Car Ordered but now Financing Issues Please help with advice or experience

[ws6jim]

Ok so last week I ordered a 2011 1ss exactly to my spec. Its my first new car and first big loan with my name on it. This week I'm told nobody would approve me without a cosigner so I gave dads info because he allowed me to. He had a good credit score but closed accounts after interest rate went through the roof and now we are told a score doesnt exist for him.

This was what I was told by the dealership I ordered through.

I have a house in my name (no mortgage) and a decent score of 696 for my age of 26. My oldest credit account is just under 3 years.

I'm financing 33k and putting 3k down and I make more a year than what my loan would be.

What gives are banks really that picky anymore. Will I have better luck finding financing on my own. If so where to? When I initially had a test drive at a different dealer I asked them about my credit and they said they wouldn't have a problem doing something for me. Now the dealer I ordered through is putting me through this unknown.

Btw home equity is off the table for me.


Thanks in advance.

One more point is they switched their order so my car will be in sooner since they replace a lot car with my order. So I need to get things together soon.

[01pewterz28]

It up your local credit union and see what you can get.

Good luck

[chazysoccer11]

I think they're pulling your strings.

[Brett 14 SS]

i work for a dealer. First off, if they could get you approved they would. No dealer wants to lose a sale. Second, did they say no score exists for him or just not a strong enough score to help you get approved? I would def goto the bank you use and see what they could do for you. Sometimes putting more money down will help...if thats an option.

PS. Yes banks are that picky! The banks kept lending money out and weren't getting paid back. That's part of the reason our economy isn't exactly the strongest. The main thing they look at is your income vs. your expenses.

[ws6jim]

Originally Posted by Brett 14 SS

i work for a dealer. First off, if they could get you approved they would. No dealer wants to lose a sale. Second, did they say no score exists for him or just not a strong enough score to help you get approved? I would def goto the bank you use and see what they could do for you. Sometimes putting more money down will help...if thats an option.

PS. Yes banks are that picky! The banks kept lending money out and weren't getting paid back. That's part of the reason our economy isn't exactly the strongest. The main thing they look at is your income vs. your expenses.

Thanks for the info. I checked my credit file to see what banks they used.

Has anyone been denied financing by the dealer only to find financing on their own at another bank.

I was half kidding about the banks being picky as I work for one. I talked to my loan officer but I'm not sure I want to use my bank as the rate isn't competitive. I want to keep it as a last option.

And about dad they said no score exists for him at this time.

[mikel441]

I was in a similar situation. Ordered my car and then found issues with credit. Your best bet is to find a good Credit Union.

[ssummit camaro]

the worst thing you can do right now is let all these banks run credit on you it does affect your score

[IBM/2SS/RS/LS3]

Check Capitol One's blank check program. I saw 2.67, 3.87 and 3.10 so keep refreshing till you get the lowest number. I filled out the info and had an answer in a minute. They verified my info and had a check for up to 40k the next day. Walked into the dealer and they were able to beat the rate with Chase so I cancelled Cap One.

[Entaille]

check your local credit union. if they won't approve you, then you need to spend some time getting a larger down payment and/or a better credit score. banks are not willing to take on risky loans these days without proven history.

[Scrappy Doo]

if you own a house free and clear, and income of 40K or higher, I find it hard to believe that you cannot get approved.

[chazysoccer11]

The dealership is playing with you dude. They're trying to tell you a 696 is a fair or poor score. It's not. They are gonna say, we need a cosigner, and you're gonna go through the trouble of finding one. Then, they are gonna come to you and say "oh! We found you a GREAT deal and can get you approved no problem" the only thing they didn't say is that the interest rate is 14%. GREAT deal. So by this time you'll feel obligated to take it, and the dealer will be making 4-5% off of that loan. It's something lenders and dealers do to help each other out. Lender gives a loan to the sucker and the dealer can tack on 5% if he wishes.

Also, they shouldn't be running your credit now as multiple hits will deduct from your score. Also, a preapproval only lasts for 30 days in some cases for most banks, and sometimes less than that. The car will take over that time period to get to you sometimes longer. Good luck but don't let them take you as a sucker. Tell the dealer no deal, and if they can't make a better deal, then tell them you will go to someone who will. Dealers do not want to lose a sale, so they will do something for you within the week. Maybe before you even set foot off of the lot.

[The_Blur]

If you have limited credit, income is a huge factor in determining what you can buy. The way banks calculate your maximum payment is often very much the same. They take your monthly pay and cut it in half. Basically, you can buy half of your income, so a person with $40,000 per year in provable income can finance $20,000. With your limited credit, it is not surprising that the bank would ask for additional down payment or financing with a co-signer. Oftentimes, you can refinance later to remove the co-signer after several months of on-time payment.

You are better off accepting this loan with a co-signer than going to every bank in the area in search of financing.

[chazysoccer11]

Good point moderator. OP, I did a little research for you and I believe it would behoove you to read this mini article. I know it would clear up alot of questions for many inquisitive buyers. Also I don't think some dealers like it when the customer knows their secrets. http://www.leaseguide.com/articles/finance.htm.

Good luck.

[HuggerFan]

Originally Posted by chazysoccer11

Good point moderator. OP, I did a little research for you and I believe it would behoove you to read this mini article. I know it would clear up alot of questions for many inquisitive buyers. Also I don't think some dealers like it when the customer knows their secrets. http://www.leaseguide.com/articles/finance.htm.

Good luck.

Nice read, thank you, alot of good info.

HF