What questions should I ask to get the best rate for auto financing?

[Immaraia]

My chpter 7 bk was discharged on 09/26/2008, I have been driving a 1994 Mazada MP3 & the tranmission is slipping slowly, but surely. I have gotten a credit card with First Premier Bank which I pay in full on time every month. I have also had some incorrect information removed from my reports. I have been looking into purchasing a 2008 Dodge Charger & I would like to see what questions I mught ask before allowing any finance company to run my credit. Also, do you think it will be possible for me to get 100% financing? Capitol One Blank Check Denied me in 09/06/2008 so they are not a option. Any other suggestions. I plan to buy the Charger By the end of Febuary currently doing my research on the car & as well as the financing after bk. Thanks in advance!



Experian:521 Equifax: 588 Transunion:578

[justbroke]

Tough. First, you get better rates two ways. A "car" FICO score in the 700s, or by putting down money. I found that the more money you put down, the better the rate is.

Also, you mention that you want to buy a 2008 car. Do they have significant incentives and/or really really good discounts right now? I don't know if I'd buy a current model car... maybe a 2007? I don't know if they are discounting the 2008 cars enough yet. As you know, as soon as you drive it off the lot...

If Cap One denied you, your prospects of getting a good rate are probably disappearing. There's also RoadLoans and HSBC Auto Finance.

Remember, the rate is very dependent on the overall deal and your credit. The hire the LTV (loan to value) the worse rate and terms you'll get. The lover the LTV, the better.

You may be able to ask the Finance company if things like a.) 5% down payment, b.) 10% down payment, c.) GAP insurance, d.) low LTV, e.) model and year of car... have affect on their terms/rates.

[Immaraia]

Thank you that was very helpful. I have printed that out to help me in my search. I am buying a used 2008 Charger no more then 15000 total for the car. This may seem silly but one other question, I have so items that i purchase for the Charger ( i know crazy when I don't even have the car yet), but if i ask them to included the installation of the new stereo & headrest monitors to you think they will do it for me?

[BassBoy]

........one other question, I have some items that i purchase for the Charger ( i know crazy when I don't even have the car yet), but if i ask them to included the installation of the new stereo & headrest monitors to you think they will do it for me?

They might, but dealers may not want to add-on any after-market items not purchased with any packages because it could void the warranty. If you/they start ripping out panels and speakers and changing things, whatever parts they touch/change may not be covered. I say this because you're looking at a 1-year old car that will have low mileage and will still be under the original factory warranty. I've seen cars have the entire factory warranty voided because of a minor alteration, like adding a supercharger and/or changing out the manufactuer's components with after market components.

[krielly]

You said your discharge was 9/26/08 and that Capitol One denied you on 9/6/08.

If those dates are accurate - they may have simply denied you due to the fact you had not yet received a discharge.

You may want to contact them to confirm, and let them know you are now discharged.

It may make all the difference in the world.

Good luck!
K

[Immaraia]

Thanks K! How should i go about doing so? Do i just contact there customer service or is there a special number i should call?

[ansky0007]

It wont make a difference... Your credit is not worthy of a car loan without a large deposit. I know people with a 700 score that cant get a loan with the current economic crisis.

[krielly]

I would call customer service and explain your situation. I haven't had any personal experience with them, so I wouldn't know what to tell you other than that.

As to the previous post........that's pretty negative
Maybe it won't be possible, but maybe it will...............

[Immaraia]

Well, I called & asked if i should reapply the customer service dept told me when i firsted applied the the bk was not discharged & since it has been now there has been a change in my credit report. I reapplied & they denied me again. What a waste!!!!! can i call back & find out exactly why i was denied this time?

[krielly]

I think that they have to give you a reason. I also believe they have to provide you with a copy of the credit report they used in their decision. I COULD be wrong there, you may have to request it from the CRA directly.........

I would definitely want to know.

Have you checked your credit reports since your discharge to determine that they are reported accurately? That's VERY important!

[Immaraia]

Yes. I have gotten a copy of all of my reports & even had 3 or 4 old items deleted since the bankruptcy. I have gotten a credit card, that is paid in full every month. There are 7 negatives items on my credit report. 2 of which are included in my & 4 that are old collections accounts from 2002 (that have been paid since 2002) & 1 the actual bk itself. I have written ( Good Faith Ltter) to several companies to try & get this information removed, but one company updated there info & didn't even notifiy me that they rejected my request to remove the item. How can i rebuild my credit if i can't get credit anywhere. I really need a car soon before the van dies & me & my 3 kids are stuck with no transportation.

[ansky0007]

Yes. I have gotten a copy of all of my reports & even had 3 or 4 old items deleted since the bankruptcy. I have gotten a credit card, that is paid in full every month. There are 7 negatives items on my credit report. 2 of which are included in my & 4 that are old collections accounts from 2002 (that have been paid since 2002) & 1 the actual bk itself. I have written ( Good Faith Ltter) to several companies to try & get this information removed, but one company updated there info & didn't even notifiy me that they rejected my request to remove the item. How can i rebuild my credit if i can't get credit anywhere. I really need a car soon before the van dies & me & my 3 kids are stuck with no transportation.

Time is what is needed... Everytime you request more credit your credit will report more negatively. You have already been through going BK, Whats the hurry to do it again. Your credit is in the toilet now just keep paying what you have and in a year or so things will start getting better.

You are not going to get a car loan unless you find someone willing to do it for you but they will be in the 20% or higher rates. Save some money and buy another used car.

[Stilltheone]

Tough. First, you get better rates two ways. A "car" FICO score in the 700s, or by putting down money. I found that the more money you put down, the better the rate is.

Also, you mention that you want to buy a 2008 car. Do they have significant incentives and/or really really good discounts right now? I don't know if I'd buy a current model car... maybe a 2007? I don't know if they are discounting the 2008 cars enough yet. As you know, as soon as you drive it off the lot...

If Cap One denied you, your prospects of getting a good rate are probably disappearing. There's also RoadLoans and HSBC Auto Finance.

Remember, the rate is very dependent on the overall deal and your credit. The hire the LTV (loan to value) the worse rate and terms you'll get. The lover the LTV, the better.

You may be able to ask the Finance company if things like a.) 5% down payment, b.) 10% down payment, c.) GAP insurance, d.) low LTV, e.) model and year of car... have affect on their terms/rates.

HSBC no longer offers auto financing.

I am like the OP. We applied for the Capital One blank check, twice actually, and were denied both times. We applied in September, about 2 months after discharge.

We want to trade in our old vehicle, currently at a $460/monthly payment, for a smaller payment and were still denied.

We were also denied Roadloans b/c our YTD salary was skewed due to a promotion. My husband is going to be getting a $3K commission in January and we plan on reapplying with Roadloans, so the paystub shows the
LARGER commission. Heck, if he's supposedly bringing in $3k/mo in commissions, we should DEFINITELY be approved.

Good luck to you OP. I know how frustrating it is. We've been trying to trade in our vehicle for a new one since August and have gotten NOWHERE. The vehicle we want is STILL sitting on the lot...since August.

[Nicollette]

I'm currently in a Ch 13, and a finance company called Friendly Finance approved me for a car loan with 16.9% interest. The car I currently have is included in my plan so the trustee makes the car payments for me. After talking to my attorney about asking permission to incur debt from the trustee, I decided not to do it for the fact that it will cost me less to keep up the maintenance on my current vehicle instead of surrendering it and taking on a new car payment. I have about $3000 worth of work that I need to get done on my car, but I will just have to do it little by little.

I forgot to add the fact also that my attorney didn't think the trustee would allow me to incur new debt.

Do a google search for "Friendly Finance" and see if they can possibly help you.

Good Luck!!

[ready2puke]

The OP said they paid their cc in full every month? I dont think that helps your credit score much...Pay more than the min. for a few months then pay it off..Isnt it true that as long as you have to owe someone and continue to pay EVERY month that helps raise your score? I dont think paying it off every month will help you ...sounds silly I know but thats the game