Credit score question?

[jfclavel]

pss-ive had my checking accounts for 4 years as well...

[jrc1122]

Originally Posted by MarylandSpeed

When your at a dealer..they put your info in a loan system and banks review the loan and come back with approvals and terms. Something like they will finance 110% of MSRP with so much down at X interest rate. Once that has this in hand, the dealer will then try and sell you the loan in the most profitable way they can.

They come out and say "Great New's Bob, your approved at 8.9%!...man it was hard..but we got it done!". In reality they likely have an approval for 6.9% a few for 7.9% and so forth. They won't tell you that because they want to sell you the loan at a higher rate and profit off it. Unless they are gonna use GMAC, they will normally have you sign a RISC, which is a generic loan contract written in a way that allows them to sell the loan to any bank. If the dealership sells the loan at a higher rate than approved for..that is like found money, and loan is now more profitable for the bank. Once you sign the 8.9% contract, the dealer will sell the loan to which ever bank pays them the highest cut of the loan. It's kinda like a finders fee in way.

This is a great website for those who don't want to be taken by a dealer. (Though on a car like Camaro negotiating power is limited).

http://www.carbuyingtips.com/

Damn! Even more reason to secure you own financing before buying.

Good info...
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Toyota Corolla Specifications

[jrboyd_1980]

Honestly, no one here can say whether or not you will get financed, or at what rate you will get financed with. It has to be submitted to a bank. I've seen banks take a 600 beacon and give them a 8-10% APR because the deal made sense to the banker. I just had a bank turn down a deal where the gentleman was a 700, made 150k a year, because he had a DD that he owed 5k on, and had cosigned for his brother on a truck. Well under his debt to income ratio, just didn't make sense to the banks. Only one that can tell you what type of APR you will get, or if you can get financed is a bank or loan officer. Anyone else is just making an educated guess.

[Tal]

Originally Posted by jfclavel

its all good advice, really appreciate cuz i can be a little smarter next time. kinda sux tho because i went to another dealership and since i cant get the dream car i wanted, obviously, i decided to lower my demands and expectations for a lil bit right now. decided i should get the base camaro (ls), you know, nothing special, to start building my credit. price of the car is 24k and i was putting down 2k. same info as before, 30k gross income, live with fam, 22 years old, first car purchase.... i couldnt even get the base model. what gives???

I think you've got a good idea there but the economy is still in a rough spot and as such credit will be tight for awhile. Just keep your credit clean and save up a bigger down payment for an LS. As you pay on that you'll build your credit and have some spare cash available due to the lower car payment, so just look at it as an opportunity to customizing it exactly how you would like as time goes by.

[Darth_Emma]

The smart thing to do is finish school and don't over extend yourself at a young age. I know that isn't what people want to hear because we all love the Camaro and want one now. Invest your money in your education because it will appreciate in value. The car will not. Invest in yourself, then you can more easily afford the toys later in life.

Just my 2 cents.

[rodscamaro]

I think it’s irresponsible to buy a car with less than 50% down, especially during this economy. Even in a good economy I put at least 50% down. Although it is good for people to go spend money they don’t have, maybe it will help kick start the economy, as long as you keep up the payments. Just my .02

[jfclavel]

Originally Posted by Darth_Emma

The smart thing to do is finish school and don't over extend yourself at a young age. I know that isn't what people want to hear because we all love the Camaro and want one now. Invest your money in your education because it will appreciate in value. The car will not. Invest in yourself, then you can more easily afford the toys later in life.

Just my 2 cents.

dully noted

[MarylandSpeed]

Well..that is a loaded statement. It is probaly irresponsible to buy a new car when you can get a much better price on a slightly used one. It is probaly irresponsible to spend $40K on a car like a Camaro when there are better values out there. Though on the internet everyone has a 800 beacon, and pays cash up front for their cars...in the real world most people take the relativly cheap financing out there and use the cash for other things.

Originally Posted by rodscamaro

I think it’s irresponsible to buy a car with less than 50% down, especially during this economy. Even in a good economy I put at least 50% down. Although it is good for people to go spend money they don’t have, maybe it will help kick start the economy, as long as you keep up the payments. Just my .02

[jrc1122]

I will shorten my post..

I have never put 50% down, nor have I paid cash.

I wish I was smarter and more savvy with my money at times, but my bills have always been paid on time and I am NOT irresponsible.
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Honda Sonic history

[ddunerider]

Originally Posted by Cmaro214

i had a 720ish and it took a 10k down payment for them to approve. then again i have very limited history so that was the biggest issue.

This is my story too ...10k it hurt but worth it!

[coryrulez9]

Originally Posted by Iwantone2

yea, i don't know either, but maybe i forgot to mention that my name is on the mortgage don't know if that matters...my credit score went up A LOT becuase i was $14K in c.c. debt (school ) 10 months before i bought my car. when i paid that all off (1.5 months before my car came in), i checked my own score and i saw 792.

in hindsight, i don't care about the high interest because i am paying way over my required payment, so i'm paying my car off quicker.

refinance

[coryrulez9]

Originally Posted by jfclavel

lol yea i know. 20% down payment means about $8K, which i don't have at this time. they're actually refunding my order deposit, so i'm trying one more thing, but if it doesn't work no big deal. i'll just start saving up for a couple of months, then reorder again... who knows, maybe the z28 will be out or something

appreciate all the advice!

You can always get a LT for like 26k and upgrade later

[coryrulez9]

Originally Posted by jfclavel

its all good advice, really appreciate cuz i can be a little smarter next time. kinda sux tho because i went to another dealership and since i cant get the dream car i wanted, obviously, i decided to lower my demands and expectations for a lil bit right now. decided i should get the base camaro (ls), you know, nothing special, to start building my credit. price of the car is 24k and i was putting down 2k. same info as before, 30k gross income, live with fam, 22 years old, first car purchase.... i couldnt even get the base model. what gives??? first i couldnt get the car i waited for like three months for, then i couldnt get the camaro that hardly anyone wants... last resort is to look into getting a slightly used camaro with carmax... i am NOT getting an AVEO!!!!

ps-ive had my credit cards for 4 years now, i dunno if thats enough age

you may just need to buy a totally different used car and use it as a trade in a year or two

[rodscamaro]

Originally Posted by jrc1122

I will shorten my post..

I have never put 50% down, nor have I paid cash.

I wish I was smarter and more savvy with my money at times, but my bills have always been paid on time and I am NOT irresponsible.

I guess I had to learn the hard way, I will never make 500 to 600 dollar payments again. It's just to hard to forsee what's going to happen in the future, even though I was making close to 6 figures. Now that I have a family and house payments, I think it's harder to make big purchases without a large down payment. But if your single, then go for it!!!