Trouble getting approved??

[meanmike]

Originally Posted by jrboyd_1980

The 45 minute video training that we have to go through every 6 months. It's a fraudulant contract.

I'm not calling you a liar but what make's it fraudulant? I mean I watch those small claim show's like judge Judy and you know all the time's I've seen people are on there suing for their money because they got a loan to help the other person. This is no different.

[Susantroy1]

Originally Posted by dstairs

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.

Great Post good Info

[jrboyd_1980]

Small Claims and a $40,000 loan are two different things. Trust me. If it was discovered that I was aware that a purchase was a straw purchase, it would be my job. Falls under the money laundering act as well. Drug dealer doesnt want Government to know he has income. He doesn't pay any taxes. He get's his friend who is legit to purchase car, and he makes payments using drug money. Dealership and bank inadvertantly are responsible for using drug money. Happened to local dealership down here. The sales person, the sales manager, general sales manager and finance manager were all arrested because they knew it was a straw purchase.

[Coldpants]

Wrong it is illegal for dealers to pull what is called a straw purchase scam. That is to say to do what you were thinking of without telling you. While it is not recommended for multiple reasons however legality is not one of them. You may run into trouble with insurance and u must check the bank rules before entering into the loan. But there is no law against this. Do not take my advice look it up.

[TN20]

Originally Posted by meanmike

I'm not calling you a liar but what make's it fraudulant? I mean I watch those small claim show's like judge Judy and you know all the time's I've seen people are on there suing for their money because they got a loan to help the other person. This is no different.

I actually believe it is a state by state thing.

[jrboyd_1980]

Originally Posted by Coldpants

Wrong it is illegal for dealers to pull what is called a straw purchase scam. That is to say to do what you were thinking of without telling you. While it is not recommended for multiple reasons however legality is not one of them. You may run into trouble with insurance and u must check the bank rules before entering into the loan. But there is no law against this. Do not take my advice look it up.

I do this for a living. Not going to argue a mute point. It's part of the whole Red Flag Policy that started in effect last year. Just like now, if you don't have a house phone land line, your going to notice dealerships asking you for a phone bill showing that the number you provide on the credit app is your cell phone. I do this every day 6 days a week for 51 weeks a year. Feel free to take others advice, but trust me as a dealer, you do not want to do a straw purchase. Bank can void the contract as well.

[Coldpants]

Another trick, called the "Straw Purchase" happens when the dealer says you have a terrible credit score and need a co-signer. However, the dealer knows your credit score is so bad you would never qualify for a loan. He gets you to find a co-signer for the loan, but in the paper shuffle, it ends up that the "co-signer" is the actual purchaser of the vehicle.

Dealar at fault.

[jrboyd_1980]

That's not a straw purchase as long as the other person is still on contract. That's the banks call. The bank will tell you to resubmit deal with the co-signer as the primary and the primary as the secondary. Thing here is the BANK knows who the driver is.

Now are their Dealerships that do things shady? Yes.. But guess what. Banks find out and then quit lending them money. One of our competitors went out of business because of the 20+ lenders they had, all but 4 decided to quit lending them money, because of practices like that. No one lending you money, then kinda hard to sell cars.

IF bank finds out it was a straw purchase, they have all right to re-posses vehicle from you and void the contract, even if you are paying notes on time

[vesi]

If my co-signer is the primary and im the secondary, would i still get credit for making the payments?

[Coldpants]

Originally Posted by jrboyd_1980

That's not a straw purchase as long as the other person is still on contract. That's the banks call. The bank will tell you to resubmit deal with the co-signer as the primary and the primary as the secondary. Thing here is the BANK knows who the driver is.

In my example the dealer takes the primary off the loan and that is not known to the bank or buyer

IF bank finds out it was a straw purchase, they have all right to re-posses vehicle from you and void the contract, even if you are paying notes on time

Depends on the bank.

The only state that has laws saying anything about straw purchase auto loans. And they are currently under pressure from several consumer protection groups because it make it easier for dealers to push through unfair finance practices. Straw practices are legally covered only when it is about gun or liqueur law.

But like I said that being true it is stll not a good idea. Just make an informed decision.

[jrboyd_1980]

Originally Posted by vesi

If my co-signer is the primary and im the secondary, would i still get credit for making the payments?

Yes you would

[Coldpants]

No in none of these scenarios do you get credit. Your best option would be a credit union as they tend to be more forgiving.

[Coldpants]

You just like arguing with me.... I'd come down there but you can legally shoot me.

[jrboyd_1980]

If he is put down as secondary while the co-signer goes primary? Wow.... Really.. He won't get any type of credit for it on his score?
So when I pull credit here and it shows joint account on the report, its just lying?