Car buying woes!

[medusalox]

I just have to bitch to someone.

My current car is dying. It's not horrible yet, but I'm planning on getting a newer car by this summer. I crunched some numbers, and my spending limit is right around 10k...enough to get a decent, mildly used car, for sure.

So, I found something SO close to my dream car...its a 2000 Jeep Grand Cherokee Limited, with less than 40,000 miles...and everything that a lazy girl like me could want. Leather seats, power *everything*, perfect color, etc. It's through a private seller, and they're asking $10,500 or best offer. Yeah. I want it BAD.

So I go to the bank to apply for a $10,000 loan.

And I get denied.

I understand why, it's because I have a wee bit too much credit card debt. But still. I am SO SO pissed about this. They're currently checking to see if I can get a loan with a co-signer, but it's not looking too promising.

I'm just frustrated, and I had to share!

 

[MiCHiE]

But, maybe you can try a credit union. I was denied by my bank when I was looking to buy my car, too.

 

[medusalox]

Quote:

Originally Posted by ♥MiCHiE♥ But, maybe you can try a credit union. I was denied by my bank when I was looking to buy my car, too.

Oooh, good idea

Thank you!
the bank guy also told me to get financing through a dealership, even though the car is from a private seller. I didn't know you could do that, but I guess you can! So it's not all bad, yet. Discouraging, though!

 

[*Stargazer*]

Do you know your credit scores? If you are armed with that info, you can better decide where to turn next.

I would highly recommend you visit creditboards.com for advice on credit and loans. And you can always try prosper.com for a loan as well.

 

[medusalox]

So, the bank will not give me a loan even WITH a co-signer. I guess it's their policy or something! I have a good credit score, I just have a couple of maxed out cards, which, I'm now finding out, is quite detrimental to someone who wants a loan! Ahhhh well, I will take some time and pay down my debt, and try again later.

Thanks for the help/support ladies!

 

[*Stargazer*]

Quote:

Originally Posted by medusalox So, the bank will not give me a loan even WITH a co-signer. I guess it's their policy or something! I have a good credit score, I just have a couple of maxed out cards, which, I'm now finding out, is quite detrimental to someone who wants a loan! Ahhhh well, I will take some time and pay down my debt, and try again later. Thanks for the help/support ladies!

Oh that bites that they won't let you use a co-signer. Utilization levels on your CC are one of the largest parts of your credit score so that can totally kill you. It sucks because its one of those things people don't really know about. If you can get down to around 20% utilization, you should be in better shape with getting a loan.

Good luck!!

 

[amoona]

Ok when I first bought my car I financed it through the dealership because I had only about 6 months worth of credit at the time. My interest was kinda high but luckily I didn't have to put a down payment (which I didn't have) because my cousin is the manager at the Toyota Dealership haha. After a year I refinanced with a credit union and now I'm doing fine with my interest rate ... which is 5%.

If you can find a co-signer or anything do it because buying a car and making thoes payments does A LOT for your credit. I'm only 20 and my credit score is 751. My mom said she's gonna put the house loan on my name lol.

I worked at a bank for two years so I know a lot about finance stuff ... I know it can be hard to get a loan when you don't have the most amazing credit score and you have a lot of debt. Dealerships will pretty much finance anyone. They have a lot of promotions all the time too so def. check out a few different dealerships and ask around.

 

[medusalox]

Thank you so, so much ladies!

I'm gonna take some time and pay down those pesky credit cards! I pulled them out of my wallet and cut them up to discourage any more spending! Then, this summer, I'm going to go through a dealership and get myself a lovely car.

Again, thank you all for your help! It kept me from pulling my hair out!

 

[WORKTOBUYMAC]

I'm the finance manager for a dealership, you're thinking is right, you can't buy from an individual and finance at a dealership. The reason that dealerships seem to finance anyone is that captive (GMAC, Ford Credit, etc) lenders are more forgiving of what actually makes up your credit score. The lender is more interested in how much you make a month versus your out go and how much your high credit has been (10k high asking for a 30k loan usually won't work w/o a cosigner). If there are no collections and income is good, the dealership should be able to finance you--you may need a cosigner and the rate will be slightly higher.

Just my two cents

 

[medusalox]

Quote:

Originally Posted by WORKTOBUYMAC I'm the finance manager for a dealership, you're thinking is right, you can't buy from an individual and finance at a dealership. The reason that dealerships seem to finance anyone is that captive (GMAC, Ford Credit, etc) lenders are more forgiving of what actually makes up your credit score. The lender is more interested in how much you make a month versus your out go and how much your high credit has been (10k high asking for a 30k loan usually won't work w/o a cosigner). If there are no collections and income is good, the dealership should be able to finance you--you may need a cosigner and the rate will be slightly higher. Just my two cents

Oooh, good to know! Question: what if my income on the books isn't so great? I make most of my money OFF the record...I get paid cash! So I look a lot poorer than I really am. Does this mean I'm screwed? Or at least that I'll be paying a HUGE rate?
Thanks for your help!
You think it'd be easy, right? I"m just gonna walk in and buy a car, no problem. It's not!

 

[WORKTOBUYMAC]

Establishing credit w/o any credit (outside of plastic) is very hard. I would use total income including cash. Having to provide proof of income usually is tied to something else--such as 20yrs old claiming to make 150k per year or lots of collections and claiming to make alot of money--things that don't add up. If it comes to providing proof, just be honest with the F&I Manager and tell them that you make this amount in cash. They will figure a way around it if it can be done. I wish you all the luck and if I help let me know--car people can be ruthless

--be firm, don't back down, and don't buy anything that they say you "need".

 

[*Stargazer*]

Quote:

Originally Posted by medusalox I'm gonna take some time and pay down those pesky credit cards! I pulled them out of my wallet and cut them up to discourage any more spending!

As long as you keep those accounts open and pay them off, or down to a low percentage of utilization, you have a good plan. Don't let anyone talk you into shutting the cards!