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**Badseed** · 10-27-2005, 05:35 PM

Re: Auto Loans, Credit Scores, etc...Help please

Hey dan, your score is good enough to get what you need. Get it to 660 and your rate will go down quite a bit.Anyone over 700, the skies the limit.

Bounced checks only show on credit when they dont get paid and go into collections..

Dude, you have no worries, no one is going to turn you away.When building yourself up from bad credit, it's not unusual to fear being turned down.You have rounded that corner my friend.I know because i was there not too long ago.Still have some work to do, i got a car last year with a score less then yours.12-14 % interest to start.I can refi and get a lower rate.Check with your credit union , they maybe able to offer you a low interst loan.Most banks and credit unions do those loans as well.

Chin up, your on your way, go get a car for god sakes!!!!
Keep working on your credit.Getting a car and making timely payments will jack your score up [img]/images/graemlins/smile.gif[/img]

**rjohnstone** · 10-27-2005, 05:40 PM

Re: Auto Loans, Credit Scores, etc...Help please

If you're going to be getting a loan through your credit union, I would expect you to see something like an 8.25% interest rate.
Your credit doesn't sound that bad all things considered.
Your job history is what is going to save you in the end.
And considering the amount you racked up and were able to pay it off this quickly, will go in your favor.
Here's the cool part, and I've done this 3 times already.
Once you get a pre-approved loan from your CU, you can negotiate with a dealership as if it were a cash deal.
Since dealerships make their money off of the financing, they will then try and compete with your pre-approved loan to get you financed through them instead.
My first new car I ever bought turned into a deal at $100 below invoice and I went from a pre-apporved rate of 9% from my bank to 7% through the dealership.

Trust me... they want your money and will do almost anything to get it and move a car.
Also, wait until the last day of the month to do the deal. They're always trying to get that one extra car out the door to make thier numbers.
My first new car was a 1997 Mitsubishi Eclipse that list for $18,249.00. I closed the deal for $14,500.00 and that included paying off the remaining $2,000.00 on my previous car loan. I bought it on Halloween night Oct, 31 1996. Last car sold that night and only took 45 minutes from the time I arrived to the time I was driving away.
It may not be that smooth for you, but don't settle for just any deal they offer. They can always make a better offer.

**Badseed** · 10-27-2005, 05:44 PM

Re: Auto Loans, Credit Scores, etc...Help please

"If they say no, will a dealer finance me?"

YES, My girlfriend bought a brand new car last month, with a score over 700, she was told by her bank that they couldnt beat the dealer rates. You may wantto hold off on financing until you hit the dealership and see what they offer.Tell them what your bank offered if its a close call.The dealer wants your buisiness. Dont buy into all the warranties, most are a scam.

**Child Of Norther** · 10-27-2005, 05:51 PM

Re: Auto Loans, Credit Scores, etc...Help please

If you take into account, i'm 18 and managed to buy my laptop on finance, you shouldn't have a problem to be honest.

**fett** · 10-27-2005, 06:08 PM

Re: Auto Loans, Credit Scores, etc...Help please

Be cool and patient. There are so many cars coming back from leases, you should be able to snag an "03" or "04" for a lot less than an "05". Remember, once you drive a "new" car off the lot the resale price drops dramatically. If you finance the a new car you are in a hole from the start. Your car goes down in value while you are paying more and more. You will be what's called "upside down". In other words, your car will be worth less than what you owe. I think Ms. LPC will confirm this. [img]/images/graemlins/headbang.gif[/img]

**mhalsey** · 10-27-2005, 06:36 PM

Re: Auto Loans, Credit Scores, etc...Help please

[ QUOTE ]
Be cool and patient. There are so many cars coming back from leases, you should be able to snag an "03" or "04" for a lot less than an "05". Remember, once you drive a "new" car off the lot the resale price drops dramatically. If you finance the a new car you are in a hole from the start. Your car goes down in value while you are paying more and more. You will be what's called "upside down". In other words, your car will be worth less than what you owe. I think Ms. LPC will confirm this. [img]/images/graemlins/headbang.gif[/img]

[/ QUOTE ]

+1. I have never bought new off the lot; just not worth it. Mine have all been program cars. They're the best deal.

**fett** · 10-27-2005, 06:50 PM

Re: Auto Loans, Credit Scores, etc...Help please

+1. I have never bought new off the lot; just not worth it. Mine have all been program cars. They're the best deal.

[/ QUOTE ] I did drive a new car off the showroom floor back in the 70's. It was a brand new Opel Rally. It was my graduation present. Thank God, my mom paid cash. [img]/images/graemlins/headbang.gif[/img]

**StukaJU87** · 10-27-2005, 06:56 PM

Re: Auto Loans, Credit Scores, etc...Help please

*I have never bought new off the lot*

I only did once. It was a 1985 Chevy S-10. It was a great truck and it cost a whopping $7700. [img]/images/graemlins/laugh.gif[/img]

**LesPaulCustom** · 10-27-2005, 08:24 PM

Re: Auto Loans, Credit Scores, etc...Help please

With a credit score like that, you will have no prob financing a new car, probably with zero down. If you finance at the dealership, like with GMAC, Ford Motor Credit, or DiamlerChrysler, and your not really happy with the interest rate....pay it for one year, then ask the dealer for a copy of your payment history...(i guess all dealers can do that, I know we can) take it to your bank/credit union, and they may be able to get you refinanced at a lower rate.

Also, your much better off buying an 05 since all dealers are trying like hell to move them out to make room for the 06 models....the rebates should be rather chunky.

Mrs LPC

**LesPaulCustom** · 10-27-2005, 08:26 PM

Re: Auto Loans, Credit Scores, etc...Help please

Oh, and do not let them sell to you for MSRP and go the very LAST day of the month...if they havent made their quota...they will bend over backwards to kiss your ass and make the deal

**Deneb** · 10-28-2005, 07:42 AM

Re: Auto Loans, Credit Scores, etc...Help please

I've got a decent credit score, (715) I'm 23, and just have been smart about paying my bills.

Here are a few things to remember, your DTIR (Debt to income ratio) can affect your chances of getting a loan (not the percentage of interest, but the chance of even getting it).

A car loan is secured debt, which means, they are MORE likely to give you the loan, Why? They have something to take back. (same as a home loan aka, mortgage).

If your score is 646, you should be able to buy a car, but the interest rate, will more than likely be not so friendly. Go to the dealer, and tell them you want to buy a car, they know usually who gives who the lower APR.

Now...do yourself a favor. READ YOUR PAPERS when you sign them. A lot of car dealers get kick backs from the banks they finance from, on higher aprs. Make sure you're actually signing a paper with your interest rate.

If you get a call saying, "you forgot to sign some papers" go back and look, make sure it's not another contract, with different terms. Car dealers are sneaky fuckers.

The things that affect credit are, late payments on credit bearing bills (not your home phone or gas bill, you can be late on them, as long as they get paid BEFORE you're taken to collections) DTIR, length of GOOD credit history, and length of CREDIT history in general.

Example, on Card A, you're never on time (and by never on time, I mean later than your shitty grace period, most credit card companies don't report you for being one day late. What they usually do, is make you suffer, higher interest rates...) and card B you're always on time. Well late payments hurt more than on time payments help. So your credit is basically fucked.

If you had a shitty history in the past, about 3 years ago for one year, but then you have gotten it all straightened out, for 2 years running, you've been doing well. Well that's 2 years of good credit history.

Length at the job helps also, as does living at the same address.

Basically, I think you'll get a car, but you're going to get a shitty interest rate,.

**DonP** · 10-28-2005, 10:07 AM

Re: Auto Loans, Credit Scores, etc...Help please

Dealers are in a world of hurt trying to sell cars these days - They need to sell - you (don't really) need to buy. Play hardball. Ask for 0% financing for 5 years (LOL!).

But, I must agree with others - buy used. June '04 I bought a 1997 Saturn SL2 with 143K miles on it for $2350 - fully loaded (I hate the leaky sunroof) leather seats imaculate shape - invoices from all service work done at the dealer. Additional cost - $300 tires, $250 alternator, $770 brakes. Money back - hit by a jackass on the freeway - $1300 cash (hardly any damage - just looks). I'm almost up to 170K miles on it. It gets 35mpg and runs like a top - less the quart of oil consumed every 1500 miles.

So, for over the past 16 months this thing has cost me less than $150 per month, is cheap on gas and insurance.

Put your money into something that will grow your money - BUY A HOUSE AND STOP RENTING!

**ripley156** · 10-29-2005, 04:41 PM

Re: Auto Loans, Credit Scores, etc...Help please

Thanks for all of the help everyone...The comments made me feel a lot better about the whole experience and what I could expect when I tried for financing...

I went to my bank and they agreed to finance me @72 mos for 6.5%. It turned-out my score was actually 686, not 646 like I thought...They said that with a car loan, my Debt Ratio would be around 21%, so I was OK.

(I am still shocked, lol...My credit was so bad a couple years ago I was turned-down for a store credit card!)

Anyways, I went to the dealer and did not have a very good experience with the first car salesman...He said he had absolutely ZERO room to play with ANY $$$...

I went down the road and may have succumed to salesman pressure at another dealership, but think I made out OK in the end...(I like the color better and it had only 6k more miles than the other one)

I bought a 2005 Pontiac Grand Prix for $14,377. (It books for $16,000)...I bought an extended bumper-to-bumper warrenty (up till the odometer reads 85,000) for $1,300 and financed everything else, like tax, plates, etc..)

I will pick-up the car Wednesday [img]/images/graemlins/grin.gif[/img]

(Unfortunately, I feel as if I will pay $298.00 the rest of life, lol!)

I asked about NEW 2005 with zero miles and they were just a smidge under $20k..I figure I have a car with 31k miles, but I paid 4k less after taxes, etc and gained a 54k bumper-to-bumper compared to the 36k bumper to bumper offered with the new car...

However, I did learn the SALESMAN ARE SCARY! Maybe it was my imagination from everything I read, but it sure seemed like they pass you around like a prison bitch and try to keep you confused on purpose, I swear!

Thanks again everyone, I appreciated all of the encouragement and the good advice

Dan

**LesPaulCustom** · 10-29-2005, 07:50 PM

Re: Auto Loans, Credit Scores, etc...Help please

What kind of service contract did you buy?? Was it Universal?? If so, I would cancel it, and get 100% going toward your loan. From what Ive seen in the service dept at work, the service contracts we sell doesnt cover most of what goes wrong....plus the deductibe....I would just ditch it now, but thats my opinion. On Mr LPCs truck, I have life/disability, GAP, and the service contract. I only did that so he could get a check for 2K back to buy a guitar...go figure, he makes the deal with us that he will buy a new truck as long as he can buy a new guitar....

Mrs LPC

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Auto Loans, Credit Scores, etc...Help please

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