange thing - I put down over 50% equity in cash. The loan amount was pittance compared to people financing 95%+ on their vehicles.

[speedmon]

Originally Posted by T3hlulzkiller

My father has only ever been helpful to me before. I would/will obviously choose his needs over mine and a car without batting an eyelash. Which is why I came here to see what other members may have experienced during a similar situation. I bought the car because I can afford it, and a house ontop of it (although have no need to purchase a house at this stage in my life), with zero intention of negative impact on my dads plans. I'm not some 20 year old fly guy dick that everyone seems to presume.

Its not adding up..with your score and down payment....if your facts are correct....just points to a giant rip-off....and let this be a lesson to you...dealers and finance folks will rip you blind until you leave or hang up the phone.

I wasn't being judgemental on "you", I was just trying to help with a course of moving forward. Sure there may have been fraud on the part of the dealer and/or finance folks, but to litigate that is timely and expensive....seldom pays off.

I don't know your father's situation, but access to capital, even leveraging one's residence, can be critical to a small business person. If you put 50% down then you should have adequate equity in the car to sell it and get him off the loan.
Another alternative if you just have to keep the car would be for you to use your income to "co-borrow" on the refi of the home loan......one hand washes the other. You said you didn't need a home right now.

So you have options....you just need to decide.

[T3hlulzkiller]

Originally Posted by speedmon

Its not adding up..with your score and down payment....if your facts are correct....just points to a giant rip-off....and let this be a lesson to you...dealers and finance folks will rip you blind until you leave or hang up the phone.

I wasn't being judgemental on "you", I was just trying to help with a course of moving forward. Sure there may have been fraud on the part of the dealer and/or finance folks, but to litigate that is timely and expensive....seldom pays off.

I don't know your father's situation, but access to capital, even leveraging one's residence, can be critical to a small business person. If you put 50% down then you should have adequate equity in the car to sell it and get him off the loan.
Another alternative if you just have to keep the car would be for you to use your income to "co-borrow" on the refi of the home loan......one hand washes the other. You said you didn't need a home right now.

So you have options....you just need to decide.

Thank you for further clarifying. I had figured that with such a large down payment it wouldn't have been difficult to get a loan! My father has a high income, however his score suffers from a lot of inquiries on his credit, I believe (this is due to the business constantly opening accounts for different projects, trucks, etc). I think the difficulty in him getting a loan is due to it being a construction loan. From what I've heard construction loans are much more convoluted than just a mortgage. This will also be his first mortgage so that may also be a contributing factor.

The safest bet seems to be just to sell the car and get him off the loan, as much as it pains me to go through an entire ordering process only to use the vehicle for a month :( would selling the car in such a short amount of time look bad on my credit, though? Or is it likely to have a neutral/positive effect?

[epatrone]

The only way out for your co-signer is either a new loan in your name from a bank or after about 2 years of making on time payments it is possible to get the co-signer off the loan. I co-signed a loan for my son on a car and it shown up on my credit report, but I also made sure the car was also in my name so if he missed a payment I can take the car from him. Fortunately he was responsible and payed the debt.

[newb]

You should be able to refi. Check with your bank or a credit union. The deal most likely won't be as good but it beats giving away your equity.

[fielderLS3]

Originally Posted by T3hlulzkiller

To further my credit history in preparation for a home purchase in ~4 years. As everyone has mentioned, paying a larger summed loan over a few years does alot to prove your creditworthiness. I put over 15k cash down on the vehicle prior to taking out the loan, and only have monthly payments of ~250. Yes, they denied me a loan with over 50% equity in cash.

Just curious again, given all that, were you turned down outright by every lending institution you went to, or were you just turned down for the best possible, ultra low interest rate you get directly from whatever lending subsidiary of GM that offers low rates as a form of an incentive?

Also, I could not disagree more with the notion of taking out a loan just to have it in your credit record. I'm not trying to rip you or anything, it's just my friendly, trying to be helpful advice coming from my philosophical view on money and finance. The road to financial well-being is not paved with the taking on of large debts. You build your financial future by saving and living debt free. When you live with debt to build your credit score, all you are really doing is destroying wealth, because you are spending and getting nothing for it.

[fielderLS3]

Originally Posted by T3hlulzkiller

The safest bet seems to be just to sell the car and get him off the loan, as much as it pains me to go through an entire ordering process only to use the vehicle for a month :( would selling the car in such a short amount of time look bad on my credit, though? Or is it likely to have a neutral/positive effect?

If you sold it now, would you buy another one a few months or a year or so down the road once you saved enough, or got financing on your own? If that is the case, I'd say don't sell at this point. You'll take a big depreciation hit.

I can't believe you wouldn't be able to refinance somewhere with over 50% equity in the car and all the other info you've given. There are so many banks and credit unions out there, there have to be some that will do it. It might be at a higher interest rate than you have now, but given what you said earlier about your job and limited expenses, you should be able to pay it off early and rather quickly, right?

[GearheadSS]

Ok, so you put $15k down on the car? Something isn't adding up here.

In my store, if you had any credit history at all and if you're score was 750 like you said it was, you would have been able to get a loan with $15k down.

Either you're not telling the whole story or this whole thing is just a troll fest.