Questions About Financing New Vehicles

npumcrisz · October 2007

The Sales Manager at MetroHonda refused to eliminate the four extra charges but as a courtesy for misrepresentation on the part on the employees > deducted $700 from the loan amount which was applied to the loan amount. Thus deducting it and hence a new contract signed. Still not satisfied for the reasons below.

I tried in vain to remove the four extra services from the loan amount. This is were the case now stands.

"I am not convinced the computer program was configured to compute in compound interest......", his exact words.

Since I was writing down the names of everyone including him, he isn't prepared to go to court as the loan contract can't be void for some reason I have to call the NJS department for consumer affairs to clarify.

NB I'm not trying to back out of the contract nor am I trying to return the vehicle because of either a technical error or willful misrepresentation on their part.

npumcrisz · October 2007

Thanks for this information. :shades:

:shades:

I was planning to paying it off after 4 install from the bank.

My reasoning was void the contract the first time these four items are presented to me withen 30 days of receiving the respective documents from the four agencies. Thus they either return the check to me or towards the loan amount.

Now I have to change my plans, thanks again for the information.

ott123 · November 2007

Hi,
I'm looking to purchase a new car soon and I had a question about financing the car. If I'm the only one that is going to drive the car and the car was going to be financed under my wife (who doesn't have a drivers license), will the dealer allow the car to be financed by my wife even though she doesn't have a drivers license? Thanks for your answers.

tidester · November 2007

I don't know what a lender would do in that situation but I suppose they would mostly be interested in the creditworthiness of the borrower. I can imagine similar scenarios where, for example, an unlicensed parent would finance a car for a teen driver or an unlicensed person would finance a car as a gift to a friend or relative.

Good luck!

tidester, host
SUVs and Smart Shopper

lrguy44 · November 2007

The banks here require a valid driver's license with the deal I have ever had to try and get an exception, but since you are married they may be able to. Why don't you go on the deal with your wife? It may make it easier

volvomax · November 2007

Probably won't fly.
If your wife has no license, then she has no insurance either.
NO lender is going to let that fly.
The car buyer MUST have a valid license and insurance.
She could co-sign.

ott123 · November 2007

Thanks for the replies, I'll have her co-sign with me.

perseus1206 · November 2007

We are looking to purchase a new car today through Mazda. We have AVG FICO Scores of 744 & 745. Our total gross income is in the upper 100's and I have accumualated some Cc debt by not purcasing products but by transferring the 0% rates into short-term investments. I handle all the home financing purchases, but will they question me about my Cc's activity? Would I still get the companies introductory rates of 1.9%. Or are they for extremely qualified buyers with no debt and 800 scores? Should we put 20-30% I have never been late. Debt to Income ratio is 21%. I don't want the F&I person to come over and say that you have high amounts of debt and have to explain my acitivty.

Thank you

stickguy · November 2007

hard to say without looking at every number, but from what you listed, they should be salivating to give you money for a car!

The bank (lender) makes the determination, and I don't think the F&I guy is going to be going over (if he even sees) the details of your situation. He will submit the request, and the lender spits back the results.

best bet is just make your deal, and let them approve you. If they don't come back with the tier 1 rate, argue with the lender (I assum FMC in this case, or maybe they still have MMC with mazda).

joel0622 · November 2007

We are looking to purchase a new car today through Mazda. We have AVG FICO Scores of 744 & 745. Our total gross income is in the upper 100's and I have accumualated some Cc debt by not purcasing products but by transferring the 0% rates into short-term investments. I handle all the home financing purchases, but will they question me about my Cc's activity? Would I still get the companies introductory rates of 1.9%. Or are they for extremely qualified buyers with no debt and 800 scores? Should we put 20-30% I have never been late. Debt to Income ratio is 21%

I can almost guarentee that your deal will be an auto approval at Mazda Credit unless you are hooked in a trade.

perseus1206 · November 2007

I can almost guarentee that your deal will be an auto approval at Mazda Credit unless you are hooked in a trade.

Thank you all for you input. Do lenders see a positve for putting at least 20% or should we opt to finance the whole vehicle? We are trading in my old 97 civic, which is starting to give me problems.

Joel0622 - What do you mean by "Hooked in a Trade"?

joel0622 · November 2007

Hooked means you allot more then it is worth.

There are two schools of thought on money down on a low rate loan.

Some believe all debt is bad regardless of the rate.

Others believe (me) that why would I want to put money down on a 1.9% loan. I can make more on my money then that.

volvomax · November 2007

Given your score, the computer will probably buy you automatically.

british_rover · November 2007

Yup. This sounds like one of those deals where you hit submit on the computer screen and the fax machine starts humming a response back from the bank before the computer even finishes loading.

steine13 · November 2007

Someone please tell me this is supposed to be funny.

Cuz it is, really, especially around here.

-Mathias

joel0622 · November 2007

Wow the host are really asleep at the wheel on this one. That or they find it so funny that some one would post that link for this bunch they can't stand to delete it.

joel0622 · November 2007

A couple questions.

If I am a BAD person with GOOD credit will you still give me a loan?

What if I am a so so type person that if you catch me at the wrong time can be a little bitchy but for the most part am a pretty good guy who just likes to go with the flow, and have bad credit. Can you get me a loan?

kokopuffs · January 2008

I am going to purchase a 2008 CR-V. I currently have a 2005 Accord, which a family member is going to buy from me, and I will pay off my remaining AHFC balance and make $5000 off the sale.

Honda doesn't seem to have much in the way for incentives on the CR-V's lately so I am not sure what to do on the financing end. I bought a house about 8 months ago and I do have good credit (Fico was 705 in the mortgage process). What am I looking at for typical rates? My Accord was on a 2.9& for 60 mo as a special, and I am looking at approx $26K for the CR-V with about $6K down.

How bad will it affect my credit to shop around for loans? I really don't want a ton of inquiries, but want to try and get the lowest rate possible. What would be a typical dealer rate on a new car? I also qualify for the new grad program at AHFC because of my masters degree as well.

Any advice would be really helpful.

volvomax · January 2008

Well, if you want to shop online try Capital One.

See what they will approve you for and then see if the dealer will match it or beat it.

dtownfb · January 2008

First don't assume that your credit score is still 705. 8 months is a long time and now you have your mortgage on your credit report. Try your bank or credit union, if you belong to one. Also don't count out Honda Financing. They may be able to work something out that beat the bank and credit union.

lrguy44 · January 2008

Also, a car FICO will be different - car is a mobile depreciating asset

Karen_S · February 2008

A national newspaper is looking to speak to consumers who have had a tougher time getting a car loan recently. Please respond no later than Feb. 15 with your daytime contact information to Chintan Talati at ctalati@edmunds.com.

lrguy44 · February 2008

Boy, is that ever a blatant solicitation.

oldfarmer50 · February 2008

Forgetaboutit!. Youse guys don't need no fancy banks or loan houses. Come on down to Old Farmers Car loans and Orthopedic Center. We give youse a quick loan wit no credit check. For only a few hundred percent a month youse too can have the car of your choice.

And if youse have trouble payin the vig...er..the payment we'll sent one of our friendly orthopedic specialists to your home to help you come up wit da dough. After a therapy session wit Frankie or Vito most people come up wit a way to pay.

Karen_S · April 2008

A reporter from a large daily newspaper hopes to speak with consumers who have had difficulty obtaining credit for a vehicle purchase. If youve had difficulty, please respond to ctalati@edmunds.com with your daytime contact information no later than Friday, April 19, 2008.

canddmeyer · June 2008

This is really a title question, but I don't see anywhere else I can post.

I have money. My sister now makes good money ($95,000), but has horrible credit due to past misfortunes and had to put herself (against my recommendation) into a debt management program, so she cannot get a loan even if co-signed.

The question is, if I paid in full (not financed, but cash) a brand new car would a dealer register and title the vehicle in my sister's name?

I don't want to fly 1600 miles to find out I have to buy it new and then give it to her as a used car two minutes later.

stickguy · June 2008

Just get a cashiers check made out and give it to your sister or the dealer. Not sure if you are just giving this money to her, or if it is a loan that you expect to be paid back.

If it is a gift, you could make the check out to her, or to her and the dealer.

Or give her a big paper bag full of cash, but then the dealer has to fill out disclosure forms!

joel0622 · June 2008

Yes, if a car is PIF they can title it any way you like. If it were me I would ask my sister to get the routing instructions for the dealer ship and wirte the money directly to them.

If you do a cashiers check to her to pay for the car then you get into gift taxes and all that crap. if you mail them a check then you get into them waiting for an out of state check to clear.

canddmeyer · June 2008

Thank you both for the answers. I also emailed a random dealership and they too said the vehicle can be titled to anyone I'd like if paid in full.

mookie14 · July 2008

Hey guys i got a Honda Lease it ends in 8-2010 . My credit got messed up in Oct 07 I was 30 days twice with honda and my cards are still late now what i am about to do is pay ALL OF THEM IN FULL before it comes time to get another honda will i have alot of problems to getting another honda?? thanks lease started in 7-07

volvomax · July 2008

As long as you don't have any more issues w/ Honda, or any of your other pieces of credit, you should be fine.

mctt · July 2008

Can anyone share the pros and cons of Audi's Premium Purchase option? It is supposed to be a optioon of ownership with a balloon payment at end of term. Looking for any experienced advice. Thanks!

metroins · February 2009

I am 24 and make about $78,000/year. I have been trying to purchase a new vehicle but am having trouble. I have a 638 credit score with 3 things in collections from 4+ years ago (medical bills, college total about 2.5k). I have never had a loan of any sort until last year when I went to purchase a house they told me I needed to get credit cards. I got 3 back in May (about $300 limit on each) and I pay all of my bills on time in full every month.

I tried to buy a new truck ($30,000 thereabouts) from Ford and GM; however, i was declined. I am trying to save my money for a house down payment and would not like to spend more than $3,000 down on a vehicle. I have no trade in, I will be keeping my current vehicle. If Ford and GM turned me down, what can I do now? A Co-signer is not available (well they offered, but it's more trouble than it's worth).

metroins · February 2009

Well I got my FICO score last month from a bank. And I do not have a mortgage on my account yet, I was not able to purchase last year; I had to wait until I established lines of credit before I could purchase a new home.

volvomax · February 2009

That low score is just killing you.
First, I'd look at something cheaper.
Second, you are gonna need some downpayment money.
Third, I'd try to get pre-qualified w/ a lender like Capital One, or maybe a local credit union. Or try Toyota or Honda.
No matter what, you gonna get raked over the coals on the rate, but there isn't anything you can do about that.

lrguy44 · February 2009

also no hgh credit is a deal killer on a 30k truck

cliffsr · March 2009

I'm looking at buying a new car. Here's my situation. I filed bankruptcy almost 10 years ago. The bankruptcy will come off of my credit history in June. My credit score right now is 734. Is it going to make much difference if I wait until July for that bankruptcy to clear on my credit report when applying for a loan? Will my score go up much? I'm just trying to decide whether to buy now or wait until July. Thanks for the help ahead of time.

fezo · March 2009

I'm not in the biz so wait for the guys who are but with a 734 score I think you'll do fine.

Yeah, the number will go up when the bankruptcy is gone but you are in good territory already.

volvomax · March 2009

Some lenders will shy away from you because of the BK.
However, if you stick w/ the captive lenders you should be ok.

bamadawg4 · March 2009

Here is my situation. I am looking to buy a new or relatively new used car in the next couple months. I have no income currently, but i have enough savings to put down a decent down payment and make any reasonable monthly payments until I have a source of income. I just graduated from med school and will be a gainfully employed physician starting june 22nd, but until then i have no income. When i was in med school i tried to buy a car but was turned down because i had no proof of income even though i had enough savings for a down payment and any monthly payments. So will the fact that i am now graduated and have a contract starting june 22nd make a difference or will i have to wait until i start working. Id prefer not to wait since i actually have time to look now but wont have much time once i start working.
Thanks.

lrguy44 · March 2009

Before the current credit crunch, with decent credit, down payment and an employment contract in hand financing would not be a problem. I have not had that situation arise recently, but I would do your looking and if you find the vehicle of choice, go for it. The worst they can say is no.

tidester · March 2009

starting june 22nd

Just a thought, but is there anything so pressing that you can't wait just three months? You could spend the time in between deciding exactly what you want so it will take practically no time at all in making the actual purchase.

tidester, host
SUVs and Smart Shopper

bamadawg4 · March 2009

I could wait until i actually start working, i would just prefer not to do that. I am basically on vacation from now until then so i have pretty much nothing to do right now. Add that to the fact that the rear end of my car would like to fall off at any time now. Once i start working i'll be working 6 days a week and my day off will be spent sleeping/studying.

tidester · March 2009

the rear end of my car would like to fall off at any time now

That would be a strong incentive to shop now!

tidester, host
SUVs and Smart Shopper

volvomax · March 2009

Assuming that you currently have good credit,and aren't attempting to borrow a large sum of money and you have a verifiable job coming soon,you should be able to get a loan.
Just be upfront with the dealer when you go shopping.

joel0622 · April 2009

You need a "Intent to Hire" letter from you soon to be employer. It needs to state:

1. Hire date

2. Position hired for

3. Full or part time

4. Starting Salary

5. Point of contact

Take that, a copy of your college degree, and a copy of your checking and savings account statement. Assuming you have any type of decent credit with at least a 640 score any Finance guy worth half of his salary can get that deal done at the captive.

Are you in Georgia?

zuckerbr · April 2009

I'm looking at a Chrysler, and the dealer offers a lower price if I finance through them (at a very high rate). I'd rather pay cash, so the dealer says I can take their financing, they pay it off after one month - with no prepayment penalty.

Does anybody have experience with this? Is it true?

lrguy44 · April 2009

I would run, not walk to aother dealer. First of all, the price should be the same for cash or finance. Secondly, he is trying to make his penetration and flat fee from the bank. If you must finance, check out your local banks and/or credit unions first. The rate may be lower.

zuckerbr · April 2009

Actually, I would prefer to pay cash.
But he's offering $1000 lower price if I take that financing deal.
Why do I care what he makes from the bank?
My question really comes down to whether it's true that I can pay off the loan immediately without additional costs (other than one month's interest).

The fact is, most of the dealers on LI running advertisements require this kind of deal to get the advertised price.

lrguy44 · April 2009

They must be getting dealer cash to do a finance deal. Here in Colorado, all finance deals are simple interest with no prepayment or over payment penalties. Make sure that applies in you deal - read all the fine print. You will pay a daily interest (called per diem) for each day you have the loan. At a high interest rate this could be costly. Find out what that daily rate would be.
If it is a better deal and you have no prepayment/over payment penalties and can live with the daily rate, then do the deal.

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