I am not expert, but they way it was explained to me once was that as long as the origianl terms of the loan are unchanged, I believe there is nothing you can do. This is very common in the mortgage industry. *shrugs*
I just called Bank "A", who we were approved through, and guess what, they have no record of me or my wife anywhere in their system......so we signed papers with a company that has never even heard of us. How can a dealer tell someone that are approved through someone that has never even heard of them????? "FRAUD".........
You should definitely be getting a WRITTEN confirmation from Bank B. A phone call alone could be an incident of fraud. Did they say "so please send your payment to us at xxx New Address?"
For sure I would NOT send any money to some "new bank" without having a *written* statement of the loan, including the terms (should be same as negotiated with dealer).
That said, yes it is common that loans can be sold to another bank, It sounds like that may have happened since Bank A no longer (or never did) have any record of you.
This kind of thing is why arranging your own financing can be easier for peace of mind than going through the dealer. When you do it yourself, you know with whom you were dealing and where they're located. If they then sell the loan to someone else, ok, at least you have the record of what the transaction was.
Are you sure they said you ar approved with Bank A, or did they just say that you were approved?
My salespeople use one bank credit application for every customer. They know how to have it completed, so that is why we use it. I may use the same bank contract, and assign it to another bank.
One example: You fill out a credit application provided by Bank One. I submit your credit application to HSBC. I sign you out using a Bank One contract. I then attach an assignment letter to the front of your contract that is sent to HSBC.
Now, you were approved. You may have assumed that I was using Bank One, when in all actuality, I was using HSBC from the start. Could this possibly be a misunderstanding as opposed to fraud?
Do you tell your customer you're doing that? That would seem very sketchy to me, if I thought I was applying to Bank One via your dealership, and you were actually going to a different lender without telling me.
Just out of curiosity, if you were happy with with the loan araingement what does it matter if its Bank A, Bank B, or Bank of Ma and Pa Kettle *headtilt*
I understand the frustration, but what does it matter?
We do the same thing since one of our loan apps is frankly much easier to fax then all of the others. Just fill out one loan app and then send it to as many banks as we need or want to. Much easier from our side but we always tell the customer the bank at the top of the app might not be the one you actually get your loan through.
Rarely will I tell them who I am going to submit an application to. On the other havd, I would say that they usually know who the loan is going through. Most people could care less, as long as the payment and interest rate are acceptable.
I was just curious. I've only once had a bank loan for a car, and that was for the very first car I ever bought; beyond that I've either financed through my credit union or I've paid cash.
I don't know why it would make a difference which bank, just that some people might prefer one bank over another. Guess if that's the case they need to organize their financing themselves and not let the dealer do it.
Last February I financed my car through my CU at 2.9% for 3 years. I thought it was a great rate because the 4/5 year rates were 4.9%.
I check every once in a while to see what the rates are doing and the 3 yr is still 2.9% and the 4/5 year has DROPPED to 4.5%. Crazy considering the Fed has been raising rates.
Also, last week the CU raised the rates on its CDs (or share certificates as they call them). So no I can get a 1 year CD with a 4.4% rate - higher than my car loan.
This is when it's good to be a saver, when interest rates are finally going up.
My CU gives the same rates yours does. When a car loan is 4.49, and I can make 4.49 on a CD - that's when it gets interesting, trying to figure out if it's better to pay cash or to get a loan. It doesn't often happen that rates are so equal, and probably won't last. Usually borrowing costs you more than what you'd earn in savings.
Even better idea- use your Home Equity Line to purchase your car. Now the interest on your car loan is tax deductible at that 4.5% is something less. *thumbs-IRS*
True about paying taxes on the interest, but it's still close enough to be comparable. And if the savings are in tax-deferred muni or state bonds, then it really does come out very close.
Re home equity lines - personally, I would never use a HELOC unless it was to re-invest in the house in some way, to pay for improvements of some sort. Other than that, I wouldn't treat my house like a piggy bank. That amounts to paying interest twice, first on the original mortgage and then again on the HELOC. Just doesn't make sense to me.
That's just me, because my grand plan involves possibly getting a reverse mortgage on my paid-off house during my "senior years." Or else selling it and moving to a warmer climate or something. Anyway, I don't want to eat up the equity in the house for a depreciating asset like a car. Your Mileage May Vary, of course.
Technically all interest income is taxable. Banks and other financial institutions are required to report to you on a 1099-INT if the total earnings during the calender year is over $10.
There are rules that if you gross income is lower than the standard deduction or under even funkier rules if someone else can claim you as a dependant then you are not required to file a return.
But generally all interest is taxable for Federal income tax purposes unless it is exempt, such as interest on municipal bonds.
That is true, all income regardless of the source has to be reported.
There are rules that if you gross income is lower than the standard deduction or under even funkier rules if someone else can claim you as a dependant then you are not required to file a return.
If someone can claim you as a dependent then the deduction rules change but you still may have to file a return. Also note that even if your income is under the standard deduction you may still file to receive a refund if taxes have been withheld from your earnings or if you have certain tax credits that you can claim.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
"That amounts to paying interest twice, first on the original mortgage and then again on the HELOC."
No it doesn't.
The HELOC is just another loan, with its own interest and its own tax rules. I suggest to use whatever source is the cheapest and no worrying about names or voodoo mathematics.
Now if someone were to make minimum payments on the HELOC and thereby finance a car for 25 years, that would be stupid... but the fault lies in the repayment schedule, not in the fact that it's a HELOC.
This is MORE than anyone wants to hear but remember the interest on a HELOC loan is only deductible on the first $100,000 of indebtedness. So for easy math purposes, if you used a $200,000 HELCO loan on the down payment of your Ferrari, than only 1/2 of the interest is tax deductible.
Secondly, if you used funds from a HELCO and to the extent they were NOT used for the maintenance, repair or acquisition of your main home then the allocable interest is an add back for purposes of the AMT (alternative minimum tax)
OK- this public service announcement has ended *yawn*
This is MORE than anyone wants to hear but remember the interest on a HELOC loan is only deductible on the first $100,000 of indebtedness.
yes I know and 99% of the cars on the road cost less than $100k (remember I said most people will not notice a difference).
Secondly, if you used funds from a HELCO and to the extent they were NOT used for the maintenance, repair or acquisition of your main home then the allocable interest is an add back for purposes of the AMT
Again most people will not be impacted by AMT (remember I said most people will not notice a difference).
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Thanks for the correction. I was thinking about something else regarding the $400 limit.
I guess I should have looked at my tax statement from my own CU before posting:
"Since XXCU is not required to report dividend earnings of $10.00 or less to the IRS, a Combined Tax Statement has not been issued for your account(s)."
I'll exceed that this year from my CU, though. I'm on pace for TWENTY DOLLARS of interest income from my CU this year. I am RICH!!!!
Tax law can be SOOOO confusing. My wife and I qualified this year for what I assume is a relatively new tax credit on retirement savings. You can, apparently, get 10-50% back on whatever amount you put into retirement savings based on your income/marital status/kids. If I had known about this, I would have put 2-3 times more into my retirement account last year.
I need to purchase a car. I have been discharged from Bankruptcy since July 2005, I am still cleaning up the mess. My credit score 560 (high score). I have owned my house 15 years without late payment and have 22 positve accounts on my credit report, including three auto loans paid without a late payment. Who can I turn to for a loan? Any advise is appreciated.
I'm confused as to why filing for bankruptcy was necessary, since you indicated that you haven't been late on a house or auto loan payment. Since you said you have 22 (!) positive accounts, I'm assuming your troubles are due to credit cards.
Anyway...my advice would be to forget about applying for a loan. You have a mortgage, and three car loans, and alot of other open accounts. And you've already filed for bankruptcy. I don't really see why a loan would help. I think you need to consider that "not an option", and work on getting yourself out of debt the old fashioned way. (Cut up your cards,minimize your spending,pay down your debt,stop borrowing money). :lemon:
Hi there! I was wondering if anyone has gotten an auto loan thru Centrix? They look past credit scores and look at the bigger picture. Any info would be great. Thanks!
The bankruptcy was due to medical bills, not credit cards, before filling bankruptcy I owned three homes, all sold prior to filing the chapter 7, it took months for two of houses to sell eating up my savings. At present I do not have any car loans, I just sold my car, I did not include in the bankruptcy and never had a late payment. My 22 positive accounts are from years of good credit. The medical bills and loss of income were the cause, not a lifestyle of living off credit cards.I am looking to reestablish my credit with an auto loan. I do not have any credit cards or new outstanding loans. The home I live in for the past 12 years has no late payments. Life happens!
Congrats to you on working towards getting yourself back on your feet. I wish you much success and hope you have moved passed your medical issues. I am sure you have a new realization of what is truly important.
May the sun always shine upon you and a smile always find your face.
Hi there! I was wondering if anyone has gotten an auto loan thru Centrix? They look past credit scores and look at the bigger picture. Any info would be great. Thanks!
Centrix is a subprime lender like Onyx, Americredit, and others. I don't know the details, but I think they're similar and competitive to any others.
I have a Centrix Auto Loan... I don't know if they look past credit scores or bankruptcy.... I feel that my monthly payments very high considering my other card payments since 1999 when I got my first used car. I believe they are over priced. I personally do not like the attitude of the people you have to deal with at Centrix. Presently, I want to refinance and they do not refinance.
Is it true that it is possible to qualify for a car loan if you make less than the usual $1500 per month minimum, but have excellent credit? I would really like to get my car financed in my name to build my credit even more. I have a 2 1/2 year credit history and my score is 730-755 depending on the bureau. I am just barely under the $1500 per month income and I'm looking to finance about $13000. Will any bank finance me with a decent interest rate since I have no debt and no rent since I still live at home (I'm not a loser, I'm just still in school ) I can't really go cheaper since I need a good commuter car that's not going to break down. I'm only planning to get a new, cheap car and put about $3000 down if that helps me at all.
Hi guys. Needed to know how to go about purchasing a Pilot. The problem/s are: We just paid off all our debts down to 20% balance this week so I expect to get higher credit scores out of this. And as the title stated, I drive but stopped working for about a few months already and the wife works but she doesn't and can't drive...
1. How long do you guys think I have to wait before our credit scores will reflect our payments?
2. Can anybody tell me how we can purchase a car, if she's the one going to pay but I'll be driving and purchasing the insurance?
I think in CA only name on DMV registration can buy insurance for vehicles...As for my credit score, it'll be just as high as hers I think, because even if I'm not working right now, we are each co-holders of all our accounts. We've never bought our own cars since we just get the two we have from parents. So will we be getting a first time buyer thingy with a purchase too?
Does anyone out there know why the finance department at dearlerships run your credit if you have your own financing for your vehicle purchase. I am purchasing a car and I already have my check from my credit union to pay for the car in full but the dearler stated that they still need to run my credit. I don't understand. Is this just a way to get in your credit business? Is there anyway I can get around this without them having to run my credit? I already have the money for my car.
..**Is there anyway I can get around this without them having to run my credit? I already have the money for my car...**
If you actually have the check "in-hand" - not a draft ... and you can bring it on the day of delivery, then it won't be a problem.
The reason why dealers do this is for their own protection ..... most Credit Unions (not all) only cut checks on certain days .. most Credit Unions (not all) use "drafts", and they can't be deposited and they're not cashable unless the CU gets the title first, so it becomes almost meaningless to the dealer ..... kinda like if your friend owed you $500 and he swears he'll pay you on Tuesday ....
We pay for our cars with a personal check and I tell the dealers they can run a credit check on us if they like. I can't see the harm in it. Since I am offering to exchange a piece of paper for their new car, letting them check our credit seems reasonable to me.
It really depends on the lender. I have a few friends who were approved for loans for new cars while living at home and not making a ton of money. You may not get the greatest interest rate, but you have a high credit score and a good down payment which might help you. Do you have a Scion dealer in your area? They seem to be aimed at younger buyers and might be able to help you out.
My fiance and myself just tried to lease a Nissan in New York state, and the dealer wouldn't disclose what his money factor was because he said that the law doesn't require him to -is this true? Obviously, we didn't sign a lease with someone who wouldn't show us how he was calculating the numbers, but want to know what to expect from other dealers :confuse:
""the dealer wouldn't disclose what his money factor was because he said that the law doesn't require him to""
--Just look at the statement and move on to another dealership. Would your really want to do business with anyone who quotes how much they will do for you based on the law?
Leases are easy to calculate... but, once you get to the final numbers, you have to remember.. You are renting the car for a monthly payment..
It may vary by state, but I think the only things that actually have to be disclosed:
1) Term/mileage of the lease
2) Monthly payment
3) Amount due at signing
4) Residual amount in USD
The money factor isn't like an APR, as you aren't technically paying interest on the lease (even though it works exactly like that). You are paying a monthly amount to rent the car.
But, all that said.. I agree with the others... If they say they won't tell you, because they don't have to.. I'd go elsewhere.
Is there a rule of thumb about how much to put down if you are looking at, say a four or five year loan, and you want to never be upside-down during the term of the loan? Is 20% enough? 25%?
I would say there is no rule of thumb. Cars depreciate at different rates. Car 'A' may lose X percent of its value when its driven off the lot and car 'B' might lose X + Y percent. Plus how much you drive and how you keep your car will play a part in this too.
I would say play it safe and put 30% down.
Also if you plan on keeping the car past the loan term the issue is moot (but you might want gap insurance).
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
I was in the middle of a deal today when I was blind-sided by my dealer refusing to accept an E-Loan check. I have a "PowerCheck" payable through "US Bank" - - which type of check is this - - the "draft" or the better one?
Comments
For sure I would NOT send any money to some "new bank" without having a *written* statement of the loan, including the terms (should be same as negotiated with dealer).
That said, yes it is common that loans can be sold to another bank, It sounds like that may have happened since Bank A no longer (or never did) have any record of you.
This kind of thing is why arranging your own financing can be easier for peace of mind than going through the dealer. When you do it yourself, you know with whom you were dealing and where they're located. If they then sell the loan to someone else, ok, at least you have the record of what the transaction was.
My salespeople use one bank credit application for every customer. They know how to have it completed, so that is why we use it. I may use the same bank contract, and assign it to another bank.
One example: You fill out a credit application provided by Bank One. I submit your credit application to HSBC. I sign you out using a Bank One contract. I then attach an assignment letter to the front of your contract that is sent to HSBC.
Now, you were approved. You may have assumed that I was using Bank One, when in all actuality, I was using HSBC from the start. Could this possibly be a misunderstanding as opposed to fraud?
I understand the frustration, but what does it matter?
I don't know why it would make a difference which bank, just that some people might prefer one bank over another. Guess if that's the case they need to organize their financing themselves and not let the dealer do it.
I check every once in a while to see what the rates are doing and the 3 yr is still 2.9% and the 4/5 year has DROPPED to 4.5%. Crazy considering the Fed has been raising rates.
Also, last week the CU raised the rates on its CDs (or share certificates as they call them). So no I can get a 1 year CD with a 4.4% rate - higher than my car loan.
My CU gives the same rates yours does. When a car loan is 4.49, and I can make 4.49 on a CD - that's when it gets interesting, trying to figure out if it's better to pay cash or to get a loan. It doesn't often happen that rates are so equal, and probably won't last. Usually borrowing costs you more than what you'd earn in savings.
Re home equity lines - personally, I would never use a HELOC unless it was to re-invest in the house in some way, to pay for improvements of some sort. Other than that, I wouldn't treat my house like a piggy bank. That amounts to paying interest twice, first on the original mortgage and then again on the HELOC. Just doesn't make sense to me.
That's just me, because my grand plan involves possibly getting a reverse mortgage on my paid-off house during my "senior years." Or else selling it and moving to a warmer climate or something. Anyway, I don't want to eat up the equity in the house for a depreciating asset like a car. Your Mileage May Vary, of course.
But even so, isn't there a minimum of $400 interest income before you have to declare?
There are rules that if you gross income is lower than the standard deduction or under even funkier rules if someone else can claim you as a dependant then you are not required to file a return.
But generally all interest is taxable for Federal income tax purposes unless it is exempt, such as interest on municipal bonds.
The $400 threshold is only for filing the schedule B, where you list all of the payers and amounts..
regards,
kyfdx
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That is true, all income regardless of the source has to be reported.
There are rules that if you gross income is lower than the standard deduction or under even funkier rules if someone else can claim you as a dependant then you are not required to file a return.
If someone can claim you as a dependent then the deduction rules change but you still may have to file a return. Also note that even if your income is under the standard deduction you may still file to receive a refund if taxes have been withheld from your earnings or if you have certain tax credits that you can claim.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
No it doesn't.
The HELOC is just another loan, with its own interest and its own tax rules. I suggest to use whatever source is the cheapest and no worrying about names or voodoo mathematics.
Now if someone were to make minimum payments on the HELOC and thereby finance a car for 25 years, that would be stupid... but the fault lies in the repayment schedule, not in the fact that it's a HELOC.
-Mathias
Most people will seen no difference in a HELOC loan when it comes to tax rules on interest.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Secondly, if you used funds from a HELCO and to the extent they were NOT used for the maintenance, repair or acquisition of your main home then the allocable interest is an add back for purposes of the AMT (alternative minimum tax)
OK- this public service announcement has ended *yawn*
yes I know and 99% of the cars on the road cost less than $100k (remember I said most people will not notice a difference).
Secondly, if you used funds from a HELCO and to the extent they were NOT used for the maintenance, repair or acquisition of your main home then the allocable interest is an add back for purposes of the AMT
Again most people will not be impacted by AMT (remember I said most people will not notice a difference).
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Wanna tackle the Auto Lease Inclusion amount next *snicker*
I guess I should have looked at my tax statement from my own CU before posting:
"Since XXCU is not required to report dividend earnings of $10.00 or less to the IRS, a Combined Tax Statement has not been issued for your account(s)."
I'll exceed that this year from my CU, though. I'm on pace for TWENTY DOLLARS of interest income from my CU this year. I am RICH!!!!
Tax law can be SOOOO confusing. My wife and I qualified this year for what I assume is a relatively new tax credit on retirement savings. You can, apparently, get 10-50% back on whatever amount you put into retirement savings based on your income/marital status/kids. If I had known about this, I would have put 2-3 times more into my retirement account last year.
Anyway...my advice would be to forget about applying for a loan. You have a mortgage, and three car loans, and alot of other open accounts. And you've already filed for bankruptcy. I don't really see why a loan would help. I think you need to consider that "not an option", and work on getting yourself out of debt the old fashioned way. (Cut up your cards,minimize your spending,pay down your debt,stop borrowing money). :lemon:
Terry.
Cheers!
Congrats to you on working towards getting yourself back on your feet. I wish you much success and hope you have moved passed your medical issues. I am sure you have a new realization of what is truly important.
May the sun always shine upon you and a smile always find your face.
Godspeed.
Centrix is a subprime lender like Onyx, Americredit, and others. I don't know the details, but I think they're similar and competitive to any others.
scores or bankruptcy.... I feel that my monthly payments very high considering my other card payments since 1999 when I got my first used car. I believe they are over priced. I personally do not like the attitude of the people you have to deal with at Centrix.
Presently, I want to refinance and they do not refinance.
1. How long do you guys think I have to wait before our credit scores will reflect our payments?
2. Can anybody tell me how we can purchase a car, if she's the one going to pay but I'll be driving and purchasing the insurance?
I think in CA only name on DMV registration can buy insurance for vehicles...As for my credit score, it'll be just as high as hers I think, because even if I'm not working right now, we are each co-holders of all our accounts.
We've never bought our own cars since we just get the two we have from parents. So will we be getting a first time buyer thingy with a purchase too?
Somebody please help with some info... :confuse:
Thanks!
If you actually have the check "in-hand" - not a draft ... and you can bring it on the day of delivery, then it won't be a problem.
The reason why dealers do this is for their own protection ..... most Credit Unions (not all) only cut checks on certain days .. most Credit Unions (not all) use "drafts", and they can't be deposited and they're not cashable unless the CU gets the title first, so it becomes almost meaningless to the dealer ..... kinda like if your friend owed you $500 and he swears he'll pay you on Tuesday ....
Terry.
The application gives them the authorization to check, if you feel that strong, then dont fill out the application.
But for the very reasons Terry pointed out, be prepared for them not to give you a vehicle.
Obviously, we didn't sign a lease with someone who wouldn't show us how he was calculating the numbers, but want to know what to expect from other dealers :confuse:
--Just look at the statement and move on to another dealership. Would your really want to do business with anyone who quotes how much they will do for you based on the law?
It may vary by state, but I think the only things that actually have to be disclosed:
1) Term/mileage of the lease
2) Monthly payment
3) Amount due at signing
4) Residual amount in USD
The money factor isn't like an APR, as you aren't technically paying interest on the lease (even though it works exactly like that). You are paying a monthly amount to rent the car.
But, all that said.. I agree with the others... If they say they won't tell you, because they don't have to.. I'd go elsewhere.
Regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
I would say play it safe and put 30% down.
Also if you plan on keeping the car past the loan term the issue is moot (but you might want gap insurance).
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D