Quote:
Originally Posted by vesi
I applied with a co-signer, my father, who has near perfect credit.
My credit is around 670 with discharged bankruptcy on it.
Dealer calls me today telling me everyone they tried denied me financing. Asked if I could put more money down, maybe it would help. I cant really afford much more but i offered to do 2000 more, so 5000 down.
I didn't expect to have any trouble at all getting approved with a perfect score co-signer.
They will be calling me back to let me know if the more money down helped but I'm having my doubts.. Is this normal? Would a different dealer make a difference?
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Credit Scores are only apart of the approval process. There has to a reasonable assurance that the car loan will be paid back. The Bankruptcy, could affect it if it is only recent. More likely you father has wonderful credit and a great score, but may a have a debt to income ratio concern if the new car loan is taken on. The nice thing about money down is the more you have invested up front the more likely a bank will invest in you. If you and your father show more than 2 other open car notes, that may also be a concern.
I am curious are you purchasing at MSRP or below? Have you added any extras above and beyond the factory install options on your window sticker? Are they adding a warranty and insurance (which is a great idea)? A lot of times even with good scores if the dealer is selling at a price that is way over the invoice price of the vehicle you will need more money down.
For example in Texas a MSRP of $36,000 after TTL is going to be close to $38,500. If the invoice price is $34,500, you are going to be $4000 over the invoice. Some banks will loan only 80% of invoice which in this case would be $27,600. That is about 40% over invoice. So if one person on the loan is shaky, then you may need as much as $10,000 down IF they will even consider the loan at all. But money talks. With so-so credit most banks will do 100% of invoice or even in some cases 15% to 25% over invoice.