Trouble getting approved??

[talwell]

Originally Posted by jrboyd_1980

Straw Purchases are illegal. Unless its your parents and you live with them. I am a dealer. I do this everyday. It falls under fradulant purchase. No go.

I dont mean for him to take the loan - but to actually completely purchase the car and allow him to pay the loan off to him rather than the bank.

[talwell]

I dont mean for him to take the loan - but to actually completely purchase the car and allow him to pay the loan off to him rather than the bank. This would be a family thing - I would not encourage this for anyone outside of family and your name should also be on the paperwork and title of the vehicle.

[JohnInSoCal]

you may have to get your dad to buy it and then just pay your dad. You need to build up credit though, and paying your dad won't do it and in the end you don't have the title. Maybe try and purchase something smaller on credit and pay it back, a TV at bestbuy or something like that.

I'm sure you could find somebody to finance it but it would probably be very high interest.

[garcmol]

Originally Posted by jrboyd_1980

Having a dealership check your credit and it hurting it is a myth. You can check up to 3 to 4 times on the same type of purchase and it won't affect your score. Now if you have them check it for car purchase, and house purchase, and furniture etc.. 3 different types of purchases that will hurt your credit because that is seen as irresponsible spending

I talked of this earlier. But JR, how many banks do you have on speed dial in an effort to get that sale? Hope practices have changed but a dealer dropped my score by mass mailing the credit app to 11 banks. This was years ago and I've recovered since. I just don't want Vesi going door to door bank shopping and completely ruin his score. That's all.

[mjlash22]

Originally Posted by jrboyd_1980

Having a dealership check your credit and it hurting it is a myth. You can check up to 3 to 4 times on the same type of purchase and it won't affect your score. Now if you have them check it for car purchase, and house purchase, and furniture etc.. 3 different types of purchases that will hurt your credit because that is seen as irresponsible spending

I will trust the advice from a banker...your credit score is affected every time it is checked by anyone but yourself. Any hard inquiry will effect your overall score and credit when being looked at. I do not doubt your are an excellent salesman, but that is why financing is separate from sales. Having the dealer check your credit before there is even a car to take home is pointless and will effect your interest rate when you actually try to finance it down the road.

[rkmcmd4]

JR, i know that straw purchases are illegal for guns and alcahol. thus ATF enforces it in most cases. if the dealer does it to get a sale i can see how it might be illegal. this is done thousands of times every day with cell phone contracts.
however if i being dad by a car for my son or daughter as a college graduation gift. and give them the keys and they dont live with me. how is this illegal? i dont understand how it would be different.. bear in mind, under no circumstances would i ever agree to co-sign. i just cant ever agree to the theory.

[Kms]

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?

Try to find a credit union. We put around $2,000 down plus $800 GM points and the dealer gave us $400 off sticker plus $500 60 day buy back waived. My husband and I both have great credit and long history of car loans - thou We went with our credit union - no issues at all. We were pre-approved before the car was built at a great rate for 84 months. We find credit unions work best for us and the approval process is easier.

I would think with your Dad as a co-signer there should be no issue.

Also, don't forget the sales tax will be tax deductible on your 2009 taxes. Not sure but it should save people a couple hundred bucks.

Hope that helps.

[Pope Designs]

Turn the tables. Let your dad be the primary, you be the co. You will still be building your credit as long as your name is on the loan.


Bryan

[jrboyd_1980]

Originally Posted by talwell

I dont mean for him to take the loan - but to actually completely purchase the car and allow him to pay the loan off to him rather than the bank. This would be a family thing - I would not encourage this for anyone outside of family and your name should also be on the paperwork and title of the vehicle.

I've done that.. But then it can get tricky.. Pretty much the Father would be the lein holder and have to pay the car cash, and on the contract the father would actually have to be down as a lien holder. Very complicated.

[jrboyd_1980]

Originally Posted by garcmol

I talked of this earlier. But JR, how many banks do you have on speed dial in an effort to get that sale? Hope practices have changed but a dealer dropped my score by mass mailing the credit app to 11 banks. This was years ago and I've recovered since. I just don't want Vesi going door to door bank shopping and completely ruin his score. That's all.

That's shotgunning the credit. Actually we will only submit to one bank at a time at my Dealership. If we have to submit to more than three we let the customer know. But truthfully, I've done this long enough to have a general idea on what going to need from customer to get approved, my sales manager has been doing it long enough to structure deal right, and my finance manager has being doing finance at the same dealership for 32 years and she knows which bank to send to with which structure. Usually get approved first shot.

[vesi]

Originally Posted by Pope Designs

Turn the tables. Let your dad be the primary, you be the co. You will still be building your credit as long as your name is on the loan.


Bryan

I'd like to do that, but my parents are very against it. I can't seem to get it across to them that its pretty much the same as co-signing. They don't believe i'll build credit that way, and seem to think its more risk for them.

Hopefully the more money down helped, looking into credit unions though.

[jrboyd_1980]

Originally Posted by rkmcmd4

JR, i know that straw purchases are illegal for guns and alcahol. thus ATF enforces it in most cases. if the dealer does it to get a sale i can see how it might be illegal. this is done thousands of times every day with cell phone contracts.
however if i being dad by a car for my son or daughter as a college graduation gift. and give them the keys and they dont live with me. how is this illegal? i dont understand how it would be different.. bear in mind, under no circumstances would i ever agree to co-sign. i just cant ever agree to the theory.

That's one of the few cases that is in gray area. Can be considered illegal, but 99% of banks I work with, as long as the dealership informs the bank will accept this. But this can affect your APR some as well because the bank will see it at a higher risk.. (that part is up to bank)

[jrboyd_1980]

Originally Posted by vesi

I'd like to do that, but my parents are very against it. I can't seem to get it across to them that its pretty much the same as co-signing. They don't believe i'll build credit that way, and seem to think its more risk for them.

Hopefully the more money down helped, looking into credit unions though.

Even with your dad co-signing, I can bet they are putting him first on contract with bank. It doesn't affect it worst with him as primary. And you do build credit. It shows on your report

[vesi]

Originally Posted by jrboyd_1980

Even with your dad co-signing, I can bet they are putting him first on contract with bank. It doesn't affect it worst with him as primary. And you do build credit. It shows on your report

I believe you, its just hard getting them to believe it